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Thursday, September 21, 2023

Top Stories This Week: Hot Inflation Cools Gold Price, David Morgan's 2022 Silver Call

The gold price experienced ups and downs this week, starting the period at around US$1,810 per ounce and rising fairly steadily to trade just above US$1,840 on Thursday (February 10).

However, the move didn’t last — the yellow metal fell to just above US$1,820 later that day.

The drop came as the latest US inflation data arrived. It was released by the Bureau of Labor Statistics on Thursday and shows the country’s consumer price index was up 7.5 percent year-on-year in January, the highest since 1982.

It was also up 0.6 percent from the previous month, and when food and energy are taken out, “core” prices were still up 6 percent from a year ago and 0.6 percent compared to December.

By Friday (February 11), gold was on the rise again, buoyed partially by concerns about rising tensions between Russia and Ukraine. It was changing hands at just under US$1,860 late in the day.

The people I speak with frequently note that the current methods of calculating US inflation understate the numbers, and with that in mind we asked our Twitter followers this week if they feel their portfolios are set up to weather or even thrive in current circumstances. Encouragingly, most respondents said yes.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource and follow me @Charlotte_McL to share your thoughts!

Moving over to precious metal silver, I had the chance to speak this week with David Morgan of the Morgan Report. He shared his thoughts on the overall market, as well as the white metal’s potential path in 2022.

Looking first at the broad picture, David said he’s been saying for a long time that the stock market is overvalued. 2022 has been turbulent so far, and he expects “huge distortions across all markets.” While that might sound alarming, David explained he’s not trying to be dramatic — the reality is everything cycles up and down.

“I do not see a robust economy. I really don’t. I see the stock market really catching up with reality, and the reality is we’ve been deteriorating on a global basis for quite some time” — David Morgan, the Morgan Report

In terms of silver, David was surprised the white metal didn’t perform better in 2021, but he remains bullish for this year. He sees silver finally breaking through the crucial US$30 per ounce mark to trade in the US$33 range.

While that’s a fairly muted forecast, David pointed out that higher levels are certainly possible. In fact, he noted that the Morgan Report’s David H. Smith is calling for US$50 silver this year.

He also reminded silver-focused investors that once the metal passes US$30, history shows that it likely won’t take much to push it up much higher, into US$50 territory.

“Once silver gets above US$33 and it stays there for three or four days — or better yet, even two or three weeks — there’s not much holding it back to hit US$50 again” — David Morgan, the Morgan Report

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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