Category: Gold and Silver 2012
The analysis published under this category are as follows.Friday, December 21, 2012
Gold and Silver Decouple from Stock Market / Commodities / Gold and Silver 2012
At the end of July we wrote an article examining the relationship between gold stocks and general equities. We sought to understand the huge variance in performance between the two markets. Sometimes they trended higher together. Sometimes the gold stocks surged while conventional equities fell into a bear market. Both markets have endured bad bears at the same time. Is there any rhyme or reason to why such variation?
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Thursday, December 20, 2012
Jim Roger Sees "Overdue Correction" Hitting Gold as Unleveraged Money Buys 3-Month Lows / Commodities / Gold and Silver 2012
PRICES to buy gold with Dollars rallied from their lowest levels since late August on Wednesday morning in London, recovering 0.7% from yesterday's drop to $1662 per ounce.
The drop came as Greece was upgraded Tuesday by the S&P ratings agency from "selective default" to "junk" status, following payment of the latest €34.3 billion in new loans from Greece's Eurozone partners.
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Wednesday, December 19, 2012
Gold CME/COMEX December Delivery Default Pointing to Widespread Default? / Commodities / Gold and Silver 2012
The CME announced today a case of "force majeure" regarding one of its physical gold storage facilities, Mantra, Tordella & Brookes (MTB), managed for the COMEX, located in the southern part of New York City, in an area that was inundated during the storm known as Sandy.
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Wednesday, December 19, 2012
Which Best Way to Return to a Gold Standard? / Commodities / Gold and Silver 2012
Many of us see hair-curling rates of price inflation not too far down the road. Today inflation is hardly noticeable. But what's coming will be so painful and so disruptive that soaring prices will become the voting public's number-one complaint. How will the politicians respond?
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Wednesday, December 19, 2012
Bernanke and Gold / Commodities / Gold and Silver 2012
To date seems only one group truly loves the monetary policy of the Federal Reserve. Largely, that group is comprised of bankers and bond dealers that profit from selling bonds to the Federal Reserve. Bernanke and the bond dealers have become BFF, Best Friends Forever.
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Tuesday, December 18, 2012
Silver Deceptions: Large Surpluses and Low Production Cost / Commodities / Gold and Silver 2012
There are two misconceptions about the silver market that are still held by many investors in the precious metals community. One is the notion that the world produces large annual silver surpluses and the other is the low cost of mining silver. Some have argued that the investors have been deceived by certain aspects of the silver industry to believe these two fabrications.
Before we get into destroying the myth (once and for all) behind the so-called silver surpluses, here is the definition of surplus:
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Tuesday, December 18, 2012
Gold Price Compression, Risk vs Reward / Commodities / Gold and Silver 2012
Robert M. Williams writes: Whenever you invest there are two things you want to keep in mind. The first is whether or not you will get your capital back and the second is how much can you make considering the risk you have to take. With respect to the second, the possible return on capital must always be greater than the risk you are going to have to accept. In today’s world of “too big to fail”, quantitative easing to infinity, and debt expansion at an almost exponential rate, it´s hard to judge risk. Markets are being manipulated by central banks across the board. Look at the Libor scandal! The English justice system will put mid level employees of some UK financial institutions in jail for doing what the Bank of England requested, i.e. manipulate the Libor rate. Meanwhile, the “big fish” will swim free.
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Tuesday, December 18, 2012
Gold Dips Back Below $1700 Following Signs of Progress on Fiscal Cliff / Commodities / Gold and Silver 2012
U.S. DOLLAR gold prices fell back below $1700 an ounce Tuesday morning, having briefly risen above that level following news of possible progress in the ongoing fiscal cliff negotiations in Washington.
"Investors [are] seemingly wary of taking positions in a time of thin liquidity and still waiting to see whether legislators will avert the automatic spending cuts and tax hikes in the US," says a note from Swiss precious metals group MKS.
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Tuesday, December 18, 2012
Japanese Pension Funds With $3.4 Trillion In Assets Seek Safety in Gold / Commodities / Gold and Silver 2012
Today’s AM fix was USD 1,699.50, EUR 1,289.26 and GBP 1,048.10 per ounce.
Yesterday’s AM fix was USD 1,690.00, EUR 1,285.27 and GBP 1,043.21 per ounce.
Precious metals crept higher yesterday and closed with very slight gains for both gold and silver.
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Tuesday, December 18, 2012
Central Banks Bitten By the Gold Bug, Insurance Currency Hedge? / Commodities / Gold and Silver 2012
“For every complex problem there is an answer that is clear, simple and wrong.” –H. L. Mencken
Possibly, the question I am asked the most is, “What do you think about gold?” While I have written brief bits about the yellow metal, I cannot remember the last time I devoted a full e-letter to the subject of gold. Longtime readers know that I am a steady buyer of gold, but to my mind that is different from being bullish on gold. In this week’s letter we will look at some recent research on gold and try to separate some of the myths surrounding gold from the rationale as to why you might want to own some of the “barbarous relic,” as Keynes called it. My personal reasons for owning gold have evolved over the years. I will tell you the story of my own journey, and you can decide for yourself whether to think about coming along.
