Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
Chris Marcus, founder of Arcadia Economics and author of “The Big Silver Short”, recently said that the prices of the precious metals gold and silver have risen significantly, fuelled by expectations of an interest rate cut by the Federal Reserve, which has so far failed to do so. However, silver prices could still rise to $50 per ounce in 2024, except that this depends on a number of key stimulus factors.
Marcus points out that US debt levels and deficits have made some investors realise the importance of gold and silver in their portfolios, coupled with a number of external factors, including geopolitics and the aggressive buying of gold by central banks, led by China’s central bank. Private gold investment enthusiasm in China is also significant. As a result, gold prices are still near all-time highs, even with the Fed yet to make a decision to cut interest rates.
The price of silver follows the price of gold, which usually starts later, but when the price of silver starts to really rise, the increase often exceeds that of gold. According to the Silver Institute, 2024 will be the fourth consecutive year of supply shortages in the silver market.
Marcus explained that the silver market is not necessarily going to be in short supply, but it is certainly an increasingly tight market, and that silver has a huge demand in the clean energy sector which is overlooked by many investors, and is something that gold doesn’t have.
When asked how high the price of silver could go in 2024, he said that $50 is still possible, but not likely. In the short term, volatility in the silver market is expected. In the long term, silver is still a good bet.
