Commodity Trade Mantra

Posts Tagged ‘Gold Mining’

Silver Measures Wealth While Gold Stocks Increase It

Despite gold (& silver) & gold stocks (& silver) being connected; they operate on different cycles. It is for this reason that gold & silver bottomed around 2001, whereas many gold and silver stocks only bottomed around 2015/2016. What has been despair & disappointment, due to the lack of gold and silver stock performance, is now the reason for great opportunities.

With Silver Bull Just Starting, the Best Gains in Silver Miners are Yet to Come

The major silver miners just reported an amazing Q2’16, with silver’s young new bull fueling radically-higher operating earnings. The great inherent leverage of silver-mining profits to silver prices was the fundamental justification underlying silver stocks’ epic gains so far this year. With silver’s bull only just starting, the best gains in silver-mining profitability & thus stock prices are yet to come.

The True Value of Gold (Economic Code) Finally Revealed

The true value of gold is much higher than the spot price quoted in the market. This is due to several factors, but the most important reason is misunderstood by just about every economist and monetary scientist in the world today. Those who are able to understand the information in this article, will finally be able see the value of gold (money) in a totally different way.

Are You sure there will be Enough Gold to match the Exploding Demand?

Cracks are now visible in the central banks’ wall of deceit. Trillions of dollars of bonds now trade at negative yields. Helicopter money is in the cards. People the world over now sense the jig is up. So one important question hangs in the air: Will there be enough gold to match exploding demand? Supplies are drying up. So… Has the world reached peak gold? And what does it spell for gold prices?

Gold and Silver Pullback Before US Jobs Data - But Brexit Weighs on Fed

I am beginning to think the gold rally is running out of steam and may be due for a pullback. We need some fresh impetus to continue higher…Unless more dire news comes out of the UK (Brexit aftereffects) or elsewhere, I suspect there may be some profit taking ahead of the weekend. However the focus now shifts to Friday’s [US jobs] NFP print.

With System Failure Dead Ahead, Smart Investors Stack Physical Gold

With some $200 trillion in projected unfunded liabilities, the government will have to default on some of its promises. A blow up in the futures or other derivative markets could cause a “run on the bank” & the financial system to be thrown into chaos. The U.S. dollar could either crash or surge in a financial panic, depending on how it unfolds. Buy & hold gold outside the banking systems.

Silver Prices to Create a Fundamental Nirvana for the Silver Miners

Silver miners enjoyed a very strong first quarter in fundamental terms. And this explosive silver-mining profits growth is likely only starting. Stable or even-lower costs due to higher gold byproduct credits combined with far-higher selling prices will create a fundamental nirvana for the silver miners. Their stocks still have enormous upside.

What is the Driving Force behind the Rally in Gold Prices

Gold prices have seen a sharp rally in recent months. Who’s benefiting and why? As central banks around the world allow their currencies to devalue, gold suddenly looks a lot attractive. Gold also becomes a high-yield investment when compared to negative interest rates. The third factor driving gold is the US dollar, which appears to be running out of gas after a long rally.

The Two Different Worlds of Gold and Silver: East and West

He who has the gold makes the rules. The “world” in the East has never ceased to recognize the Golden Rule. The “world” in the West now contemptuously scorns this eternal wisdom. While in the East, even the most humble peasant understands why we need to store our wealth in gold and silver money, there is no longer a need in modern economy for this “Perfect Money” in the West.

The Gold Silver Ratio at 80 - Higher than it has been since 2008

Silver just got cheaper when measured in gold terms. The dollar and silver are both going down now—in gold terms. We think that what’s happening is that the price of silver metal is selling down, and every time the carry rises to a threshold, arbitrageurs are buying spot to sell futures and pocket that spread.

Peak Gold and Silver May Have Come and Gone

Newly mined supplies of gold and silver will decline in 2016 and beyond. The main culprit is low prices. In 2015, gold and silver prices spent most of the year trading below miners’ all-in production costs. Primary silver production is already on the decline in the major producing countries. Holders of physical gold and silver would be wise to hang on tight to it & keep a long-term perspective.

Gold In 2016: "The Economic Power Is Shifting"

In the near-term, paper gold is extremely oversold, reflecting the expression of western establishment sentiment in the paper markets. Compared with the situation at the time of the Lehman crisis, gold is significantly cheaper today, which is wholly at odds with the continuing systemic risk to fiat currencies from under-capitalised banks, unprepared for the prospect of markets normalising.

China’s Money Supply Could Indicate Additional Room for Gold Demand

The dollar has historically appreciated before the first hike and typically has depreciated afterwards & may not strengthen further. China’s money supply far exceeds that of other developed nations. Bloomberg Intelligence noted this presumed spending power seems to indicate that China still has plenty of room for additional gold demand.

Here’s What Happens to Gold When Interest Rates Go Up

Investors are apt to unload gold in anticipation of tightening monetary policies. This negative pressure is sustained until the Fed announces a rate hike, which then eases the negative sentiment towards gold. This explains the subsequent rallies in gold that occurred shortly after the Fed announced the first rate hike in the last four tightening cycles.

Gold, Oil, & 'Grandmaster' Putin's Trap

It is important to keep in mind that the dollar’s attacks on gold end always end the same way – in a painful knockout for the dollar. It would be naive to believe that this is unknown to that grandmaster of patience, Vladimir Putin. By systematically increasing their gold reserves, Russia and China are relentlessly moving forward to strip the US dollar of its status as a global reserve currency.

Gold and Silver: Arbitrage Opportunities for You to Pounce On

The most promising arbitrage situations—trades that exploit price differences between similar financial instruments—come about as a result of takeover bids, while others happen when a company’s shares trade significantly below its cash on hand. Here are some company stories with management teams that Jayant Bhandari thinks are close to perfect.

Gold Market Is Reaching The Extremes

As per the average gold market estimate in a Bloomberg News survey, the price of gold will drop to $984 per ounce before Jan. That would be the lowest since 2009 & a 10% retreat from Tuesday’s close. ANZ sees gold averaging $1,020 in Dec, Citigroup cut its three-month gold target to $1,000. but Morgan Stanley says gold prices could sink to $800 in its worst-case scenario.

China Starts Snapping Up Gold Mines - Which Gold Miner Next?

Buying Gold Bullion, especially buying in large quantities, can cause the prices to fluctuate significantly. The best bet? Gold Mines! Maybe even patented gold mines where the investors own both the title to the land AND the Gold in the ground. Get ready to see a huge surge in gold mine buyers, especially from China!

China Creates World's Largest Physical Gold Investment Fund For Central Banks

China’s new international gold fund expects to raise 100 billion yuan or $16 billion. About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their gold holdings. The new project marks another step forward in the internationalisation of the Yuan.

The Minimum Price for Gold, Part II

As Western bankers debauch – and destroy – the world’s paper currencies (and at an accelerating rate), the sane populations of Asia are funneling ever-greater quantities of their own wealth out of that paper (where it can be stolen via “competitive devaluation”) and into gold and silver, where it is immune to the crime of currency-dilution.

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