Precious metal investors should not despair. The long-term outlook remains good.
According to veteran analysts, the recent price decline since August 2020 is modest before it rises again in the ongoing bull market.
“We see the current low prices as an integration phase,” said Jeff Christian, managing partner of CPM Group, a New York-based product research firm, in a recent video.
SPDR Gold Shares
Its pullback, or integration, came after a rally that began in late 2015/early 2016, depending on which metal.
Many Wall Street experts point out that long-term bull markets are often disrupted by periods of sideways pricing behavior after a significant rebound. In other words, any rise in the price of any asset, including metals, will be seen for a period of time when the rise in prices reverses slightly or pauses for a while and then continues to be higher.
He says the resumption of bull markets depends on how the economic and political environment is swaying domestically and internationally.
Major Gold Rally May Start Within 2 Years
However, based on his company’s analysis, Christians say they expect to see much higher gold and silver prices in 2023-2025, perhaps even at “record levels.” This means a substantial increase in both products, which recently raised $ 1,750 and $ 22.38 in troy ounces, respectively. Record levels of metal were above $ 2,000 and above $ 48, respectively. In other words, rallying in silver can be much more violent than rising gold prices.
Christians believe that the recent surge in inflation is temporary and interest rates are likely to remain low for the next decade. Such low interest rates do not give investors abandonment of their gold holdings in favor of bonds.
Those who want to benefit from future rallies should consider accumulating gold and silver bullions in the fall in prices.