In a major surprise to analysts worldwide, the U.S. dollar turned out to be the best performing asset of 2018 while precious metals got stuck in a range.
It’s all coming down to (1) the G-20 meeting, held this weekend in beautiful Buenos Aires, (2) the Federal Reserve announcement in mid-December, (3) the upcoming Brexit vote, and (4) the ECB decision on possibly ending QE.
One thing you can be sure of is that WHEN the positive triggers, impacting the rally performance of both the USD index against other major currencies and precious metals, and the performance of U.S. stocks against bonds, will be finally exhausted and worn-out, the bounce in prices, which will be exhibited by gold, silver, and several other key commodities, will be magnificent.
With spot silver prices reaching new lows and the U.S. dollar hitting 52-week highs, it has been touch and go for investors in the white metal. Are we in a bear market with silver, and is silver undervalued? Many medium- and long-term holders and stackers are feeling trapped, and they’re hoping for a sign that silver’s luster hasn’t faded away.
Investors and analysts are as polarized on precious metals as they have ever been. What exactly are we looking at with the price pressure in gold and silver in 2018? Does it make sense to take a new position or add to an existing one? Or, should investors cut and run, abiding by the trader’s adage “cut your losers short”? After all, one person’s “loser” can be somebody else’s buying opportunity…