Category: Gold & Silver 2020
The analysis published under this category are as follows.
Wednesday, March 11, 2020
Gold Peeks Above $1,700 amid Coronavirus Fears and Market Turmoil / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
On Sunday, Italy registered a huge jump in new cases of the COVID-19, the stock market plunged, while the oil market crashed. Tuesday morning, and Italy is on lockdown. Meanwhile, gold jumped above $1,700. What’s next for the yellow metal?
Gold Jumps Above $1,700
Last week, I wrote that:
from the fundamental point of view, the environment of fear, ultra low interest rates, weak equity markets and elevated stock market volatility should be positive for the yellow metal (…) the good news is that the markets expect further Fed’s interest rate cuts on the way – it lays the foundation for future gains in the gold market.
And indeed, we did not have to wait long for more gains. On Sunday, gold jumped briefly above $1,700, reaching another psychologically important level, as the chart below shows. The yellow metal made it to this price point for the first time since late 2012.
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Wednesday, March 11, 2020
Gold to Silver Ratio Hits 100! / Commodities / Gold & Silver 2020
By: P_Radomski_CFA
Gold is testing its previous 2020 highs, but silver plunged anyway, which created a very special situation. Namely, the gold to silver ratio just jumped to the 100 level.
This may not seem like a big deal, because ultimately people buy metals, not their ratio, but it actually is a huge deal. This ratio is observed by investors and traders alike, as it tends to peak at the market extremes. Moving to the 100 level might indicate that we are at a price extreme. But what kind of extreme would that be if silver is declining while gold moved up?
Let’s take a closer look at the gold to silver ratio chart for details.
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Wednesday, March 11, 2020
Silver Loses Its Mettle – Part 2 (Technicals) / Commodities / Gold & Silver 2020
By: Kelsey_Williams
Last week I talked about unrealistic expectations for the price of silver (see Silver Loses Its Mettle). My comments were centered on two specific factors: 1) silver’s primary role as an industrial commodity and 2) the fallacy of the gold-to-silver ratio.
Both of these items have their root in fundamentals, or lack of them.
In addition, I pointed out the fact that the price of silver has declined significantly in every single recession of the past fifty years.
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Tuesday, March 10, 2020
Two Scenarios for Precious Metals in the Unfolding Cronavirus Crisis / Commodities / Gold & Silver 2020
By: MoneyMetals
Extreme volatility in the equity markets has investors wondering what to expect. Even the hardiest of stock market bulls are finally asking some serious questions about whether the top is in.
Stocks have long been priced for perfection and suddenly conditions are looking far from perfect. The coronavirus may be the pin which pricks the latest Fed-blown bubble.
Precious metals investors have been preparing against a rainy day. They may be less surprised by the turmoil in markets over the past couple of weeks. But there are still big questions about how metals prices might behave, especially if the current turmoil in markets should evolve into a full-blown financial crisis.
Tuesday, March 10, 2020
Gold Hedging the Decline and Fall of a Currency / Commodities / Gold & Silver 2020
By: Michael_J_Kosares
The baseline case for gold 320 AD
We sometimes forget that inflation is a process rather than an event. One of the better-known examples of that axiom is the nearly two centuries-long debasement of Rome’s silver denarius – an inflationary episode Jack Whyte, a writer of historical fiction, skillfully addresses in his latest novel, The Burning Stone.
Set in Great Britain in the fourth century AD during the Roman occupation, The Burning Stone is a prequel to Whyte’s engaging, seven-book series on King Arthur – The Camulod Chronicles. Throughout the series, Whyte juxtaposes the rise of Arthur’s Camelot against Rome’s decline. This particular story is told through the lens of a young Roman from a wealthy family with banking, political and military interests who flees to Britain after his immediate family is murdered for reasons that remain a mystery for most of the novel.
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Saturday, March 07, 2020
Gold and Silver Rally Back After Fed Emergency Interest Rate Cut / Commodities / Gold & Silver 2020
By: Chris_Vermeulen
Over the past few weeks and months, our research team has continued to sing the praises of precious metals – particularly Gold and Silver. After last week’s dramatic selloff in precious metals (attributed mostly to margin call sales), both Gold and Silver rallied almost 3% on Tuesday, March 3 – the day the US Fed issued an emergency 0.50% rate cut.
We believe this move by the US Fed solidified a fear in the global markets that the central banks are preparing for a much broader economic contraction and attempting to front-run weakness by moving price rates lower. This will help to ease capital restrictions, liquidity across global markets and spur some global borrowing at a time when the Coronavirus may continue to weigh on global economies. Still, for skilled metals traders, this is likely the rocket fuel we need to see Gold rally above $1800 very quickly and for Silver to rally above $21 quickly as well.
