Category: Gold and Silver 2021
The analysis published under this category are as follows.
Friday, June 11, 2021
What Drives Gold Prices? (Don't Say "the Fed!") / Commodities / Gold and Silver 2021
By: EWI
Excerpted from Elliott Wave International's new FREE report "Gold Investor's Survival Guide: 5 Principles That Help You Stay Ahead of Price Turns."
There is a glaring hole in the popular understanding of what drives gold's price.
Mainstream finance believes the Federal Reserve's monetary and interest rate policies shape the trend.
That sounds like a solid explanation... except, the Fed officials themselves disagree!
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Friday, June 11, 2021
Why You Need to Buy and Hold Gold Now / Commodities / Gold and Silver 2021
By: MoneyMetals
In the current environment of rising inflation and easy monetary policies, the value of gold could potentially go sharply higher from recent levels.
Unlike many traders out there, the successful gold investor has learned to “see the forest through the trees.”
Put simply, gold investors understand that the shiny yellow metal is not likely to go straight up in price. It can, however, be expected to trend higher and over time, moving well beyond all-time highs.
Modern investors, who have grown accustomed to the free-for-all that is the stock market, often find themselves asking why they ought to buy and hold gold. The savvy investor, on the other hand, understands that you cannot afford not to own gold bullion.
Thursday, June 10, 2021
Gold’s Inflation Utility / Commodities / Gold and Silver 2021
By: Gary_Tanashian
Gold is okay, but not yet unique
There are times when gold is an okay inflation hedge, while under-performing the likes of industrial metals, oil/energy, materials, etc. During those times, if you’re doggedly precious metals focused you should consider silver, which, as a hybrid precious metal/industrial commodity, has more pro-cyclical inflation utility than gold.
But as I have argued for much of the last year, if the inflated situation is working toward cyclical progress (as it is currently) then there is a world full of trades and investments out there to choose from, many of which are trouncing gold (which, as I have belabored for the better part of 2 decades now, is not about price but instead, value) in the inflated price casino.
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Monday, June 07, 2021
The Return of Inflation. Can Gold Withstand the Dark Side? / Commodities / Gold and Silver 2021
By: Arkadiusz_Sieron
Inflation broke into the economy violently. It’s a destructive, dark force. But gold can resist it, being after all a much stronger asset than Anakin Skywalker.Last month, I wrote that “inflation is knock, knock, knockin’ on golden door”. I was wrong. Inflation didn’t knock, it broke down the door! Indeed, as the chart below shows, the core CPI surged 3%, while the overall CPI annual rate soared 4.2% in April – this is twice the Fed’s target!
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Monday, June 07, 2021
When Markets Get Scared and Reverse / Commodities / Gold and Silver 2021
By: Monica_Kingsley
S&P 500 wasted another good opportunity to rise – one where the credit markets were largely aligned. Is it a sign of upcoming tremors that the 500-strong index couldn‘t defend the daily gains? Commodities weren‘t under pressure, the dollar wasn‘t surging (looking at the closing prices), precious metals did well, and even lumber enjoyed a white candle again.
Inflation expectations retreated, and so did Treasury yields – what‘s holding stocks then? Neither uncertainty about the Fed policy, nor surging inflation cutting into P&L, nor crashing bonds – what we‘re seeing is run of the mill volatility as stocks move both into a structurally higher inflation environment, and await Fed moves which are much farther down the time line than the markets appreciate. Heck, even the option traders keep undergoing the earlier announced shift to complacency.
Yes, the taper talk has dialed back the inflation trades to a degree, but hasn‘t knocked them off in the least. In a reflation, both stocks and commodities do well, and we‘re still far away from worrying about weakening GDP growth rates (today‘s ADP and unemployment data are a good proof thereof) – in my view, worries about inflation not retreating nearly enough during this Treasury market lull (taking up this summer) would come into the picture first.
Reopening trades aren‘t over, the housing market activity (housing starts, new home sales) has slowed down a little while XLRE keeps running, financials remain as strong as value (yes, there is more juice in that trade still), and no mad rush into tech (growth) is underway. Capacity utilization isn‘t at the top of the pre-corona range exactly, and oil prices (these serve as additional tax, a drag on the economy) aren‘t biting nearly enough. The job market isn‘t at the strongest either, and the hours worked don‘t match prior extremes either. Last but not least, global supply chains haven‘t entirely recovered to meet the reopenings-boosted demand.
Sunday, June 06, 2021
Stock Market: 4 Tips for Investing in Gold / Commodities / Gold and Silver 2021
By: Mark_Adan
Investment involves taking a risk. It involves putting your money on something with the hope that it will increase in value. Therefore, it will be difficult for you to participate in the investment if you are not a risk-taker. Anything can happen at any time, and you might end up incurring losses or profits. For someone who only had hopes of making a profit, the losses may discourage him/her.
