RSSCategory: Articles: Gold Silver Prices

Waiting for the other shoe to drop

Waiting for the other shoe to drop

All was sunshine and happiness for a few short hours earlier this morning, following news that Greece’s conservative New Democracy party had won yesterday’s election, and will attempt to form a pro-bailout government with other parties. The radical left’s threat to the country’s euro membership has subsided. The euro initially rallied over $1.272, but has now fallen back sharply on the back of a continuing rise in Spanish bond yields, which reached as high as 7.1% earlier. The Italian 10-year bond is creeping back towards the 6% mark. Gold and silver came under selling pressure when news of the election results first broke, though both have recovered and remain basically […]

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Is Silver Currently Riskier Than Gold?

Is Silver Currently Riskier Than Gold?

Gold futures closed higher edging past the $1,600 mark Wednesday, extending their advance to a fourth session – perhaps traders considered prospects for further quantitative easing by the Federal Reserve and other central banks, including the Bank of England, the European Central Bank and the Bank of Japan. Thursday Comex gold futures prices ended the U.S. day session near unchanged in subdued trading and today Gold edged up extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing. With an agreement last weekend to bail out Spain’s struggling banks, Europe again avoided financial chaos but it still faces far bigger challenges that threaten […]

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UK Treasury and Bank of England liquor up banks again

UK Treasury and Bank of England liquor up banks again

Stocks and commodities have rallied this morning on rumours that central banks are about to launch a coordinated market intervention following Sunday’s Greek election. Government bond yields have fallen (relief for the Spanish and Italians), while the euro reached a four-day high at $1.2685 earlier. Gold continues to face resistance at $1,630, while $28.50 still exerts a magnetic pull on silver. However, talk from G20 officials that “central banks are preparing for coordinated action to provide liquidity” in the event that the Greek election results upset the markets is raising bullish hopes. Meanwhile in the UK, bank shares have risen after Chancellor George Osborne announced last night that HM Treasury […]

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Dan Norcini about addiction, excessive debt and the gold price

Dan Norcini about addiction, excessive debt and the gold price

That’s the attitude that gold bulls have apparently adopted heading into this weekend’s crucial Greece vote. Whereas yesterday seemed to be a day of caution among traders, today seems to have morphed into a day of expectations of the punch bowl, complete with accompanying hard liquor, being filled to capacity by the Central Banks of the West. If the Greece vote turns out to be one which threatens the stability of the Euro and sends shock waves through the foreign exchange markets, traders are convinced that a large bouquet of liquidity is coming their way early next week. If the Greece vote turns out to be one in which the […]

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Physical silver demand heading higher

Physical silver demand heading higher

The silver price is depressed compared with its historical relationship to gold, one ounce being worth about 55 of silver, against the historical rate of 15 or 16. The reason, perhaps, has to do with silver’s demonetisation and its role as an industrial metal. However, with global supply from mines and recycling running at about one billion ounces and demand at only a hundred million less, it does not take much investment demand to create a severe shortage. For now, pricing is managed for industrial use, and industry has a vested interest in keeping the price low. For clues of future prices, we need to look at market data, and the graph […]

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Gold Price Jumps Again on 13 June 2012

Gold Price Jumps Again on 13 June 2012

The Gold Price rose again as New York trading began on Wednesday, extending yesterday’s 1.8% jump to reach $1620 per ounce as the Euro currency held flat but European stock markets slipped with commodity prices. Silver Bullion recovered an earlier slip to trade just shy of $29.00 per ounce. Spanish borrowing costs rose to new Euro-era highs at 6.73% for 10-year debt, while Italian bond yields also rose to a 6-month record, unwinding the effect of €1.1 trillion in LTRO loans made by the European Central Bank last winter. Rome today cut to €6.5 billion the amount of new 1-year debt being sold at auction, but it still had to pay investors 3.97% per year in […]

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Dollar Still Makes a Negative Impact on Gold

Dollar Still Makes a Negative Impact on Gold

Remember the disaster movie, “The Day After Tomorrow,” in which melting polar ice causes disruption to the north Atlantic currents precipitating a new Ice Age? The main character, a paleoclimatologist played by actor Dennis Quaid, warns government officials of the approaching disaster, but no one heeds his warnings. One of the fears of global warming is a disruption to the nature of ocean currents that could bring profound and possibly destructive changes to our weather patterns. In economics there are also great currents that have natural patterns and it looks like they are undergoing profound changes. Weather patterns can take centuries or even eons to evolve, but in economics, things […]

