Author Archive: GoldSilverWorlds
Precious metals investors heading into 2016 worry the dollar will continue marching ahead, right over the top of gold and silver prices. The Fed is telegraphing additional rate hikes throughout the year, and commodity prices – led by crude oil – are falling. There have been tremors in the biggest beneficiary markets of all when it comes to the Fed’s QE largesse – U.S. equities and real estate. And the possibility of a recession is growing, both in the U.S. and around the world. There are plenty of reasons we might see even lower official inflation numbers and a stronger dollar in 2016. But don’t think for a second that […]
NEW: Money Metals Issues 2016 Gold/Silver Forecast Looking Ahead to 2016 Forecasting today’s volatile, high-frequency machine driven and manipulated futures markets using fundamental analysis is futile, as a great many precious metals bulls will attest. To complicate matters, an obsession with Fed policy dominates all markets. Officials at the Federal Reserve are often less than forthcoming and are just as bumbling as the Soviet bureaucrats when it comes to centrally planning our economy. Nevertheless, beneath all of the artificial influences and all of the leveraged paper, the gears of the physical market for gold and silver still turn. We can be sure prices will reflect actual supply and demand for physical metals at […]
It really matters little what the charts are saying about the paper futures for gold and silver here, which we will get to shortly. The focus needs to be kept on a few facts that are inescapably true: fiat currencies throughout the history on this planet have always, always failed, without exception, 100% of the time. There are few situations for which such a statement of guaranteed [failed] performance can be made. It is any different this time? Yes and no. No, because all fiats have failed, plain and simple. Yes, because the extent to which there is no reasonable reality in the relationship between paper and physical has never […]
By Stefan Gleason of Money Metals Exchange Fed Hikes; Silly Myths about Interest Rates & Gold Persist The Fed finally acted this week – upping its benchmark Federal Funds rate by 0.25%. Now that the speculation over whether the Fed will hike has been put to rest, analysts are busily speculating about what the Fed’s move means for the economy and markets. Many of these speculations are unfounded. It’s time to bust some silly myths. Much of what’s spewed out in the financial media concerning interest rates is flat-out wrong, especially when it comes to their impact on precious metals markets. Since gold and silver are small markets compared to […]
“Meth” or Methamphetamine is a common recreational drug used, according to Wikipedia, to induce feelings of euphoria, increase sexual desire, and stimulate weight loss, among others. QE or Quantitative Easing, injecting liquidity, bond monetization, and “printing money” are common Keynesian economic prescriptions used to inflate economies, enable deficit spending and boost financial profits, among others. Some call it monetary madness. There are many disturbing similarities and it is clear that excessive use of both Meth and QE are destructive. Your brain on drugs, your economy on QE: In low doses Meth can elevate mood and increase alertness and energy. The FDA has approved a variation of Meth for attention deficit […]
What force? Some of the “forces” in our world that are supportive of higher silver prices are: Debt Increases: Global debt exceeds $200 Trillion and rising rapidly. Warfare: Syria, Turkey, Russia, Ukraine, South China Sea, Chicago and others. It is a long list. Welfare: Bank bailouts, military contractors, Medicaid, food stamps, dozens of “programs” and so much more. Central bank “money printing:” Bank of Japan, European Central Bank, the Federal Reserve, Bank of England and others are doing what they do best – devaluing their currencies. The bubbles created in the bond, stock, and currency markets must be fed and supported. There is little doubt that the world is drowning […]
(From “Bobby,” a reader – posted as a comment) Both Gold and Silver it is said Are jeered yet feared by the Fed For if they rise it will but show The dollar’s worth is very low So if they rise in upward trend The Fed then feels it must defend The things they do we know aren’t right But they don’t care, they have the might To lie and cheat and say “F.U. We have our man, we have Jack Lew The FTC, just who are they? They’ll do our bid, we’ll have our way” A falling price we must endure Until no gold they can procure To fuel […]
In mid-September, there seems to be a sudden change to a positive correlation between the gold and bitoin prices. Our magnitudes of change appear to become more alike in size and direction. There are 30 days of data calculated in generating the correlation. Therefore, the speed of this change suggests a significant shift in the that calculates the correlation value. What does this mean? We think that it may show that gold and bitcoin have been making large price movements together.
While the weekly and monthly charts are negative, Gold and Silver can be viewed from an ever larger historical perspective. Keep in mind, many a trader has gone broke with the correct longest-term historical perspectives. Historical perspectives are good for understanding, but not for timing investing and trading. I actually believe in the long-term prospects for Gold. I think prudent people should be accumulating physical Gold during this bear market and sticking it in their safety-deposit boxes. As for Silver … no interest.
Investors should consider gold and gold exposure as an alternative asset class and as part of an overall portfolio. I would recommend that investors average their investment over time instead of buying all at once. The gold price is volatile and it’s very difficult to get the low points. Averaging over time when the price dips can help financially and mentally even out the ups and downs. Consider gold as a very long-term investment, not just a two- or three-year investment.
What a month for the precious metals and miners. Usually, as proven on the chart in this article, June has been seasonally the weakest month of the year. Not so in 2014. The first days of the month appeared the start of a new break down. Both Gold & Silver broke to new lows at the critical point of the wedge recently. It was nothing less than a false breakdown. The key things to watch to get a confirmation of the breakout are volume and price .
24k gold is 99.99% pure, and the coins made from it weigh precisely 1 troy ounce. 22k gold is approximately 91.67% pure, with the remainder composed of other precious or semi-precious metals. Sometimes the choice between 22k and 24k simply comes down to the aesthetics of the product itself, as each of the popular coins has its own unique look and feel.
Rogers believes that gold is probably going to fluctuate for another year or two before making its final bottom. Although he “got it right” that gold went to $1,200 (where we also bought some) he does not believe this is the final bottom. The anomaly with gold is that it went up for 12 years in a row.