The President of the United States issued a four-minute statement, a section of which you just heard, demanding an increase in stimulus checks to American citizens.
Republicans now have the president’s cover to sit down and negotiate a bigger deal.
While some political commentators believe that if Republicans deny this request, it will add to fuel for Democrat hopes to win the January 5th runoff in Georgia for control of the US Senate.
We begin this week with the silver price popping over the key $26 per ounce threshold. Silver prices reached nearly $27.50 an ounce in Monday Asian trading, but the price got dropped by large algorithmic sales volumes pushing the price back into the $25 range in today's trading.
Another $50 oz Silver Price Target in 2021
Bloomberg Intelligence predicted this week that silver will follow gold, setting a record silver price high of over $50 oz in 2021.
Bloomberg Intelligence said the bull market in silver has just begun. The company believes that silver will benefit from the electrification and quantitative easing policies in 2021 and become the “main metal” of market concern.
Mike McGlone, the senior commodity strategist at the agency, said that silver will follow gold and reach a record high. He wrote in a report on December 21: "We believe that under the trend of electrification and quantitative easing, silver will become an important metal that the market pays attention to, and its technical aspect also shows that the bull market is beginning to dawn."
This forecast echoes much of the silver bullishness that Ole Hanson of Saxo Bank communicated only a few weeks ago with their $50 oz silver call for 2021.
While both gold and silver have had impressive performances in 2020, if these calls prove correct, 2021 will be an even better yet for bullion bulls.
Turning attention again to respective gold and silver derivative fund flows for this historically large year of 2020. A reported $93.4 billion fund flow moved into transparent gold ETFs and exchanges this year. The GLD and COMEX being the largest recipients of these inflows.
While a reported $7.8 billion fund flow moved into transparent silver ETFs and exchanges this year, the SLV and COMEX being the largest recipients of these record-sized inflows.
The ratio of these historically high 2020 gold silver fund flows is just under 12.
In other words, for every $12 fiat fed notes chasing these gold derivatives, one fiat $USD is flowing to silver.
Yet the current gold-silver ratio is still hovering just above 70 (see the blue line in the bottom half of this chart, that is, the gold-silver ratio throughout this full currency era.
Now swing your attention to the respective gold and silver spot prices on the top half of this chart.
If and when we do again see silver make a run at $50 a troy ounce, where will the gold spot price be and the gold-silver ratio?
By what year might this happen, and at what ratio and gold spot price will we be by then?
Finally, silver bulls out there, if it is true that silver tends to outperform gold sharply at the peak of a bullion bull.
Take note of how far silver still has to go to match gold in this full fiat currency era.
It appears for silver bullion bulls; we’re still in the early innings of what is setting up to be all-time gold and silver mania to come.
That is all for this short holiday week, on behalf of the team here at SD Bullion.
We want to wish you and yours a Merry Christmas and a happy holiday season.