Category: Gold and Silver 2011
The analysis published under this category are as follows.Saturday, July 02, 2011
Gold and Silver Stocks Form Positive Divergence / Commodities / Gold and Silver 2011
It's often said that commodity shares should lead the actual commodities. While this isn't always the case, it often is at market turning points. Months back we noted the relative weakness in Gold and Silver shares and deemed it a reason for caution. It took more than a few weeks but our caution was vindicated as Gold and Silver shares fell more than 20% in April and May. Now we are seeing the reverse which should delight gold bugs and gold bulls alike.
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Saturday, July 02, 2011
Gold and Silver Crossing Halfway on an Annual Race / Commodities / Gold and Silver 2011
The first half of 2011 is over. With the summer solstice just behind us we would like to review the first half of 2011 and look at what is ahead. Last year gold gained 26%, its third double-digit gain of the last four years. So far this year has been choppy. The yellow metal has risen 19.5 per cent this year to trade at about $1,500 a troy ounce buoyed by the emergence of sovereign debt concerns in the US as well as Eurozone debt woes. Since 2011 has begun, gold prices got hit with double-digit selloffs and rallies. The common culprit is the so-called “rebalancing", which is when traders who bought gold at the end of the year to show they owned it, dumped it in 2011 to take a profit. The same traders jumped back into the gold trade in February and March as violence exploded throughout the Middle East and North Africa region and Japan contended with its worst disaster since World War II.
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Friday, July 01, 2011
Gold Global Supply / Commodities / Gold and Silver 2011
Considering gold’s outstanding fundamentals, it’s no surprise that demand has stayed strong a decade into its bull. And with demand only expected to strengthen in the years to come, a lot of weight rests on the shoulders of gold’s suppliers.
In order for this yellow metal to find an economic balance, consumers rely on a supply chain that had been quite consistent over the years. The major supply sources of mine production, recycling, and central-bank sales had worked in symphony to meet demand. Unfortunately over the course of gold’s bull this supply chain has grown increasingly inconsistent and unreliable, with these sources exhibiting extreme volatility.
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Friday, July 01, 2011
U.S. Dollar Collapse? Euro Crisis? Both, says Gold / Commodities / Gold and Silver 2011
The gap between gold in dollars vs other currencies has widened...
MANY factors determine the gold price – some transient, some more sustained.
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Friday, July 01, 2011
Gold Ends Up Against US Dollar, Down Against Euro, Debt Ceiling Row turns Constitutional / Commodities / Gold and Silver 2011
THE U.S. DOLLAR spot price of gold bullion slumped to a one-month low of $1489 per ounce Friday morning London time – 5.5% down on May's all-time high – as stocks gained and commodities fell.US newspapers meantime reported Friday that the very existence of a US federal debt ceiling may be unconstitutional.
Friday, July 01, 2011
Gold Lower as Market Embraces Risk Again, Chinese Inflation Still a Worry / Commodities / Gold and Silver 2011
Gold lost ground yesterday and is weak again this morning. The risk trade gathered strength as traders took a bullish view on the global outlook. Greek progress outweighed concerns over China's slow down in manufacturing, as represented by the Chinese Purchasing Managers Index's lowest number in 20 months. Continuing inflation concerns across Asia are prompting central banks to engage in monetary tightening. China's inflation is still uncomfortably high, standing tall at 5.5%, which exceeds official targets of 4% by a considerable margin. Oil is lower at $94.35. compressed by lower Chinese demand.
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Thursday, June 30, 2011
Gold and Silver Long Range Arc Points Upward / Commodities / Gold and Silver 2011
One of the functions of Gold Stock Trades is to help subscribers separate the daily chaff from the long term view of the economic grain. The markets will do what they have always done, which is to confuse, misdirect and obfuscate.
It is important for investors to stay on target and not be swayed by skewed media reports and questionable economic data, which often serve to mislead us as we go through the investment jungle.
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Thursday, June 30, 2011
Gold Holds Steady Whilst Train Wreck Greece Could Give Up on Cuts / Commodities / Gold and Silver 2011
THE U.S. DOLLAR gold price rose to $1512 an ounce Thursday morning London time – a 0.7% gain on the week so far – before falling back towards lunchtime, as stocks held flat and commodities fell ahead of the second Greek austerity vote.
Gold prices in Euros meantime climbed to €33,596 per kilogram (€1045 per ounce) – but still 1.3% down on the week – as the single currency hit a near-three-week high of $1.45.
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Thursday, June 30, 2011
Gold Watches the Greek Tragedy that Is the Euro / Commodities / Gold and Silver 2011
The risk trade is on again, gold holds steady and may even be about to falter. The European Union's Financial Cavalry have saved the world from the evil Greek mobs by lending more money yet again. ......... Don't believe a word of it!
The Greek crisis is endemic of a system in deep crisis. The European project is ill-equipped politically or financially to manage the creeping doubt that has slowly and inevitably eroded investor confidence the world over. The gnarling mob may have been beaten back this time, but when the full effects of further austerity measures are thrust upon them, what then?
