No DMR today. We will be back Monday.


Gold trading on a positive note this morning, Krauth sees $100 silver as ‘within reach’

(USAGOLD – 4/1/2021) – Gold is trading on a positive note this morning after turning higher early yesterday at the $1680 level – a support zone with a history going back to June of last year. It is up $9 this morning at $1718 after closing $30 off its lows yesterday. Silver is up 4¢ at $24.53 after finding support yesterday just below the $24 mark. Though silver is down almost 12% year to date, it is up almost 75% over the past 12 months, even with the correction taken into account. Market analyst Peter Krauth sees encouraging signs for the metal based on its long-term, inflation-adjusted price history.

“If we account for inflation,” he says in an analysis posted at FX Empire, “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.”

Chart of the Day

Line charat showing the inflation-adjusted price of silver 1970 to present

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

Chart note:   The silver price, as Krauth points out in today’s report (above), 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.

Share
This entry was posted in Daily Market Report, dailyquotes. Bookmark the permalink.