Category: Gold and Silver 2010
The analysis published under this category are as follows.Thursday, October 28, 2010
Gold vs Bonds / Commodities / Gold and Silver 2010
Most investors have a deep-seated belief that bonds are a safe investment while gold is risky and volatile. If we explore this belief with an open mind, however, we will find that gold, not bonds, offers vastly superior wealth protection.
The 2008 financial crisis saw an unprecedented move out of equities and into bonds as investors looked for a safe haven, one that would protect their portfolios. Relatively few investors chose to move into gold. This is curious because gold, unlike bonds, is an asset class that has a negative correlation to financial assets, thus providing the greatest diversification as well as protection from inflation and currency crises.
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Thursday, October 28, 2010
Gold Rallies, Dollar-Correlation Eyed as Irish and Greek Bonds Hit by Deficit Fears / Commodities / Gold and Silver 2010
INTERNATIONAL WHOLESALE prices for gold bullion rallied almost 1% from yesterday's four-session low in London on Thursday, reaching $1333.50 per ounce as European stock markets rose – along with the Euro – despite a fresh plunge in "peripheral" Eurozone bond prices.
Crude oil ticked back above $82 per barrel. Silver prices held steady around $23.75 per ounce after an "extremely volatile" session on Wednesday in the words of one London trader.
Thursday, October 28, 2010
Gold Slumps as Palladium Rises on Supply Concerns Could Soar to over $1,000/oz / Commodities / Gold and Silver 2010
Gold fell 1.1% yesterday and silver by 1.5% as expectations regarding the scale of QE2 were eased back to the $1 trillion to $2 trillion mark and assertions that the money printing would be done on a more gradual basis eased concerns. The dollar's weakness today is leading to tentative strength in the precious metal markets.
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Thursday, October 28, 2010
Fuzzy Silver, What's Next for SLV ETF? / Commodities / Gold and Silver 2010
Sometimes the picture is not clear. This type of trading environment is what separates the men from the boys.Risk management is not well understood, but it is vital to successful investing and trading.
The precious metals markets are correcting as expected. Commodities in general and the metals in particular have seen a "love in" that would make Woodstock blush. So now what?
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Thursday, October 28, 2010
The Silver Sleuth from Big Gold / Commodities / Gold and Silver 2010
Jeff Clark, Senior Editor, BIG GOLD writes: We once had an ongoing series in BIG GOLD called, "1001 Reasons to Own Gold." The idea was that there were so many valid reasons to own the metal that I wanted to track and report on them. If you've been invested in the precious metals arena, you know there have been a myriad of bullish indicators for silver this year as well.
Here's a couple new reasons to own silver that a lot of mainstream investors probably aren't aware of…
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Thursday, October 28, 2010
Gold Breakout vs. Corporate Bonds / Commodities / Gold and Silver 2010
Since the financial crisis in 2008, it is undeniable that precious metals have been the best performer. One would assume that market participants have been piling into Precious Metals. Certainly some money has moved into the sector, smartly anticipating the continuance of a major bull market and looming severe inflation in the next several years. Yet, most funds have moved into fixed income (corporate bonds and treasuries) as the chart shows.Read full article... Read full article...
Thursday, October 28, 2010
Rising Gold Price Under Pinned by Large Funds Hedging Strategies / Commodities / Gold and Silver 2010
Managing Director Tan Khandaker, of New York-based Khandaker Morgan, thinks gold hedging strategies by large funds will underpin a rising gold price at least for the next few years and perhaps beyond. Tan also sees junior gold companies as the best way to leverage rising gold prices. Khandaker Morgan has built an index of junior miners with near-term catalysts for growth, and it's up about 15% since March. In this exclusive interview with The Gold Report, Tan presents some of his favorite names from his exclusive index.
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Wednesday, October 27, 2010
How Second Rate Silver Brings First Rate Returns / Commodities / Gold and Silver 2010
Silver has dominated the commodity and precious metals explosion through 2009 and 2010 with returns that meet and exceed any other precious metal. However, why is silver still a top investment? For two very important reasons: its volatile supply and its stance as gold's little brother.
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Wednesday, October 27, 2010
Gold Tight Supply to Complement Robust Demand / Commodities / Gold and Silver 2010
In an earlier article, we have established a robust outlook for precious metals’ demand in the long term. With the outlook on demand remaining upbeat, an analysis of the supply side will complete a fundamental study of the metals space. Generally, oversupply kills any optimism that strong demand creates. What is of more importance to investors is the demand supply gap rather than demand alone, as this is the prime determinant of long term prices.
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Wednesday, October 27, 2010
Gold Falls on Cautious QEII Report, Silver Spike Manipulation Statement / Commodities / Gold and Silver 2010
THE PRICE OF GOLD slipped back to last week's finish below $1330 an ounce in London on Wednesday, as the US Dollar rallied after a Wall Street Journal report said the Federal Reserve will be more cautious-than-expected in next week's hotly-anticipated asset purchase program – also known as QEII.
Crude oil contracts fell for the first time since Friday. Emerging-Asia stock markets lost 0.8%.