Investing in gold can be the best decision to make if you want to diversify your investment. Gold is always considered the safest asset because it does not depreciate. It means that its prices keep increasing with time. Therefore, you are sure of making a profit when you invest in it. Below are some of the tips for investing in gold.
Saturday, June 05, 2021
Money Is Cheap, Own Gold / Commodities / Gold and Silver 2021
By: The_Gold_Report
Peter Krauth of the Gold Resource Investor discusses rising inflation and the role of hard assets. Sure Mr. Biden, money is cheap. But whose money is it?
The White House recently sent a $6 trillion budget plan to Congress.
Let that sink in for a moment.
Biden's first wide-ranging budget calls for big spending on infrastructure, education and, of course, climate change. His plan lays out $6 trillion in spending against just $4.2 trillion in revenues. That's an enormous 37% bump up from 2019 spending levels, and it suggests a deficit of $1.8 trillion, nearly double that of 2019.
The idea is to spend now while money is cheap, with interest rates at historical lows. In fact, they're at the lowest levels in 5,000 years of history.
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Friday, June 04, 2021
Hedge Funds Getting Bullish on Gold / Commodities / Gold and Silver 2021
By: MoneyMetals
The gold market has seen many momentum shifts in recent months. At the end of the day, however, the market really depends on one simple factor: Are the big money inflows trending in a bullish or bearish direction?
Near market lows, speculative interest tends to be heavily on the short (bearish) side. That sets the stage for buying pressure to be released when rallies force short sellers to cover their positions.
As traders shift to taking on more long (bullish) positions, momentum builds for higher prices.
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Wednesday, June 02, 2021
The Meaning Behind Gold’s Triple Top / Commodities / Gold and Silver 2021
By: Kelsey_Williams
In a previous article I wrote:
“Looking at this chart, it should be apparent that gold at $2000 is fully-priced. Unless you are convinced that the US dollar is going to crash soon, then expectations for much higher gold prices at this point are unwarranted.” ($10,000 Gold Or A Triple Top?)
The article was published in August 2020 and the chart is reprinted below…
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Tuesday, June 01, 2021
Gold Investor's Survival Guide / Commodities / Gold and Silver 2021
By: EWI
Hi,
With Bitcoin losing more than 50% off its April high and retail prices rising across the board, you may be looking for a place to park your cash.
How about something with a bit of a track record in that area, like gold?
In 1975, gold futures were created. From there, opportunities to trade gold have flourished via stocks, ETFs and options.
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Tuesday, June 01, 2021
Will Gold Shine Under Bidenomics? / Commodities / Gold and Silver 2021
By: Arkadiusz_Sieron
Bidenomics is a big departure from sound economics. But when reason sleeps, gold fortunes are born.Biden’s triumph in the presidential election does not just mean that a new man lives in the White House. It actually implies a fundamental shift in economic policy . Some analysts even see Biden’s agenda as a decisive break with neoliberalism or “Washington consensus”.
You see, in the old orthodoxy, most economists trusted in markets, argued for privatization, deregulation, and liberalization. Taxes and social benefits should be low and don’t discourage work and investments. The governments should run balanced budgets, avoiding large and permanent fiscal deficits , while central banks should hike interest rates to prevent inflation from running out of control.
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Monday, May 31, 2021
Is Gold Price Setting Up For A Rally Above $2000 Again? / Commodities / Gold and Silver 2021
By: Chris_Vermeulen
In Part I of this research article, I tried to highlight the major market cycle phases that often drive volatility, uncertainty, and bigger trends in the US/Global markets as well as Precious Metals. Additionally, my team and I highlighted the technical confluence pattern that has setup as Gold prices have rallied above downward sloping price channels (price Flags) recently. This confluence of technical patterns, while we are transitioning into a post-COVID-19 global economy, suggests that excess credit/debt issues throughout the global financial markets are seeking safety in preparation for some type of market reversion event.
The recent move above $1900 in gold shows that precious metals are likely entering a new bullish price phase. We highlighted this in a May 3rd research article suggesting that a new advancing cycle phase may push Gold to levels above $2100. If our research is correct, Gold may continue to rally higher – reaching a peak sometime near mid-October 2021.
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Thursday, May 27, 2021
Are Silver Prices Really Cheap; And Does It Matter? / Commodities / Gold and Silver 2021
By: Kelsey_Williams
Proponents of silver and their expectations for a much higher price have talked for years about the reasons “silver is undervalued” (their words, not mine).
Whether it is a deficit in new production of silver or the gold-to-silver ratio, there is always something to talk about; so let’s talk.
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Wednesday, May 26, 2021
Gold: The Past Years Are Often the Best Guides / Commodities / Gold and Silver 2021
By: P_Radomski_CFA
As we know, history tends to rhyme. It’s never the same, but when you zoom out, the bigger picture often looks very similar. What does it mean for gold?
