RSSCategory: Articles: Gold Silver Prices

Why Dave Ramsey and Other Financial Gurus Are WRONG About Gold

Why Dave Ramsey and Other Financial Gurus Are WRONG About Gold

Longtime gold bashers are gloating over the precious metal’s recent price slump. Gold prices have declined more than 10% in the first quarter of 2021. But the perma-bears shouldn’t feel vindicated. After all, anyone who heeded their advice missed out on gold’s record run in 2020 – and on many years of outperformance since 2001. While gold bugs are often accused of having an unhealthy obsession with the metal, the “anti-gold” bugs reveal a deep-seated bias that can only be explained as irrational or dishonest. Financial Advisers Don’t Get Fees Recommending Physical Gold It’s no mystery why many who work in the financial industry hate gold. They are in the business of […]

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What Biden’s Big Infrastructure Push Means for Silver

What Biden’s Big Infrastructure Push Means for Silver

The federal government is spending and redistributing newly created cash so rapidly, it’s becoming difficult to keep track of which trillions are going where. This week, President Joe Biden will pitch a $3 trillion “green” infrastructure package. That’s on top of the $1.9 trillion economic “relief” bill he recently signed into law. Next month, Biden is expected to roll out plans for additional trillions to be spent on healthcare, education, housing, and more. Republicans in Congress may object to some of the proposed spending. But they have a lousy track record – even during times when they were the majority – when it comes to actually reining in federal outlays. […]

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Signs of a Bottom in Gold and Silver Prices

Signs of a Bottom in Gold and Silver Prices

The U.S. dollar’s value is set to get diluted by another $1.9 trillion. On Saturday, Senate Democrats narrowly passed their massive COVID relief bill on a party line vote. It includes $1,400 in additional free-money handouts for most Americans, $350 billion in aid to state and local governments, and hundreds of billions more for various other pet programs. Upon approval by the House of Representatives and President Joe Biden’s signature, expected later this week, another wave of government-induced inflation will cycle through the economy. The impact on commodity and precious metals markets won’t necessarily be felt immediately. But investors who can see what’s coming will want to position themselves ahead […]

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Bond Yields Roil Markets, Gold/Silver Drop

Bond Yields Roil Markets, Gold/Silver Drop

As financial markets sold off this week, precious metals got dragged down in the selling. The culprit, once again, was rising bond yields. On Thursday, the 10-year Treasury climbed above 1.5%. While still low on a historical range, the upside momentum has investors concerned. Over the past seven months, the 10-year yield has tripled from a low of just 52 basis points. The 10-year note serves as a benchmark for mortgage rates as well as risk premiums in the equity markets. Elevated price-to-earnings ratios in the S&P 500 are more difficult to justify in a higher interest rate environment. As we’ve noted, real interest rates are also a headwind to […]

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Is the Reckoning Nigh for Silver Shorts?

Is the Reckoning Nigh for Silver Shorts?

Investors are buying silver in vast quantities – in whatever form they can get it. Smaller silver bugs are buying it a few ounces at a time from scarce retail inventories. Whales are accumulating millions of ounces via the silver ETFs or by standing for delivery of COMEX futures contracts. Unless the bullion banks and other shorts can finally engineer a price smash, they may have to stop selling paper and start buying a lot of physical. If the short sellers are naked, i.e., not hedged with long positions elsewhere, a genuine short squeeze driving prices higher could commence. Over the past several trading days, the silver market has simply been resilient. […]

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Silver Setting Up for a BIG Move Following Fed

Silver Setting Up for a BIG Move Following Fed

Precious metals markets traded into an important technical juncture ahead of Wednesday’s Federal Reserve policy announcement. Bank of America analysts stated that this week’s meeting is “one of the most critical events for the Fed in some time.” The Fed faces mounting pressure to intervene in the bond market as yields continue to rise. It will likely reiterate its commitment to keeping its benchmark rate near zero and vow to continue buying at least $120 billion in bonds per month. Critics of Fed chairman Jerome Powell’s easy-money stance are warning that monetary and fiscal policy are too loose. The federal government’s recent $1.9 trillion spending package, combined with ongoing “emergency” […]

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Could Silver “Do a Palladium”?

Could Silver “Do a Palladium”?

