Commodity Trade Mantra

Posts Tagged ‘Gold Stocks’

Gold Prices & it's Relationship with the Expansion of Fiat Money

Not only is Fiat Money Quantity, continuing to grow above its long-term trend, but it appears to be accelerating. The inflationary implications are obvious. Gold is already under-priced to a substantial degree. Further expansion of FMQ will eventually lead to a complete reassessment of the price relationship between fiat dollars and physical gold, to gold’s benefit and the dollar’s detriment.

Gold Bull Market Intact Regardless of Short Term Price Gyrations

Gold remains the asset Wall Street loves to hate. Currently the fundamental drivers of gold are mixed, which makes a sideways move the most likely prospect, barring new developments. We remain convinced that the monetary experiments of recent years will end quite badly, and that the long term case for gold remains intact regardless of short term price gyrations.

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.

Gold Edging Close to Triggering a “Buy” Signal. Will You Buy?

Banks added 27 tonnes to their reserves in August in an effort to diversify their assets and hedge against their own policies. In a survey of 19 central bank reserve managers, the WGC found that close to 90 percent of them have plans either to increase their gold reserves or maintain them at current levels. Investors might consider doing the same, for the very same reasons.

Rising Inflation & Sagging Confidence in Central Banks will Catapult Gold Prices Higher

Inflation may surprise to the upside. Consumer prices are set to rise as oil rebounds, while low or negative interest rates and bond buying by central banks have failed to boost economies. Interest rate hikes are incredibly positive for gold prices, because of the existence of the huge QE “money ball” that sits at the Fed & other central banks. Gold prices need another rate hike from Janet to move higher.

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.

Why And How The US Fed Will Drive Gold Higher

After raising rates in Dec, the US Fed back-flipped on its aggressive interest rate policy earlier in the year. The US stock market nosedived by about 10% and Chinese debt issues worried investors. Gold & gold stocks went through the roof! Despite the stock market recently hitting all-time highs, the Fed kept delaying increasing rates. This ‘wait and see’ policy is causing a lot of uncertainty.

Does the Current Gold Price Justify the Big Gains in Gold Stocks?

Despite the 25% decline in the gold price since 2013 to $1,050, profit margins only fell by 12% as the industry responded by cutting costs and restructuring their operations. With gold now trading at $1,350 per ounce and AISC holding steady, net profit margins for the industry have increased from $220 to over $500 per ounce – an increase of 127% in just 7 months.

Peak Gold Production and the Implications for Gold Prices

The global gold output has been contracting since 2013. There are just not that many new mines being found and developed, and this is “very positive” for the gold price going forward. Thomson Reuters too is of the view that global mine supply is set to begin a multiyear downtrend in 2016. Demand for gold, on the other hand, should remain strong, helping to support prices even more.

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 Demand Remains Stable During Sector Weakness

Gold demand peaked in the middle of 2010 & went sideways for a few years before succumbing to the bear market. That lack of strong demand in 2011 while Gold surged, was a warning sign. The amount of Gold in GLD can be a sort of an indicator for the sector. While Gold & gold shares are correcting now, the real time data coming from GLD suggests Gold demand is & should remain firm.

Divide Global Money Supply by Global Physical Gold = Correct Gold Price

It’s true that there’s a limited quantity of gold. But there’s always enough gold to support the financial system. It’s also important to set its price correctly and there can be a debate about the proper gold price. Just take the amount of money supply in the world, the amount of physical gold in the world, divide one by the other, and there’s the gold price. It’s not complicated mathematics.

Will Gold Prices Crash With The Dow And Again Soar On Inflation?

Are we headed for a crash in the stock market? Yes, and a more severe one than in 2008. As the crash unfolds, gold will be sold even though holders may be confident about gold, as the goal will be to cover immediate losses. Inflation will then ramp up dramatically as governments increase money supply, eventually causing collapses in currencies. Currency collapse will again push up gold prices.

Gold Prices Will Go Higher Than What Most People Can Imagine

When financial hurricanes wreak havoc across the economic landscape, the only safe haven to be had is in precious metals. We’re at the start of a really major bull market… This is going to be driven by a lot of things… It’s going to take gold prices a lot higher than most people can imagine at this point because we’re looking at a worldwide monetary crisis of historic proportions.

Nothing Can Stop The Runaway Bull Market In Gold - Not Even The Fed

The next Federal Reserve rate hike is on hold… for now. The last time the Fed raised rates was from 2004 to 2006. Rates went from 1% all the way to 5.25%. If gold was truly affected by the Fed raising interest rates, then it would have had a devastating effect on the gold price… right? But in-fact gold prices went up. Gold doesn’t care about the Fed, especially when gold is in a bull market.

Coming Week Breakout Most Important to Confirm a Gold Bull Market

$1291 is both a key Fibonacci retracement level for gold’s secular uptrend (from 2001 till 2011) & the resistance line of the bear market. This is the third attempt for gold to break out of its downtrend. As a rule, the third attempt is mostly a decisive one, which is why we believe a breakout in the coming week will be THE most important one to confirm a bull market in gold.

Thanks to Overvalued US Dollar, Gold Prices Have No Upper Limit

Thanks to an overvalued US dollar, gold prices may have nowhere to go but up. The biggest gold producers in the world have seen their share prices double this year. Not only are gold prices soaring, but producers are cutting costs and slimming down debt as they pave the way for gold to return to the top of the favored commodities list. This safe haven is back & the recovery is clear.

Did You "Miss the Boat" on Gold? Now Buy the Dip

You may be wondering if you “missed the boat” on gold out of fear of more bearishness. After all, the price of gold is already up 15% this year. It’s at its highest level in 15 months. During the 2000–2003 bull market, the average gold stock rose 602%. The best stocks returned 1,000% or more. So, if you’ve been wanting to buy gold & gold stocks; It’s not too late. Buy the dip.

Gold and Silver Take a Breather - Will Investors Grab this Buying Opportunity?

In the near term, gold is threatened by a rate hike & there may well be some liquidations of tactical positions. This is to be expected, especially around the start of summer, based on historical precedent. We are optimistic about gold over the rest of this year as negative interest rate fears & also inflation have reawakened investors’ confidence in gold as a reliable currency & store of value.

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