Loading ...Ross Norman, meanwhile, has proved the LBMA’s (London Bullion Market Association) number one forecaster over the last 22 years, proving even more reliable than the 144DMA. He pinged me an email with his forecasts for the gold and silver price in 2020. “2019 was the year we learned that central banks are locked into QE-forever,” he said. He has a point. The Fed’s recent actions coming to the rescue of the ‘repo’ market, which had ground to a halt back in September, and lending money directly, was QE (quantitative easing) by a different name.
Ross continued: “With global debt-to-GDP ratios hitting a record 322% and with equities massively overvalued… it just depends upon when and not if the proverbial hits the fan. Financial markets are trapped and we expect gold to respond by hitting an all time high in the second half of 2020.”
Ross forecasts an average price of $1,755, a high of $2,080 and lows at $1,520. The LBMA’s number one gold forecaster being as bullish as that will be music to the ears of gold bugs.
Silver, meanwhile, was up 15% last year. Ross sees something similar in 2020 with an average price of $19.25, a high of $23.00 and lows around $17.50. Plenty to ponder then. Currently gold sits at $1,560, while silver is at $18.
I don’t think I’m quite as bullish as Ross or Jim. But I like the cut of their jib. I’m long gold, I’m long silver, and the trend is up.
Enjoy 2020!