gold news

 hey everyone welcome to bald guy money I am bald guy and I want to talk a little bit about the mixed signals we've seen being sent out through the financial markets this week starting with statements by the US Federal Reserve chairman Jerome Powell paired with an updated dotplot chart both of which indicated a strong desire by the Federal Reserve to cut interest rates in 2024 and Beyond despite the fact that inflation is still significantly higher at 3.1% than the fed's target of 2% now

this news prompted a celebration on Wall Street and amongst amateur investors who all saw this as a green light and a signal to bet the farm on the stock market with the Dow Jones Industrial Average hitting an all-time high and the S&P 500 testing its all-time high because according to Conventional wisdom lower interest rates means good times on the stock market and there's nothing to worry about soft Landing is on the way but there is another group of investors and investors like myself who are a

little bit more skeptical when it comes to the celebrations that are going on as a result of the fed's announcements these investors are asking why is the Fed talking about rate cuts when they haven't fully achieved their goal that goal being ending inflation which triggered the original hikes to begin with and what this group of investors says is conventional wisdom is wrong the Federal Reserve is talking about cutting rates because things are getting bad banks are still struggling with

commercial real estate defaults albeit at a lower level today than earlier in the year they're also still underwater on their bond Holdings an issue that triggered a few Bank collapses in March of this year public and private debt are out of control good jobs are disappearing quickly a phenomenon we're seeing in many countries around the world and the residential real estate market is stagnating with owners afraid to sell because they know their next mortgage is going to cost much much more

than their current mortgage and what these investors see is with everything going to hell in a hand basket the FED is front running economic Armageddon with the hope that their fantasy of a soft Landing may actually become reality now no matter what side of the argument you fall on this video will dive into how gold and silver should perform in 2024 if the economy and stock market blast off to new heights as well as how they should perform if the scenario I expect which is a severe recession plays

out and the stock market tanks and a big thanks to my viewer and patreon member Ed for requesting this video and remember if you have any questions or requests you can drop them in the comments section of my videos I usually answer one at the end of every video but this one was just too good and I wanted to dedicate a whole video to the topic and dedicate the video to Ed thank you Ed now just before we get into it if you're in the USA and looking to store some of your hard-earned wealth in gold

and silver please check out Channel partner pinck they've still got silver eagles for below $30 a piece right now and that's a much better price than the other leading online dealers and I know because I was checking them out just before I started filming this so I will leave the link to this deal in the video description and if you want to see other great prices they've got on other items visit them at pin.com or call them at the number on the screen they are taking orders there as well as helping people

convert their IRAs to gold and silver IAS without the high fees and I know a few of you have done that already with them so congrats just please if you contact them be sure to tell them that you came from the bald guy Money Channel so getting back to our main topic for the video let's start by taking a look at what will happen to Silver and Gold if the economy takes off and the stock market follows along with it and let's have an honest discussion about that how about how that impacts the prices of

gold and silver as well as how that impacts both you and me so I think 2023 is a great year to base this scenario on as you can see here the stock market has done very well in fact it's outperformed both gold and silver albeit it's been driven up mostly by only seven stocks and we'll Circle back around to that later inflation although still far too high has come down I mean prices are not going up as quickly as they were in 2022 and If the Fed is right about the lagged impact their policy has on prices

we may see official inflation numbers bounce around between 2 and A2 and 3% in 20124 which will still be high enough to force many people to work multiple jobs which will keep official unemployment numbers artificially low giving the Federal Reserve every reason to execute the interest rate decreases they are foreseeing and forecasting right now making certificates of deposit so CDs and money market accounts less attractive which will shift a large part of the $6 trillion currently in money market accounts back into the stock

market this will in turn fuel more gains in 2024 reigniting a risk-on environment which will push tech stocks higher Bitcoin higher higher especially if a spot ETF is approved and when it comes to gold and silver the truth is it will likely result in more sideways chopping in the price in the case of gold likely keeping us in the current 2022 2023 trading Corridor between $1,650 an ounce in the worst case scenario if the stock market really takes off and attracts a lot of risk off investment and 2,000 an ounce at the