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Monday, December 17, 2012
Gold Weak Despite Japan to Print and Spend to Infinity / Commodities / Gold and Silver 2012
THE WHOLESALE gold bullion price rose to $1693 per ounce during Monday morning's London trading, but remained slightly below where it ended last week following falls in Asia, where the Yen opened sharply lower against the Dollar before recovering some ground following the result of Japan's general election.
"Gold is continuing to trade below the psychologically important threshold of $1700," says a note from Commerzbank.
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Monday, December 17, 2012
Gold And Silver – Footprints Are One Thing, Bootprints Are Another / Commodities / Gold and Silver 2012
Around 7 p.m., [CST], on Thursday, [lucky] 13 December, when there is normally
very little activity in precious metals, a series of High Frequency Trades mysteriously
came to life and pummeled the silver market, hard. What makes this ever more
suspicious is that this activity was on the heels of a breakout characterized by
strong supportive volume and a high-end range close.
Monday, December 17, 2012
Gold Vs Gold Stocks ($HUI) Who is Leading Who? / Commodities / Gold and Silver 2012
The Gold stocks have failed to deliver on my expectations of a move higher and it has caused me to re-think the direction of the yellow metal.
The past few weeks I have suspected that Gold stocks and Gold was a corrective pullback but should have been a shallow pullback, relative to the ideas I was expecting. With the breakdown in the $HUI, it strongly suggests Gold and the Gold stocks could be in some trouble.
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Saturday, December 15, 2012
Short-Free Price" For Silver is $101.35 / Commodities / Gold and Silver 2012
Afcarl submits:
Saturday, December 15, 2012
Warning For Gold From Inflation, U.S. Dollar, And Mining Stocks! / Commodities / Gold and Silver 2012
Historically gold has been seen as a safe haven in times of rising inflation. No surprise then that it’s been in a long and impressive bull market since 2002, when a string of significant events began that were expected to create a substantial surge in inflation.The 2001 recession resulted in significant monetary easing by the Fed in an effort to re-stimulate the economy. The 9/11/01 terrorist attacks resulted in dramatic increases in government spending on Homeland Security and the subsequent invasions of Afghanistan and Iraq.
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Saturday, December 15, 2012
Harvesting Profits From Weak Hands in the Silver Market / Commodities / Gold and Silver 2012
In financial market jargon, those investors described as having “weak hands” typically means that they cannot hold onto a position they have established for very long if it goes against them substantially.
This term is often used to contrast such investors to those with “deep pockets” who can instead afford to take deeper drawdowns in their portfolio before they feel the need to exit their positions.
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Saturday, December 15, 2012
Gold and Silver: Of Cartels, Algorithms and Artificial Price Manipulation / Commodities / Gold and Silver 2012
Those who follow the day to day developments in the gold and silver markets have typically seen rampant market manipulation by large traders and bullion banks.
Although supposedly against the rules — and even being subjected to an ongoing investigation by the CFTC that now reaches into its fifth year — this market bullying is nevertheless allowed to happen over and over again without effective regulatory intervention.
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Friday, December 14, 2012
Silver’s Strong Upleg / Commodities / Gold and Silver 2012
Although you wouldn’t know it from listening to all the bearish commentary out there, silver is actually enjoying a strong young upleg. Its technicals are very bullish, contradicting the prevailing pessimism gripping traders. This glaring disconnect between price action and sentiment won’t last forever. It has hammered silver stocks to depressed levels that offer a smorgasbord of opportunity for brave contrarians.
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Friday, December 14, 2012
Euro Flag, Reversal Candlestick in Stocks and Gold / Commodities / Gold and Silver 2012
Yesterday we saw substantial declines in the whole precious metals sector (the only important exception was palladium that actually managed to close higher after a huge price drop earlier during the day) even though the Fed announced Wednesday that it would continue its monthly purchases of $85 billion in Treasury bonds and mortgage-backed securities. This makes it probable that the Fed announcement was already priced into the market, hence the lack of its reaction.
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Friday, December 14, 2012
Market's Fed Reaction "Could Be Worrying Sign for Gold" / Commodities / Gold and Silver 2012
SPOT MARKET gold prices looked to be headed for a third weekly loss in a row Friday lunchtime in London, after failing to break above $1700 an ounce, while stocks and US Treasuries were little changed on the day, with no signs of progress from Washington on the so-called fiscal cliff.
Silver was also headed for a third losing week in a row, trading around $32.60 an ounce for most of this morning, as other commodity prices gained slightly.
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