Three words aptly sum up the economic conditions of 2023: volatility, uncertainty, and chaos!
In 2023, recession chatter dominated the financial headlines along with wagers about a soft landing, a hard landing, or no landing at all. Early in the year, we experienced a profound banking crisis as Silicon Valley Bank, Signature Bank, and First Republic Bank all failed — marking the largest banking insolvencies since the financial crisis of 2007-2009.
In 2023, our borders broke wide open, our cities collapsed under the weight of a migrant housing crisis, auto and retail theft skyrocketed, inflation remained stubborn, the financial sector turned volatile, interest rates rose at the fastest pace in 40 years, mortgage rates hit a 20-year high, and the ongoing Russia-Ukraine War impacted everything from the world energy markets to domestic spending. The surprise attack on Israel by Hamas in early October not only rattled oil prices but raised the possibility of a broader conflict involving Lebanon, Syria, Iran, and the United States — creating global vulnerability not seen in generations.
Meanwhile, public trust in the federal government crumbled, approaching record lows not seen since the Great Recession and exceeding those recorded during the Carter years.
The 2024 Presidential election seems to offer little hope of uniting a deeply divided America that has become more partisan and more fractionalized. With many still bitter over the contentious 2020 election, an unpopular President will likely vie for re-election against political rivals that include an ex-President now facing felony charges.
And then there was the endless buzz about Artificial Intelligence with respect to language processing, data processing, content generation, and algorithmic trading. Throughout the year concerns mounted about machine learning replacing human workers, promoting disinformation, and potentially becoming weaponized. As 2023 drew to a close, it seemed that the world was officially spinning out of control.
Not many investments “shine” under such conditions, but GOLD DOES. As of this writing, gold is up over 20% in the past 1-year period – beating the S&P 500.
Most financial institutions expect both the U.S. and the Global economy to slow in 2024 creating even greater tailwinds for gold. Investment heavyweights like Goldman Sachs, JPMorgan Chase & Co., and Citigroup all see gold prices accelerating into 2024. So do many U.S. savers, investors, and nest-egg builders. According to a recent Gallup poll the percentage of Americans who now believe that gold is the very best long-term investment, almost doubled.
Stay tuned to our 2024 GOLD FORECAST SERIES … to learn the reasons behind the changing sentiment toward this rare metal that is among the oldest forms of money, the most trusted of physical assets, and an enduring monetary standard that is still held by central banks around the world. And learn about all the critical factors that will impact the price of gold and its viability as a safe haven in 2024.
