Tag: silver price

Why Deflation is the Biggest Catalyst for Precious Metals

Why Deflation is the Biggest Catalyst for Precious Metals

By now, everyone has seen the chart of Homestake Mining and its bull market run from 1924 through 1935. Hence, there is no need to repost it. In this editorial, Frank Barbera shows a handful of charts of gold stocks and gold stock indices during the Depression era. US Gold producers apparently bottomed in 1929 while the Financial Times Gold Index bottomed in 1931. The time to buy the gold stocks was when deflation set in. More recently, the time to buy gold stocks and physical (Gold or Silver) has coincided with fears of deflation. Below is a chart that shows the Google search volume for “deflation.” Predictably, there is a big […]

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EU bank moves lift precious metals

EU bank moves lift precious metals

Gold and silver prices surged on Friday on market hopes of a “breakthrough moment” in the eurozone debt crisis, following the conclusion of the latest European Council meeting in Brussels. Though the European Union is taking concrete steps to move the eurozone towards a banking union – with the new $634 billion European Stability Mechanism to be up and running shortly, which will supply funding for bank rescues – EU leaders are still stalling on the question of “Eurobonds” and other moves towards full fiscal union. The bank plans still needs to be approved by national parliaments. On top of this, the Spanish bank bailout is expected to cost $125bn, […]

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Gold and silver price: the week till 29 June 2012 in review

Gold and silver price: the week till 29 June 2012 in review

The gold price saw a gain of 2.1% over the week. It touched almost 1550 US dollar during Thursday’s trading session, right at the start of the European Summit. The gold price bounced back mainly on Friday with a spike higher of $53.80 to close the week at $1,604.20 an ounce. The silver price followed a similar pattern. Silver closed the week on 27.58 US dollar per ounce, which is 2.8% higher than the close of one week earlier. Technical view The gold price spiked in such a way on Friday 29 June 2012, that it touched the 20 day and 50 day moving averages. Similarly, after silver’s dramatic surge […]

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David Morgan: Short term outlook of silver price and why to invest in silver

David Morgan: Short term outlook of silver price and why to invest in silver

David Morgan is the editor of the globally respected investment newsletter “the Morgan Report”. We highly recommend subscribing to his premium service, for the combination of timeless insights he provides as well as accurate interpretations of day-to-day evolutions. On his publicly accessible webblog, he shared his view on the short term outlook of the silver price. He also stressed the need to be invested in physical silver and repeated the benefits of investing in silver. In his short term outlook, David Morgan confirms yet again that the fundamentals have never before been better for both gold and silver. It doesn’t matter if the price is not reaching all-time highs today, […]

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Euro News Is Shot in the Arm for Gold Prices but Gold Took a Breather in First Half of 2012

Euro News Is Shot in the Arm for Gold Prices but Gold Took a Breather in First Half of 2012

Gold Prices rallied as high as $1584 per ounce ahead of Friday’s US trading – 2.3% up on the previous day’s low – while stocks, commodities and the Euro also gained following news of an “important” agreement at the European Union summit in Brussels. Silver Prices climbed to $27.38 by lunchtime in London – a 4.6% gain on yesterday’s low. “Resistance [for Gold Prices ] is at the top of the past week’s range in the $1587-88 area,” says technical analysts at bullion bank Scotia Mocatta, who add that further resistance is seen at $1625. News of an agreement among European leaders on the use of bailout funds “”has been […]

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Hedge Funds Continue to Pummel Silver – Until Today

Hedge Funds Continue to Pummel Silver – Until Today

If you want to talk about how utterly insane our markets have become and how schizophrenic the trading action has mutated into, look no further than the last two days of trading this very week. On Thursday, silver was mauled by hedge fund selling tied to both long liquidation and brand new fresh short selling. The result? Silver hit a 52 week low! One day later – it rockets to close 5% higher in a single day. This is the type of madness that has been unleashed by Central Bank interference into the market place which is the SOLE CAUSE of this volatility. I could give example after example of […]

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Gold and silver: you ain’t seen nothing yet

| June 28, 2012 | Articles: Insights
Gold and silver: you ain’t seen nothing yet

More so-so price action in precious metals over the last two days, with gold and silver still struggling for near-term direction in the face of continuing European political uncertainty. Trading volume in Comex gold futures continues to decline, as often happens during the summer months. On top of this – though it will come soon – the US Federal Reserve is still sitting on its hands with regards further monetary stimulus. In combination, all of these factors are causing the continuing consolidation in precious metals. How long such consolidation will last is the million-dollar question – and if this author could answer it, he’d be sitting on his yacht in […]

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Safe-Haven Bid to Buy Gold Still Missing as Latest Euro-Crisis Talks Begin

