Gold gets back on the plus side in quiet holiday trading

(USAGOLD – 1/18/2021) – Gold got back on the plus side this morning in quiet holiday trading. It is up $7 at $1836.50. Silver is up 12¢ at $24.98. Analysts, generally speaking, are giving commodities positive reviews for the upcoming year. As shown in our Chart of the Day, though, the sector underperformed other key assets in 2020. A number of top forecasters, including Goldman Sachs, believe all that will change in 2021 as the neglected asset class garners renewed investor attention. Jeff Currie, the firm’s chief commodity analyst, went so far as to say the commodities “ship has sailed. If you look at all the classic telltale signs of a structural bull market, you have the weak dollar, grain prices…a client called corn ‘bitcorn’ recently — and then you have what’s going on in the metals markets.”

Corny references aside, gold – generally considered top dog in the commodity realm – outperformed all the stock indices in 2020 save the NASDAQ, according to the World Gold Council survey released last week. (The study leaves out silver, however, which outperformed both gold and the NASDAQ.) “Led by gold,” says Bloomberg commodity analyst Mike McGlone in a tweet late last week, “we expect broad commodities to continue advancing in 2021 and view energy as the most vulnerable sector.” Gold, continues McGlone, “four ounces of which has been roughly of equal value to an acre of Iowa farmland since 1973, or the S&P 500 Total Return Index since 1997 – may be on the rise, notably vs. the stock market.”

Chart of the Day

bar chart showing gold's performance against other major asset classes

Chart note:  This chart shows gold’s strong performance versus other major asset classes in 2020 outdone only by the high-flying NASDAQ. Not shown? Silver, the year’s overall  top performer –  up 46%.

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