‘Super Loop’ Wells Fargo Makes Unbelievable Claim For Gold!


‘Super Loop’ Wells Fargo Makes Unbelievable Claim For Gold! According to John LaForge, Wells Fargo’s asset strategy lead, the silver market is signaling that the yellow metal’s weakness is discontinuous after the recent gold price surge.

“When silver starts beating gold, the bull market is near”

Spot silver closes the year at around $24, up 3.6%. In this middle, gold is trading above $1,800. But gold is still closing in, down nearly 0.4% since the start of the year. LaForge highlights the following in his statement:

I’m a little more positive about silver as we’re back at $23. This is high beta game. Silver is showing signs that the weakness we see in gold is likely to be short-lived. Once silver begins to beat gold, it is closer to a bull market for precious metals than any other direction.

The markets seem exhausted with only a few days left until 2023. “Stocks were in a flat decline,” LaForge said. Bullion takes cues from risky assets like stocks rather than reacting to the Fed. Additionally, LaForge makes the following statement:

Although gold followed risky assets, it gave a measured reaction. You can feel that gold wants to go higher next year. He spent a year and a half in gold trouble.

Wells Fargo’s 2023 gold claim: $1,900 – $2,000 range

Gold is already starting to rise as the Federal Reserve pauses. And then there will be a final pivot. In the past few months, with all the talk about the Fed’s return, the yellow metal has started to rise. Next year, both gold and silver will do decent work. LaForge notes that silver will likely do even better. Wells Fargo sees gold in the middle of $1,900 to $2,000 next year. “If we can achieve this, my priority will be to increase these intentions,” LaForge says.

But in this midst, the shiny metal is still in proving mode. This is because commodities have performed adequately over the past few years, but gold has been stuck. “I need confirmation via price that gold is starting to move,” LaForge said. If so, it is possible that it could even go above $1,900-2,000.”

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“Silver will perform better than gold next year”

According to LaForge, silver has a good chance of outperforming gold next year. Because it has a high beta game and is known to be more volatile than yellow metal. Adding to the performance of gold and silver, LaForge says:

That’s what happened in the last cycle between 1999 and mid-2011. This is typical. It is possible for silver to even reach new record highs above $48 in this superior cycle. But that may still be five years away. The new hills are not typical until the late half of the new great cycle. Even if these new peaks in silver are to come true, it will still be five years. We are only in the third year of this bull superior cycle.

gold and silver

3 most beautiful drivers for gold and silver

The expected Fed pivot will be the main trigger behind higher gold and silver prices next year. But that may not arrive until the middle of the year. “But the yellow metal is actually reacting positively to the markets that are pricing it,” LaForge says. In addition, he makes the following statement:

The second driver is the underlying fundamentals, especially from a supply-growth perspective. You don’t have much growth there. That’s why I only need to pull some demand.

The third driver will be gold as an unusual game. Precious metal has underperformed other commodities in the last two years. This is a signal for some investors to start rebalancing their profits and losses and pouring more money into gold while it’s still cheap. Based on this, LaForge makes the following assessment:

You will keep traders coming back to some of these reverse games. When a bull is in its superior cycle, more assets under management begin to move into commodities without fail. This also tends to top the entire set. And gold didn’t get it now. Typically, at the end of the year, you buy the losers and get rid of the winners. That’s what will happen with gold. He has been suspended for 2.5 years. It looks very cheap compared to other goods.

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