Safe-Haven Bid to Buy Gold Still Missing as Latest Euro-Crisis Talks Begin

Prices to Buy Gold slipped 0.5% in London wholesale trade Thursday morning, dropping back below $1570 per ounce as stock markets accelerated their losses ahead of today’s Eurozone crisis summit in Brussels – the 12th such meeting in the last 12 months. “Nein! No! Non!” said the front-page of German finance daily Handelsblatt, urging chancellor Angela Merkel not to concede to calls for weaker monetary or fiscal policy across the 17-nation currency zone. Syria’s state TV meantime reported what it called “terrorist” bomb attacks on the main court in Damascus, while neighboring Turkey deployed anti-aircraft rockets along the border. “There’s no semblance of a safe-haven [in gold] at the moment,” says Société Générale’s […]

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No Catalyst for Gold Prices, But Central Banks Should Keep Buying

No Catalyst for Gold Prices, But Central Banks Should Keep Buying

Gold Prices fell as low as $1565 per ounce Wednesday morning in London – 1.4% down on this week’s high – before recovering some ground by lunchtime, while stock markets posted slight gains ahead of tomorrow’s European Union summit. Silver Prices traded below $27 an ounce for most of this morning, while other industrial commodities were broadly flat on the day by lunchtime. On the currency markets meantime, the Euro was broadly flat against the Dollar, trading just below $1.25 for most of the morning. “We’re in a bit of a period over the summer when we are going to see very little meaningful action by policymakers in three key regions – Europe, […]

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Silver buying support below $27

Silver buying support below $27

We saw divergence yesterday between stocks and precious metals – with the former struggling as a result of more euro fears, while the latter rallied higher; the gold and silver selling at the end of last week once again tempting bargain hunters into precious metals. The US dollar also gained as a result of “safe haven” bids – with the EURUSD dropping to a low of $1.247 before recovering. The Dollar Index gained 0.29% to settle at 82.50. PIIGS debt again sold off following Spain’s formal request for a bank bailout, with strong bids for German Bunds, US Treasuries, and to a lesser extent UK gilts. Today is expiration day […]

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Silver is not out of the woods yet….but

Silver is not out of the woods yet….but

On the 30 minute chart yesterday silver had a textbook breakout from a consolidating “Symmetrical Triangle” near MAJOR support.  The 30 minute chart is now displaying a “Bull Flag” continuation pattern.  I was preparing for a breakdown from the triangle to put on a trade to the short side, and yet wound up waving goodbye to the upside breakout.  The follow through on a breakdown of the triangle, would have had massive reward to risk. Why didn’t I take the breakout to the upside?  I didn’t feel there was a “positive expectancy” due to the structure of the daily chart.  Sometimes trades with a “negative expectancy” work out (worst thing that can happen to […]

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Deciphering Silver

Deciphering Silver

The internet has been awash with comments recently about the downdraft in silver and the strong increase in Open Interest on last week’s big down day. As usual, the chatter is about an orchestrated attempt by JP Morgan to smash the price of silver lower so that they can cover their “losing short position”. Let me first state that I am a firm believer in the view that the US government has a vested interest in controlling the price of gold. Being a good friend of GATA, we both have ridden through the ups and down of this together for the last decade. However, that being said, not every move […]

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Silver is approaching MAJOR support

Silver is approaching MAJOR support

I have received requests for commentary on silver.  The pattern in silver is very similar to gold.  There is a baleful “Descending Triangle”.  Below is a weekly chart of silver.  Weekly charts in my opinion are the “Ace of Spades” in charting, meaning nothing over rules them, not even the monthly chart. I would like to load up on some silver eagles/maple leafs, so a breakdown and follow through in the triangle will be welcomed by me.  I also have no issues shorting silver in the smaller degree timeframes to pay for those eagles/leafs upon this development.  Right now we are approaching MAJOR support. Would it be a better idea to pay attention to the […]

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Is Gold About to Rally? USD Index and Crude Oil Prices Suggest Otherwise

Is Gold About to Rally? USD Index and Crude Oil Prices Suggest Otherwise

Congratulations. Let’s all take a collective deep sigh of relief. Instead of a new crisis, we’re just going to keep having the same old one. Greeks voted to stay in the European Union with a narrow victory for the center-right New Democracy party. A global crisis has been averted—for now. But as we take a deep sigh of relief let’s keep in mind that the euro is already on a slippery slope to oblivion. Let’s face it. A Greek exit is already a forgone conclusion for many. Now it’s Spain’s turn to headline with its bond yields soaring to new euro-era highs. Spain’s economy is almost twice the combined size […]

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