June 2024

While we cannot say for certain the duration and magnitude of the long-awaited global financial system "reset," we can safely say that it has begun. Only there is more at stake than a reset of the financial system. Recent European elections foretell a significant shift in political sentiments among the general public. How that translates into changes in longstanding domestic and geopolitical policies for several European nations is yet to be seen. What is likely though, is an extended period of instability.

For years we have made the case that in the modern economy, gold and silver are seen more as financial and geopolitical insurance than as money. The global environment today is the perfect environment for them to pay dividends, and this is exactly what is happening. Don't expect a moonshot for the metals. $5,000 gold may be in the future, but it is going to be quite a ride and take some time. That's not a bad thing. None of us want to live in a world where circumstances drive it there in a brief period. As always, between now and then we will be...

Here for you,

The OWNx Team

Gold and Silver

What Do the Charts Say?


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. 

In today's world...

Moody’s puts six U.S. regional banks on downgrade review over commercial real estate exposure

Of the several "canaries in the coal mine" that give us insight into how rapidly things are changing are regional banks and commercial real estate. Both are showing signs of distress.

Metals Focus: Gold Price to Average US$2,250 in 2024, Setting New Record

"Metals Focus is calling for an average gold price of US$2,250 in 2024, up 16 percent year-on-year and a new record for the yellow metal." With the first quarter price being in the $2,050 range, that leaves room for a higher run later this year. Still, we believe their average is on the low side.

OWNx Office closures: Thursday July 4th and Friday July 5th for Independence Day.