I bought into a Gold ETF last week, but am having second thoughts, after reading 2021 outlooks from the likes of Goldman Sachs and Morgan Stanley. I'll list the arguments for and against below. Please share your thoughts: Arguments for: Goldman Sachs expects that the price of gold will reach $2,300 per ounce by the end of 2021 (20% higher from current prices) because of concerns over rising inflation. Source: https://www.reuters.com/article/us-...nth-gold-price-forecast-to-2300-idUSKCN24T1QA Arguments against: As expectations of future inflation rise, so do Treasury rates. In fact, the 10-year Treasury burst through 1% last year (after the Democrats took the Senate). Gold has historically been inversely correlated with long term rates. Interestingly, Morgan Stanley is bullish on inflation in 2021, and believes it could come sooner and faster than most expect, perhaps even as early as Q1. This would dampen the price of gold in my opinion.
Gold should be bought as much as possible when prices drop. Drop in price is not due to efficient market forces at work but the dumping of futures contracts by banks and central banks on the open market. This is done to prevent the devaluation of a country's fiat currency too quickly. Central banks then go long and buy as much gold as they can. Investors should do the same and buy gold on every downturn. It's not a sexy trade like bitcoin but you also will not lose your shirt.
Did you notice what Gold did in '19 and most of 20' with Chumpie in office? A $700+ plus / +60% move to the upside in case you don't have a chart handy.
My point was what does Biden or Chumpie or any other President got to do with the price of Gold going up, down or sideways?
My trading signal got me in Gold, Silver and oil. Been in Copper last 6 months. If (that's a huge IF) my trading signal is worth something, inflation is on the way. To answer your question, Buy. Also, don't pay attention to what GS or MS say. Try to find out what they do.