Commodity Trade Mantra

Posts Tagged ‘Investment Demand’

What does the Strong Demand for Gold and Silver Bullion Coins tell us?

Gold and silver bullion coin sales comprise only a very small portion of the physical gold and silver markets. So how is it that such a small aspect of the global gold and silver market in terms of the overall volume can at the same time be so important? It is because the demand among ordinary private investors is telling us something very important. Here it is.

The Manner will be More Shocking than the Rise in the Price of Silver

At the heart of the unprecedented move higher in the price of silver is the manner in which it will occur. It will be a price move like no other – the greatest short covering rally in history. That’s guaranteed because the COMEX silver short position is the largest & most concentrated short position in history. The largest short position ever holds the potential for the greatest short covering rally ever.

Long-Term Prospects for Gold and Silver Unchanged, Despite Temporary Weakness

Given the selloff in recent weeks, silver is now up around 1-2% year-to-date, giving up most of its gains for the year, and gold is up around 5-6% – still positive though well off its double-digit gains into mid-April. I think what we’re seeing is not a massive move away from gold or silver, but a very short-term reaction. The long-term bullish outlook based on a lot of fundamental drivers remains unchanged.

The Limited Impact that Dollar Strength has on Gold Speaks Volumes

The dollar has hit a six-week high against the euro. The wider forex market, however, tells us that this latest move is mostly euro weakness over French election concerns rather than dollar strength. Into this uncertainty we are continuing to see a pick-up in demand for alternative investments such as gold and silver. We see a bigger upside to gold in the short term.

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.

The Gold Market is about to Explode. Stop it if You Can!

This century experienced a big change in the gold market. The gold market is about to explode & even the almighty central banks can’t stop this. Before 2008 global central banks were net sellers of gold. Their policy was to keep the gold prices from moving up higher. When you understand gold is like Dr. Evil to paper currency, you know turning from net sellers to net buyers is a big deal.

2015 Silver Eagle Investment Demand Continues To Be The Big Winner

From 1987 to 2000, the U.S. Mint sold 15 Silver Eagles for every ounce of Gold Eagles. Then from 2001 to 2007, this nearly doubled to 29 to 1. From 2008 to 2014, the rate of Silver Eagle to Gold Eagle sales jumped to 41 to 1 & then 84 to 1 in 2014. Th e current demand in February are a staggering 213 to 1.

Silver Prices Up 10.3% YTD - Outperformance To Continue

Silver is highly undervalued currently versus gold with the gold silver ratio at 62:1, while long term historical average is 15:1. We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.

Silver Prices: Is a 14% Rise Enough for 1 Month?

Having started with a record large speculative short bet against silver prices, June saw the fastest swing in bullish betting on silver, net of bearish contracts, on record. The so-called spec net long rose 150%…swelling over $2bn by value…and growing faster than any week since at least 1986 as silver prices jumped.

Is Silver The World’s Most Undervalued Asset?

Silver is undervalued on a historical basis & also when compared with gold, platinum, palladium, base metals including copper, oil, stocks & U.S. dollar. Silver below $20/oz, remains less than half of its nominal record price in 1980. There are very few that remain at the same price levels as they were more than 30 years ago.

Gold Coin Sales Rise, Silver Coin Sales Could Hit Record High in 2014

The one ounce American Eagle silver bullion coin remains extremely popular with investors. Total coin sales during 2013 reached an all time high of 42,675,000. If the current sales pace continues, total sales of the silver bullion coin during 2014 could reach a record breaking 55 million ounces.

Inflation Is Coming, What to Do? - Turn To Gold Now

History clearly shows there is a direct link between inflation and gold demand. When inflation jumps, or even when inflation expectations rise, investors turn to gold in greater numbers. And when gold demand rises, so do gold prices—you can guess what happens to gold stocks.

The Accidental End To Silver Price Manipulation

It should be clear now to precious metals observers that gold & silver price manipulation is just as common to the metals as it is to every other asset class. The resolution will not come from organized efforts. Be it regulation or legal class action, market forces will more than likely assert themselves.

Gold Demand In China For 2013 May Exceed 1,100 Tons

Physical demand for gold in China has skyrocketed this year after prices plunged in April and June and Chinese consumers have soaked up about 800 tons for the year to Nov. 15, according to World Gold Council, beating India, their biggest rival – Moreover, it is also the world’s top gold producer.

Understand The Coming Big Change in Gold Investing

There seems to be no shortage of conflicting analysis on future gold prices. Some believe gold will decline to $1,100, while some see it rising higher to $1,500 – Actuality short-term forecasts are meaningless as they fail to understand the coming big change in gold investing.

Precious Metals Futures - Beyond the Madness

Price discovery on the largest precious metals futures trading system goes on protected by a fraudulent financial system and a legal system desperate to protect its importance. The only positive is that manipulation cannot go on forever and there is still time to act accordingly.

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