Commodity Trade Mantra

Posts Tagged ‘Buy Gold’

Price of Gold Could Rise a Lot Higher - In Fact Double

There’s a difference between the narrative, which is what you’re being told, versus the reality of the economic data. It’s in no one’s interest ahead of the election to say the U.S. economy is a mess. If the flood of bad economic data continues, the Fed will almost certainly print more money or cut interest rates. And that could easily send the price of gold through the roof.

Gold may Spring a Surprise on Rising Uncertainty & a Slowing Global Economy

Over the long term, people have realised the benefit of portfolio diversification. Holdings in gold-backed ETFs were 2,051 metric tons by Oct. 14, the highest level since June 2013. In the latest gold and silver COT report, paper players made big strides in bringing the market back into balance & setting the stage for an eventual rebound. The gold market may surprise us again.

Will the US Dollar Die as "New World Money" Goes Live Today? Should I Buy Gold?

Today, Sept. 30, is when the IMF officially adds the Chinese yuan to its basket of currencies comprising its special drawing right (SDR). It has enormous long-term implications for the dollar. Does that mean the dollar becomes worthless overnight? Of course not. This is a development with long-term implications, and that’s the point — the dollar will die — but with a whimper, not a bang.

With a Trump Win, Gold Prices Could Soar Sharply to $1750 or even $2000

Citigroup has advised investors to sell stocks & bonds – And buy gold – BEFORE the election, if Donald Trump starts rising in the polls. Their reasoning is that if Donald Trump begins to lead in the polls, gold prices could move up sharply before the election, since markets tend to price-in any expected outcome. ABN Amro Sees $1,850 Gold Prices Following a Trump Win.

Hike Gold Price To Get Inflation When All Else Fails

Raising the price of gold is the easiest way to get inflation. A higher dollar price for gold is practically the definition of inflation. Governments can do this in a heartbeat. The Fed would just declare the price of gold to be, say, $5,000 an ounce & make the price stick using the gold in Fort Knox & their printing press to maintain a two-way market. If you don’t believe this can happen, just check the history books.

Gold Futures Traders Breath Easy as Dovish Fed Powers the Next Major Rally

Gold futures surged after the Fed again chickened out on raising its benchmark interest rate. Gold futures speculators’ fear of Fed rate hikes has been a major drag on gold. Rate-hike risks just plummeted in the coming months, since the Fed can’t risk acting heading into the critical US presidential election. Gold’s next major upleg is likely just unleashed by the Fed.

Surge in Smuggled Gold Hits Indian Gold Refiners, Gold Jewelers & Banks

Smuggled gold could account for over a third of demand this year in India – the world’s second-biggest buyer of gold – potentially costing the government over $1 billion in lost revenue. Gold refiners have less than a 1% margin. If smugglers offer 4 or 5% discounts, they have no choice but to close operations. All 32 refineries in the country have stopped buying dore until market conditions normalize.

Due to Financial Cancer of Debt, Devastation is Our Future- Gold the Only Remedy

The fact that demand for gold is soaring says a great deal about investors’ combined frame of mind these days. People are scared. I fear devastation is in our future. If central bankers had succeeded in their efforts, we would have no need for negative rates. There is simply too much debt (financial cancer) in the system to save it. And buyers of gold know this.

Strength of Gold Against Foreign Currencies Confirms Bull Market Status

If Gold is going up only because of a falling US$, that is a US$ bear market, not a Gold bull market. A Gold bull market is Gold rising against the majority of currencies. Gold’s strength in foreign currencies confirms its global bull market status and provides a hint that more gains for Gold in US$ terms are likely ahead. We view any weakness in the weeks ahead as a buying opportunity.

Why Own Bonds or Fiat With Negative Yield When You Can Buy Gold?

Either way (hike or no hike), there is no place for the gold bull to hide. It took gold approximately 7 months to advance $250 and overcome major resistance at $1,300/oz from a bottom of $1,050. A reasonable target could be $1,550/oz ($1,300 + $250) by March 2017 – 7 months from now. Silver could follow a similar pattern with a near-term target of $26/oz.

