The Halftime Report

01 Jul

The Halftime Report

Some may breathe a sigh of relief that 2020 is now half over.  It has been a challenging year on many fronts.  But it should be of some comfort for our clients and friends to know that, as forecast, gold is the big winner.  

Here’s a brief 2020 halftime report along with charts of gold and silver in the first six months.

Gold outperformed just about everything in the first half of the year by climbing about 17 percent.

Stocks?  Not so great.  They are still down for the year, although extraordinary liquidity operations pumped stocks up in the second quarter. 

But the second quarter was another strong one for gold, which gained 9.5 percent.  Silver gained 25 percent. 

What do we expect for precious metals in the second half of 2020?  It seems very clear: there’s more of the same ahead.  That’s because the gold price is a referendum on the quantity and quality of the US dollar.

Apply this examination to other things.  Suppose there is a bumper crop of oranges this year, much more than in the years before.  Of course, the price of oranges will fall with the increased supply or quantity.

Or suppose that the orange harvest is the same as in recent years, but the quality is really poor.  They may be pulpy or just not sweet, but the oranges are simply not good.  In such a case, buyers will find substitutes and the price will drop.

Now, suppose both that the orange crop is huge and that the oranges are crummy.  That’s the worst of both worlds for orange prices, which will fall even more.

As we have made clear repeatedly this year, at the hands of the Federal Reserve the quantity of US dollars has simply run through the roof.

Sharply rising US debt, coupled with the collapse in US productivity, are reflected in the declining quality of the dollar.

Protect yourself and profit with gold and silver as the dollar’s quantity keeps climbing and its quality keeps falling in the second half of 2020.

Contact Republic Monetary Exchange today and speak with one of our experienced precious metals professionals.