Bull markets are perceived differently by investors focused both on the long term as well as the short term. In 2019, gold entered a bull market after exiting a basing channel at $1,370. Before that, the metal was trading for a little below $2,000 in 2011 and fell to $1,200 in 2013. After this, the metal entered a new channel in 2014, before exiting it once more in 2020. Analysts now reveal that the long-term outlook for precious metals such as silver and gold is positive, despite the recent decline in the price of precious metals in August last year.
In a recently released video, CPM Group managing partner Jeff Christian stated that the current prices of both precious metals were in the consolidation phase, given that silver usually follows gold. The veteran analyst noted that the consolidation phase occurred after a rally, which began in 2015–16, depending on the metal. Data from Yahoo also shows that in August, the iShares Silver Trust SLV +1.5% and the SPDR Gold Shares GLD 0.2% exchange-traded fund, which track the prices of silver and gold, declined by 7.6% and 12% respectively during that period.
Some Wall Street professionals note that long-term bull markets usually get interrupted by sideways price action after considerable rallies. Christian notes that the bull market’s resumption is dependent on how the political environment and the economy changes, both internationally and domestically. Based on CPM Group’s analysis, Christian states that between 2023 and 2025 he expects to see an increase in the prices of silver and gold, even setting new records. This would mean a significant rally for both metals, which were going for $22.40 and $1,750 per a troy ounce respectively. The record levels for the metals were greater than $2,000 and more than $50.
In addition, Christian notes that the silver rally could be far stronger in comparison to the increase in the price of gold. He sees the recent surge in prices as temporary, adding that interest rates are likely to stay stagnant for the next 10 years. These low interest rates will not attract investors, which will cause most to ditch their holdings in gold in support of fixed-income securities.
However, other analysts expect the falling U.S. dollar to continue trending lower this year, which should be good for the price of gold. Any investor who would like to benefit from the future rally should consider accumulating silver and gold bullion on price dips.
Regardless of the way things pan out, precious metals sector players such as Asia Broadband Inc. (OTC: AABB) will always find a way to not only survive but also thrive as they meet the demand for these timeless metals.
NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB
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