Will we even live long enough to see record prices? Jordan returns to the show this week to explore that and a whole lot more…
The monetary precious metals had a mixed week in fiat price performance.
Gold showed strength in this past Tuesday’s trading action, and the spot gold price eclipsed $1,440 fiat US dollars per troy ounce only to give away about forty bucks of those gains to close the week right around the critical psychological level of $1,400.
Silver not as loud to the upside still, closes the week with the spot silver prices around the critical $15 fiat Federal Reserve notes per troy ounce handle.
The Gold Silver Ratio is still climbing higher touching near 30-year highs, closing this week around 93 troy ounces of silver derivatives to afford 1 ounce of gold in the highly fractional reserved price discovery markets.
This week, we are going to take a long view out for the next coming bull market in commodities and these very same two aforementioned precious metals.
Time to take a long view out for the next coming bull market in commodities and these two precious metals: silver and gold.
We speak with Jordan Roy Byrne about his Gold Price Forecast 2020s 2030s & Silver Price Forecast 2020s 2030s.
Wait until you see the lengthy timeframes and data he uses in helping to potentially pinpoint when the next bull markets in commodities and precious metals are coming. And for how long they will last before topping out.
Finally, and very importantly, we go into detail as to the “Whys” for his analysis. If you are a bullion stacker, with a long-term perspective, don’t miss this week’s precious metals podcast.
Welcome to this week’s Metals & Markets, we have a now returning guest to this precious metal podcast.
Mr. Jordan Roy-Byrne is back with us today. He is the editor and publisher of TheDailyGold.com.
Jordan has an updated manuscript he will be offering for free on his website. It is entitled:
When you wrote the first edition of this book in 2015, valuations for gold mining companies were approaching historical, multi-decade lows and that has barely changed.
Gold bullion in comparison to many things continues to be as comparatively cheap as it has been in decades. Silver is even less expensive, historically speaking versus other financial asset classes.
You state that you expect rising inflation in the 2020s for two reasons. We may have seen an end to the secular downtrend in inflation and increasing inflation is the only realistic way out of the government debt bubble, which will become a more pressing matter in the years ahead.
Your long-term bullish case for Gold is driven by the inevitability of rising inflation and negative real interest rates as the only way the federal government can get its seemingly ever-growing record sized debt levels under control.
Growing your way out of debt requires accelerating nominal GDP growth more so than real GDP growth. The nominal GDP growth has to outgrow debt growth.
Can you explain a bit of what happened post World War 2?
On Gold’s relationship with the S&P 500, leads you to an important point. Gold has never experienced a real bull market without simultaneously outperforming the US stock market.
A couple of charts reflecting the under-allocation to gold currently versus other financial asset classes.
US equities are likely to generate only 2%-3% per year over the next 10 years, and the bull market in real terms could end during the future expansion when the CPI reaches 3% or slightly higher. Then, hard assets should outperform. We expect gold stocks and emerging market stocks should perform best over the next 10 years.
Peaks in commodity prices tend to be 55 to 60 years apart.
Your analysis suggests this bullion bull market will take a lot longer to play out than most precious metal bulls are suggesting.
You are suggesting a historic top in Silver (and likely commodity prices) in 2040.
Thanks for taking the time to check out our latest precious metals podcast.
About the Author/Interviewer
James Anderson has a BA in finance from Loyola University New Orleans. He has both worked and invested in the physical investment grade bullion markets prior to the 2008 global financial crisis.