Fair or not, like it or not, the US Fed is currently the most powerful financial organization on this planet. Today, during a press conference after a two-day meeting of the Fed (FOMC), the chairman of the Fed took almost all markets down. Precious metals, equities and bonds went sharply lower. There was something going up though: the dollar and the 10 year interest rate.
Author Archive: David Levenstein
David Levenstein is a leading expert on investing in precious metals . Although he began trading silver through the LME in 1980, over the years he has dealt with gold, silver, platinum and palladium. He has traded and invested in bullion, bullion coins, mining shares, exchange traded funds, as well as futures for his personal account as well as for clients.
It is obvious that the policies of central bankers have been a total failure when it comes to stimulating economic growth. If history does repeat itself, then this nominal rise in asset prices will be followed by a period of rising inflation. The ensuing increase in interest rates will prevent governments from being able to pay the interest on their debt leading to a total loss of confidence in their respective currencies.
In current times, when governments can confiscate your savings, or impose ridiculous taxes while depreciating the value of your money, it is essential to accumulate physical gold and silver as a long-term insurance against further currency depreciation.
If you get my message, then you will see how important it is to own some physical gold and silver. In the long-term, they will prove, once again, to be an effective preserver of wealth. Take advantage of the current low prices.
Instead of being suckered into holding intrinsically worthless paper assets, a more intelligent and well-informed response favours increasing one’s personal stockpile of physical precious metals. In addition, it is important to keep some of your assets out of the main stream banking system. Not only should you accumulate gold and silver you should also open an offshore bank account.
Gold prices seem to have stabilized for now, after a tumultuous two weeks, when the price of the yellow metal was driven down by speculators on Comex who reacted to the slightest bit of economic news. But the bull market is far from over, here is why.
Since the middle of October the price of gold has been building some solid support above the $1700 an ounce level. However, it continually came into selling resistance at the $1720 an ounce and then again at the $1740 an ounce. All of this selling pressure can be attributed to the action of traders and especially those on Comex, meaning none of the selling was for hedging purposes and none of it had anything to do with an increase in the supply. Nevertheless, traders were able to influence prices using massive sell orders in this paper market. The gold market then went on hold as it waited for an outcome [...]
After failing to break above the $1800 an ounce level, gold prices came under some selling-pressure last week to trade lower and off its recent highs. The price of the yellow metal closed out the week at $1754.30 an ounce down 2% from last weeks’ high as the US dollar gained against a basket of other major currencies. On Monday, the price of gold fell by another 1% to $1,727.50 an ounce, the lowest level since September 13. The price of spot came under some selling pressure almost as soon as the US session on Comex began. Prices fell by around $20 an ounce in the first two hours of [...]
After trading within a hair of $1800 an ounce last week, gold prices have met with some resistance and have pulled back slightly. As the yellow metal struggled to break through this key level of resistance, it notched up new record highs in euros and Swiss Francs. And, in South Africa as the gold price has risen, the Rand fell by around 10% in a month due to the on-going strikes at the various gold and platinum mines as well as general unrest throughout the country. This pushed the prices of Krugerrands on the domestic market to above R16, 000 each for the first time ever. Although it is evident [...]
Last week the gold sector was filled with action as gold prices got yet another major boost on Thursday when Ben Bernanke, chairman of the U.S. Federal Reserve announced another round of quantitative easing. After, an initial sell-off on the opening of the US session on Comex, which has become practically a customary trade of the bullion banks prior to any major monetary policy statement, the price of gold exploded moving sharply upwards from an intra-day low of $1717 an ounce to $1779 an ounce in less than two hours. The Fed said that it will begin buying $40-billion in agency mortgage-backed securities every month starting Friday. It also extended [...]
Finally, we have a break to the upside in both gold and silver, something that many precious metals investors have been patiently waiting for, but expected to happen. The price of gold is now a tad away from breaching the $1700 an ounce level, after smashing through the key resistance levels at $1625 an ounce and $1650 an ounce. AsUS Federal Reserve Chairman, Ben Bernanke, began his eagerly awaited speech at the annual symposium at Jackson Hole, Wyoming, the price of gold dropped sharply. After trading above $1660 an ounce last Friday, the price of spot gold suddenly dropped to an intra-day low of $1644 an ounce. Afterwards, the price [...]
Gold Prices are Headed Higher as People become aware of the Dire Situation of the Financial and Monetary System
Finally, the price of gold has broken out of its’ period of consolidation and now looks set to test the $1700 an ounce level in the short-term. And, as both the technical and the fundamental outlook for gold remain positive, sentiment towards the yellow metal will also become more positive which in turn will provide additional momentum resulting in higher prices. Last week the price of gold rallied above $1,660 an ounce for the first time since early May, after minutes from the latest U.S. Federal Reserve showed that many FOMC members believed that more monetary easing measures should be implemented as soon as possible unless upcoming economic data showed [...]
Gold prices hit their highest level today since June 06, as the price surged by almost $20 an ounce. Finally, the price has broken above the key resistance of around $1625 and out of its three-month range. It now looks set to test the $1650 an ounce level, another level of key resistance. As the price of the yellow metal punched through the $1625 an ounce level, buy stops were initiated, fuelling the rally as some traders on the short side were forced out of the market. While much of the current rally is due to mounting speculation that global central banks are going to be forced to act, many [...]
The latest economic data released this morning showed slightly better than expected GDP data from France and Germany. French GDP growth came in flat which was better than expectations of a contraction of 0.1% quarter-on-quarter. And, Germany, Europe’s biggest economy grew by 0.3% between April and July, compared to analysts’ forecasts of 0.1% mainly due to its strong exports. However, overall Eurozone GDP data for the second quarter shrank by 0.2%. Meanwhile the latest GDP figures from Japan were weaker-than-expected. Japan Q2 GDP increased by only 0.3% quarter-on-quarter which was below expectations of an increase of 0.6%. And, the Greek economy, struggling in a fifth year of recession, shrank by [...]