Are you watching the news? Are you following the stock market? While it seems that a good number of concerned Americans have tuned out given the state of the country, there are dire financial warnings for 2023 that must not be ignored. Did you know the value of the US dollar today is higher in many other countries than our own (spectators are favoring the Euro)? Did you realize the Feds just increased the interest rate for the FIFTH time in 2022. There is some good news for serious investors. The precious metals forecasts for 2023 are indeed bullish. Now is a critical time to start the new year off right with a gold and/or silver purchase to hedge against inflation! Here’s why:
Precious Metals Forecasts for 2023
While the controversy continues as to whether or not the US is in fact undergoing a recession even though the evidence is clear, there are plenty of interesting and outrageous forecasts for precious metals in 2023 that investors won’t want to miss:
- Gold and silver are predicted to be the 2023 outperforming assets
- There are leading indicators including inflation that hint to a bullish precious metals market in the next year
- Silver is sometimes called the “restless” metal, and analysts predict silver on the move in 2023
- A US dollar cap in 2023 could place silver on top
- Silver is forecasted as high as $35-50/ounce for 2023
- The rising price of gold is historically correlated to the rising price of silver
- The Euro is historically inversely correlated to the US dollar
- There is an ongoing silver shortage pushing investors to buy up; and still at a low price
- Commitment of Traders (CoT) Index December 2022 headline reads, “Speculators switch exposure from grains and energy to metals”
- According to a Saxo Bank prediction, gold could will be worth $3,000 per ounce in 2023, based on both inflation and China
Even as the economy wanes, interest rates climb, and the country is under varying levels of duress, it’s an intriguing time for investors. Gold and silver asset diversification may be the most intelligent decision today for future financial survival.
The Main Drivers for Gold in 2023
Investors should be on the lookout for these main drivers for gold in 2023: 1) strength of our US dollar, 2) inflation / continually rising interest rates, and 3) a host of geopolitical issues. These main drivers are expected to evolve and have the most impact on the market, the economy, and the prices of precious metals.
- Strength of Our US Dollar
While the strength of the US dollar fluctuates and the global stage promises impacts, investors have varying levels of faith like never seen before. Despite high inflation, the economy is fairly steady, but the five hikes in interest rates is not always to an advantage. The price of gold is actually 14% lower over the last six months. Depending on the impact of the rate hikes on the recession and the price of the dollar, gold could go up or down. With the value of the dollar going down, we generally see a boost in the price of gold.
- Inflation / Continually Rising Interest Rates
Naturally, the strength of the dollar is directly linked to inflation and the continually rising interest rates. Inflation for the year is high in many countries, ranging from 8.3% in the US to 11% in the UK. With central banks including the Fed hiking rates to bring inflation down, so far there is little positive impact so far. While high interest rates are often seen as negative on non-yielding gold, it is important to note that high inflation is often a positive for gold used as a hedge against inflation. The activities by the central banks will impact gold in 2023.
- A Host of Geopolitical Issues
There are many geopolitical factors just in the past year that have shocked the nation and the world and in turn impacted investments. These factors include but are not limited to the Ukraine invasion by Russia, energy adjustments that have led to soaring gas prices, inner-country political conflicts, military and other threats by China, post-Covid recovery, a weakening of our military, and many more.
There are many challenges for investors to watch, but now is certainly a critical time in which these main drivers will change the face of our financial assets including the prices of precious metals in 2023.
Start the New Year Off Right – Invest Now
The beginning of 2023 is the perfect time to add silver and/or gold to your financial investments. It’s not too late to kick off the new year with the gift or purchase of a precious metal. Whether for yourself, family member, or a loved one, precious metals are desirable for the financial future of any person. Contact Reagan Gold Group (RGG) and let our team work with you for the right mix of assets to protect what you have and also invest in the future. The time is now.