This is an exciting time to be invested in Gold & Silver.
If you have been an investor in Gold and Silver for the past 5 years or so you know how difficult it has been. Gold & Silver have been in a bear market and have seen their prices drop since there highs in 2011. At the beginning of 2016 we saw a glimpse of hope as the price of Gold rose an astonishing %20. This short run was short lasted as in July we began to see the Yellow metal begin its retreat in what is known as a correction phase.
This correction has lasted a lot longer than most people expected but alas, the correction seems to be over. Since the beginning of the year 2017 we have seen buying restart and prices of Gold and Silver stock are starting to regain some of the loses. In fact it seems like we will soon be back to where we once were and beyond in a short time. The Donald Trump Inauguration is only a few weeks away and there are a lot of concerns in the market as to what is going to take place. Whatever happens Gold and Silver both look like they are in a good place to move higher.
The Stock market has been on a tear over the past 6 years and seems overbought. Trump has been pumping the economy with his campaign slogan “Make America great again” and investors have been eating it up. The Dow is slowly approaching an all-time high of 20,000. In my opinion it won’t reach it, and if it does it won’t last for long. The country has over 20 trillion in Debt; the Stock market has 10 times that if you include the derivatives market and the rest of the world economies currencies are falling apart. I don’t think there is much that could save us, not even a Donald Trump presidency.
It is likely we will see a correction in the market, interest rates are likely to rise which will cause a lot of short selling to pay off debts as most investors have bored to enjoy this bull market, when interest rates rise and stocks start to fall people will need cash to pay off these debts. The market will likely see a correction around 10-%20. And that could be just the beginning, as the rest of world reacts to this and with Europe going through some big elections this year we could see currencies start to fall which would again result in the overseas markets to start to collapse. All this doesn’t paint a good picture for the average investor. However if you have been buying Gold and Silver stocks over the past year you have been able to buy at some all-time lows which means you might be in store for some all-time highs. As Gold and Silver are known as safe havens and during times of economic uncertainty and falling markets stocks like Gold and Silver could see huge gains. Hold on to your seats because chances are 2017 is going to be a wild ride!