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And…here comes the recession.
As readers of our weekly updates know, we have been saying for several months now there will be a recession in late 2024 or early 2025. .
On Thursday of this past week the Institute of Supply Management (ISM) Manufacturing Index came in lower than expected at 46.8 versus the previous month’s reading of 48.5 with 48.8 expected. Readings below 50 indicate a contracting economy. And the prices paid index increased. For those of you who remember the Jimmy Carter stagflation and sinking stock market of the 1970s and to paraphrase Ronald Reagan, “Here we go again”.
This morning’s employment picture showed further economic weakening with slowing job growth and an increase in the unemployment rate to 4.3% versus last month.
What does this mean for gold and silver? Gold increased significantly this morning to another new high and silver is beginning to rebound and the gold/silver ratio is at 86 which is above the guideline of 80 where silver usually pops in price.
We have been suggesting to our customers to buy the dip in gold and to buy as the momentum increases. Gold is above both its 50-day and 200-day moving averages which is what the smart money institutional investors look at. Some feedback we have received over the last few months as gold has increased is “the price is too high”. What is too high? It is $400 an ounce over its previous long-term high of $2,060 an ounce!
Silver is a bit more speculative and is between its 50-day and 200-day moving averages and is popular with many of our customers even at these prices.
We have seen some promotions out there for smaller sized offers of metals that “fit in your pocket”. Our belief is that these are overpriced metals products with a gimmicky name. One can easily purchase through us anywhere from one gram gold and silver bars and coins on up.
Our website www.advisormetals.com has a wealth of information and access to a free gold and silver guide.
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