Stefan Gleason Blog | Gold & Silver Wait Their Turn To Ride The Inflationary Wave | Talkmarkets
President at Money Metals Exchange
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Gleason is president of Money Metals Exchange, a national precious metals investment company and news service with over 450,000 readers, 35,000 paid customers, and $120 million in annual sales. He launched the company while president of a national newsletter publishing ... more

Gold & Silver Wait Their Turn To Ride The Inflationary Wave

Date: Friday, April 30, 2021 12:28 PM EDT

By Mike Gleason, Money Metals Exchange

 

As President Joe Biden pushed massive new spending initiatives in his address before Congress, investors shrugged off rising inflation risk. They pushed the S&P 500 up to a new record close on Thursday.

 

Gold, meanwhile, continues to be capped under the $1,800 level – at least for the time being.  Silver shows a slight weekly gain and trades a little over $26 per ounce.

 

As trading closes out for the month of April, precious metals bulls will be hoping for a more fruitful May. Although May is typically a quiet month in markets – not known for producing major crashes or price spikes – it can represent a seasonal turning point.

 

The old adage, “sell in May and go away” is premised on the stock market entering a seasonally weak period that typically lasts through October. 

 

Last year was a very abnormal year, of course. And this one looks to be atypical as well.  With all the fiscal and monetary stimulus still making its way through the economy, seasonal trends in markets could be moot.

 

A major breakout in gold and silver prices could occur at any time. A short squeeze in the futures markets remains a viable scenario given the still ongoing disconnect between tremendously strong demand for physical bullion and paper selling of futures contracts.

 

Some online silver investing communities are eyeing May 1st for a massive new buying campaign.

 

How much buying actually materializes remains to be seen. But with mints struggling to keep up with demand and dealer inventories for popular products including Silver Eagles, silver bars, and silver rounds already stretched thin, another buying surge could have an effect on premiums and availability.

 

 

Silver and gold markets are waiting their turn to ride the inflationary wave that has hit so many other markets this year.

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