Month: April 2021

FXEmpire/Peter Krauth/3-31-2021

“If we account for inflation, and that’s massively understated ‘official inflation’, then silver prices peaked at $120 in 1980 and around $57 in 2011. (Please see our Chart of the Day below.) Today’s price near $24 is still well below those levels, suggesting a lot of upside remains ahead. In fact at $24 today versus the inflation-adjusted $120 in 1980, silver is currently about 80% below that peak. … Looking at silver from a technical perspective, in my view we are either at or near a final bottom for this correction. …It’s time to be a silver contrarian. History has rewarded us repeatedly. $100 silver is well within reach.”

USAGOLD note: We referenced this analysis from Peter Krauth in yesterday’s DMR and repost it here for those who may have missed it. The silver price, as Krauth points out is 80% below its 1980 inflation-adjusted high. As a matter of interest, the current gold price is 25% below its 1980 inflation-adjusted high.

Chart courtesy of MacroTrends.net • • • Click to enlarge

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Project Syndicate/Kenneth Rogoff/3-30-2021

“The mighty US dollar continues to reign supreme in global markets. But the greenback’s dominance may well be more fragile than it appears, because expected future changes in China’s exchange-rate regime are likely to trigger a significant shift in the international monetary order.”

USAGOLD note: Rogoff sees the dollar’s exorbitant privilege unravelling and finally ending. Concurrently, he sees the yuan gaining ground, particularly in Asia, as a rival reserve currency. “Modernization of China’s exchange-rate arrangements,” he says, “could deal the dollar’s status a painful blow.” One would think that gold is likely to play a strong role in any Asian currency regime given the cultural attachment throughout Asia, China’s huge gold reserve in addition to its place as the world’s top gold producer, and the lack of any clear alternative as the ultimate store of value.

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