Metals Market Report Archive
Metals Market Report 10-03-2024

The Mike Fuljenz Metals Market Report

October 2024 - Week 1 Edition

A Review of Precious Metals and the Markets In 2024

September was another exceptional month for silver and gold, which were up 9.33% and 6.49%, respectively, vs. just 2% for most stock market indexes. For the full quarter – from July 1 to September 30 – gold reigned supreme, up 14% vs. 7.4% for silver and an average 6% for the major stock market indexes. The metals soared due to a 4.8% decline in the U.S. Dollar Index (DXY) during the third quarter. For the first nine months, silver was the big winner (+31.7%) with gold close behind (+28.8%). The NASDAQ and S&P rose about 21%, a good year all around.

Looking at all the major market sectors, gold and silver were among the top three investments in September and for the first nine months of 2024, according to the market research firm, Bespoke Investment Group. For September, natural gas made a big recovery, up 22%, with silver and gold at #2 and #3. For the first nine months, silver was #1, followed by utilities, then #3, Gold.

 

Goldman Sachs Predicts $2,973 Gold in 2025

Before getting into the new predictions, I would like to remind you that Steve Forbes and I both predicted in October 2023, when gold was under $2,000 an ounce, that gold would hit $2,500 or more in 2024. Back then, none of the major banks were on board with that idea and it caused investors to lose out on potentially millions of dollars. Gold and gold trends are what I do, they are my life and when I saw the market trending in a positive direction for gold, I immediately let our clients know they needed to get on this train. Me and my team helped our clients realize a massive gain from getting into gold’s rise early rather than late. If you have not called one of our professional representatives about investing in gold, silver and especially our rare coin 20/20 Program, you need to do it now.

Three months ago, Citigroup predicted $3,000 gold in 2025. Now, Goldman Sachs has joined Citigroup by raising their price target on gold. Goldman announced on Monday, September 30, that it has raised its gold price forecast by $200 per ounce, from a previous $2,700 to $2,900 for early 2025 and to $2.973 for the full year. In doing so, Goldman cited “higher central bank demand and gold’s hedging benefits against geopolitical, financial and recessionary risks,” among other factors.

Goldman added that a gradual increase in exchange-traded fund (ETF) buying following the Fed’s current and future rate cuts would contribute about “one-third” to gold’s coming rise. The company gave multiple reasons for its prediction, saying, “Gold stands out as the commodity where we have the highest confidence in near-term upside,” partly because of “the tripling in central bank purchases since mid-2022 on fears about U.S. financial sanctions and US sovereign debt is structural and will continue, reported or unreported.” Second, “Imminent Fed rate cuts are poised to bring Western capital back into the gold market,” and third, gold “offers significant hedging value to portfolios against geopolitical shocks including tariffs, Fed subordination risk, and debt fears.” 

We expect to see more major financial institutions join the gold bandwagon as the price rises higher. It is our experience that mainstream institutions shun gold when its price is low, issuing downbeat price projections while berating gold as a “wasting asset” with “no yield.” Just look at what happened at the end of 2023 with my prediction of $2,500-plus gold and where we are now. Remember, back then, gold was under $2,000 an ounce. After missing the first 20% (or $500) rise, the big financial institutions started to realize the value of gold and issued their positive price projections. This is a typical trend that you can see happen repeatedly through the years before gold would rally. Now, after they have missed the first major upward move, they realize they have done their clients a disservice by shunning gold once again. If you know someone interested in investing in gold, or you want to help further ensure your financial future by investing in gold, call us today and we will be happy to explain all of the ways you can take advantage of owning precious metals. Citigroup and Goldman Sachs clients likely can’t say the same.

Gold Is Still Moving Upward, So Get On Board

Gold Rose Over $45 on October 1 to begin the fourth quarter strongly, while many of the major stock market indexes declined about 1%: The S&P 500 lost 0.93%, while the NASDAQ and Russell 2000 lost 1.5% on Tuesday, October 1. Silver rose 50 cents (+1.6%) and gold rose $45 (+1.7%). Crude oil also rose 3.9% on Tuesday after declining sharply in recent months, due to new Middle East tensions. Most of this rise in oil and precious metals can be attributed to Iran’s latest counterattack against Israel. These price increases came despite a 1% recovery in the U.S. Dollar Index on Tuesday, from 100.25 to 101.21.

 

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