Commodity Trade Mantra

Posts Tagged ‘Gold and Silver’

With Fundamentals in Place, a Breakout & Compelling Technicals - Watch Gold Take-Off

We think the breakout in gold is here, the fundamentals are in place, and the technicals are compelling. The technical situation, in the dollar, flips off to the technical situation with the gold extremely well right here. If you get above $1,300 here, then you’ve got $1,377, and beyond that, this is a new gigantic structure type of bull market going on where gold will be going to new all-time highs.

The Shine of Silver Or the Glitter of Gold - Brightest of the two in Years Ahead

Gold is the preeminent monetary metal & throughout history, has projected the most enduring images of wealth. Silver is in its shadows, but as an asset, it contains similar wealth-protecting qualities, perhaps with even greater return potential. Here’s why, silver, a quasi-industrial metal with a rich monetary history, may be about to step out of gold’s shadow & shine brightest in the years ahead.

Silver seems ready for Take-Off - Do have Enough Stacked-Up?

Unlike its big brother, gold, physical silver is coveted for both investment purposes and industrial usage. Right now, silver prices seem poised to really take-off sharply after being in a bit of a slump lately, in other words, it’s the perfect time to load up on this precious metal while it’s down. Here are some good reasons why silver should be on every investor’s radar.

Gold and Silver Demand would go Ballistic if People understand the need to Buy it Now

It’s taken a lot longer for us to reach “the promised land” of sustainably higher gold and silver prices than most anticipated. Gold and silver demand would go nuts if only the people could finally understand why they need to buy it right now. I think the dam of realization is coming very close to breaking & that there could be an outright flood of new, popular awareness & action.

Momentum in Gold Stocks Building for an Exceptionally Strong Season

Gold stocks exhibit strong seasonality as their price action mirrors that of their primary driver, gold. And since gold stocks have so seriously lagged gold in 2017, their upside potential in this year’s autumn rally is exceptional. That’s already begun in July, proving sentiment is starting to shift away from excessive bearishness. Momentum is building for a far-better-than-average strong season.

Powerful Upleg in Gold and Silver Believed Imminent

The significant increase in Large Spec long positions this past week in gold and silver from a very low level might be cause of concern to some, since it of course increases the risk of a reaction in these metals. Also in the face of a continued albeit incremental rise in the prices of gold and silver, the Large Specs have suddenly realized their mistake & are scrambling to get back on board.

Dollar nowhere near Bottoming out, Gold nowhere near Topping out

Despite two rate hikes & impending balance sheet reduction, the 10-year yield has moved 15% lower since early March while USD has been weakening, both contrary to many forecasts. While USD has been falling, Gold has rallied over $200 since December 2015 to its current mark at 1,276.70. Now there are many potential catalysts to move make the 20%+ seen in Gold look small.

Copper Breakout has Profound Implications for Precious & Base Metals

Over the past couple of days copper has broken strongly higher & the implications of this development are profound for the base and Precious Metals sectors. This is a sign that a major bull market is about to begin across the entire metals sector, which as you know is what we are looking for in gold and silver. Silver in particular is gruesomely undervalued & has huge upside potential from here.

Supremacy of US Dollar as Global Reserve Currency is Doomed

A relief rally is likely in the US dollar, although that doesn’t mean the rally will get very far, nor that the dollar’s downtrend is done. While several indicators are suggesting that it will take at least a breather here, if it does break down the consequences for the dollar are likely to be dire—and this could be the message of the super bullish gold and silver.

Gold and Silver Investor Sentiment Sours Exactly when a Turnaround is Imminent

Commercial traders such as banks have engaged in “huge short covering,” moving into more bullish positioning, according to Commodity Futures Trading Commission data. Meanwhile, the more momentum-driven funds have sold off a large chunk of their paper silver to them. History has shown this to be a bullish indicator for the coming reversal in silver prices.

For How Long will Gold and Silver Continue to be "Rigged Markets"?

The discussion surrounding the likelihood of gold and silver being “rigged markets” has been rendered moot by way of the countless flash crashes – More recently, the one in silver on Friday July 7. Had that flash crash occurred in stocks, they would have cancelled the trades. In the silver market, the damage done by the intervention was successful in destroying morale. How long will this continue?

Insurance against Event Risks & Inflation is Cheaper: Time to Buy Gold

Gold tends to do well when other assets do badly, but it does best of all when people lose faith in central bankers. Gold’s current price means also means it is now cheaper for investors seeking insurance against other assets falling. Gold prices should recover from this latest pullback as the move higher in real rates is unlikely to be sustained and we see longer-term value around these levels.

Clarifying the Major Myths on Gold and Silver Investments

A distinction needs to be made between physical metals markets and manipulated paper gold and silver markets. Artificially low prices serve as a disincentive to new mining production, which makes the long-term supply/demand fundamentals for gold and silver even more favorable. Here are the 6 common and current objections that gold and silver naysayers get wrong.

The Most Interesting Aspect in Silver Charts is the Volume Behavior

The only interesting aspect of silver is the volume behavior. In the past few months, downside volume has been way above average, yet there has been no giving way of the December 2016 low. In a truly weak market, the December low should not have held. Volume read from the weekly gives credence to the possibility of a bear trap. We are also seeing the possibility of strong money covering shorts.

Upside Turn in Stocks & Slam-down in Gold and Silver - Both may be FAKE

The recent inflection from skepticism to optimism could be the first step toward the stock market euphoria that we typically see at the end of bull markets & has been absent so far. People have been convinced that everything is wonderful right now & that stocks are going to go up forever. I don’t buy this. It wouldn’t be a total shock to me if stock markets are down 25% & gold is up 50% by October.

Driving Force behind Silver Prices will be Base Metals, Not Gold

Whether you should buy silver or not really depends on where you think base metals will go for the remainder of 2017. If you are prone to believe base metals will stay up front, you might be getting ready to buy silver in May and June. Silver could easily become the runaway favorite among base metals. Before you dismiss this idea as being crazy, take a minute to think it through.

Buying Gold is the Important First Step to “Freedom Insurance”

Buying gold is perhaps the easiest step you can take towards diversifying your savings. When you buy gold, you trade in paper money for a hard asset that’s been a stable store of value for thousands of years. Gold is universally valued. Its worth doesn’t depend on any government. In other words, simply buying gold is the easiest way to lessen the political risk to your savings.

A Bearish Tilt to the Gold and Silver Market - A Great Risk-Reward Setup

Gold is about to see the 50 DMA above the 100 DMA above the 200 DMA. This golden cross setup is seemingly timed to catch people off-guard given the poor sentiment we see now, yet will trigger buy signals for technical traders & algos. And if you think the stock market won’t be allowed to drop because it’s never allowed to drop, ask yourself WHO has not been allowing it to drop for the last 8 years?

The Gold to Silver Ratio - Is it a Fact of Just a Myth?

The gold to silver ratio that existed one hundred fifty years ago was mostly the result of political influence and appeasement. It was an arbitrary number. It might be reasonable to expect a ratio for purposes of consistency and uniformity within the existing monetary system. There is no fundamental reason which justifies any particular ratio between gold and silver.

Gold and Silver on a Major Buy Signal for the Long Term & Short Term as well

The gold and silver markets continue to track a multimonth correction. Don’t get overly bullish yet. What we’re waiting for is the “all clear” signal, which is just 3% or so away from us. For an investment opportunity in commodities to work out for you in the most profitable way, you must be ready when an asset is hated, cheap, and in an uptrend.

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