After a roller coaster year, the price of gold rose nearly 8%, which almost kept pace with the 8.8% increase in the S&P 500. So, where does the price of silver and gold go in 2017?
There are so many cross currents in the world today it is difficult to tell where the price of gold will be on December 31, 2017. Just a few of the factors gold will have to contend with:
- International tensions are on the rise.
- A new incoming Presidential administration has a very different set of policy goals as the outgoing one.
- Financial system stress in Europe (and in particular Italy) will gain strength in 2017.
- A three decade plus bull market in bonds (falling rates) may be coming to an end.
One can literally find analysis and commentary to support the position that gold will fall below $1,000 per ounce, or that it will rise to $1,400 or more. With all of the above conditions, it would not be a surprise to see both!
This is the environment that requires now more than ever, a disciplined approach to own gold and silver. Ever since the financial crisis of 2008, all markets have an air of unpredictability to them. Yet over the long term, the stabilizing factors that silver and gold lend to everyone’s portfolio always shine through.
While the short term is unpredictable, there is a growing number of financial analysts who believe that the three to five year price horizon for the precious metals looks better than it has since 2009. The reasons? They are the same as those listed above. Short term those cross currents will likely produce volatility in the markets. Longer term however, once the direction on each is clear, sustained trends will emerge, and each one listed above supports higher gold prices.
So strap in. 2017 may be another wild ride on the way to much higher gold and silver prices in the years to come.
Following are some articles from the new News and Commentary section of the OWNx web site: