Reality bites: A forecaast for precious metals in 2022

SprottMoney/Craig Hemke/1-11-2022

cartoon image of a complacent reader contentedly smoking his pipe reading the newspaper

“Oh, boy. Here we go again. It’s the start of a new year, and that means it’s time for another adventure in long term price forecasting. Around here we call it a ‘macrocast’ because we figured out long ago that, in a world dominated by computers trading derivatives, if you can get the macroeconomic conditions right, you’ve got a decent shot at forecasting the gold price, too.”

USAGOLD note: Even that is an assumption fraught with peril. It’s that part about getting the macroeconomic conditions right that raises an eyebrow. Just when you think you have it nailed something like a pandemic or credit crisis comes along to blow it apart. Viewing gold as a defensive portfolio asset – one without contingent liabilities – is still the best course of action. Better a successful armchair investor, from our perspective, than a thoroughly disenchanted speculator. That said, Hemke stays conservative and ends up with $2050 gold and $29 silver by year end.

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