#Golden hour time tomorrow series
We think there are a multitude of outsized current risk factors again, and that a series of crises is headed our way - if so, gold and silver prices are likely to hit new all-time highs. Combined, they served to push gold’s price to its inflation-adjusted all-time high. Believe it or not, gold soared over 2,300% in the 1970s, because there was a series of crises underway - two recessions, an energy embargo, runaway inflation, and sky-high interest rates. So if fear is high or a crisis develops in the markets or economy, investors instinctively rush to gold, and the demand pushes its price higher.
Gold has served as a safe haven for literally thousands of years. And the worse the crisis, the higher their prices are likely to go.
The research we’ve done at GoldSilver shows that financial risks are high right now, and if any of them lead to a crisis, investors will seek the refuge of gold and silver and drive their prices higher. Predicting gold and silver prices thus depends on a number of factors, but primarily they involve one’s outlook for the future. If worse comes to worst - if there is hyperinflation and a loss of confidence in fiat currencies - precious metal coins will be one of the only methods of payment nearly universally recognized as having real and permanent value, and are likely to be accepted in exchange for goods and services. In addition, gold and silver are money, and a hedge against financial catastrophe. History also shows they perform well when inflation climbs. Since precious metals are, among other things, a store of value, their prices tend to rise when times are tough, whether those tough times be economic, monetary, financial, or geopolitical in nature. Gold and silver performance depends on more than just the stock market, though. Conversely, if investors are confident that the stock market will rise, that’s where they’ll invest the gold price tends to fall. Precious metals are a historical safe haven, so if investors get skittish about stocks or fearful of what could happen in that market, they tend to buy gold, pushing its price higher. In general, gold is inversely correlated to the stock market. Gold and silver prices don’t rise or fall for the same reasons that stock prices do. *As of June 3 Price Predictions for Gold and Silver What Are the Historical Highs and Lows of Gold and Silver Prices? All-Time Highs and Lows for Gold & Silver Silver, by contrast, has always had a market-determined price, and its price history is marked by the sharp fluctuations you’d expect absent any constant-price peg determined by the federal government.
The gold price was allowed to freely float.
Finally, in 1972, President Nixon closed the "gold window" citizens could own gold again but foreigners could not redeem paper dollars for gold through the government (though they could still use those dollars to buy gold on the open market). Roosevelt also banned the private ownership of gold bullion by US citizens, and canceled the convertibility of paper dollars to metal, so the price only reflected what foreign buyers paid. In 1834, it rose to $20.67 and stayed at or near that mark until 1933, when Franklin Roosevelt increased it to $35. In the early years of the republic, the exchange rate was $19.39/ounce. For most of US history, government set the price at which gold could be converted to paper currency. In the US, a market-determined price is a relatively recent phenomenon. The price of gold today is determined by supply and demand as it is traded through large global markets of physical metals (from raw ore to refined bars and coins), and even contracts for future delivery at a specific price.
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