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Every day, it feels like the market's getting weirder.
Gold demand hit an 11-year low in 2020, despite its price breaking all-time highs. In fact, worldwide demand for gold fell to 3,700 tonnes, down 14% from 2019, which marks the first year under 4,000 since before the global financial crisis.
Two of gold's biggest customers nearly put a halt to all purchase orders last year. We're talking about central banks and jewelry manufacturers. In both cases, the pandemic caused total trade volume and demand for the precious metal to plummet.
When demand reverts back to pre-2020 levels, we could see a surge in the price of gold. These are uncertain times, and the stock market has proven that financial tides can turn virtually overnight.
After all, we've all seen what's happened with GameStop (GME) stock—thanks to a short squeeze event, the stock's up +420% on the week starting January 21.
Is silver next? Bloomberg and Yahoo Finance seem to think so. An army of underdog traders on Reddit have sent GME skyrocketing and may be eyeing what they consider the “mother of all shorts” next—the silver bullion market.
It's long been public knowledge that investment banks and central banks have likely campaigned to intentionally suppress the prices of gold and silver through history. If Reddit can squeeze the silver short-sellers like they did with GME, we might see something truly historic happen. Something you won't want to miss out on.
Uncertain times indeed.
With diminished demand from central banks and the jewelry industry, the price ceiling of gold might be a lot higher than we originally thought. If precious metals take off in the weeks and months ahead, you'll be kicking yourself that you passed on them today.
If you're saving for retirement, or simply looking to diversify your portfolio with safe haven assets, consider investing in IRS-approved physical gold. For extra protection, and to gain exposure to one of the most promising assets on the market, consider adding silver bullion to your IRA or 401(k) today.