Kitco writer Phillip Streible is questioning whether there can be an alternative to oil referred to as black gold for Gold price expectations.
The famous author makes the following comments on the subject:
My son warned me today that interest rates are rising. I said wow, expressing my surprise. I always keep in mind that the weakening dollar and supportive fiscal / monetary policies, with steadily falling interest rates and rising inflation expectations, are the mixes we need to achieve an overcharged gold bull market.
As 2021 approaches, Gold still suffers from a bad hangover. Her more responsible best friend, Silver, feels deceived after the same hangover.
If you look at the quarterly relative performance of a large commodity listing, it would look like this. Brent Crude Oil and WTI Crude Oil close the first three places with over 25%, copper with 16% and platinum with 9%. Go to the bottom of the list and you will see that gold has dropped 5.22% and silver has dropped 10.04% last.
Now I don’t want to receive hundreds of “manipulated” emails because it’s an excuse. Let’s get better than that and focus on strategy. When I was working at Lind-Waldock, I had a million dollar customer and asked me to call him when the silver was down to $ 1.50 / ounce that day. He felt the manipulators were doing their job, and the bloodbath panic from the little guys allowed the sharks to get in and get a discounted presence.
Gold and Silver
Also, I don’t believe the narrative that for silver to rise, gold must go up; however, I was disappointed to see that silver did not increase while copper and platinum increased their earnings from the supply / demand fundamentals.
One day the truth will emerge as silver production remains mostly stable and demand from an increasing number of regions continues to increase and therefore we maintain long term search spreads. I don’t want silver futures to break out and then decide right away on where to buy.
Since I have no high belief in gold, I am resolving silver issues. Therefore, we focused more on “Black Gold” known as crude oil. Crude oil has established itself as another ‘reopening trade’ with a strong underlying offer below the market.
On Wednesday, we saw a 1/2% drop in US stocks, a 15 million barrel increase in crude oil inventory data, and crude oil futures still managed to make a positive gain during the day. Since then, we’ve seen a clear breakout of $ 50 / barrel for the February contract.
Regardless, however, yellow metal seems to replace black Gold in 2021.