Gwen Preston, Peter Krauth: Look at these 2022 Gold and Silver Price Drivers
After a year of relatively small fluctuations in gold and silver prices, investors are wondering what has derailed the precious metals, and what factors to watch for in 2022.
Speaking to the Investing News Network, Gwen Preston of Resource Maven and Peter Krauth of Silver Stock Investor and Gold Resource Investor shared their thoughts on what’s to come.
For starters, the two experts pointed out that 2021 hasn’t actually brought bad performance for gold and silver – although there hasn’t been a repeat of the excitement seen in 2020, the sister metals held firm.
As for the future of gold, Preston said inflation, along with the U.S. Federal Reserve’s plans to cut and hike rates, will be important in keeping a close eye on the future.
“I’m really going to watch (…) headline inflation and wage inflation together to get a sense of where the Fed will go – whether it’s really going to follow all these rate hikes or not,” he said. she declared.
She predicts that the yellow metal’s role as a “cover for everything” will be critical, as uncertainty will continue to be high next year. However, it’s unclear exactly where the price will go.
“I think (gold) will remain well supported as a baseline, and there is potential for excitement on top of that, but it really depends on how important the role of a ‘hedge of all’ is. “”, explained Preston.
Silver will be affected by inflation and the Fed’s plans as well, but Krauth noted that the industrial side of the white metal is also important, accounting for about half of the demand for silver.
“None of these things seem to be backing down,” he commented in the interview. “There are several drivers; both on the monetary side (and) on the industrial side, the money seems to increase next year, certainly from every angle I see.”
When asked if he thinks the metal will exceed US $ 30 an ounce in 2022, Krauth said it was possible.
“The range that money is in this year is between US $ 22 and US $ 28,” he said, adding, “I think it’s going to push that upper bound up at least next year. I think the fundamentals and sentiment are set for that. And I think there’s a good chance that it also calls into question last year’s high, which was close to US $ 30… I think we can easily question that in 2022. “
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Securities Disclosure: I, Charlotte McLeod, do not hold any direct investment interest in any of the companies mentioned in this article.
Editorial disclosure: Te Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investment News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.