Category: Gold and Silver 2016
The analysis published under this category are as follows.Friday, April 01, 2016
Gold Prices Rise 16% In Q1 – Best Quarter In 30 Years / Commodities / Gold and Silver 2016
– Gold prices gained 16% in Q1 – best quarterly performance since 1986
– Gains due to increasing global financial, macroeconomic and monetary risk
– Stocks come under pressure – Flat in U.S.; Falls in Europe and Asia
– Sterling fell 20% on BREXIT concerns and the euro fell 11% against gold
– Canadian dollar fell 10%, Aussie dollar fell 9% & Swiss franc fell 12% against gold
– Outlook positive as gold and silver remain undervalued
– Reasserted role as safe haven in Q1
Thursday, March 31, 2016
Silver Lows – Silver Ratios / Commodities / Gold and Silver 2016
Silver prices as this is written (March 23) are down 60 cents on the day. Scary … no, probably a normal correction.
Yes, paper silver prices on the COMEX are “managed” for the benefit of traders, banks and others large enough to manipulate the prices. It makes sense that if a bank, which owns the regulators and can “work” the prices to their advantage … will do so.
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Thursday, March 31, 2016
Gold Firms Up On Dovish Yellen Commentary / Commodities / Gold and Silver 2016
Precious metals prices have been on a tear higher since the outset of 2016 as concerns about the pace of US policy tightening combined with growing global uncertainty sent gold to the highest levels since February of 2015. Although commentary from more hawkish Federal Reserve members in the previous few weeks raised speculation that another US rate hike could come as soon as April, Chairwoman Janet Yellen extinguished those expectations with her more dovish tone. Citing the downside risks to the current pace of global economic expansion combined with reduced confidence in the outlook for monetary policy normalization, Yellen sent the US dollar tumbling with investors embracing gold, driving the precious metal nearly 1.65% higher over the session. A crumbling outlook combined with a drive towards data dependency in decision-making has seen hawkish sentiment shift more neutral, benefiting precious metals near-term.
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Wednesday, March 30, 2016
Believe it or Not, it’s happening to Gold / Commodities / Gold and Silver 2016
Tonight as I was going over my charts and running my end of analysis the charts jumped out at me with a trade setup and wanted to share my cycle chart for gold with you.
The price chart of gold below is exactly what my cycle analysis told us to look for last week WELL ahead of the today’s news and its things play out I as I feel they will then we stand to make some pretty good money as gold falls in value during the month of April.
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Wednesday, March 30, 2016
Silver’s Bullish Cup And Handle Pattern / Commodities / Gold and Silver 2016
Two months ago, we signaled a huge buying opportunity was setting up in gold. Basically, that observation was based on a bullish chart pattern which is known as a ‘cup and handle’. After our call, gold moved higher in an explosive way.
Today, we observe a similar chart formation on silver’s chart. The cup and handle resistance line comes in at $16 /oz.
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Tuesday, March 29, 2016
Marc Faber: Gold Still Most Desirable Currency in Wake of Brussels Attack / Commodities / Gold and Silver 2016
After several years of low gold prices, 2016 has brought a rebound, with the metal rising almost 20% since the first of the year, although recent price corrections have slowed gold's advance. After the Brussels terrorist attacks last Tuesday, gold rose briefly, but then was undercut by a strong U.S. dollar rally. Investors are wondering whether gold is in a temporary correction mode or if the three-month bull has run its course.
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Tuesday, March 29, 2016
Gold, the Misery Index, and Insanity / Commodities / Gold and Silver 2016
In 1980 Ronald Reagan spoke about the Misery Index. An economist had added the inflation rate to the unemployment rate, called it the Misery Index, and used it to indicate the social costs and economic difficulty for the middle class.
Today the Misery Index is much smaller than in 1980, thanks to … intelligent fiscal management, economically beneficial monetary policy from the Federal Reserve, and wise political policy from the White House. If you believe any of those, read no further.
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Tuesday, March 29, 2016
Goldman is Dead Wrong on Demise of Gold / Commodities / Gold and Silver 2016
Goldman Sachs has been predicting the demise of gold for the past few years. Back in July of 2015, Jeff Currie (Global Head of Commodities Research at the investment firm) went on record predicting the price of the yellow metal would fall below $1,000 per ounce by the start of 2016. However, that prediction failed to materialize; despite the fact that gold was already below $1,100 at the time he made the call.
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Saturday, March 26, 2016
Who Sets the Gold Price? / Commodities / Gold and Silver 2016
How is the price of gold established? Scratching the surface, the answer seems obvious: it is a result of a free interplay of market forces. However, there is no single gold market; the yellow metal is traded in many places. Who then sets the price of gold? London or New York? Which of them shapes the price discovery process? What is the relationship between the LBMA Gold Price and Comex futures and spot prices? As the chart below shows, there is an almost perfect correlation between London and New York prices; but which leads the dance?
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Friday, March 25, 2016
Pre-1965 Silver Pocket Change Provides Investors With an Economic Future / Commodities / Gold and Silver 2016
Among all the choices you have for gold and silver bullion, genuinely historic metal is still around at reasonable prices. The runaway classic is ninety-percent U.S. silver coinage.
The lyrical ring of a handful of silver coins speaks not only to the history of the United States but also the entire heritage of sound money. Simply put, pre-1965 silver used to be called "pocket change." Everyone had some, saved some, spent some. Silver money was a natural part of everyday life.
