Silver prices have increased but in a disorderly manner. Over 40 years of silver prices can be represented by four zones of megaphone shaped price patterns. My round number target is $100 or more in 2016 – 2019. Although I hope that the powers-that-be will not choose to create hyperinflation in the US, if hyperinflation does occur, the $100 target will be easily bypassed and much higher prices will be “in play.”
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Your opportunity is to own silver today, for less than the cost an actual mining company can even produce it for. This is investment is not an IF question, but a When question…. When silver rises…When the price explodes…When the shorts get squeezed out…
I think that Gold is in an extended Elliott Wave (V) which has a lot of upside potential. Elliott Wave Principle helps to better understand the nature of the market movement and completed with other tools it can forecast the market progress and define important turning points with a high degree of accuracy.
In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week’s strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,307.49, down $3.61 per ounce (-0.27%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, lost 0.57%.
So far, the gold price in 2014 in the first six months has been trading in a tight range between $1190 and $1390. The yellow metal had one significant rally in February / March and one moderate rally starting in June. The price chart has a clear “line separator” in the $1270 – $1280 area which has served as major support throughout the first half of the year.
Although gold and silver had one of their worst days of the year. Overall the technical damage is limited. However, the fact that silver and the miners declined much sharper than gold is not a good sign. The short term picture for the precious metals complex is mixed with a positive bias.
Gold futures were under pressure throughout the session as safe haven and physical demand continue to ebb. With stock indices showing no signs of retreating and consistently posting new all-time highs, safe demand for both Gold and Silver erodes.
This is a clear and present DANGER ZONE. Evaluate your personal and family vulnerability to traumatic changes that must occur, whether in 2014 or during the next few years. Consider your personal and financial risk factors, and make adjustments as needed. Given your personal circumstances, will gold (and silver) or unbacked paper currencies and debt issued by insolvent governments serve you better during the next ten years of turmoil?
Despite some global disruptions over the last few weeks, gold has not been able to break out and this could signal underlying weakness. In addition to ongoing tensions in Iraq and Syria, the markets had to deal with a passenger airliner being shot down and an invasion of the Gaza strip. Such news should be positive for gold, but gold did not react much and failed to breakout at 1350-1370. This is the technical picture for both precious metals.
Since September 2012, the S&P500 and the gold mining indexes decoupled from each other. Today, the disconnect between both is huge. From a technical perspective, it appears that the gold miners are testing a resistance line which goes back spring 2013. One should closely monitor the ongoing price action in the gold miners. If they would be able to break through the current price point (250 area), then the good days of gold and silver miners could be here. That would indicate underlying strength in the precious metals complex, and hence in the metals as well.
Based on the latest update of the Russian central bank, it appears Russia has added another 500,000 ounces of physical gold to their reserves. Total Russian gold reserves now stand at 35,200,000 ounces, which equals 921,35 tonnes. Russia is among the top 8 countries with the highest gold reserves.
We’re seeing higher highs and higher lows, but every new high requires a subsequent consolidation. The ‘backing and filling’ that we are seeing right now is completely consistent with the behavior that we would expect to see coming out of a bear market bottom into a gradual recovery. I think the gold market is in good shape. It’s healthy. I am very encouraged by the market action that we are seeing in both gold, and the gold equities.
Gold mining stocks are doing better than the commodity itself. Since the start of 2014, the GDX has gained 27% versus a 9% gain in bullion. The rising GDX/gold ratio has exceeded its spring high to reach the highest level in ten months. That tells us two things. First, that miners are a stronger bet than the commodity. Second, it’s a good sign for bullion itself. That’s because gold usually does better when miners are leading it higher.
In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week’s strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,311.10, down $27.52 per ounce (-2.06%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, lost 1.41%.