In a word, everything. Everything is up with gold. More on that in a minute. It has been a tremendous week for the metals, with gold up 6% to $2161, silver up 9% to $24.48, platinum up 5% to $922, and palladium rocketing up 16% to $1,082.
From a year ago today, gold leads the way up 17%, silver up a solid 16%, with platinum down 6% and palladium off 26%.
The recent rally in gold appears to have some room to run, for the following reasons. The dollar is up YTD, but gold still rallied. A recent report by Vanguard indicates that they believe the dollar is 12% overvalued, and due to decline over the next several years. If gold rallied in the face of dollar strength, it should do even better as the dollar declines (see chart below).
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Another factor is the demand coming out of China and India, with a new cohort of precious metals purchasers - Generation Z. It’s not just older traditional jewelry buyers any longer, with younger generations becoming interested in investing in gold and silver. There has been a slight decline in Western demand for physical metals, but the uptick in Eastern demand is more than making up for that shortfall.
In other words, it might be time to get in while the getting is good.
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byBill Stack