Are You Prepared for the Hyperinflation Shock? Get on the Gold Wagon Now!

The problem is that no one is prepared for the coming shock. All of this printing will result in global hyperinflation of at least similar proportions to the Weimar republic or Zimbabwe. The final decline of the currencies will be reflected in the gold and silver prices. Gold at $1,330 and silver at $19 is a bargain, but with hyperinflation, we could add quite a few zeros to their prices.

Brits Pouring Over Half Their Net-Worth Into Gold Post-Brexit

The speed at which the British people are buying gold is unprecedented. We are seeing people convert as much as 40 to 50% of their net worth into physical gold, (compared to) 5 to 10% in the past. The sudden surge in gold sales is more remarkable considering the British historically haven’t shown as much interest in the yellow metal as residents of many other countries.

Unwinding of Excessive Gold Futures Longs - One of the Best Buying Opportunities

Gold sees major interim tops in bulls and bears alike whenever speculators’ long positions surge up to relatively-high levels. While these elite traders don’t control gold’s long-term trends driven by fundamentals, their collective trading can sure bully gold over the short term. The unwinding of speculators’ excessive gold futures longs offers some of the best mid-bull buying opportunities.

The Worst Gold Bear is now the Most Convinced Bull

Less than one year ago, Dutch bank ABN AMRO has put itself on the map by being more bearish on gold than Goldman Sachs. ABN Amro has now released an update report & is now expecting the gold price to end 2017 at $1450/oz. That’s a 75% increase in target price. The downward spiral of the gold price has been broken, and the only way seems to be up.

Now It's The Japanese Savers That Are Flooding Into Gold Bullion

Individual investors drove a 60% jump in sales of gold in June from May at Tanaka Holdings, the operator of Japan’s largest bullion retailer. Why the surge into gold? The yen’s appreciation in spite of the adoption of the negative-rate policy has kindled skepticism about the policy’s benefits. It’s also led to investors seeking to protect their assets in case Abenomics fails.

Negative Yields On Global Government Debt Drives Gold Demand

It’s unprecedented that a third of all global government debt has negative yields. Which drives gold demand. Effectively what we’re seeing is people’s pensions being decimated because the policymakers have had very few if any alternatives left. It is in this environment that gold will help satisfy need. It’s more about protection of wealth rather than creation. That’s where gold plays.

So Far, So Good - What's Next for Gold and Silver? Brexit Aftermath

Gold outperformed the US dollar & Treasuries as the go-to safe haven asset. Investors rushing around on Friday & looking for somewhere to flee favored gold. World financial markets are highly leveraged & massively interconnected. The collapse of even one bank or hedge fund can have vast implications. Here are some early insights on Brexit as it relates to the gold and silver markets.

This Time Central Banks Will Need A Bailout: Make Sure You Buy Gold

In the late ‘90s, Wall Street bailed out a hedge fund. In 2008, the Federal Reserve bailed out Wall Street. But in 2018, it’s the central banks that will need a bailout. And what will happen to the dollar when the Fed loses international credibility? I worked hard for my money & I want to preserve it. I don’t want to see it wiped out. Gold will preserve my wealth & that’s why I have it.

The True Bearer of the Title ‘Risk Free Asset’ Should be Gold

The true bearer of the title ‘risk free asset’ should be gold – not T-bills or whatever other names government paper has. This is because gold is liquid under all market conditions. Silver is another excellent way to minimize your dependence on the goodwill of others. The former Bank of England head Lord Mervyn King offers good reasons for individual investors to buy & hold gold.

Is There A Better Insurance Against Global Risk Than Gold? I Doubt It!

Negative rates kill the incentive to save & without savings, there will be no investments or growth in the economy. But the biggest disaster is hitting the pension sector. When risks are major, it is critical to protect yourself against them. It is not a coincidence that some of the most successful investors in the world are recommending physical gold as insurance against these risks.

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