Category: Gold and Silver 2012
The analysis published under this category are as follows.Tuesday, July 31, 2012
Draghi Set to Unleash SMP Program Whilst Gold and Markets Await Fed / Commodities / Gold and Silver 2012
Today's AM fix was USD 1,622.75, EUR 1,323.29, and GBP 1,034.46 per ounce.
Yesterday’s AM fix was USD 1,616.50, EUR 1,317.87 and GBP 1,029.75 per ounce.
Silver is trading at $28.21/oz, €23.06/oz and £18.06/oz. Platinum is trading at $1,429.20/oz, palladium at $585.80/oz and rhodium at $1,100/oz.
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Tuesday, July 31, 2012
Gold at ECB: Accident or Strategy? / Commodities / Gold and Silver 2012
When the euro was launched, the European Central Bank (ECB) held approximately 15% of its assets in gold. That ratio has remained reasonably stable, giving rise to a variety of chatter, including suggestions that it may displace the U.S. dollar. We pursue the question on whether the ECB’s gold holdings are an accident or strategy.
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Tuesday, July 31, 2012
Gold And Silver Await The Starting Gun / Commodities / Gold and Silver 2012
This week is another political week in that we have meetings across the board involving the ECB and the Federal Reserve followed by the job numbers on Friday. All of these meetings, summits, announcements have an effect on the investment community in that investment funds tend to stay on the sidelines until the direction of the markets becomes clear. Alas, we suspect that by the end of this week the anticipated clarity will be as clear as mud.
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Tuesday, July 31, 2012
Gold and Silver Lessons from Pawn Stars / Commodities / Gold and Silver 2012
Despite being in a bull market for the past decade, precious metals are still widely under-owned by historical standards. The percentage of wealth held in gold and silver today fails in comparison to the last bull market thirty years ago. The investing world is heavily skewed towards paper assets, as traditional education methods focus on these types of investment vehicles far more than others. However, investors looking to diversify away from equities and bonds can learn about hard assets such as gold and silver if they watch close enough.
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Tuesday, July 31, 2012
Stock to Flow - Silver Supply in a Fiat Depression / Commodities / Gold and Silver 2012
Making a case for higher silver prices can involve two ways of looking at its supply:
- The total amount of silver ever mined.
- The total amount of silver available in investment grade bullion form.
Tuesday, July 31, 2012
Silver Price Investor Psychology / Commodities / Gold and Silver 2012
People have a natural tendency to seek and understand value. The currently dominant baby boomer generation has a speculative mindset with regard to investment. The relatively frugal generation that lived through the first great depression is now fading in influence, along with their collective memory of harder times.
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Monday, July 30, 2012
Why Is Future Silver Supply More at Risk than Gold? / Commodities / Gold and Silver 2012
The focus of the markets and the alternative media is firmly placed on the continued disintegration of the world financial system. Many believe that the collapse of the fiat monetary system along with the global banking cartel is the worst possible outcome. However, this may actually turn out to be the good news in a sea of bad news that is lurking around the corner.
As the world's attention is currently directed at its massive paper-debt dilemma, a physical problem looms larger each passing day. This is what I call, the brontosaurus in the living room. The information provided in this article may help connect the dots to the reader who has been grossly misinformed by the highly specialized analysts in the various industries and media.
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Monday, July 30, 2012
Gold Investors Waiting for ECB Signal For Printing Money and Monetizing Debt / Commodities / Gold and Silver 2012
WHOLESALE quoted prices for gold bullion fell below $1620 an ounce during Monday morning's London session – slightly below last week's close – while stocks gained and US Treasuries fell, with markets focused on key monetary policy decisions due later in the week.
Silver bullion hovered around $27.70 an ounce – in line with Friday's close – while other commodities were also broadly flat.
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Monday, July 30, 2012
Gold Market Sentiment Increasingly Positive / Commodities / Gold and Silver 2012
Today's AM fix was USD 1,616.50, EUR 1,317.87, and GBP 1,029.75 per ounce.
Friday’s AM fix was USD 1,618.75, EUR 1,321.43 and GBP 1,031.51 per ounce.
Silver is trading at $27.66/oz, €22.65/oz and £17.68/oz. Platinum is trading at $1,409.50/oz, palladium at $571.15/oz and rhodium at $1,125/oz.
Gold climbed $7.80 or 0.48% in New York on Friday and closed at $1,623.40/oz. Silver rose to a high of $27.839, edged off a few times, and ended with a gain of 0.98%.
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Saturday, July 28, 2012
Mass Exodus out of Gold Revealed by Trader Open Interest Reports / Commodities / Gold and Silver 2012
Gold has been deeply out of favor lately, languishing in its usual summer doldrums. This sentiment wasteland is driving traders to flee wholesale, including the futures players. Their mass exodus from the gold market is readily apparent in futures data. But provocatively such behavior is a powerful contrarian indicator, heralding the birth of major new uplegs in gold. Bearish futures traders are a bullish omen.
