In 2020 when gold surpassed its all-time high price, many pegged this to multiple factors, with the COVID-19 pandemic being the main culprit.
Fear, uncertainty, and doubt for what the virus may bring and how it would affect our once-thriving economy are times where gold usually shines.
However, even before the actual passing of the first stimulus check, the rumors alone sent gold soaring.
One year later and we are now up to stimulus package number three, with another one in the talks.
President Biden presented his fourth stimulus package proposal- a $1.8 trillion plan the White House calls its “American Families Plan.”
The bill would continue an expanded child tax credit that will provide parents with a monthly “stimulus check” for up to $300 per child. However, Biden’s plan would extend these payments through 2025.
Although eligible Americans did receive a third stimulus, the approval came with much resistance not only from Republicans but also from Democrats as well.
In fact, the bill received absolutely no support from Republicans in Congress.
Yet, it was still approved— a possible foreshadowing of how well the “unity” throughout our country’s leaders will work in the future.
With this new tone set, investors and experts worldwide are anticipating another, and possibly even more bullish gold rush in 2021.
Although the price of gold soar in 2020, it was gold mining companies that saw the biggest gains.
Berkshire Hathaway, led by the investing guru himself, Warren Buffett, invested $562 million in Barrick Gold last August, becoming the 11th largest stakeholder.
Although Canada is said to be the mining hub of the world, gold mining companies worldwide set new records in 2020.
The demand for gold in 2020 even caused a temporary shutdown to some of U.S. Mint operations.
Some precious metal dealers also struggled to keep up with their customer’s demands.
American billionaire and investor Thomas Kaplan believes that gold has just entered a ten-year bull market and may visit the $5,000 price range.
That would be a 150% price increase from its all-time high of $2,000.
We are not even halfway through 2021 and we are seeing stronger signals than the ones in 2020 that sent gold soaring.
If the new stimulus package is approved and trillions of more dollars are printed, do you think that will make our dollar stronger or weaker?
What’s your plan to protect your wealth?