Which Precious Metal To Buy In 2021?

The question top of mind of any precious metals investor, as 2021 is about to kick off: “Which precious metal to buy in 2021.” Our gold forecast was all about the slow start in 2021, and acceleration to move to new all time highs in 2021. In our silver forecast we clearly made the point about silver following gold slowly in the year, but moving at least to $30 in 2021. Our platinum forecast is, by far, the most bullish one. As 2021 kicks off, platinum is in the process of preparing a secular breakout. This is really powerful. With all this in mind, it should be clear which precious metal we would pick and how to trade it in 2021.

Before we look at the answer to the question “which precious metal to buy in 2021” we want to spend a minute looking at the investing benefits of precious metals.

Are Precious Metals A Hedge Against Monetary Policies?

Before digging into the detail we wanted to point out that one of our followers on Quora requested us to answer his question. This user looked at precious metals as a hedge against monetary policies of central bankers. The never-ending depreciation of currencies is indeed a big concern. We also believe it is worth reviewing our viewpoint on this which really differs from the short term trading/investing decision we want to cover in this article.

This is our answer published on Quora yesterday:

Yes, commodities like gold, silver, platinum may be denominated in a currency, mostly in dollar terms … so there is always this ‘fiat currency’ hedge investing thesis. But let’s face it during the 2008 crisis the only two assets that went up were the U.S. Dollar and Treasuries. So the precious metals thesis as a hedge against fiat currency does not always apply.

Note that this is the long term viewpoint, and yes we challenge the idea of precious metals being a hedge against monetary policies. Between 2011 and 2019 your precious metals investment would have destroyed your wealth, while picking a few other investments and getting in / out would have helped you create much more wealth.

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Disclosure: In our Momentum Investing portfolio we focus on global markets, and pay special ...

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