The best-selling author of “Rich Dad Poor Dad” Robert Kiyosaki said that this may be the last chance to buy gold and silver at such low prices as the market wrap up a very volatile year.
He forecasted that the low of the gold market will be around USD 1,800 per oz and silver will be around USD 24 per oz.
Robert Kiyosaki is a big proponent of holding gold, silver, and Bitcoin in a portfolio. He suggested his Twitter followers that the current price levels might be the cheapest option to buy precious metals before the rally kicks in.
Cryptocurrency is having a terrible week. Still, long-term investors are really care about the steep drops in the value of digital currency and the temporarily halt of withdrawals in the exchanges.
Bitcoin, the world most valuable cryptocurrency, dropped nearly to USD 21,000 in recent days. it is sitting nearly 70% below its historical high of USD 68,000 per coin in November 2021. Ether, the second most valuable digital currency has lost about nearly 75% of its highs.
Due to the extreme market conditions, crypto exchanges like Binance and Celsius Network temporarily halted withdrawals and indicating that it would “take time” to reopen the exchanges.
In the meantime, Coinbase, the largest cryptocurrency exchange in the United States by trading volume announced it would lay off about 18% of its workforce and citing that “could lead to another crypto winter and could last for an extended period.”
However, the leaders in the cryptosphere are not really worried about the volatile market. They believe that the bear market in crypto is not the same as the bear market for stocks: the lows are more extreme, but then so are the highs. Crypto bear markets usually drew down 85 to 90% and then bounced back according to the past performance. Crypto market is naturally more volatile.
The markets in chaos: precious metals prices down, Bitcoin price hits lowest level since December 2020 and stocks plunges. Analysts warn of panic selling as investors are pre-reacting to the Federal Reserve’s interest rate hike on this Wednesday following a high inflation rate of the U.S.
The inflation is now expecting at annual pace of 8.6%. economists believe the Fed will need to get more aggressive to tame the inflation. The U.S. dollar reacted positively to the expected rate hike and goes stronger. In response to rising yields and a strong U.S. dollar, Gold saw a very sharp sell off as it plunged around USD 50 per oz on the day.
The precious metals are struggling as investors are still digesting inflation data and the looming economy downturn in China caused by the latest outbreak in Beijing and Shanghai. The latest lockdowns could lead to a much more extended period of supply chain issues and disruption.
Even though the market expects that the Fed will have an aggressive rate hike, but it is still not enough to get the inflation under control.
in the meantime, gold remains at risk of a more significant selloff. The support at USD 1,800 per ounce might not hold and we will see a retreat towards USD 1,750 per ounce.
Bitcoin which some investors treated it as digital gold was down more than 50% below its all-time high. It was down 10% again Monday after plunging over the weekend. Bitcoin prices are more than 50% below its record high of nearly USD 69,000 from 2021 and are below USD 31,000 now. Other cryptocurrencies such as Ethereum, Altcoins and Elon Musk’s beloved Dogecoins have been hit hard too.