Abiding Biden. Buy Gold

 

Short-lived as it may become, the Biden era has begun; and regardless of Harris waiting in the wings, Gold should bring higher rprices. For wealth to withstand, indeed endure, the onrush of that which is negative -- specifically Bidenomics -- one can abide by Gold.

Of course, such is obvious in preaching to this choir. Yet combined with "the market is never wrong", it may be said the Dollar's debasing demise must already be priced into Gold (as herein mused a week ago). Right?

Wrong. Rather, Gold's attractive price reflects there being just a minuscule percentage of the investing world which outright owns it and/or has some exposure to it.

Upon exposure to Gold morphing from minuscule to material, price shall have departed from its present lowly level of 1856, have passed up well through our forecast high for this year of 2401, to then reach our present Scoreboard valuation of 3719 and beyond. (Again, it's merely about "the when").

Indeed as a Gold colleague just to the north of us penned this past week, "Biden Will Extinguish The Dollar." 

To be sure, the commonsense investing world (oxymoron) would expect Gold to at least mitigate the Biden and overall stateside power-shift by precious metal prices racing upward. After all, certainly so shall taxes and the stagflationary cost of living race upward. 

And yet, Gold's remaining severely under-owned simply doesn't find it in play today. Yes, the yellow metal had a fine performance for 2020, +25.1% for the year, and the white metal +48.2%. But it would seem those who desire to own Gold already do, (even with many more yet to own too). The point is: trading in Gold has been at best fair to middling even through Washington's transition.

To wit, one of our favorite indicators of interest (or lack thereof) in a market -- be it bullish or bearish -- is the extent by which its actual daily trading range (which for you West Palm Beachers over there is the distance between price's daily high and low) exceeds (or not) that which is expected. Here from three months ago-to-date is Gold's expected daily trading range (line) with each day's actual trading range (bars). And all in all it appears average.. Either way, here's the rather benign state of Gold's trading range at present:

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