{"id":58446,"date":"2021-06-30T11:30:58","date_gmt":"2021-06-30T16:30:58","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58446"},"modified":"2021-06-30T11:31:20","modified_gmt":"2021-06-30T16:31:20","slug":"cibc-gold-is-still-going-towards-2000-and-silver-to-31","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58446","title":{"rendered":"CIBC: Gold is still going towards $2,000 and silver to $31"},"content":{"rendered":"
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Photo by\u00a0Jingming Pan<\/a><\/span><\/div>\n<\/div>\n

CIBC: Gold is still going towards $2,000 and silver to $31<\/a><\/h3>\n

Despite the selloff that caused gold to drop by more than 5% within a week,\u00a0Canadian bank CIBC is still optimistic<\/a>\u00a0on both gold and silver\u2019s prospects over the next few years. While the bank downgraded their average 2021 forecast for gold to $1,925, they expect the metal to average $2,100 in 2022.<\/p>\n

Likewise, CIBC\u2019s analysts downgraded their average silver forecast for 2021 to $28 from $29, but said that the metal will nonetheless head onwards to $31 next year. Interestingly, the analysts emphasized that physical precious metals will dominate demand:<\/p>\n

We expect demand for physical gold and silver will remain elevated, not only from traditional investors but also from a wider array of investors seeking a safe-haven option to hedge against market volatility.<\/p><\/blockquote>\n

Regarding the recent fall in prices, CIBC\u2019s analysts explored the specific causes and concluded prices aren\u2019t likely to stay suppressed for much longer. The Federal Reserve clearly wants to ruffle its feathers and assume a hawkish stance to subdue inflationary threats. Frankly, the Fed\u2019s options are limited. Money printing has slowed in recent months. However, President Biden\u2019s $6 trillion spending plan would place the annual deficit at more than $1.3 trillion over the next decade.<\/p>\n

In general, CIBC fully expects the overall environment of monetary stimulus and loose-money policies will last for a good, long while.<\/p>\n

Furthermore, CIBC sees \u201creal interest rates\u201d (Treasury rates minus inflation) as an even bigger driver for gold. When real rates are negative, bond buyers lose money even after their bond matures. The analysts noted that gold has historically posted\u00a0great performances<\/em>\u00a0regardless of headline interest rates, so long as real (inflation-adjusted) rates remain low. At the moment, the\u00a0five-year real interest rate<\/a>\u00a0sits at -1.54% compared to an all-time low of -1.86% in May 2021.\u00a0That<\/em>\u00a0is low.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Photo by\u00a0Jingming Pan CIBC: Gold is still going towards $2,000 and silver to $31 Despite the selloff that caused gold to drop by more than 5% within a week,\u00a0Canadian bank CIBC is still optimistic\u00a0on both gold and silver\u2019s prospects over the next few years. While the bank downgraded their average 2021 forecast for gold to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,103,24521,6016,374,3622,1111],"class_list":["post-58446","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-canada","tag-canadian-imperial-bank-of-canada","tag-cibc","tag-gold","tag-gold-price","tag-physical-gold"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58446"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58446\/revisions"}],"predecessor-version":[{"id":58447,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58446\/revisions\/58447"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}