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Gold Market Continues to Reflect Currency Turmoil

Gold Market Continues to Reflect Currency Turmoil

Simply put – as the situation in Europe further deteriorates (yesterday the market YAWNED at the $125 billion Spain bailout), Italy is now coming into focus. Strangely enough, the US equity markets somehow think all of this is inconsequential as the bulls there continue to be giddy with delight.Their attitude is best described by an old Steve Wariner song, “Some Fools Never Learn”. You play with the fire, you’re gonna get burned”.Considering just how tenuous things are, the degree of complacency that exists among equity bulls is nothing short of astonishing. The situation can best be described by looking at a chart of the VIX, or Volatility Index.While the index […]

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Gold Market Prices Regain $1600, Italy May Also Need Bailout

Gold Market Prices Regain $1600, Italy May Also Need Bailout

Bullion prices on the wholesale Gold Market rallied back above $1600 per ounce shortly before Tuesday’s US trading, having failed to breach that level in the earlier Asian session, while European stock markets also ticked higher after a quiet morning’s trading. A day earlier, gold briefly rose above $1600 on Monday following the news that Spain will borrow up to €100 billion to rescue its banks, but along with stocks and the Euro gold failed to hold those gains. Silver Prices meantime jumped to $28.94 per ounce, a 1.5% gain on the week so far, while commodity prices reversed earlier losses. Earlier on Tuesday, Indian dealers reported flat trading, with one citing traditional […]

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US money supply data hints at trouble ahead

US money supply data hints at trouble ahead

Confirmation over the weekend that the Spanish government will receive €100 billion from eurozone rescue funds to help shore up Spain’s fragile banking system has lifted stocks and commodities this morning. Spain’s benchmark IBEX-35 index surged 4.5%, with strong gains seen on British, French and German exchanges. However, though the euro bounced early in trading it has started sinking again, though it remains above last week’s low of $1.241. Gold and silver have also been lifted following the Spanish news, with some traders looking to lighten up on their US dollar/Treasury positions. Gold broke back above $1,600 briefly during Asian trading – suitably so given the strength of sovereign demand […]

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Silver Price Forecast: Silver Could Preserve More Value Than Gold

Silver Price Forecast: Silver Could Preserve More Value Than Gold

The fundamentals for silver and gold are very strong, and with all the massive bailouts, which are increasing debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals. The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash. It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher. […]

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Gold Prices Just Tracking the Dollar while Spain Bailout Could Start Small and End Big

Gold Prices Just Tracking the Dollar while Spain Bailout Could Start Small and End Big

Gold Prices fell back below $1600 per ounce Monday morning in London, after briefly rallying above that level in Asian trading, as stocks and the Euro also began the week strongly and US Treasuries fell following news that Spain is to receive a bailout. Silver Prices also jumped as Asian markets opened, before they too traded lower, falling to around $28.70 per ounce ahead of the start of US trading. Euro Gold Prices by contrast rallied shortly before US open, climbing to €40,880 per kilo (€1271 per ounce) as the Euro gave back most of its early gains against the Dollar. “Gold seems to be primarily tracking one trend, namely the trend in the […]

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Gold Chart and Comments on 9 June 2012

Gold Chart and Comments on 9 June 2012

I have provided an 8 hour gold chart today as it provides a very good glimpse into the technical composition of that market’s recent price action. Note that you can clearly see the solid zone of buying support extending from just slightly above the $1550 level on down towards $1520. It has been at these levels that strong buying has continued to emerge over the last month. I suspect that it is in this zone that Asian Central Banks are gobbling up the metal. Remember, they will not chase the metal higher – only the hedge fund managers buy high and hope to buy even higher before selling. By keeping […]

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Is the Gold to Silver ratio ready to turn in favour of Silver

Is the Gold to Silver ratio ready to turn in favour of Silver

One of the key indicators in the precious metals, is the gold to silver ratio. As we’ve written before in the article “This is the century of silver“, the ratio is on average 20 to 1 on a historical basis. Going back to the Romans for example, gold coins had 16 times more value than silver coins. Also, the availability of (physical) silver 7 times the availability of (physcial) gold. Now looking at today’s gold to silver chart, the ratio holds a nominal value between 56 and 57. What does this figure say? First, in the context of the superbull market in gold and silver that started back in 2001, […]

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