Top Stories This Week: Gold Secure Above US$1,800, Silver’s Big 2021 Potential

It’s been a bumpy week for the gold price, although the yellow metal did remain solidly above the US$1,800 per ounce level throughout the period.

After starting the week at about US$1,840, gold rose as high as US$1,870 mid-week before falling — it was at around US$1,835 at the time of this writing.

Market watchers have attributed gold’s rise to hopes of further US fiscal stimulus. Talks on a potential package were in focus mid-week, but no decision has been reached yet.

Precious metal silver was also in the spotlight at INN this week. I had the chance to speak with Peter Krauth and Gwen Preston, who will be launching Silver Stock Investor in January. It’s a new silver-focused newsletter that will be under the Resource Maven banner.

Explaining what has him interested in silver right now, Peter pointed to the white metal’s performance this year from its bottom in mid-March to its peak in August.

The white metal rose about 140 percent during that time, while gold rose approximately 40 percent. In his view, that highlights silver’s major potential in future price runs.

“With that kind of potential, investors can certainly see that … this is definitely something they would want in their portfolio” — Peter Krauth, Silver Stock Investor

Peter didn’t shy away from talking about pricing, saying that he sees further upward momentum for silver in 2021 due to factors such as money printing and safe haven demand. He said silver should move above the crucial US$30 per ounce level next year, with US$35 and US$37 looking realistic.

In Peter’s opinion, that type of move would have “tremendous” implications for silver stocks, more of which are emerging as momentum in the market increases.

“(This year) some of the silver juniors have gone up 10 times, 13 times … I’ve seen multiple examples of that. And if we look back on the previous bull … some of the largest silver producers or largest silver companies were also up 10 times. It was phenomenal” — Peter Krauth, Silver Stock Investor

With both silver and gold in mind, we asked our Twitter followers which metal will put on the best performance in 2021. Silver was the winner by a landslide, with about 75 percent of respondents saying they think it’s the commodity that will shine.

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.

Like I mentioned last week, for the month of December I’m going to be closing out these updates by highlighting INN’s outlook content. As a reminder, at the end of every year, our reporters reach out to experts in the many markets we cover, from gold to lithium to cannabis and more. They then compile the information they receive to give our audience a look at the year ahead.

This week I want to point you in the direction of our gold forecast, which includes commentary from a number of junior mining executives.

Overall, they’re feeling positive about the year ahead, and they expressed many familiar ideas about gold and its price drivers — essentially, the feeling is that COVID-19 has accelerated an upward trend in gold that was already in place. I encourage you to click the link above and check it out.

“We are on a set longer-term expected trajectory as part of this gold and silver supercycle, which COVID and the G30 countries’ central banks have just amplified with their money printing and stimulus packages” — Cynthia Le Sueur-Aquin, Laurion Mineral Exploration (TSXV:LME,OTC Pink:LMEFF)

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates! 

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

Editorial Disclosure: Laurion Mineral Exploration 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.