12/15/2022 Gold Ready to "Explode"
12/15/2022 Gold Ready to "Explode" (2)
Gold is ready to 'explode', 2023 will be a ‘commodities boom' - Todd Bubba Horwitz
Cornelius Christian Wednesday December 14, 2022 20:24
The gold price held steady despite Wednesday’s announcement of a 50 bps hike in the Federal Funds Rate. The precious metal ended the day trading at $1,802 per ounce, down only $5.30 over the day.
These price movements signal that gold has a significant “upside,” according to Todd Bubba Horwitz, Editor of BubbaTrading.com.
“Gold feels, as does silver and platinum, like they want to explode to the upside,” he said. “They’re not waiting for an event, but an opportunity, to attract some new-money buyers that will push them out of these ranges that they’ve been trading at for quite a while.”
He predicted that in addition to precious metals performing well, 2023 would be a general “commodities boom.”
“I think in 2023, we’re going to have a commodities boom, and that includes the hard asset commodities of gold, silver, and platinum,” he said.
Horwitz spoke with David Lin, Anchor and Producer at Kitco News.
Part of the reason for people to invest in gold and silver, claimed Horwitz, will be their disdain for government-issued “digital currencies,” which can track users and limit their access to funds.
“People don’t want to disclose every single thing they do,” he said. “If you give more power and more control to two organizations, government and central banking, that only create debt and don’t create any industry, I think that you could see a much bigger demand for gold.”
He suggested that the government would ban paper money and force U.S. residents to acquire digital currencies. This would then cause them to turn towards hard assets like precious metals.
“Some of the non-believers in gold could become believers… because eventually they’re going to outlaw scrip currency and paper money,” said Horwitz.
He added, “if we go to digital currency, you have no freedom. [The government] knows what you’re doing every moment of every day… if you spend money, they’ll know about it. I don’t think people are really comfortable with that.”
Inflation and Currency Collapse
Another reason for an increased demand in gold and silver, claimed Horwitz, is because of inflation. Compared to fiat currencies, he stated that gold maintains its value over a long time span.
“Gold is still a real store of value,” he said. “Your dollar buys less because of inflation. Gold is retaining [value] better.”
He added that an upcoming collapse in fiat currencies could force people to use gold and silver as a medium of exchange.
Horwitz explained: “what happens when the fiat currency markets explode and they no longer take fiat currency?... you have precious metals, and that could be used as currency.”
He implied that “inflation” and high “taxation without representation” will impel people to “take it on themselves” to create their own money.
To find out Horwitz’s stock market outlook for 2023, watch the video above
Follow David Lin on Twitter: @davidlin_TV
Follow Kitco News on Twitter: @KitcoNewsNOW
For Kitco News
Spot gold hits $1850 - what next?
Spot gold hits $1850 - what next?
Jonathan Da Silva Tuesday January 03, 2023 09:32
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Commentaries & Views
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The last piece I wrote was Friday December 16, gold was trading at $1775 spot, and in that piece, we suggested the dip was to be bought; last night, spot gold hit $1849.99. If you have read my commentary with any regularity, you know that $1850 has been in sight for the past few months. What is next for gold? This trader expects some resistance at $1850 and a range to develop between $1820 and $1850, as a probability. Remember that there's nothing wrong with taking profit, but consider that bulls have momentum on their side. As the below daily chart shows, stochastic RSI could have higher to go, an extended move may take the price to $1880 quickly.
I also suggested that the dip in stocks was a chance for bulls to get in for a "Santa rally," but alas, Santa did not come. However, contrary to the giddy sentiment of raging bears applauding Santa's absence, the SPY continues to hold support at the level we suggested, despite it not acting as a springboard for an end-of-year rally. Below is an updated 4-hour chart on SPY. Bulls should be wary of a breach below the December 22 low. As of now, however, that level remains intact, so traders can decide if they want to stay on the long side or cut out prematurely.
Thanks and good luck in 2023!
Contributing to kitco.com
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