Rich Checkan, President and COO of Asset Strategies International, said in a recent interview with Investing News Network that the price of gold fell after the U.S. election, but the bull market in precious metals is far from over.
According to Checkan, precious metals suffered a sell-off after the U.S. election, but this is necessary and healthy for the bull market’s development. These are buying opportunities and this is not the end of the bull market. There is no single factor that suggests the bull market is over right now.
Checkan is more bullish on silver, pointing out that silver technical charts show a 45-year-long cup-and-handle pattern, which is a highly bullish pattern. And it has broken out of the long-term cup-and-handle pattern. In the later stages of this precious metals bull run, investors may have a chance to see the price of silver rise to $90 per ounce.
Meanwhile, Peter Krauth, author of The Great Silver Bull and publisher of SilverStockInvestor, said in an interview with Kitco Mining at the Xplor 2024 conference in Montreal that in the past three Fed rate-cutting cycles, if you look at the silver price from the bottom to the top, silver actually rose an average of 332%.
It may take a year to two years, Krauth noted, but that’s definitely a huge return. And, if the U.S. economy enters a recession (which many experts expect to occur in the first half of 2025), silver could also perform strongly.
Incrementum’s research found that when historical recessions are broken down into five time periods, pre-recession, early recession, mid-recession, late recession and post-recession, silver outperforms gold in both pre-recession and post-recession.
Past experience tells us that when the economy comes out of recession, the U.S. Treasury will, as always, be looking for ways to stimulate growth, and many of the technology and infrastructure investments are silver-intensive, including the green economy transition, such as electric vehicles, solar power, wind power, and even electric vehicle charging stations and improving solid-state battery technology.
Krauth emphasises that we may be underestimating the importance of silver in future economic activity. Looking ahead, it is highly likely that artificial intelligence will be the next major demand driver for silver.
On the technology side, silver is needed in these microchips, he added. The other side is indirectly storage, as storage requires energy to run data centres. While big data giants such as Microsoft, Google and Meta plan to use nuclear energy to power their data centres, everyone else needs to find other alternative sources of energy that are scalable and affordable, and solar energy will be the next best option.
It is well known that silver as an excellent conductive and reflective material can effectively increase the photovoltaic conversion efficiency of solar panels.
