You have to realize how crazy-anomalous 2013 has been. Melting-up stock markets breeding euphoria are very rare, only seen at the ends of major bull markets. Stock euphoria diverting capital away from all other asset classes is equally as rare. But if you’d told me how 2013 would play out in the stock markets, GLD, and gold, but said SLV would ignore the carnage, I would have thought that was utterly impossible.
As there is no significant yield elsewhere, equities and US dollar could have a long way to go before they correct. Hence, gold and silver could see a long way down, before they reverse. Gold and silver investors should think about the reasons why they are holding the metal. If it is for monetary protection, then they should be able to ignore short to mid-term price action, even if the price will go lower. There are too many contradictory signals out there right now. Participants in the ongoing uptrend should be careful.
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.
Renowned Professor Fekete recently wrote about the current backwardation in gold and explains what effects a prolonged backwardation could have not only on the gold markets, but on the economy as a whole. This is another risk related to paper gold trading which confirm that the only way one should invest in precious metals is by unencumbered physical ownership.
Inflation – a few percent seems unimportant, but over a decade, it becomes very important. Look at the calculation in this article. According to several surveys, real people think their personal inflation rate is around 8% per year with a significant percent of the responders claiming 9 – 11% or more per year. Are you going to believe what the government is telling you?
The gloves are off, and central bankers are on a full frontal assault against all [paper] holders of gold and silver. Ironically, that very overt assault is the biggest clue of how fearful those in power really are. Fear, a sign of weakness, and the New World Order does not want anyone snooping behind their curtain of Oz.
The recent price crash leaves us with three critical questions which we try to answer in an objective way in this article. How are bullion owners protected, or what are the benefits of owning physical over paper? What does the disconnect between physical and paper mean? Is the “end of the bull market” for real, or when to sell your gold?
While April has not been completed, with a bit more than a week to go, the sales reports again beat all previous years. We have created the following overview which shows the sales of the US Mint gold and silver coins year-to-date. Physical gold and silver demand is on fire and has been accelerated this week with the gold and silver price drop.
The list of evidence and testimonials of an explosion in PHYSICAL gold and silver demand keeps on growing. Here is now the President of the Chinese Gold & Silver Exchange Society, who testifies on Bloomberg that their exchange is sold out of gold bullion. The delivery time is increasing as they rely on shipments out of Switzerland and London.
The demand in the physical market is unprecedented. Because real-time reporting about physical gold and silver purchases does not exist, we need to rely on what bullion dealers are reporting. The picture is highly consistent and reveals the price crash side effects.
It feels to me that this move was designed to scare off weak hands and pull it into the official part of the system to cover the leasing. And the best way to get something from someone is to convince them that they should not want it.
Do economists, central bankers, and governments really believe that printing money creates wealth and prosperity? I doubt they do, but they do know that printing money helps the “extend and pretend” confidence game, and it allows an increasingly unstable system to persist for a little longer. When does it stop?
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.
As to the futures, we have been guarded throughout, making some profitable trades and some unprofitable ones, but not with any degree of risk exposure because the trends have been down. Along with recommending to buy the physical, we have also been consistent in not recommending the buying of futures.
Gold Settles Higher On May 23d – Finds Support From Drop In Dollar
With the present economic conditions in the US, there are various ways in which the fluctuations in the price of dollar will make the gold price rise and fall according to the rates. If you’re an investor, you should take into account the bigger picture so that you can take an informed and measured decision in the long run.
Gold & Silver Price Overreact to Fed Speech
The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by one specific sentence in the speech.
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Appetite For Physical Gold & Silver Remains Strong Worldwide
The high demand around the world for physical gold and silver continues its race. In this short update we provide some highlights from different parts of the world, based on the latest reports.
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