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Friday, March 06, 2020
Gold Is the Strongest Currency Since the Coronavirus Scare / Commodities / Gold & Silver 2020
By: MoneyMetals
Another tumultuous week in equity and interest rate markets has helped fuel a big pop in safe-haven demand for gold and silver.
The major market moving event was, of course, the Federal Reserve’s emergency rate cut on Tuesday. The Fed slashed its overnight funds rate by 50 basis points. But even before the Fed acted, the bond market had already forced its hand as yields on the 10-year Treasury note plunged to record low levels.
By Friday morning, the 10-year treasury yielded less than a paltry 0.90%. That represents almost no reward in exchange for the risk involved. Bond buyers are apparently willing to make a decade-long bet on U.S. government finances remaining solid and inflation remaining extremely low.
It’s still possible for bonds to experience capital appreciation if rates ultimately head to zero or below – as they have already done in other parts of the world. The Fed is almost certain to cut rates again. There is a good chance at least some portion of the yield curve will be at zero later in the year.
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Friday, March 06, 2020
Fed Panics over Coronavirus. What’s Next for Gold? / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
Yesterday, the Fed cut interest rates by 50 basis points. Not during a regular monetary policy meeting, but in a surprising move. But what are the implications for the gold market specifically?
Fed Cuts Interest Rates in Emergency Move
Last week, I wrote that the spread of the new coronavirus to Europe and the inversion of the yield curve make “the Fed more likely to step in and cut the federal funds rate, you know, “just in case”. And in yesterday’s surprise move, the Federal Reserve cut the federal funds rate by 50 basis points in response to the coronavirus threat. The decision was unanimous and it was communicated in the FOMC statement as follows:
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Thursday, March 05, 2020
Will the Worst of Times for Central Bankers Lead to the Best of Times for Precious Metals? / Commodities / Gold & Silver 2020
By: MoneyMetals
During turbulent times like these, markets can be melting down one day… and zooming higher the next. Gold may serve as a fantastic safe-haven asset one day… but get hammered by futures traders the next.
The news cycle can be just as volatile. One report may show the coronavirus is receding in China, while another may raise alarms about its spread in other parts of the world.
One poll may show a socialist candidate for President on the rise, while another may show Americans overwhelmingly approve of President Donald Trump’s handling of the economy.
Thursday, March 05, 2020
Gold: Learn from the Actions of the "Smartest on Wall Street" / Commodities / Gold & Silver 2020
By: EWI
Deep-pocketed speculators miss the big turns -- but you don't have to
Hedge fund managers are considered to be among the smartest people on Wall Street.
Ironically, as a group, they're notorious for consistently being on the wrong side of major turns in the markets they trade. By contrast, a group of insiders called Commercials are generally on the right side of major market turns.
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Wednesday, March 04, 2020
Gold Price Trend Forecast 2020 / Commodities / Gold & Silver 2020
By: Nadeem_Walayat
This is the final part of my Gold price analysis that concludes in a detailed trend forecast for 2020 that was first made available to Patrons who support my work. Gold Price Trend Forecast 2020
- Gold Price Trend Forecasts 2019 Review
- SEASONAL ANALYSIS
- QE4EVER
- US DOLLAR
- LONG-TERM TREND ANALYSIS
- Gold / SIlver Ratio
- Trend Analysis
- ELLIOT WAVES
- Gold Price Trend Forecast 2020 Conclusion
Tuesday, March 03, 2020
Massive Reversal in Precious Metals but Fundamentals Improving / Commodities / Gold & Silver 2020
By: Jordan_Roy_Byrne
To underscore the volatility of this past week, consider the price action in Silver.
Silver, days ago, had a chance to make its highest monthly close since October 2016. That is well over three years ago. Silver closed the week and the month at its lowest levels in six months.
One week, precious metals (specifically gold stocks) are on the cusp of a historic breakout, and the next, they are blowing through support levels. Such can be life in this sector.
Before I get to fundamentals, let’s look at the technicals and critical levels for gold stocks.
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Tuesday, March 03, 2020
Physical Gold and Silver Are Safe Havens, Futures Are Not / Commodities / Gold & Silver 2020
By: MoneyMetals
Last week’s market activity was another reminder that not all precious metals investments are created equal.
Investors worried about a virus outbreak and watching the blood bath on Wall Street rushed to buy coins, rounds, and bars.
As one of the largest and most respected U.S. dealers, Money Metals saw the biggest surge of buying activity in years. Clients bought the physical metal as a safe haven, knowing it is scarce, intrinsically valuable and carries no counterparty risk.
Meanwhile, the opposite occurred on the COMEX because buying contracts there is anything but safe.
