Top Stories This Week: Gold Price at Key Level, Silver Squeeze Saga Continues

The gold price improved this week, keeping its head above the US$1,800 per ounce mark and even trading above US$1,850 for a short period of time. 

Speaking about gold, John Kaiser of Kaiser Research told me he’s surprised that the US$1,800 to US$1,900 price point isn’t more exciting for market participants — in his opinion, this is an important level for discoveries and exploration as it lowers the bar for what plays can be considered viable.

“I don’t think it has really sunk into the market that gold at this level is really important for deposits that are not yet developed, and it lowers the bar for exploration, what counts as a discovery” — John Kaiser, Kaiser Research

Moving on from gold, precious metal silver has continued to receive mainstream attention for about the second week in a row now. To recap, silver initially came into the spotlight after reports that members of Reddit’s WallStreetBets forum wanted to work together to cause a “silver squeeze.”

The white metal briefly rose as high as US$30 per ounce last week, but fell back fairly quickly and was just over the US$27 level at the time of this writing.

WallStreetBets users have now distanced themselves from silver, but that hasn’t reduced interest from investors. James Anderson of SD Bullion shared an update with me on supply and demand for physical silver, saying that over the weekend of January 30 to 31, when the silver squeeze story first began, bullion dealers were seeing demand levels anywhere from 10 to 25 times higher than normal.

“A lot of them are regular buyers who are coming in and buying because they’re concerned. They see the chance the spot price might get away from them, so they’re I think trying to scramble for as cheap a price (for) silver as they can get” — James Anderson, SD Bullion

In terms of who’s buying, James said the majority of physical silver purchases are coming from regular buyers, but new entrants are making a mark as well.

In his opinion, there’s still much more to come out of the silver squeeze saga, and his advice to investors was to make sure they take the time to learn about market fundamentals.

With silver still top of mind, we asked our Twitter followers this week where they think the white metal’s price will be at the end of Q1. This time around there wasn’t a strong consensus, but a small majority of about 30 percent said they think it will be within the US$30 to US$35 range by that time.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the psychedelics space this week, INN’s Bryan Mc Govern spoke with executives in the industry about how investor sentiment is looking after a strong 2020.

“Most of the investors I can say that we brought in as part of our our bought deal understood the long-term potential and that this is an evolving industry and it’s going to have its ups and downs” — Ronan Levy, Field Trip Health

Leaders at Field Trip Health (CSE:FTRP) and Numinus Wellness (TSXV:NUMI) said that based on the conversations they’re having, the new year seems bright — retail investors are demonstrating that they understand the psychedelics landscape, and the space is receiving further validation from regulators and the financial community as a whole.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Numinus Wellness is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.