Gold Prices Poised to Break Records in the New Year

An article authored by Stefan Gleason via Money Metals projects that the gold market is set for a historic surge in 2024. The market approaches the New Year just a short distance away from breaking its all-time high record.

The soaring value of gold hinges on the declining interest rates and the U.S. dollar. In the recent past, the Federal Reserve concluded its rate increase project. Now, market predictions expect it to shift toward monetary easing sometime this year. This anticipated development is likely to benefit gold and other tangible assets.

Nevertheless, there is still a lot of ambiguity when it comes to the economy, inflation, and interest rates. Persistent inflation might compel central banks to maintain high rates, a move that could destabilize stock and bond markets, potentially dragging down precious metals markets, albeit momentarily.

In addition, uncertainties surrounding the presidential election may result in market volatility later this year. Credibility questions have already been raised due to partisan prosecutors and judges threatening to incarcerate President Joe Biden's main challenger. Also, some state election officials are working to disqualify former President Donald Trump undermining the election legitimacy.

Moreover, analysts are predicting a social unrest if the election winner is believed to have won unfairly. Regardless of the election outcome, the issue of how the political system will manage the escalating debt crisis remains unresolved with both major parties lacking credible plans to reduce spending or settle the debt. The interest payments for the government, for instance, will exceed $1 trillion in 2024.

With the national debt surpassing $34 trillion, and social security accrued liabilities and Medicare nearing bankruptcy, a crisis seems inevitable. Under our current monetary system, the Treasury Department has the option to produce more dollars by liquidating bonds into the Federal Reserve's balance sheet in exchange for cash made from thin air. This is how the government plans to pay its bills despite rampant currency depreciation.

The solution lies in owning physical gold and silver to preserve purchasing power. Precious metals are scarce, unlike fiat Federal Reserve notes, and face supply deficits in 2024. Top-tier gold, silver, copper, platinum, and palladium mines are grappling with increasing operational costs and dwindling reserves. As mining output plateaus, the demand from industries, consumers, and investors soars.

The investment demand for gold and silver is unpredictable. It exploded post the coronavirus outbreak but diminished in the recent past as high interest rates drew savers to money market funds. Concerns over the upcoming elections, potential Fed rate cuts, and the looming debt crisis makes owning physical precious metals vital for those wishing to safeguard their wealth.

Article reference: Zerohedge.com