At 11 AM ET this morning, when clicking on “Gold” on CNBC’s website, this was the headline: “Gold edges back from record peak as firm U.S. data dims shine.”
CNBC went on to say, “Gold was little changed on Tuesday, hovering below the previous session’s record peak as fears over the pace of economic recovery amid surging coronavirus cases were offset by upbeat U.S. manufacturing data.”
The “firm U.S. data” was U.S. manufacturing activity hit a one-and-a-half-year high in July… and it also expanded across the euro zone for the first time since early 2019.
In fact, CNBC called it wrong. The manufacturing data had nothing to do with gold being “little changed.”
Today gold spiked $41.30, closing at $2,017.20… hitting a new record high and confirming Gerald Celente’s forecast that gold prices would break $2,000 this year.
Silver followed gold, climbing 10 percent to close at $26.21 per ounce.
TREND FORECAST: The global economy is at the onset of the greatest economic cataclysm in modern history.
It has been destroyed by politicians across the globe in locking it down, reopening it in phases, locking it back down… and enforcing draconian regulations that have destroyed millions of businesses and tens of millions of lives.
Why are precious metal prices going higher, as we had forecast?
Because, as the cover of this Trends Journal illustrates – and Gregory Mannarino articulates in his column this week – governments and central banks, with their unprecedented money pumping schemes, have created “The Perfect Storm.”
Thus, we maintain our forecast that when gold stabilizes above $2,000 per ounce, silver, now trading at $26.21, will sharply spike higher, moving above $40 per ounce.
TRENDPOST: As we have made clear since we forecast “The Gold Bull Run” on 6 June 2019, the rise in gold prices was, and is, being driven by the reality that investors were seeking safe haven investments at a time when economies were in decline, unrest was sweeping the planet (see our 2020 Top Trend, “NEW WORLD DISORDER”), and central banks were lowering interest rates and flooding the globe with cheap money.
We said it had nothing to do with demand for gold jewelry, which, had, at one time, helped raise gold prices.
During the first half of 2020, with businesses locked down and people out of work, gold jewelry demand is down 46 percent year-on-year to about half of its ten-year average, according to the World Gold Council.
They reported even demand for gold bars and coins was down 17 percent during the period to an 11-year low.
Central banks have bought 39 percent less gold so far this year, compared to the same period a year ago when banks bought a record amount.
From 1 January through June, gold bugs put their money into gold-backed exchange-traded funds (ETFs) in record volumes that topped even the best full-year investments of the past.
The value of gold-focused ETFs shot to $205.8 billion, well above the record set during 2012’s second half in the midst of Europe’s debt crisis.
Thus, it is clear that “investors” are convinced as the global economy worsens, currencies will be further devalued as government and central banks lower interest rates and pump in more money to artificially inflate failing systems.
