Silver $50/oz And Gold $4,000/oz Forecasts; Wholesale Premiums On Silver Bars (1,000 oz) Surge 50%

August 7, 2020

Gold and particularly silver have surged again this week with 4% and 16% gains respectively. The scale of price gains for gold and silver has been very large so far in 2020 and they are the best performing assets in the world year to date with gains of 35% and 55% respectively.



The fundamentals remain as sound as ever particularly with silver due to the continuing shortages of silver coins and bars. Wholesale premiums for large silver bars (1,000 oz) have surged 50% in just two weeks. Another indication of the continuing lack of supply and huge demand for silver bullion (more info regarding the supply of silver coins and bars below).

With both precious metals looking quite overvalued in the short term, a correction is likely. Those looking to buy for the first time or add to allocations need to dollar, euro or pound cost average into physical coins and bars. For those who are overweight precious metals you can consider taking profits on some of your holding. We would caution against selling the majority of or indeed an entire precious metal holding given the positive outlook for both metals and the very risky financial, economic and monetary outlook.



Silver and gold appear to be in a short squeeze which is propelling prices higher in a very short period of time. $40/oz and the nominal high of $50/oz are now potential price targets for silver and longer term we see the inflation adjusted record high of $150/oz in 1980 (see chart below) as a real price target.



There is no guarantee that prices will reach these levels and silver and gold should not be bought solely for the purposes of price appreciation and profit, rather they should be bought as a hedge against market crashes and closures, bank ‘holidays’, deposit confiscation and currency devaluation.



Gold and silver are vital insurance and stores of value which will protect from potential stock and bond market crashes, deposit “bail ins” or confiscation and indeed currency devaluations so securing or maintaining a position in physical gold and silver remains prudent.

Own silver bars (1,000 oz) in institutional grade gold and silver vaults in Zurich at premiums as low as 4%. We cannot source smaller silver bars including kilo bars. Own Silver Britannias (1 oz) loco Zurich at 35% and for insured delivery in UK and EU at 50%. Open an account here.

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Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

The Fourth Coinage Act of 1873 embraced the gold standard and demonetized silver, known as the “Crime of 73”

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