Commodity Trade Mantra

Posts Tagged ‘Physical Gold’

Silver Prices Hold at Critical Level Amid Most Bearish Conditions

Hedge funds & other speculative traders as of last week held more bearish bets against silver prices than any time outside the summer 2015 peak. Silver prices found support [in early May] near $16.00. Something also changed in the silver market in May as US Silver Eagle sales have surged compared to the previous month. Also, the fundamentals in the US economy continue to disintegrate.

Paper Gold Price is not the Real Price of Gold

The paper gold market sets the gold price – the paper price that the false gold market trades at. That has very little to do with the price of gold which is what the physical market would trade at if there was not a manipulated paper market. But buyers & sellers are not concerned about the real price of gold. Because they have no intention of owning the physical since they don’t understand its function.

Irrefutable Reasons for Gold Price to Rise to Unthinkable Levels

The gold price is primarily a reflection of the change of value of the paper money. If paper money is debased due to money printing or credit extension, the gold price measured in dollars or euro will increase. Thus, gold as a rule doesn’t go up in price but the value of paper money goes down. Here are some factors that will push the gold price to unthinkable levels measured in paper money.

Can't Afford to Miss Buying Physical Gold Now, Soon Most Won't Really Afford It

The conditions that are favorable for gold, will prove fatal for overvalued stocks that are looking for a trigger to tumble. Remember, diversification is crucial to any investment strategy. As a fraught 2017 unfolds, consider re-balancing your portfolio to accommodate the likely economic, business and market volatility ahead. You can hedge your bets, with physical gold.

Gold and Silver at Never-to-be-seen-Again Prices vs Financial Assets

The world is now entering the most dangerous period since the end of WWII. Real assets are at historical low against financial assets. Real assets such as commodities (including gold and silver) are even more oversold. Investors still have a unique opportunity to acquire physical gold and silver at prices which will not be seen for a very, very long time, if ever.

Higher Gold Prices shift Sentiment back to Self-feeding Bullish Mode Again

The faster gold rallies, the more investors & speculators alike will want to buy it. While these lofty Trumphoria-distorted stock markets continue to retard gold investment demand, the big 200dma breakout is starting to overcome that. The nearing golden cross will further cement the shift back to bullish sentiment. This upleg in gold prices is set to accelerate considerably in the coming months!

Gold Prices Can Test $2,000 in 18 months on Weak Dollar & Geo-political Tensions

Part of the bullish case for gold prices is an emerging distrust towards U.S. geopolitical behavior & accelerating physical gold purchasing in the rest of the world. While some may be discussing the dollar or equities’ impact on gold prices, the driving factor behind the metal’s price will become “the loss in trust of leadership and governments and financial markets.

Analysis - The Macroeconomic Drivers of the Gold Price

There are essentially two types of gold price drivers worth discussing: measurable ones and those that cannot be measured. Most of the “measurable” macroeconomic fundamentals that are considered important drivers of the gold price are either mixed/neutral or bearish at the moment. However, there are good reasons to believe that several of them will turn gold-bullish.

Gold Price Drivers will turn Unequivocally Bullish on This

Once central banks try to arrest a decline in asset prices and a contraction in aggregate economic activity, a great many of the fundamental drivers of the gold price that look neutral or even bearish at the moment will turn unequivocally bullish. Some market participants are busy accumulating physical gold in spite of the fact that the macro-economic fundamentals are not yet bullishly aligned.

Falling Mine Supply will Trigger Panicked Gold Buying & Higher Gold Prices

Once the price of physical gold starts to move up on basic supply and demand fundamentals & imbalances in the paper gold market, the stage is set for corresponding increases in paper gold prices. As more & more paper gold holders turn from the paper market to obtain physical gold, which is already in short supply in the physical market, we’ll see the beginning of a price super-spike.

Physical Gold Demand is Collapsing - Nothing Could be Further Away From The Truth

The idea that retail bullion sales represents global demand for physical gold and silver & that the demand for physical gold is collapsing is seeded in either ignorance or mal-intent. Nothing could be further from the truth. Retail demand at the margin has no affect on price other than maybe the price premiums in the coin market based on mint supply and retail demand.

Why Digital Safe Havens won’t ever Kill the real ones - Gold and Silver

Gold and silver are real & tangible assets, similar to currencies but unlike stocks & government bonds. Gold and silver are also durable with an effectively infinite longevity & thus completely different to any other assets & this gives them a prominent position as safe havens, and they are precisely what the likes of Bitcoin lack. Can the intangible assets really replace the tangible?

Massive Debt Pain in China Could Be a Blessing for Gold Investors

Although the economy grew by 6.7% in 2016, the debt is causing a host of problems in China. The main reason many Chinese are buying gold is to preserve wealth against the backdrop of massive fiscal stimulus & lax credit conditions. Never has a big economy piled up so much debt so quickly without serious repercussions. It could be wise to take a lesson from Chinese investors & buy physical gold.

Central Banks’ Attitude to Gold Allocation to Undergo a Massive Change

Demand for physical gold, to escape the alternative of counterparty risk on deposits with Eurozone banks, is bound to grow. One suspects that the Eurozone area will be the first to see widespread gold buying by high net worth individuals, trying to protect themselves from a systemic event that has become all but certain, and will even threaten the entire banking system.

Bullish Gold bets Rising on Diversification & Hedging of Stock Market Risks

Money managers’ bullish bet on gold at this time shows that the precious metal continues to hold an important place in most investors’ portfolios. Gold is an exceptional diversifier for investors who might fear stocks have risen too much, too fast & are due for a pullback. Gold interest on the back of diversification & hedging reasons are likely to be resilient as uncertainty & political risks linger.

I Buy Gold as it’s Cheap & Central Bankers are Weakening Paper Currencies

Central bankers have printed more than $12 trillion since 2008. It was never a question of if we’d get inflation. It was a question of when. Now that inflation has finally arrived, the price of gold should rise as inflation picks up. Druckenmiller didn’t say he bought gold because the stock market is about to crash, but because 1) it’s cheap and 2) central bankers are weakening paper currencies.

Gold Preparing for a Healthy Rally into Higher Territory

Hedge funds and institutional speculators have been calling the tune for gold, trading the recent range, buying on dips, selling on rallies, and gradually adding to their physical holdings – a behavioral pattern we expect will continue within a rising trading range – at least until a price above the $1300 an ounce level is well established.

Traders to Stay Bullish on Gold - Inflation to Accelerate Faster than Fed will Hike Rates

Inflation is going to accelerate faster than the Fed is going to hike rates; that’s good for real assets. On top of it, we are looking for weak dollar on broad basis; that combination has a good tendency to boost gold prices. There’s a lot of uncertainty here. As for the Fed, in the current environment, they may normalize rates but it’s going to be slow moving.

Trump Will Be Great For Gold And Silver (If Nothing Else)

If somehow Trump manages to get Congress to pass his border control and excise tax proposals, consumer prices on the products being imported at prices much lower than the same products can be produced domestically will soar. In addition, various price inflation reports are starting to emerge. Let’s not forget, gold loves inflation.

Gold Prices Target $1,500 - How to Get in on the Gold Rush

Traditionally, gold has been a so-called safe haven for investors worldwide. The intrinsic value of physical gold will remain even as stocks come & go. As market uncertainty sends gold prices rocketing higher, what are the best ways for investors to profit? With the potential for four more years of market tumult, here’s how savvy investors should take advantage of the coming gold rush.

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