Kitco News
(Kitco News) – Bank of America is holding steady with its call for gold prices to end the year at $1,700 an ounce, but there is a growing bullish case for the precious metal.
The post Bank of America sees potential for $2,000 gold but sticking with $1,700 forecast appeared first on WorldSilverNews.
Kitco News
(Kitco News) – Gold prices have surged higher this week as fear sentiment sweeps through financial markets, with investors worried that the spreading coronavirus will drag down the global economy. However, one market analyst is not convinced that gold prices will continue to push higher.
The post US economic risks still to the upside and will weigh on gold price – Natixis appeared first on WorldSilverNews.
Bloomberg/Justina Vasquez/2-26-2020
“Goldman Sachs Group Inc. boosted its gold forecast to $1,800 an ounce as the coronavirus, depressed real rates and increased focus on the U.S. election continue to drive demand for the metal as a haven.”
USAGOLD note: At $1800, Goldman upgraded its target price by $200 and joined the group of analysts who have cited gold of late as possibly ending up the last man standing among the primary portfolio assets.
Image courtesy of Visual Capitalist
Seeking Alpha/Clif Droke/2-24-2020
“One of the most important U.S. yield curves inverted on Feb. 20, prompting calls among market watchers for the Federal Reserve to further lower its benchmark interest rate. In this report, I’ll make the case that not only will the Fed likely lower rates, but this will in turn boost the attractiveness of gold for safety-conscious investors and thereby strengthen its ongoing bull market.
The gold price recently hit a seven-year high as investors continued to rush into safety assets. Mounting fears that the coronavirus will continue to spread, along with worries over the virus’s impact on the global economy, has been the primary catalyst for gold’s continued rally lately.”
USAGOLD note: In Clif Droke’s latest, he sees the same relationship between gold and inverted yields we covered in last month’s News & Views. The chart below shows the inverted yields between 10-year and 3-month Treasuries and the percent change in the price of gold year over year. The grey bars represent recessions.
The Silver and Gold Eagles, considered to be the most popular bullion coins in the world, will finally be getting a face lift… or least a “tail” lift.
I’ll explain momentarily. But first, some background…
As a result of legislation backed by Senator Jesse Helms and Congressman Ron Paul, the U.S. Mint first struck Silver and Gold Eagles in 1986. The iconic design has remained the same since the coins were first minted over three decades ago.
The obverse of the Silver Eagle has featured Adolph Weinman’s famous “Walking Liberty” along with the year at the bottom of the coin’s front side. This design was first used on the Walking Liberty half dollar in the early 1900s.
While the obverse will remain unchanged, the silver American Eagle’s reverse will undergo changes in 2021.
Sculptor-engraver John Mercanti, who created the Heraldic Eagle on the coin’s reverse, will see his design replaced by a new motif starting with the 35th anniversary coins to be released next January.
These changes will mark the first design change of any kind on either side in the coin’s history.
As for the 2021 Gold Eagle design, the obverse will also remain unchanged and will continue to feature Augustus Saint Gaudens’ magnificent striding Liberty image, first made famous on the Double Eagle gold coin minted between 1907 and 1933.
However, Miley Busiek’s “Family of Eagles” reverse will be changed out for a new scene starting with the 2021 coins.
As we near the end of 2020 and word of the 2021 changes becomes common knowledge, look for a mad dash by those clamoring at the last opportunity to purchase newly minted coins with the original design.
If the new Gold and Silver Eagle designs are not well received by the public, the frenzy to buy the 2020s may be even more intense.
Based on the government-run Mint’s failure to keep up with demand during periods of heavy buying, a shortage (and thus rising premiums) may be in the cards later this year. Time will tell.
