June Newsletter 2024

The gold chart is showing a classic “breakout” and “consolidation” pattern. After years of making runs at the $2,000 level, gold had a solid and undeniable breakout this spring. The rapid 20% rise to $2,400 had many cheering that gold would run for months and maybe reach as high as $3,000 by summer. We’re sorry, but that just isn’t how the precious metals markets work. This consolidation in the $2,300 range is healthy. In fact, it wouldn’t surprise us if the $2,100 breakout level is tested again. In fact, a quick drop to retest $2,000 isn’t out of the question. While certainly not a given, that sometimes happens.

As far as silver goes, the word we’ll use is “launch!”  While gold bumped up against its $2,000 resistance for months prior to breaking out, silver languished well below its $30 target. That’s often how the white metal rolls. However, when gold takes off on a major run, silver dutifully plays catch up. Instead of a mere 20% move on breakout, the price of silver rose almost 50%, from $22 to nearly $33 per ounce before pulling back. This is what we mean when we say silver is for those who can stomach the ride, both up and down. It marches to its own tune and at a pace that sometimes can be breathtaking.

As far as the near-term price? It is likely that geopolitical events combined with domestic political tensions will determine if gold (and silver) make a run to test new highs this summer or if we see volatility that will bring the price down to test support levels. Either way, this is the time to be smart in how you buy your metals. Our “set it and accumulate” automatic scheduling is great for most investors. Those who watch the markets more closely can by the dips “Now” as they occur. Either way, it’s smart and simple to keep accumulating your  financial insurance.