by Paul Wong
In this report, we recap 2020 and offer our Top 10 List of things for gold investors to watch in 2021.
2020 was a tremendous year for precious metals. Gold bullion gained 25.12% in 2020. Silver bullion rose 47.89%. Palladium climbed 25.86% and platinum increased 10.92%.7 Gold mining equities increased 21.96% (as measured by SGDM). By comparison, the S&P 500 TR Index5 tallied an 18.40% return.
[…] Spot gold closed at $1,898, an increase of $381/oz or 25.12%, the eighth-best annual return in 50 years. Gold, measured in every currency, made all-time highs by a wide margin. The impact of the global COVID-19 pandemic catalyzed the U.S. Federal Reserve (Fed) to support the most extreme measures of unorthodox money policy yet. We have moved to MMT (modern money theory) style policies, zero interest rate policies (ZIRP), QE (quantitative easing) Infinity, average inflation targeting (AIT), outcome-based forward guidance, numerous credit facilities and swap lines, and we expect more to come. Gold is the primary beneficiary of this Fed action and continues to outperform the market’s main equity and bond asset classes.