Tags: bank of america | 3 | 000 | gold | 2021

Bank of America Sees $3,000 Gold in 2021

Bank of America Sees $3,000 Gold in 2021
(Billdayone/Dreamstime)

By Wednesday, 06 May 2020 12:32 PM Current | Bio | Archive

Last year, a unit of Bank of America (BankAmerica Securities) recommended that investors hold a 25% position in gold.

Then in late April Bank of America commodity analysts said that gold’s momentum could drive it to a new all-time high this year and then push prices to $3,000 next year – a 50% increase from B-of-A’s previous forecast of $2,000 next year.

Bank of America analysts wrote: “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold.” After pointing out that the Federal Reserve boosted its balance sheet by 50% to $6.42 trillion recently, these analysts said, the Fed “can’t print gold.”

Gold is still the only major investment with a positive track record for the first four months of 2020. Most other major investments have declined by 10% or more, with crude oil down by about 70%.

For the 20+ years since the birth of the new century, gold is up about five times more than the stock market. Gold is up 487% vs. 94% for the S&P 500 – or 5.2 times the gain in 20 years and four months.

Gold American Eagle Sales Rose 950% in April and 260% in First 4 Months of 2020

At the U.S. Mint, there have been shortages of Silver American Eagles and plant shutdowns due to fear of COVID-19 contamination, but Gold American Eagle sales have soared. Sales in April reached 105,000 gold ounces, up 950% from the 10,000 ounces sold in April 2019. For the first four months of 2020, Gold American Eagle sales total 323,500 ounces vs. 90,000 ounces in 2019, a gain of 259.4%.

Sales of Gold American Buffalo coins are nearly as brisk. April sales of Buffalo 1-ounce coins rose to 28,500, up 338% from the 6,500 sold in April 2019. Year-to-date, Gold American Buffalo coin sales are up 180% over the same period in 2019, with 116,000 ounces sold this year vs. 41,500 ounces last year.

Silver sales are up, but not so dramatically due to temporary plant shutdowns and limited shipments to authorized dealers. The sales of Silver American Eagles in the first four months of 2020 have reached 10,728,500 one-ounce coins vs. 8,121,000 last year for a gain of 32.1%. March was the biggest month for Silver American Eagle sales with 5,842,500 coins sold (vs. 850,000 in March 2019), but there were plant shutdowns in April.

American Eagle production was resumed at the West Point Mint on April 21. If they could have produced more coins, sales would certainly have gone higher in April, but the Bureau temporarily reduced production in several facilities to reduce the risk of employee exposure to COVID-19.

Mike Fuljenz is a member of the Newsmax Finance Brain Trust. He is also the editor of the NLG award winning Michael Fuljenz Metals Market Weekly Report. Discover more by Clicking Here Now.

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MikeFuljenz
Gold is still the only major investment with a positive track record for the first four months of 2020.
bank of america, 3, 000, gold, 2021
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2020-32-06
Wednesday, 06 May 2020 12:32 PM
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