Commodity Trade Mantra

All posts under ‘Gold Trading’

Gold and Silver Supply and Demand Report 26 July

Conventional techniques for analyzing supply and demand are inapplicable to gold and silver, because the monetary metals have such high inventories. In normal commodities, inventories divided by annual production (stocks to flows) can be measured in months. With gold and silver, stocks to flows is measured in decades.

The 3 Drivers Sending Gold Prices To Multi Year Lows

Gold prices have traded down for 10 straight sessions to end the week at $1,099 per ounce, its lowest point in more than five years. Gold stocks, as expressed by the XAU, have also tumbled. Besides apparent price manipulation, other factors are affecting gold’s behaviour right now, three in particular. Meanwhile, the slump in gold prices has accelerated retail demand.

Paper Gold Market Seem Completely Disconnected From Physical Gold Market: Why?

The paper gold market is telling one story. But the actual physical bullion market is telling quite another. It’s not clear exactly who is suppressing precious metals or why, but it is quite apparent that prices on paper exchanges are completely disconnected from reality, as retail buyers are taking this opportunity to scoop up gold and silver at prices that are 50% or more off their highs.

Why Most Pundits are Dead Wrong about China’s Gold

Gold is still the safest asset, and every investor should have some in their portfolio. The price of gold will go significantly higher in the years ahead. But contrary to what you hear from the pundits and read in the blogs, gold won’t go higher because China is confronting the US or launching a gold-backed currency.

Gold Prices and the Gibson’s Paradox Implications

The flight of speculative capital from falling markets has to go somewhere, particularly if cash balances held in the banks are at a growing risk from systemic default. The Gibson’s Paradox tells us that these are the conditions for commodities to become the safe haven of choice for the highest levels of speculative money ever recorded since fiat currencies dispensed with the gold standard.

The Hunt For The Mystery Gold Bear Raid Leader Begins

The gold crash took place in the span of 30 seconds just before Chinese stocks opened and broke the gold futures market not once but twice. As for the “great”, and greatly misdirecting, hunt for the bear raid leader, one to distract the masses & which will never reveal the true culprit, while those guilty of chronic, constant manipulation continue to walk free – bring on the entertainment.

Central Banks and Our Dysfunctional Gold Markets

The love-hate relationship between governments and gold is complicated. It is because gold is a competitive national currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates and the value of government bonds. Hence, central banks fight gold to defend their currencies and their bonds.

Currencies Need to Depend on Faith, Gold Doesn’t

Gold should not be compared to stocks or real estate, but to other forms of money, such as any one of a number of fiat currencies now in circulation. Ironically, in a world awash in fiat currencies that are created at an ever increasing pace, and whose value is solely derived from faith in the issuing state, gold is the only form of money whose value does not require a leap of faith.

Gold and Silver Money Has Devolved Into Debt and Plastic

Gold and silver were supposedly no longer needed in the financial system & gold has become a “traditional” asset, taxed like an investment & is no longer considered an alternate currency. The Chinese, Russians, Arabs & Indians disagreed, but gold and silver prices have been “managed” so westerners would not lose confidence in the paper & digital replacements for real money.

Russians Buy More 25 Tonnes Of Gold Bullion Again In June

Russia puts great strategic importance on its gold bullion reserves. While its gold reserves may not be on a par with western nations it is worth noting that neither is Russia’s debt. In the event of a new global debt crisis and an international monetary crisis, Russia is less fragile than many debt-laden western economies.

Our Take on The Horrible Day for Gold

Gold just violated a key support level after holding steady in the $1,140-$1,150 range. This is not good for gold in the short term. Note that copper, nickel, aluminium, zinc & lead… the whole list of important metals is down, not just gold. This belies the rosy picture of economic recovery driving the markets. And that makes a sharp reversal a distinct possibility.

I Haven't Lost any Conviction on Gold and Silver: Eric Sprott

Of course it has been a very, very tough game for the last four years here. So far, everyone in the press is downplaying gold and silver but I haven’t lost any conviction whatsoever. There are lots of signs that the economy is not strong & it could fall apart pretty seriously all of a sudden. So you had better be prepared. Have some ‘good’ currency — gold and silver.

Beware! Without Either Gold Or Silver, You Will Be Greeced

How and when things unfold, no one knows. Everyone’s primary concern would be well-served to know and continually be aware of what is going on, because when this banker-created financial disaster comes to it sordid end, and it cannot be avoided, owning and physically holding/controlling gold or silver will be one of the best means of surviving financially.

Gold, Silver Flash Crash Following $2.7 Billion Notional Dump

Just before 9:30pm Eastern time or right as China opened for trading, gold (as well as platinum, silver, and virtually all precious metals) flashed crashed when “someone” sold $2.7 billion notional in gold, resulting in a 4.2% or about $50 to just over $1,086/oz, the lowest level since March 2010. Once again an intentional HFT-induced slam with one purpose: force the sell stops.

China’s Master Gold Plan, Restated

“China increased its gold reserves 57%,” reports Bloomberg this morning. While tapping this reckoning out, Jim called from the road. “China is feigning transparency with a ‘don’t rock the gold boat’ strategy,” he said in reaction to today’s announcement. “It’s a misrepresentation of the facts. They absolutely have more gold than they’re reporting.

Gold, Silver, Equities: Secular Megaphone Patterns

Central banks want to levitate bonds, levitate equities and repress prices for gold, silver, crude oil & other commodities. Equities have enjoyed a very long bull market. Bonds have been in a 30+ year bull market. Debt and money supply will increase, so in the long term commodity prices will also increase eventually. Higher gold, silver, and crude oil prices are coming.

Is Credit Deflation Bad For Gold Prices?

Its a common view in financial markets that credit deflation is bad for gold prices, as gold nowadays is regarded as an asset to be sold in the scramble for cash when people are forced to pay their debts. Distressed speculators will come under pressure to sell gold, but this argument ignores the certainty that during a credit deflation government-issued currencies always weaken against gold.

Is The Selling Of Paper Gold And Silver Finally Ending?

What if gold and silver naturally act as Giffen Goods (goods that people buy more as its price increases) in the latter stages of a global debt bubble? Intuitively, this makes sense. Rising gold and silver prices should naturally reflect increasing risk to the financial system— especially counterparty risk since gold and silver bullion are the only financial assets which have none.

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