Wednesday, October 27, 2010
Silver Robust as CFTC Commissioner Alleges Price Manipulation / Commodities / Gold and Silver 2010
While gold fell marginally yesterday (down 30 cents) on dollar strength, silver rose by over 1% (by 28 cents to $23.81/oz) after a senior CFTC Commissioner alleged that major silver market participants were involved in manipulation and suppressing the silver price. Overnight and this morning there has been weakness in equity markets internationally and in commodity markets with suggestions that risk aversion may have picked up ahead of the FOMC decision next Wednesday.
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Wednesday, October 27, 2010
How Far Will Silver Fall? That Could Depend on the Stock Market / Commodities / Gold and Silver 2010
China is the world’s largest producer of gold, but it has plenty of other precious metals and rare minerals as well. Some in the world are already worried about so much power concentrated in one place.
A Bloomberg Report this week stated that silver exports from China, one of the world's largest, may drop about 40 percent this year as domestic demand from industry and investors climbs. China is the third-largest producer after Peru and Mexico. It is expected that reduced exports will boost prices. Industrial applications for silver, including electrical conductors and batteries, represent about half global demand. Silver has rallied 44 percent this year, outperforming gold and copper.
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Wednesday, October 27, 2010
Gold’s Performance Continues to Lag the Global Stock Markets / Commodities / Gold and Silver 2010
Nu Yu writes: Gold and silver have had a sharp move downward in response to China’s first interest rate hike last week while the stock market continues to move forward begging the question:
“Is gold decoupling from the stock market?”
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Wednesday, October 27, 2010
Approaches to Investing in Gold and Silver / Commodities / Gold and Silver 2010
It is genuinely amazing that so many economists and investment professionals continue to promote “business as usual” investment advice. Their clients will surely pay a steep price for this “head in the sand” approach to investing. Here’s why.
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Tuesday, October 26, 2010
Gold in a Low-Inflation Environment, Part II / Commodities / Gold and Silver 2010
"There is too little money in the economy." – Bank of England governor Mervyn King, 19 October 2010
SO the FEDERAL RESERVE is dead-set on creating inflation, and it's plain to see why.
Household debt in the US now stands so large, paying it down to 2001 levels – as a proportion of income – would require a drop in consumer spending of $2.7 trillion, some 18% of this year's gross domestic product. Deleveraging to 1990 levels of gearing (again, a then-record at the time) would cost US households $3.5 trillion, well over a quarter of their 2010 incomes.
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Tuesday, October 26, 2010
Has Gold Price Peaked? / Commodities / Gold and Silver 2010
G-20 meeting limited competitive devaluations - Even the media now treats G-20 meetings as either non-events or highlights the emptiness of their concluding resolutions. We shouldn't continue to look to them for real change or commitment. But this weekend's meeting produced more than expected in the statement that was made that nations had agreed to not continue 'competitive devaluations'. The only nation admitting to such practices is Japan. As markets opened on Monday the Yen rose against the dollar to a new 15-year high at 80.2 before falling back to 81.29 ahead of New York's opening bell. All eyes are on the Yen to see what really is important to Japan, international interests or national ones.
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Tuesday, October 26, 2010
Silver will bottom at $22, then $45 by March 2011, then crash to $25 / Commodities / Gold and Silver 2010
Let's compare to the dip during 2005-2006 silver rocket
Notice how in Dec. 2005, silver broke below the trend-line, then the trend-line was resistance during the remainder of the dip. Then notice how silver recently broke below the trend-line. Thus I expect silver to reach no more than about $24, before it falls again.
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Tuesday, October 26, 2010
Gold and Silver Reverse Dollar Bounce on Profit-Taking / Commodities / Gold and Silver 2010
THE PRICE OF GOLD unwound yesterday's 1.5% gain vs. the Dollar in Asian and London trading on Tuesday, slipping as the US currency recovered from sharp losses against crude oil, world equities and the Euro.
"Gold was well offered" at the start of London trading today, says one dealer.
Tuesday, October 26, 2010
Gold and Silver Drift as Federal Reserve Will Target $2 to $4 Trillion in Bond Buys / Commodities / Gold and Silver 2010
Slight dollar strength has contributed to gold and silver falling marginally in London trading so far today. Physical demand remains robust with buyers continuing to accumulate on the dips. With monetary easing set to continue and indeed deepen in the coming months this is likely to continue. Support is at $1,317/oz and resistance is at $1,348/oz and $1,385/oz.
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Monday, October 25, 2010
Gold Reacts and Mining Sector Benefits / Commodities / Gold and Silver 2010
In this exclusive interview with The Gold Report, investor, mathematician and former fund manager Michael Berry, PhD, tells us he is bullish on gold, which he expects will double or more in price in the not-too-distant future. In the meantime, with organizational skills developed in a previous career as professor of investments, Berry has created a 10-point "Discovery Investing" (DI) model by which all stocks in his universe are graded. For his own portfolio and as well as his Morning Notes newsletter, he has staked out plays on several small- and micro-cap mining stocks that he expects will perform quite well through either price appreciation on discoveries or takeover.
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