Wednesday Zoom
BAD BOYS
JPMorg
an Chase & Co has agreed to pay more than $920 million and admitted to wrongdoing to settle federal U.S. market manipulation probes into its trading of metals futures and Treasury securities, the U.S. authorities said on Tuesday.
Silver is ‘the best trade’
It’s sporadic but prices could hit $60 this year, says ex-JP Morgan MD
“Short-term, silver is your best trade. There is a lack of silver around the world. There is not much silver at any refineries and getting your hands on physical silver is still difficult. There is a risk of a real silver squeeze this year,” Deane told Kitco News.
This year, silver is also a good leverage play on gold considering the supply issues as well as the climate change angle, which is why the precious metal is likely to outperform gold this year.
Deane does not rule out silver hitting $60 sometime this year. “Silver could trade $40-$50 and potentially $60 this year,” he said.
At the time of writing, March Comex silver futures were trading at $26.69, up 0.18% on the day.
It is important to remember that silver is a highly volatile metal, and even if it does reach $60 this year, it doesn’t mean it will end the year there. “It is a sporadic, high volume trade. This is just a prediction on where it might trade this year rather than where it will end 2021,” Deane said.
Advice on how best to invest, Deane said to own physical. “Owning physical or SLV is how I would do it.”
When it comes to gold, Deane still sees new highs this year, with the range varying from mid-to-low $2,000 to $2,200. At the time of writing, April Comex gold futures were trading at $1,735.50, up 0.73% on the day.
Other solid performers for this year include iron ore, aluminum, and copper. “Copper is a very good benchmark for China,” he said.
Going forward, the approach to COVID will be based on a nation-to-nation basis, which would create travel bubbles and could trigger further supply-chain problems for the metals, Deane added.
‘Monetary policy is broken’
The catalyst that will finally boost silver and gold substantially higher this year is a weaker U.S. dollar. This could happen later in the year if the economic recovery slows and inflation continues to rise.
“Silver and gold need a weaker dollar,” Deane said. “If we see deteriorating economic conditions while inflation continues to move higher, the Fed wouldn’t be able to move rates higher. And by leaving rates low and inflation high, we could get a much weaker dollar and much higher metals prices.”
The COVID-19 pandemic was a catalyst for inflation as it accelerated the amount of debt that the governments around the world had created.
“Before the pandemic, we already had low interest rates around the world. When the pandemic hit, and we got severe economic conditions, it accelerated monetary policy to zero. When you have such a large debt burden, it is difficult to raise rates again. How do you raise rates when you are trying to stimulate the economy?” Deane said. “Monetary policy is broken. It is no longer effective.”
The markets are already sensing signs of trouble as investors digest the sharp rise in the U.S. 10-year Treasury yields, Deane pointed out.
“The U.S. government will struggle to use monetary policy. We are already in a scenario where we see high unemployment. When stimulus dries up, things will get worse,” he said. “At the same time, more money coming into the economy now is inflationary. We are starting to see asset price inflation.”
Another new development to watch this year is the de-centralized way new investors are educating themselves. “This is going to become more prevalent in the years to come,” Deane noted. “We’ve got a lot of retail hunters sitting at home and trading. People are doing more homework now and seeing which asset classes are underpriced.”
agolubova@kitco.comhttps://www.kitco.com/news/2021-03-02/Silver-is-the-best-trade-It-s-sporadic-but-prices-could-hit-60-this-year-says-ex-JP-Morgan-MD.html
NUMISMATIC VS. BULLION VALUE
Numismatic coins and bullion coins are two different entities, but they both hold value. Collectors generally invest in Precious Metals bars and coins; however, they may be unaware of the numismatic value of popular bullion coins available. Numismatic coin value and bullion value carry an equal amount of weight, but the difference is the external value that a numismatic coin has. The rarity and popularity of the coin, intrinsic value, year it was minted and the necessity of the coin all play a role in determining the numismatic value of bullion.
Whether you are investing or collecting for a short term or long-term goal, there are a wide variety of resources that can help steer you in the right direction. You can invest in numismatic coins and bullion coins at the same time. If you are looking for numismatic value, many coins and currency will have the value you seek. As more people get into collecting, the value of numismatics can climb even higher.
Investing in both numismatic coins and bullion can be a profitable and fun experience. For new and experienced collectors, there is a bevy of information on numismatics available that will help you further your knowledge. There are many items that are associated with numismatics including coin types, classification, identifying finishes and the importance of historical coins.
This is reality, not Doom and Gloom.
If you are still on the fence about purchasing as much Gold and Silver as you can to preparing yourself, then 2021 will catch you with your pants down.
This is not doom and gloom conspiracy theory; this is reality taking place right in front of your eyes.
WHY YOU NEED SILVER NOW!
1. Silver Is Actually Real Money. Silver may not be actually a main exchange of currency in most places, but it is still money. If you hold real assets in Silver and Gold, then you don’t need anyone to keep to their word or contract while with other investments you do. By not holding real assets, you are actually losing Money because the $Dollar notes are going down in value everyday. There is no default risk when you hold real assets in Silver & Gold. Silver & Gold has been served as real Money for thousands of years.
2. Silver Is A Real Asset. Silver & Gold are one of a few assets that you can carry around in your pockets and take it with you to other countries. It even hedges against any form of hacking. You can’t delete or remove a Silver Eagle coin, but you can do that with other Digital assets.
3. Silver Is Actually Cheap. Silver can actually protect you against any crisis. It is much more affordable to average investors and it will help you maintain a standard living. In fact, if you want to send someone a gift of $1000 Dollars or more, you can send them a real hard asset like Silver, which is always going up in value. Silver is actually cheaper to buy and more practical when you want to sell it. You can sell as much or as little Silver as you want or need at any specific time.
4. Silver Is In High Demand Globally. The demand for Silver is growing globally. All of the major government mints have had record number of sales just look at China and India. They have very long histories towards Precious Metals.
So as you see the time is NOW to get Silver, so don’t wait until tomorrow,
next week, next month, later in the year; the time is NOW before it is too late.
