What’s coming for gold and silver in 2023?
To best answer this question, it’s crucial to observe the background and context of what happened last year. Things don’t happen without evidence.
Keeping that in mind, we’ve prepared a list of 17 events that occurred this year with silver and gold that will hopefully get you prepared for 2023.
#1. More gold was bought by central banks through Q3-2022 compared to each year since 1967. Some people may remember the US being on a gold exchange standard during this time.
The World Gold Council says that the sudden demand for gold is mainly driven by those looking for safer currencies and assets. The primary buyers of gold has been central banks—back from 2009 until now. It’s a prime example of doing what they do instead of what they say.
#2. China has been a lead gold buyer for the first time in three years, buying more gold for their Reserves. China bought 32 tons just in November, but their official reserves are now up to 1,980 tons. This was back when prices were close to $1,650. Some people speculate that they actually own much more.
#3. Looking back on 2022, we observe the US dollar taking a plummet, which has even weakened the price of gold. Some investors speculate that the Fed was in control of this. As we dive deeper into it, though, this may turn out to be a bluff.
#4. Mohamed El-Erian, a well-studied economist, thinks that this isn’t just another recession. He even concludes that we may be leading toward a larger-scale financial and economic shift. Hearing this from a well-known economist who doesn’t exaggerate, this is a big deal—maybe even a warning. He may be correct, since ownership of gold is currently a strong asset to own for getting through the recession.
#5. A Central Bank Digital Currency (CBDC) is potentially rising influence with governments, yet this opens the question about personal privacy. On the contrary, physical silver and gold are outside the typical government bank, which means they can’t be programmed. These are physical, tangible assets.
#6. What are the 3 D’s, and has anything changed with them? Debt is currently at a record high, politicians have adopted deficit spending as a new way of life, and the rate of increasing inflation is devaluing our purchasing power for fiats each month. It’s not the best time to sell gold, but it’s a great time to buy.
#7. As it did with US Savings Bonds, gold can hold and even gain purchasing power in many circumstances. The US Savings Bonds is simply a real example.
#8. We find that the gap in the annual supply vs demand of silver has expanded, which has created the largest deficit in years. The LBMA’s supply is also dropping rapidly. What does the sudden gap mean for prices, though?
#9. Will silver ever reach $500? Some investors think silver may potentially reach the high amount of $500, which is a high estimate. If they’re correct, it’s something we need to look out for.
#10. Will silver continue to stay inexpensive? Many primary producers of silver don’t think so.
#11. Overview research on the silver/gold ratio proves that a spike in silver may be on the horizon.
Monetary Uses and More
#12. If you’re worried about or expecting a recession or market crash, it could be helpful to consider the history of hedging abilities in regard to gold.
#13. The word of the year in the Collins Dictionary was “PermaCrisis”, which refers to a period of insecurity and instability. Gold should be a primary asset that acts as a cornerstone throughout the upcoming decade.
#14. Is it predicted that the Fed will make adjustments or turn around in the next year? They may be forced to, beginning with the end of rate hikes before the CPI hits its 2% goal.
#15. It’s almost guaranteed that higher creation of currency is required, according to research. A common solution that bankers utilize when running into an issue is to simply print more currency. This shows that we need to buy more assets that can’t be debased, destroyed, or diluted.
#16. Mike Maloney warned us in 2022 for the upcoming year. He stated that what’s coming is going to be weird, twisted, and something very difficult to predict. He adds that the more educated you are on finance and history, the better chance you’ll have to survive it. Mike is all about education, and over 60 articles prove it.
#17. Something that bodes well for the next year is the obvious increasing interest in the gold/silver industry. With more tour and conference invitations, this is a positive aspect we can look forward to.
Recommended for you: Gold IRA Rollover Guide and Silver Investments.
US Gold Market