Palladium was manipulated for years. It had the largest short position relative to its size, while physical demand rose inversely to decreasing supply. In 2018, demand became so large that it overwhelmed the shorts. Physical palladium could not meet the market’s needs and prices exploded. Shorts eventually decreased their positions until they got to a more sustainable level. For many years, the platinum/palladium ratio, shown on proprietary charts, averaged 2.4 to 1 in favor of platinum, stretched as high as 5:1 in 2009, but then collapsed for a decade into 2020, to where 1 ounce of palladium would buy 5 ounces of platinum! Today, much like what was the case with […]

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How Precious Metals Generate Positive Real Returns

How Precious Metals Generate Positive Real Returns

One of the most bullish backdrops for precious metals is an environment of negative real interest rates – that is, when bonds and cash yield less than the inflation rate. With inflationary pressures picking up and the Federal Reserve showing no signs of lifting its benchmark rate anytime soon, real short-term rates could fall even further into negative territory in the months ahead. Long-term yields, however, have been moving slightly higher in nominal terms. Higher bond yields have helped lift the U.S. Dollar Index and restrain gold and silver prices so far in 2021. The 30-year yield rose to nearly 2% on Friday. While still quite low historically, a breakout […]

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Be Patient, Silver Investors… It’s Only a Matter of Time

Be Patient, Silver Investors… It’s Only a Matter of Time

A wild week of trading across asset markets has left investors wondering what represents real value – and whether it even matters anymore. Stratospheric GameStop shares came crashing back to earth after their gravity-defying run up.  The stock had clearly been pumped to ridiculously overvalued levels based on all conventional metrics. But that didn’t deter buyers who believed they could push it to $1,000 per share before cashing out. After dropping over 85% its nominal price peak, perhaps the GameStop craze has ended just as abruptly as it began. Meanwhile, some online speculators have jumped aboard other bizarre market frenzies. For example, the crypto token Dogecoin – which launched a […]

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How to Survive a Silver-Gold Sucker Punch

How to Survive a Silver-Gold Sucker Punch

Anyone who owns precious metals, mining shares or metals’ ETFs knows the drill. First, gold and silver begin to establish an uptrend on the charts. Analysts (like us) start writing about how prices are getting ready to make an upside run. Then “out of nowhere” thousands of highly margined futures contracts hit the market on the short side, “re-painting” the charts, sending terror into the hearts of stackers and those who believe in “honest money.” The reality is that honest money is being manipulated for personal gain by dishonest traders, enabled by “regulators” who, to put it charitably, look the other way. It can be disheartening. It can make you […]

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Silver Launches Toward Major Technical Breakout

Silver Launches Toward Major Technical Breakout

Precious metals markets are on the move this week. They got a boost following Wednesday’s Federal Reserve policy statement. Fed officials kept their benchmark interest rate near zero and vowed to continue injecting $120 billion per month into the bond market. The central bank seemed unconcerned about bubble-like conditions in equity markets. Nothing seems likely to deter it from pursuing more stimulus for the foreseeable future. The ultra-dovish Fed helped nudge the U.S. Dollar Index down. It broke below 90 on Thursday to record a new low for the year. Dollar weakness energized gold and silver markets. In fact, silver appears to be launching toward a major technical breakout. The […]

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Don’t Let the Silver (and Gold) Bull Shake You Off!

Don’t Let the Silver (and Gold) Bull Shake You Off!

Gold and silver exchange-traded funds (ETFs), a measure of large investor interest, are experiencing outflows as opposed to an almost interrupted inflow over the last few months. Mining stocks which either look for or produce these metals have been moving sideways, testing the “mettle” of even perma-bulls. Many investors see these as negative signs. But I view it as a Mr. Market’s last big effort to “shake the tree,” causing as many people as possible to fall off the galloping bull and head for cover. As David Morgan has so aptly – and during times like this, often said, “A precious metals’ bull run (especially that of silver) will either wear you out […]

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Globalists Poised for a “Great Reset” – Any Role for Gold?

Globalists Poised for a “Great Reset” – Any Role for Gold?

Although the apparent results of the 2020 election are still being contested, members of the global ruling elite are already looking forward to a post-Trump era in American politics – and a post-vaccine world economy. They have encapsulated their policy agenda for 2021 and beyond into two words: “Great Reset.” The notion of a Great Reset comes directly from the World Economic Forum. The globalist organization has been actively pushing it for months via a series of policy articles on its web site. The Great Reset agenda entails “harnessing the fourth industrial revolution” and “redrawing the geo-political map of the world” in pursuit of an “energy transition” that makes “economies more […]

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Silver’s Coming Double Trigger Shotgun Price Explosion

Silver’s Coming Double Trigger Shotgun Price Explosion

Even in the competitive hunting/shooting community, few enthusiasts know about an arcane rifle known as a “double trigger shotgun.” Essentially, it’s a double-barrel shotgun having a trigger for each barrel. This was an early day’s design with the triggers located inside the trigger guard, back to front. It was possible to press both triggers at once, causing a double discharge, though for the most part this was not a good idea – since it caused twice the recoil, and was hard on both the shotgun and the shooter – especially if not anticipated. Though this essay is not about shotguns, but rather silver, the above concept provides a perfect analogy […]

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