Commodity Trade Mantra

Posts Tagged ‘Gold and Silver’

The Carnage in the Gold Sector Could Be Over

The rally in gold and silver has corrected hard which is not all that unusual for any bull market. The price of gold is approximately $200/oz lower than its June peak of $1375/oz. RSI is down to 20.63 which is the lowest it has been for some time. A reading below the ‘30’ level is considered to be oversold, so we can see that gold is extremely oversold and a bounce from here is not impossible.

Peak Silver & Continued Supply Deficits Indicate Higher Silver Prices Soon

We estimate that silver mine supply peaked in 2015 and will trend lower in the foreseeable future. Due to the huge increase in Global Silver ETF demand & a large Exchange Inventory build, the silver market will suffer a forecasted 185 Moz annual deficit in 2016. Declining total supply is expected to be a key driver of annual deficits, thereby leading to higher silver prices going forward.

When the Bond-fire has finally run its course, Gold and Silver will Emerge Victorious

Today’s rising interest rates & trillion-dollar losses in global bond markets are prelude to what is to come,- Rising inflation with higher interest rates ending in the bursting of global government bond bubble & long awaited breakout in gold. The battle between capital & free markets is almost over; & when the bondfire has finally run its course, gold and silver will be victors.

Silver Seems Ready to Break Out Off Significant Support - Buying Opportunity Beckons

After taking a look at the ups and downs of the silver market pre- and post-election, there seems to be a major opportunity developing. Also the fact that the silver price is now below a rising 200-day moving average suggests a high probability that it will turn up soon. We maintain our view that silver prices will then return to a modest bull market.

What You can Expect from Gold and Silver going ahead

Gold and silver tanked in the aftermath of the US presidential election, as investors grew optimistic about Donald Trump’s plan to lower corporate taxes & boost infrastructure spending. That sent copper prices to their best weekly performance on record. Higher demand for base metals could drag silver prices higher over the long term, later to be followed by a massive rally in gold on high inflation.

Will Downward Trend in Gold and Silver Continue? A Look at Inflation is All You Need to Know

Despite this temporary setback, the long-term outlook is still looking positive for gold and silver. Financial turmoil is always a driving factor for additional bullion investments. Trump’s victory sent copper prices soaring more than $1,000, its best weekly performance since 1979. As a byproduct of base metal extraction, silver to rise on increased infrastructure spending & gold on inflation.

Not Buying Gold Now. Why? Because The Best Returns will be in Silver

Silver is a great place to make money… It will often outperform gold. You can use the gold-to-silver ratio to monitor the relationship between the two. The ratio is trending upward again right now. That’s good news for silver investors. It means silver is getting cheaper relative to gold. If the ratio continues to climb toward 80 again, that would be a solid place to buy.

Is Gold and Silver Bull Market Intact or will US Dollar Strength Crush it?

Conventional wisdom would tell us with the US$ index nearing a major breakout, gold and silver would be vulnerable to further losses. Ultimately, as long as Gold and silver’s fundamental driver – declining or negative real interest rates remain in place, then the fledgling bull market will remain on track. With inflation poised to rise, real rates are likely to decline further in 2017.

Rate Hike Largely Priced into Gold and Silver - What about Rationality in Sell-off?

Could the FED finally raise rates before 2016 draws to a close? That sounds plausible in theory, but there are a number of factors that do not support a rate hike in the near term. But even if they do hike rates, this move is already largely priced into gold and silver. We should question the rationality of this sell off. After all, the gold price often moves higher along with interest rates.

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.

Stack Gold and Silver, Avoid Paper Assets and Politicians to Retire Happily

We don’t know what the next twenty years will bring, but based on the last 3,000 years we can reasonably expect massively more debt, more central banker control over economies, unfulfilled promises from politicians, devalued fiat currencies, monetary crises, wars, diminishing middle class, and that gold and silver will remain money and continue as a store of value.

Gold and Silver Correction Is Painful, But Exactly What Bulls Needed

Despite being off their highs from a couple of months ago, silver is still up almost $4 on the year and gold is up about $200. So it just shows you how fantastic they performed over the first 6 or 7 months of the year. This is just the beginning of the third major secular up-leg in gold and silver that we believe will take them to all-time nominal highs, well above anything that they’ve achieved before.

Plunge in Gold and Silver may soon be Reversed with Multi-fold Vengeance

Gold and silver might have further to fall in the near term, but market bulls expect the retreat to offer investors who missed the first-half 2016 precious metals’ rally a strong buying opportunity. There are many undeniable and solid reasons to support this view. Here are the major factors that will ensure that investments in gold and silver remain attractive.

Gold and Silver in the Eye of a Deceptively Manipulated Economic Hurricane

What the governments may do to make the future use of gold and silver in any form of transactions is up for grabs. More than likely, all control will be placed in the hands of those who rule, [they want your gold and silver, as well as your guns, and that message is the strongest reason for your having and holding them]. Those who have no gold and silver will suffer the worst.

Gold Investment - The Cornerstone of a Well-Constructed Portfolio

John Embry highlights the pressures that have brought fiat currency to the brink, U.S. debt liabilities to staggering heights, and gold back to the institutional investor’s crosshairs. A must for anyone seeking to fully understand the state of the global economy and its implications for gold and silver, and why gold remains a cornerstone of a well-constructed portfolio today.

Ironically, Gold and Silver will find Buyers in Crowds at Higher Prices Than at Lower

Even after you’ve done the research & decided to participate, buying into price weakness against the herd & contrary to your emotions is not an easy thing to do. But time & again, some of the world’s most successful investors have done just that. You might want to consider joining their ranks. As new nominal highs in both gold and silver are printed, several situations begin to develop.

Can the Price of Silver (the Year's Top Performer) Continue to Rally?

With the price of silver up nearly 40% year-to-date, investors are wondering whether it can continue. Experts say it may have more room to run, particularly as global interest rates continue to stay negative. It wouldn’t be inconceivable to see a silver supply shortage if there was heightened demand, & in that case, a silver to gold ratio of 20 to 1 (or lesser) is not an impossibility.

Will The Price of Silver Take a Breather Before Another Rally Kicks Off?

The price of silver has emerged as the perfect compensation for those whom the market inflicted losses last year. The price of silver appears set for a correction, which suggests the overbuying activity that took place in June could witness several cash outs in the coming weeks. But the overall direction of commodity prices suggests that this could just be a breather before another rally kicks off.

Price of Silver Set to Skyrocket as it Returns to its Historic Role

In addition to holding up well in the face of bearish factors, the price of silver is set to get a boost from several bullish factors that have not yet been fully priced in by the markets. Despite the recent strong dollar and tough talk from the Fed, the U.S. economy cannot afford a strong dollar. The dollar will again naturally weaken and the dollar price of silver will get a boost.

Hope in Currencies is a Poor Investment Strategy - Trust in Gold is Better

If somebody gives you gold, you don’t have to trust them or the instrument that you have been given – they represent payment in & of itself. Fiat currencies are not really payments. They’re promises to pay, and they work well as long as social trust remains. How long will the trust remain? Well, hopefully for my lifetime & yours too, but hope is a very poor investment strategy.

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