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Friday, July 27, 2012
Gold Profits From Draghi's ECB Robbing Savings of Euro-zone Citizens / Commodities / Gold and Silver 2012
SPOT MARKET gold bullion hit a five-week high at $1625 an ounce during Friday morning's London trading, on course for a weekly gain that would see the pattern of alternating up and down weeks stretched to week number eleven.
Silver bullion also held onto most of its recent gains, trading around $27.70 per ounce for much of the morning.
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Friday, July 27, 2012
Is Auditing the Fed Positive for Gold? / Commodities / Gold and Silver 2012
July 25, 2012 should go down in history as the date the Federal Reserve may become fully accountable to the US government. A motion to pass the bill as amended was unanimously approved by the house to require a full audit of the boards of governors of the Federal Reserve System and banks. This will be done by the Comptroller General of the US before the end of 2012 and they are required to issue their report within 12 months of enactment. The votes in the House in the bill’s passing this was 326 yea votes to 99 nay votes with 7 non votes. Interestingly enough it was the Republicans that strongly supported this bill with 239 yea and 1 nay vote, while the Democrats voted 88 yea and 98 nay.
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Thursday, July 26, 2012
Apocalypse Ahead, What Disaster Economics Means for Investors / Commodities / Gold and Silver 2012
A recent FT article about ‘Disaster Economics’ by Gillian Tett caught our attention. We’ve been fans of Ms Tett’s work for a while, especially her excellent book ‘Fool’s Gold’. This article was about the bond markets, but it was some interesting financial history and commentary that caught our attention.
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Thursday, July 26, 2012
Keys For the Next Gold Breakout / Commodities / Gold and Silver 2012
Gold's historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset. It has also provided a fabulous, once-in-a-lifetime investment opportunity for many individuals, not to mention a long-term momentum trade for both retail and institutional investors.
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Thursday, July 26, 2012
Is Gold Ready for Run to New All Time High? / Commodities / Gold and Silver 2012
Just under two weeks ago I updated my subscribers with a chart pattern on the GLD ETF, and in that update we discussed what to look for to find clues in this GOLD consolidation that has continued from last August-September highs. My theory all along has been that we peaked in a “Wave Three” top at 1900-1920 last fall after a Fibonacci 34 month rally from $681 per ounce. The ensuing corrective patterns are part of a normal “Wave 4” consolidation that works off the sentiment and overbought nature of that wave 3 updraft. Following this consolidation, I fully expect GOLD to continue past the $1900 per ounce area and run to $2300 per ounce or higher in a Wave 5 rally into the summer of 2013.
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Wednesday, July 25, 2012
Gold and Silver in Deflation / Commodities / Gold and Silver 2012
As global growth is being downgraded by the I.M.F. from 3.5% to 3.1% fears that the Eurozone is already in a recession and the U.S. is likely to enter one next year, are growing. As the world becomes more and more familiar with the economic and financial climate investors are realizing that economic life is far from simple and that growth is not something that governments or central banks can turn on or off.
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Tuesday, July 24, 2012
Gold Making Gains on Stronger Dollar, AAA-rated Debt "An Endangered Species" / Commodities / Gold and Silver 2012
U.S. DOLLAR gold prices fell to $1573 an ounce Tuesday morning in London – a few Dollars above last week's low – as stocks and commodities also traded lower, while US Treasuries were flat and German bunds fell after Germany's credit rating was placed on negative outlook.
Silver prices briefly dipped below $27 per ounce – 1.2% below where they began the week.
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Tuesday, July 24, 2012
Anatomy of Future Gold and Silver Price Bubble / Commodities / Gold and Silver 2012
In recent commentaries we've written about the three phases of a bull market and how and why the final phase evolves as it does. Valuations, sentiment and market structure all explain why markets take a dramatic upward turn in the final phase after relatively stagnant performance in the previous phase. These are the "micro" behind why a bubble emerges in the final phase. Today we want to look at the intermarket driving forces behind the emergence of a bubble.
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Tuesday, July 24, 2012
Gold Continues To Move Towards The Financial System / Commodities / Gold and Silver 2012
It is currently estimated that the largest 110 central banks have 16% of their reserves as gold. Anyone who follows the gold market knows that many central banks have become net buyers of gold in the last few years, and the pace of accumulation seems to be growing. While central banks continue to accumulate gold, the misinformed mainstream media are still chanting the “gold is in a bubble” mantra. What they are not acknowledging is the clear evidence that the highest level of bankers and regulators are proposing that gold become a Tier 1 asset class with zero risk, which can also be used for collateral in financial transactions.
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Tuesday, July 24, 2012
Defining “Intrinsic Value” in Gold and Silver Investing / Commodities / Gold and Silver 2012
The mainstream financial media touts a variety of 'anti-inflation' investments that can be used to protect wealth against the ravages of inflation. These typically range from buying commodities like oil and coal to more sophisticated instruments like inflation-protected treasuries and annuities.
While such investments may appear to be inflation-proof on paper, none of these investment vehicles have the solid intrinsic value of gold, silver or any of the other precious metals.
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