On behalf of the SD Bullion team, we wish a Happy New Year to all of you and yours. The year 2021 is poised to be a precious one for both silver and gold. Fireworks in upside price action could set off this Q1 2021.
Here we will examine but a few of the short and medium-term drivers upcoming.
This past week, President Trump signed the stimulus, which will afford $600 checks to US citizens who qualify.
The spot price of gold and silver spot price ended the year in very positive technical territories, which we will cover shortly.
But first, the often-quoted numeraire or measurement for the value of gold and silver respectively had another year of debasement not merely versus the precious monetary metals, but also in relative terms vs. other competing, competing fiat currencies. Perhaps a fiat US dollar secular bear market has arrived.
Below is a monthly fiat USD price chart for gold.
We begin this year near the $1,900 oz level for the precious yellow metal.
After many months of consolidation, gold appears poised to begin making a run for new fiat $USD price highs soon.
Next is an annual gold price chart covering the full fiat currency era now nearly 50 years in the making.
You can see intra-year price wicks reflecting the top and bottom spot prices reached in each respective year if you look hard enough. The color red reflects a year of loss in fiat US dollar terms; the color blue represents a year of gold gains over the fiat Fed Note.
This below is the annual silver price chart.
Here too, intra-year price wicks reflect the top and bottom for fiat $USD silver price history reached in each respective year. The color red reflects a year of loss in fiat US dollar terms for silver. The color blue represents a year of performance gains for silver over the fiat Fed Note.
Turning to silver’s monthly chart over this five-decade full fiat currency era below.
See the current cup-handle-pattern forming over a 40-year timeframe beginning with silver’s run at $50 per troy ounce in early 1980, then back near $50 in early spring 2011. Compared to today’s handle to this long forming cup around the halfway point ($26 oz).
Over the last few weeks on this SD Bullion channel, we have covered why many commodity analysts call for silver to make another run at fifty within this year 2021. Simply look back to how fast this happened in early 2011 for silver to nearly double in price.
While no one knows the future, the silver fiat USD spot price finished 2020 solidly above the key $26 per troy ounce threshold. Have a quick look at how silver reacted early last decade when it started the year so bullish fundamentally and technically speaking.
A little bit of negative news hit the precious metals press wire this past week, and it is bullion education-related.
Here on the SD Bullion website, under the Resources tab on the far right-hand side, you can hover your mouse to find a section called “Investing Guide.” There you can find a myriad of free article posts I wrote a few years back in the hopes to help our customer base avoid painful mistakes and alleged criminal acts in the worst sections of our industry.
If you have anyone interested in learning more about precious metals, that section of our website could help bullion buyers make prudent decisions.
We also have a fun treat for you to check out if you somehow missed our most popular videos from this past year, 2020. Check out the “Top 7 Most Popular Gold & Silver Videos for 2020” if you might have missed them along the way.
Finally, I want to thank many of you for this last year and a bit more for making SD Bullion market updates.
Your energy and appreciation for our work mean much to our team and me.
Here’s to a great 2021. We wish all the best to you and yours ahead.