Metals Minute 8: Stimulus Update
It has been an up week for all the metals, with Gold up 1% to $1885, and Silver up 4% to $26.34. Platinum had a monster week, overcoming losses from last week, up 5% to $1069. Palladium is up 6/10%, to $2369.
Looking at the 1-yr numbers, we have Gold up 24%, Silver up 47%, Platinum up 11% and Palladium up 24%.
We have some movement on the stimulus program being implemented this week, with $600 checks beginning to be mailed before the new year. This will likely turn out to be just a warm-up, however, for an additional $1,400 per adult likely to be sent out as well, bringing the total to $2,000 as requested by President Trump.
There will be some wrangling in the Senate, over what all is tied to this expanded stimulus, but after all is said and done, I predict it will be approved.
This should prove to be a boon for Gold and Silver. Not because the quantity of money involved is so large, but because it will likely be spent quickly, increasing money velocity. The last stimulus checks sent out saw Gold up 16% and Silver up 37% within 2 months between March and May.