Tuesday, March 03, 2020
Gold Pulled Back, But Coronavirus Did Not / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
While viruses are counted among the simplest forms of life, they have quite a bearing on its advanced forms. And the coronavirus epidemic is, unfortunately, alive and well. What are the implications for the gold market?
Coronavirus Infects Europe
The coronavirus epidemic is, unfortunately, making its presence well known. Actually, it spreads quickly around the globe. The worldwide number of confirmed cases has reached almost 90,000, while the death toll has surpassed 3,000 people.
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Tuesday, March 03, 2020
Gold Trend Analysis, Elliott Waves and Silver Ratio / Commodities / Gold & Silver 2020
By: Nadeem_Walayat
Gold / SIlver Ratio
Gold price of $1560 divided of by the silver price of $18.07 results in a ratio of 86.3! The historic norm is for around 50. No I am not saying that Silver should trade to a ratio of 50 to Gold anytime soon. I will cover the prospects for the Silver price in a separate analysis.
So either Silver is CHEAP or Gold is EXPENSIVE, probably a mixture of both, which implies to expect Gold price weakness..
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Tuesday, March 03, 2020
Everything you needed to know about investing in precious metals / Commodities / Gold & Silver 2020
By: Sumeet_Manhas
Gold. Silver. Platinum. Palladium. Precious metals mined from the bowels of the earth, refined and valued for their unique characteristics.
Since the beginning of civilization itself, humanity has long held an obsession with what is known colloquially as “bling.” Nowadays rather than adorning ourselves with beads and seashells, we’ve turned to precious metal.
If one thing’s for certain, it’s that investors have always turned to precious metals in times of economic uncertainty. Whether it’s their tangible presence as hard assets or long history as a safe haven, precious metals are a great investment.
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Tuesday, March 03, 2020
Gold Sets Up For Another Massive Move Higher / Commodities / Gold & Silver 2020
By: Chris_Vermeulen
Our research team believes the recent downward price activity in Gold and Silver are indicative of past price patterns we saw in Gold over the 2007 to 2012 rally. Throughout almost every rally in precious metals (Gold), there have been a number of moderate to serious price corrections taking place within that extended rally. The current downside move is moderately small compared to historical price rotation in Gold and potentially sets up a massive upside potential rally to levels above $2100 per ounce.
Weekly Gold Price Pattern from 2007 – 2017
This chart, below, highlights the downside price rotation that took place just before and as the US stock markets collapsed in late 2008 and 2009. Notice how Gold collapsed nearly 28% right as extreme market weakness began to become present in the US stock market. Then, pay attention to how Gold rallied from $730 in multiple upside price legs to a peak just below $1900 – well above 110%. Could the same pattern already be setting up in 2020?
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Sunday, March 01, 2020
Could Get Worse for Markets But Is a Gold/Silver Buying Opportunity / Commodities / Gold & Silver 2020
By: MoneyMetals
Mike Gleason: It is my privilege now to welcome back our good friend, Greg Weldon, CEO and President of Weldon Financial. Greg has decades of market research and trading experience specializing in the metals and commodity markets and even authored a book back in 2016 titled Gold Trading Boot Camp, where he accurately predicted the implosion of the US credit market and urged people to buy gold when it was only $550 an ounce.
He's regularly been making more great calls right here on our podcast over the years and it's great to have him on with us for the first time in 2020.
Greg, thanks as always for your time and welcome back. How are you?
Greg Weldon: I'm great Michael, thanks for the invite as always.
Sunday, March 01, 2020
Will Gold Shine Due to Coronavirus Infecting the Global Economy? / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
With new cases of COVID-19 outside China rising, the chances of a pandemic and global recession have increased recently. What are the implications for the gold market?
Coronavirus Spreads Over the World
Unfortunately, the new coronavirus remains the hottest topic of the news. Although the COVID-19 epidemic has been slowing down in China since the beginning of February, it has quickly spread to several other countries. The WHO’s situation report from February 26 says that the infections of the new coronavirus has been reported in 37 countries. Actually, for the first time since the beginning of the epidemic on December 8, there have been more new cases reported from countries outside of China than from China. With so many countries, including the Western ones, struggling with the disease, the COVID-19 ceased to be Asian issue and has become a truly global issue. As world inches closer to the real pandemic, the financial markets could become even more nervous, so we could see more safe-haven flows into the gold market.
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Sunday, March 01, 2020
Sweden Ends Its Experiment with Negative Interest Rates. Should Gold Be Worried? / Commodities / Gold & Silver 2020
By: Arkadiusz_Sieron
In December, the Sveriges Riksbank, the world’s oldest central bank, has raised the main interest rate from -0.25 percent back to zero, ending its experiment with the negative interest rate policy, as the chart below shows.
Chart 1: Riksbank’s repo rate from January 2010 to January 2020.
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