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Thursday, June 30, 2011
Why Silver Could Drop Below $30 / Commodities / Gold and Silver 2011
A close look at where silver is currently positioned at this stage of its developing long-term bubble, and what can be expected short-term in its price using Bump-and-Run and Dead-cat Bounce pattern analyses, suggests that silver is on its way to returning to its long-term mean.
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Thursday, June 30, 2011
Faulty Markets, Is the Silver ETF Bleeding to Save the COMEX? / Commodities / Gold and Silver 2011
The iShares Silver Trust (SLV) has seen a precipitous decline in the amount of silver it reports in its trust, even as the price of silver remains mostly flat in post-frenzy trading. If SLV really does own the silver that it reports on its balance sheet, investors should be left to wonder if the SLV isn’t doing the bidding of the COMEX, which has reported falling supplies amidst larger requests from purchasers.
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Thursday, June 30, 2011
Amidst OPEC Drama, Solar is to Silver What Ethanol Is to Corn / Commodities / Gold and Silver 2011
The state of global affairs has never been in such disarray. Major governments are going bankrupt, inflation is running rampant in a majority of the countries that line the planet, and relationships between nations have never been so heated.
This past week, the Obama Administration took a direct shot at OPEC, leading the charge in a release of emergency oil reserves intended to keep prices low against falling supplies. OPEC failed to increase oil production, and one holdout, Iran, turned the event into political drama. Now some are wondering if the administration’s move may threaten the relationship between the United States and Saudi Arabia.
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Thursday, June 30, 2011
Will Gold Benefit from the European Debt Crises? / Commodities / Gold and Silver 2011
In this exclusive interview with The Gold Report, Doug Groh, senior analyst with Tocqueville Asset Management, likens the gold price to a mirror that reflects peoples' concerns about global economic and political events. And he likes what he sees in the long-term prospects for gold equities.
The Gold Report: The situations in Greece, Ireland, Spain and Portugal are proving the unsustainability of deficit financing and are effectively killing the euro as a safe haven currency. As these worries escalate, have you seen more money come into your fund?Read full article... Read full article...
Thursday, June 30, 2011
Peru Gold / Commodities / Gold and Silver 2011
I have frequently commented that 'country, and in some cases state-specific and province-specific, political and economic risk' profiles are critically important when researching and assessing risk in the context of investing in mining and oil & gas companies - or for that matter, any company irrespective of business sector. I wrote the following in Valuation of Mining Companies (page 13):
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Wednesday, June 29, 2011
Gold and Silver Ownership and Prices Will Not be Affected by Dodd-Frank Legislation / Commodities / Gold and Silver 2011
Gold is trading at $1,507.70/oz, €1,044.69/oz and £941.54/oz.
Gold is higher again today as the Greek debt crisis and continuing strong demand from Asia continues to support prices.
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Wednesday, June 29, 2011
Gold and Silver Rise as Greek Politicians Choose Between Austerity or Dignity / Commodities / Gold and Silver 2011
THE PRICE to buy gold rose to $1510 an ounce Wednesday morning London time – a 0.5% gain on the week – while stocks and commodities also gained and US Treasury bonds fell ahead of the Greek austerity vote.
The price to buy silver climbed too, hitting $34.49 an ounce – also 0.5% up for the week.
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Wednesday, June 29, 2011
Trading Gold and Its Eurozone Crisis Premium / Commodities / Gold and Silver 2011
Recently gold challenged it’s all time highs, being propelled largely by renewed concerns over the Greek debt crisis and the possible ramifications a default could have on global financial markets. Whilst fears of a possible default in Greece are supportive of gold prices in the short term, it is important to understand that such pressures are largely temporary in nature and they do not significantly change the underlying market dynamics in the longer term. We feel the best way to describe this is by way of visualizing that there is a premium built into the gold price that varies with regard to how prevalent fears over the Eurozone crisis are. Just to clarify, we are considering the effect that fluctuations in fears over the Greek situation have on the gold price, not the effect that an actual default would have on the price. When fears escalate, the gold price increases and when fears subside, then so does the gold price. It does not necessarily significantly alter the overall direction of gold prices over the longer term.Read full article... Read full article...
Wednesday, June 29, 2011
The Great Gold Nugget Scam / Commodities / Gold and Silver 2011
Doug Hornig, Casey Research writes: You know an asset class is hot when the scam artists start coming out of the woodwork. Such was the case during the real estate bubble of this century’s first decade, as those selling mortgages packaged them in ever more complex vehicles, many of which are now known to have been utterly fraudulent.
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Tuesday, June 28, 2011
Gold, the Internet and Creating Imaginary Money / Commodities / Gold and Silver 2011
One has to love today's technology. Where else can we get so much mail from people whom we do not want to get mail? Never has porn been delivered in such high quality. But, the good news does not stop there. While creating social networks for people with lives in which no one is interested and providing the capability for old people to twitter among themselves, the internet is now providing an important government function, imaginary money.
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Tuesday, June 28, 2011
Gold Rebounds, Dollar Looks Strong Despite Debt Ceiling Deadlock / Commodities / Gold and Silver 2011
U.S. DOLLAR prices for gold bullion rallied Tuesday morning London time, hitting $1503 an ounce – just above last Friday's closing price – as stocks were mixed and commodities and US Treasury bonds gained after President Obama held meetings on the debt ceiling.Read full article... Read full article...