Gold is ready to 'explode', 2023 will be a ‘commodities boom' - Todd Bubba Horwitz
The gold price held steady despite Wednesday’s announcement of a 50 bps hike in the Federal Funds Rate. The precious metal ended the day trading at $1,802 per ounce, down only $5.30 over the day.
These price movements signal that gold has a significant “upside,” according to Todd Bubba Horwitz, Editor of BubbaTrading.com.
“Gold feels, as does silver and platinum, like they want to explode to the upside,” he said. “They’re not waiting for an event, but an opportunity, to attract some new-money buyers that will push them out of these ranges that they’ve been trading at for quite a while.”
He predicted that in addition to precious metals performing well, 2023 would be a general “commodities boom.”
“I think in 2023, we’re going to have a commodities boom, and that includes the hard asset commodities of gold, silver, and platinum,” he said.
Horwitz spoke with David Lin, Anchor and Producer at Kitco News.
Part of the reason for people to invest in gold and silver, claimed Horwitz, will be their disdain for government-issued “digital currencies,” which can track users and limit their access to funds.
“People don’t want to disclose every single thing they do,” he said. “If you give more power and more control to two organizations, government and central banking, that only create debt and don’t create any industry, I think that you could see a much bigger demand for gold.”
He suggested that the government would ban paper money and force U.S. residents to acquire digital currencies. This would then cause them to turn towards hard assets like precious metals.
“Some of the non-believers in gold could become believers… because eventually they’re going to outlaw scrip currency and paper money,” said Horwitz.
He added, “if we go to digital currency, you have no freedom. [The government] knows what you’re doing every moment of every day… if you spend money, they’ll know about it. I don’t think people are really comfortable with that.”
Inflation and Currency Collapse
Another reason for an increased demand in gold and silver, claimed Horwitz, is because of inflation. Compared to fiat currencies, he stated that gold maintains its value over a long time span.
“Gold is still a real store of value,” he said. “Your dollar buys less because of inflation. Gold is retaining [value] better.”
He added that an upcoming collapse in fiat currencies could force people to use gold and silver as a medium of exchange.
Horwitz explained: “what happens when the fiat currency markets explode and they no longer take fiat currency?... you have precious metals, and that could be used as currency.”
He implied that “inflation” and high “taxation without representation” will impel people to “take it on themselves” to create their own money.
To find out Horwitz’s stock market outlook for 2023, watch the video above
Follow David Lin on Twitter: @davidlin_TV
Follow Kitco News on Twitter: @KitcoNewsNOW