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Thursday, March 24, 2016
The 'Dangerous Obsession' with Gold / Commodities / Gold and Silver 2016
"Gold has worked down from Alexander's time. When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory." Bernard Baruch
"The commerce and industry of the country, however, it must be acknowledged, though they may be somewhat augmented [by paper money], cannot be altogether so secure, when they are thus, as it were, suspended upon the Daedalian wings of paper money, as when they travel about upon the solid ground of gold and silver." Adam Smith, Wealth of Nations, p. 262
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Thursday, March 24, 2016
A Love Affair: India and Gold / Commodities / Gold and Silver 2016
India has had a long-standing love affair with gold. At Indian weddings, some of the brides get so much gold jewellery that it weighs them down. There are upwards of 15 million weddings every year in India. According to the World Gold Council, upwards of 50% of Indian demand for gold is destined for weddings. Gold is ingrained in the culture and a part of their belief system. Not only is it integral to weddings, gifts of gold are common for anniversaries, birthdays and religious festivals. Gold jewellery is not regarded solely as adornment. It is a store of wealth. At one time it was widely accepted that women could not own anything except for their gold jewellery. That custom still prevails outside the major cities. Gold has spanned centuries and millennia in India.
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Tuesday, March 22, 2016
A Big Reason Why Silver Price Is Set To Soar / Commodities / Gold and Silver 2016
There is only so much value in the world economy, and it is split between all the different instruments (like gold, silver, stocks, bonds, commodities, etc.) where value resides.
For silver and gold to rise significantly, relative to other instruments of value, value will have to be diverted away from those other competing instruments. The stock market, in particular, has been the biggest obstacle to a rise in precious metals, due to it sucking up most of the available value on global markets.
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Tuesday, March 22, 2016
Global Stocks Fall, Bonds and Gold Rise After Terrorist Attacks In Brussels / Commodities / Gold and Silver 2016
Safe haven assets, gold, silver and German bonds rose, while European stocks and global stock futures fell, after explosions rocked Brussels airport departure hall and a subway station near the EU parliament and other important EU institutions. At least 26 people are reported to have been killed after the explosions which the Belgian prosecutor has alleged are terrorist attacks.
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Tuesday, March 22, 2016
Gold Holds on to Gains Despite Rollercoaster Ride on Rate Hike Rumors / Commodities / Gold and Silver 2016
Gold has an interesting relationship with the U.S Federal Reserve – we all know the Fed has huge gold reserves. However, the relationship between the Fed and gold extends beyond the huge stockpiles of gold that the Fed hoards. The fed often wields the power to determine the trading price of gold and you can record massive gains or huge losses on your gold investments depending on what the fed does at any point.
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Tuesday, March 22, 2016
BitGold’s Secret: A Taxation Time Bomb / Commodities / Gold and Silver 2016
Gold is not only the world’s best performing asset so far in 2016, but it’s also off to its strongest annual start since 1980. A key difference is that 1980 was the end of a bull market, while this is the beginning of a new one. Actually, it’s the beginning of the second leg of a long-term bull market that began over 15 years ago, which I believe will be even more powerful than the first.
But today, I am warning potential gold buyers about another gold ripoff.
Monday, March 21, 2016
Silver – A Long-Term Perspective / Commodities / Gold and Silver 2016
We all know silver is volatile. When gold rallies, silver usually rallies faster and farther, particularly after the rally has been well established.
Volatility is not a reason to avoid silver. Instead, now is a time to continue stacking. Yes, silver almost certainly will correct many times, but examine the big picture.
Over the past 50 years prices for stocks, silver, gold, crude oil, health care, and presidential elections have increased exponentially, mainly due to massive increases in debt (see graph below) and devaluations of currencies. Expect exponential price increases to continue.
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Monday, March 21, 2016
Gold Silver Ratio Says It’s Time to Buy Silver, Sell Gold / Commodities / Gold and Silver 2016
Silver remains undervalued versus gold and the gold silver ratio suggests “selling the former” and “buying the latter” according to a Bloomberg article published today.
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Monday, March 21, 2016
Silver Price About to Slump Lower / Commodities / Gold and Silver 2016
Whilst silver had a good week last week, outperforming gold and rising to multi-month new high, it looks like that may have been its "swan song" for a while. It looks quite positive at first sight on its latest 6-month chart with the new high and moving averages starting to swing into a more positive alignment, but once you "look under the hood" you quickly realize things are not so good at all.
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Monday, March 21, 2016
Gold Price Intermediate Top / Commodities / Gold and Silver 2016
All the technical evidence suggests that gold is building out an intermediate top area here, which fits with the fundamental situation where complacency and "risk on" are making a comeback, thanks to the boundless generosity of Central Bankers.
Starting with gold's 6-month chart we see that after its parabolic ramp up in January and early February, it has been struggling to make further progress. The supposed (by some) bull Flag or Pennant turned out to be false and although it has edged ahead a little, the passage of time has resulted in its breaking down from the parabola simply by moving sideways, which has, unknown to many, opened up the risk of a potentially severe drop. The most plausible interpretation of pattern development since the parabolic blowoff spike in early - mid February is that it is a bearish Rising Wedge, which the price broke down from about a week ago, before a backtest of the breakdown point with the big up day last Wednesday when the Fed didn't raise rates, which triggered panic short covering.
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