high side with a small chance that we will remain above $2,000 per ounce fueled by persistent inflation concerns as we won't likely hit that 2% fed goal with rates coming down in the case of silver to keep things as simple as possible that means bouncing around between $18 and $26 per ounce likely at the higher side of that trading Corridor as industrial demand will presumably be stronger than it is right now in that environment and that is my honest take on what could happen in the best case

scenario for the world economy and for the Federal Reserve in 2024 but of course it's not what I think will happen because too much damage has been done to the economy already and the stocks that are driving S&P 500 growth also known as The Magnificent 7 are so overvalued that even in a Stable Market their growth will start to level off and with an absence of growth this will bring valuations that make up about 30% of the S&P 500 today down with those shrinking growth levels and with that

the market will start to realize that the days of infinite growth are over which will trigger a broader selloff as confidence which is quite high right now as you can see here on the fear and greed index the market is feeling greedy right now now it will bring the market down along with investor sentiment so where do gold and silver go in such an environment an environment in which the FED Cuts rates and in line with historic Trends which you can see in this image from the game of Trades X account which

I've shown you all here before the stock market and economy come down with rates because as usual the FED is reacting too late the ti tanic has already hit the iceberg and is taking on water so how are metals going to react to this well the first thing I am expecting and probably the most important consequence of this is a severe decline in the US Dollar on the Dixie index something I have been warning you all about on the channel for some time now this decline in the dollar always triggers an

increase in the price of gold which we know that in the 21st century with a lag has reliably pulled silver up with it and since 1971 when the US dollar was taken off the gold standard and the new rules of money came into play prolonged declines in the Dixie index resulted in gold and silver outperforming basically everything in the market two out of three of those times with the poor performance of the late 80s and early 90s driven by something I've covered on the channel before that being a massive

sell-off of Central Bank gold reserves a trend which has not only flipped since the 2008 financial crisis but has triggered the highest levels of central bank purchasing since the new rules of money came into play in 1971 as a result and for reasons I've covered in multiple videos here on YouTube I expect the price of silver to crack the $30 per ounce level in this scenario and gold I expect to reach the $2,400 per ounce level now some of you might be saying I'm stupid because you think they're going much higher and

that's okay because these are conservative estimates of where the market can go I am fully aware we could blast through these prices I experienced the 2011 blowoff top I know how quickly things can go south in the economy and I never underestimate the attraction to gold and silver when people get scared and to answer answer the third part of Ed's question that's especially in the case that we see more war and conflict in 2024 if we see that we'll likely blast right through these levels but I

prefer to be wrong on the low side rather than promise a pie in the sky that is just how I do things here on this channel so please take that into consideration when looking at the price targets I'm I'm presenting here now if you want to know more about how I see this situation developing and what stocks I think are a safe place to hide for those of you who don't want Too much exposure to Metals check out my patreon I released a video on Friday taking my patrons through my long-term

expectations and when you join you get access to many many more videos stacking tools as well as price alerts to let you know when I am buying the dip and those alerts have proven to be pretty good over the last year and have saved some people a nice amount of money allowing them to increase the size of their Stacks so please consider joining and I will leave the link to do so in the description and pinned comment of this video with that said that's it for this video please remember if you want me to

cover a a specific topic here on the channel leave me a comment now in the comment section of this video I read all the comments I receive and just like I did with Ed's comment I may make a whole video out of your comment in the least if I select your question or comment I will answer it at the end of a future video also please leave a like it helps get this content out to more people and I think this is a very important message for people to hear right now so do me a favor and leave a like if you agree with

me and that's it until the next time we see each other everybody I urge you all to take care of yourselves but more importantly as I always say take care of each other until the next time we see each other goodbye bye