Tag: silver price

Gold-Stock Upleg Cycles

Gold-Stock Upleg Cycles

No bull market, no matter how powerful, fundamentally strong, or long-lived, rises in a nice linear fashion.  They all flow and ebb, surging forward two steps in major uplegs before retreating back one step in major corrections.  Visualize a sine wave oscillating within a rising trend.  This seemingly-capricious behavior is actually very beneficial to bulls’ health and longevity, it keeps sentiment (greed and fear) balanced. And unsurprisingly gold stocks, with their extraordinary volatility, are no exception to this ironclad bull-market rule.  Gold stocks’ amazing bull market has advanced in fits and starts.  This technical price action is driven purely by sentiment, the same dynamic that affects every popular market.  And […]

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Gold Bullion Up in Dollars, Down in Euros for Week

US Dollar Gold Bullion prices fell to $1646 per ounce Friday lunchtime in London – a 1.4% drop from the week’s high – as China prepared for the week-long Lunar New Year holiday next week. Commodities also traded lower, while stock markets were broadly flat overall. Prices for Silver Bullion dropped to $30.39 per ounce – though still 2.0% up on last week’s close. “As we approach the holiday, the usual Asian physical activity has decreased significantly,” says one Gold Bullion dealer in Hong Kong. “We expect this pattern to continue next week,” adds a dealer here in London, noting that with the Shanghai Gold Exchange closed, a large part of the global physical Gold Bullion market will […]

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Why China has become key to the Gold Price

Why China has become key to the Gold Price

The growth of China’s role in the world gold market has been nothing short of phenomenal over the last dozen years, writes Julian Phillips at GoldForecaster. Prior to this century, HSBC sent a delegation from their London gold department to see the Chinese financial authorities and were rebuffed as ‘trying to sell gold to China’. Since then, the Chinese financial authorities switched on and set off with a purpose. In 2001, the Chinese government lifted its final controls on the gold market, releasing a pent-up demand that since then has become stronger. From 2001 to 2010, China’s annual consumption of gold grew at a 7.5% compounded annual growth rate. The chart below […]

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Central banks huge gold buyers in 2011

Gold had a solid day yesterday, closing the Comex pit session above important resistance at $1,650 per ounce. Silver for March delivery also finished above $30 per ounce. At the currency markets the US dollar weakened slightly, with the Dollar Index losing 0.36% to close at 81.18. This helped solidify recent gains in crude oil prices, with WTI crude now back above $101 a barrel. With negotiations still on-going between the Greek government and its private creditors and the situation in Hungary looking increasingly fraught, the World Bank has warned that developing nations should prepare for a slump in economic activity comparable to the 2008/09 downturn. Though the Bank’s chief […]

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Derisking Gold Juniors, Step by Step

If you’re among the many who consider investing in the junior resource sector nothing more than a crapshoot, look into Ahead of the Herd Publisher Rick Mills’ steps to derisk the inherently risky business of investing in junior resource companies. In this exclusive interview with The Gold Report, Mills not only spells out the steps involved in the derisking process, but also cites specific examples of juniors he especially likes and discusses the features that put them ahead of the herd. COMPANIES MENTIONED: ALTAIR VENTURES INC. – AURIZON MINES LTD. – BRIGUS GOLD CORP. – CANGOLD LTD. – KOOTENAY GOLD INC. – NIOGOLD MINING CORP. – TERRACO GOLD CORP. – VMS VENTURES INC. The Gold Report: We have seen […]

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Gold has Resistance at $1667/oz

Dollar prices to Buy Gold rallied to $1658 per ounce Wednesday morning in London – 0.8% up on Asian session lows – following reports that the International Monetary Fund is seeking to boost its lending capacity by $1 trillion. European stock markets also recovered from an early dip, with industrial commodities also edging higher. Prices to Buy Gold remained below the five-week high of $1667 hit yesterday, though by Wednesday lunchtime it was up 1.0% for the week so far. “Gold is working on its third up week,” says the latest market commentary from technical analysts at Scotia Mocatta. “[Gold] faces critical resistance at $1667 [which] was the mid-November low. Our view is that […]

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Indian dealers remain optimistic about gold sales

Towards the end of 2011 India’s gold and silver imports fell. Upon conclusion of the festival season – which started back in October with the Diwali festival of light, followed by the wedding season – local dealers reported that demand for precious metals had decreased more than expected, owing to weakness in the rupee. Nevertheless, over the whole of 2011 Indian demand for gold jewellery increased by 5 to 7 % in comparison with 2010. Indian dealers remain optimistic for 2012, with locals expecting Indian gold jewellery sales to increase another 10 to 15% this year. This is good news for precious metals bulls, as India is the second largest […]

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Using vaults to store gold and silver

I consider gold and silver to be the bedrock asset of an investment portfolio. In other words, it is the foundation stone upon which the rest of a portfolio is built. Given this important role in which I hold the precious metals, it is essential to keep them safe. Safety can mean different things to different people. Until recently, for example, many investors believed that Switzerland was isolated from the world’s monetary turmoil. They therefore thought that the Swiss franc was a safe place to keep their money, but the illusion of safety vanished instantly when the Swiss National Bank announced that it would not let the Swiss franc strengthen […]

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Precious metal prices firm following French downgrade

Though it has yet to break through selling resistance at $1,650, gold has recorded small gains in trading this morning following on from Friday’s announcement from Standard & Poor’s that they were going to downgrade France from a Triple A credit rating to an AA+. Friday the 13th was an apt choice of days for S&P’s decision, with the rating agency also cutting the ratings of Austria, Italy, Portugal, Spain, Cyprus, Malta, Slovakia and Slovenia. Markets received early inkling of this move, with the euro falling below US$1.27 during trading on Friday (though S&P’s announcement was delayed until after markets had closed). Short interest in the euro is now at […]

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