Update: Gold and silver experienced v-shaped recoveries in December at reaching lows earlier in the month. These lows are higher than last year’s December lows, which demonstrates strength in the bullion market’s continued consolidation. Lower prices did not dissuade investors throughout the year and Guildhall experienced steady precious metals investments throughout 2017. Gold ended the year up over 10% and silver up over 5%
Silver could be considered one of the most undervalued asset on the planet. Darren points out the silver:gold ration which has averaged 50/1 over the last 100 years (historically 16/1), is currently over 75/1.
If status quo remains in the market, Gold could be trading into the high $1,300 range and perhaps break above $1,400. If the market really takes off, the $1,400 level could comfortably be taken out.
UPCOMING SEMINAR: Guildhall has an upcoming seminar to be held at Questrade on Tuesday January 16th, 2017. Sign up here.
INFLATION WATCH: Groceries, energy, insurance… inflation is alive and well. It has to be paid attention too. With the minimum wage set to rise, we expect employers to react by raising prices. Gold and silver are terrific hedges against inflation, rising in value on average 9.5% over the last 15 years.