Short-term implications
With gold’s back-and-forth price action mirroring its behavior from 2012, the yellow metal is likely destined for devaluation.
Back then, gold zigzagged with anxiety before suffering a material drawdown. In fact, in early October 2012, it moved slightly above the initial highs right before sliding.
Moreover, while the yellow metal has bounced above its declining resistance line (the black line below), the price action mirrors gold’s behavior from early January. If you analyze the blue line below, you can see that investors’ optimism regarding gold’s short-term breakout quickly faded and the yellow metal sunk like a stone. In addition, with gold’s RSI (Relative Strength Index) moving slightly above 70 before the January swoon occurred, an identical development is already playing out in real time.
Sunday, May 23, 2021
Gold Approaches $1,900 amid FOMC Minutes and Crypto Sell-Off / Commodities / Gold and Silver 2021
By: Arkadiusz_Sieron
The latest FOMC minutes were dovish, especially in light of the recent increase in inflation and elevated asset valuations. What does it mean for gold?Yesterday, the FOMC published minutes from its last meeting in April . They’ve shown two things doing that: first, that some of the central bankers are worried about the inflation and elevated asset valuations; and, second, that the Fed is going to remain dovish despite all these concerns .
Indeed, some FOMC participants noted that the demand for labor had started to put some upward pressure on wages. Moreover, a number of them pointed out the protracted supply disruptions and the insufficient pre-emptive hawkish reaction from the Fed as potentially inflationary factors:
A number of participants remarked that supply chain bottlenecks and input shortages may not be resolved quickly and, if so, these factors could put upward pressure on prices beyond this year. They noted that in some industries, supply chain disruptions appeared to be more persistent than originally anticipated and reportedly had led to higher input costs. (…)
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Saturday, May 22, 2021
Cryptocurrency Crash Benefits Gold / Commodities / Gold and Silver 2021
By: MoneyMetals
This week has been truly brutal for the entire cryptocurrency sector, with the prices of major currencies like Bitcoin and Ethereum crashing at least 30%. The overall sector has shed trillions of dollars in value.
The recent carnage for holders of digital currencies could be due to a variety of factors including profit taking spurred by Elon Musk, an easing of inflation worries, or concerns about new regulations coming down the pike.
Whatever the case may be, some of the capital that recently left the crypto space has found its way into the gold and silver markets. This trend could continue as well, with precious metals gathering strength and with Bitcoin still having plenty of room to fall further.
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Saturday, May 22, 2021
Gold historically follows Inflation higher. Will it do so Again? / Commodities / Gold and Silver 2021
By: Richard_Mills
Precious metals are among the best places to park your money in times of economic or political distress.
Gold and silver offer stability during a period of extreme stock market volatility and low bond yields, and while they do not pay interest or dividends, they are not subject to inflation like paper currencies.
It is also, in my opinion, a smart strategy to allocate a portion of gold and silver to your investment portfolio, knowing that precious metals can be used as a “fail-safe” currency in the event of a total financial collapse.
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Friday, May 21, 2021
Gold Price Reversal Is the Name of the Game / Commodities / Gold and Silver 2021
By: P_Radomski_CFA
When the USDX declines, the PMs usually celebrate and rise as a result. However, this was not the case yesterday – and we can’t ignore it.
“Reversal” is the name of the game, at least when it comes to the precious metals market.
The USD Index declined profoundly once again yesterday (May 18), and gold, silver, and mining stocks ignored this move. They didn’t want to follow in its footsteps anymore.
Thursday, May 20, 2021
Gold Rebounds After Fainting Due to Inflation Spike / Commodities / Gold and Silver 2021
By: Arkadiusz_Sieron
Gold recovered after a downward response to the surge in inflation. What’s next for the yellow metal?Gold rebounded after an initially bearish reaction to the BLS report showing that inflation soared 4.2% in April year-to-year. This means we have an inflation annual rate doubling the Fed’s target and the highest since the Great Recession as the chart below shows.
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Thursday, May 20, 2021
Will Precious Metals Investors Get the Last Laugh? / Commodities / Gold and Silver 2021
By: MoneyMetals
Financial markets have become a complete joke. From GameStop to Dogecoin to non-fungible tokens (NFTs), a plethora of assets have been pushed to laughable heights with the help of the Federal Reserve’s funny money.
Just about everyone, except for stone-faced Fed officials, seems to be in on the joke.
Dogecoin promoter and billionaire Tesla founder Elon Musk poked fun at cryptocurrencies and the U.S. dollar itself during his hosting duties last weekend on Saturday Night Live.
During the “Weekend Update” segment, Musk appeared in character as a cryptocurrency guru. He admitted Dogecoin began as a joke.
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