Global uncertainty is a spur for gold prices

Article Excerpt

Most precious-metal stocks dropped, along with stock markets, in March 2020. They then quickly reversed that trend to soar for investors, in part because of gold’s appeal as a “safe harbour” in uncertain times. In fact, in August 2020, gold jumped to over $2,000 U.S. an ounce for the first time ever. Gold stocks also jumped. Gold prices then drifted down to about $1,800 as pandemic fears lessened—before spiking recently to over $1,928 as Russia invaded Ukraine. For many investors, gold and silver will continue to represent a safe harbour in turbulent times. We also expect gold- and silver-loving markets in Asia and elsewhere to rebound after the pandemic. That should spur gold and silver purchases, taking precious-metal stocks even higher. What’s more, if inflation rises over the next few years—driven by the trillions of dollar that governments have spent to counter the impact of COVID-19—these stocks will attract even more interest. We think top gold and silver stocks have much more growth to…