Gold is one of the few asset classes, and really the only major one, where there is zero counterparty risk.
WHY BUY METALS NOW?
Central Bankers have returned to gold as a reserve asset in the face of an erratic US administration.
Gold is one of the few asset classes, and really the only major one, where there is zero counterparty risk. If you own bullion, your asset is not someone else's liability.
I can't stress strongly enough how important this is in a geopolitical backdrop that has no end of crazy.
This has added a huge amount of additional demand for gold, and this is a SECULAR change in the market, not a cyclical one.
This new demand driver won't be going away any time soon. For the first time in decades, central banks are holding more gold as a reserve asset then US Treasuries.
Add to that the added institutional demand driven by these changes, and you get the record high gold prices we're enjoying now.
Silver has gone along for the ride and also recently posted new all-time high prices.
Both metals are consolidating now, which is good. Consolidation keeps the market from running away and increases the longevity of the bull market.
The combination of war in Iran, massive US fiscal deficits and unwillingness to tackle inflation will continue to underpin the gold price.
