Gold and Silver Market News and Reviews
| Thursday : September 02 2010 |
By: David Levenstein
Last week we saw some interesting action in the silver futures market traded on Comex, a division of the New York Mercantile Exchange.
Silver prices surged during the later part of week after reversing a potential 23-cent loss into a 35-cent gain on Tuesday. This was followed through with a 56-cent advance on Wednesday. And, for the week silver soared USD $1.07, an advance of 5.9%, strongly outperforming its larger cousin gold, which added $10.15 to $1,237.88, up 0.8%. Silver for immediate delivery climbed to $19.11 an ounce, the highest price since June 28.
By: GoldCore
Risk appetite increased yesterday as the first day of the new month saw equity buyers return and bond prices fall. Gold and silver prices fell marginally but remained near multi week highs and in gold's case very near the all time record high (nominally). European equity markets are a bit more tentative this morning and the pound and the dollar have come under selling pressure.
By: Moses Kim
Precious metals investors have long been waiting for an upside breakout in silver. Given that investors have been put to sleep by the action in silver, it is not surprising that few not noticed that silver is approaching critical price levels.
Silver is such a thinly traded market that moves to the upside tend to be explosive. Precious metals aficionados will recall the Hunt brothers’ attempt to corner the silver market in the 1980’s. Silver rose sharply to $50 before collapsing to $3. As I write this, silver is sitting at $19.60. So while silver has rallied considerably the past decade, on a historical basis, silver is still “cheap.”
By: Richard Daughty, The Mogambo Guru
I am standing on the corner of the street, doing my duty to “give back” to society, in this case by yelling at morons passing by in the cars, “We’re freaking doomed, you moron! Your own stupid government has destroyed you by letting the foul, fetid, festering Federal Reserve create too much money that they stupidly, stupidly, stupidly did as part of the stupid neo-Keynesian econometric theoretical lunacy that has mesmerized them, so that a shiny computer in front of a neo-Keynesian econometric economist is like a shiny toy in front of a monkey, and which has mesmerized the Fed and the government for similar reasons, and with similar results, in that the toy is now broken, the monkey cut its hand on the broken toy, the cut is infected, and there is a good chance that the monkey will die a horrible, painful death! Hahaha!"
By: Lorimer Wilson
The Fed is terrified of the U.S. economy falling into a deflationary death-spiral [whereby] lack of liquidity leads to lower prices, leading to unemployment, leading to lower consumption, leading to still lower prices, the entire economy grinding down to a halt… Both the Federal government and the Federal Reserve are hell-bent on using the same old tired tools to “fix the economy”—stimulus on the one hand, liquidity injections on the other – but it’s those very fixes that are pulling us closer to the edge, [not to the deflationary drain, but a hyperinflationary spiral].
| Wednesday : September 01 2010 |
By: GoldCore
After yesterday's 1% rise, gold traded sideways in Asia but has risen again in early European trading as the dollar has fallen and oil risen after yesterday's sharp falls. Gold has risen in dollars, pounds , yen and Swiss francs which are all weaker today but is slightly weaker against the euro and commodity currencies. Gold was up 5.6% in August thereby regaining the 5% losses seen in July.
By: Dr. Jim Willie
An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
By: Richard Daughty, The Mogambo Guru
Since I am known as something of a gold bug, a lot of people write to me about gold, but since I am a paranoid lunatic, I don’t read their letters, mostly because I now call myself Marvelous Macho Grande (MMG), figuring that an established alias could potentially come in handy when the prices of gold, silver and oil shoot higher and higher as inflation in consumer prices starts going parabolic as a result of the despicable Federal Reserve creating so, so, so much money, especially so that the despicable federal government can borrow and spend that selfsame so, so, so much money.
By: The Gold Report
Everyday New York-based investment gurus Jeff Mosseri and Doug Loud make key decisions for their high net-worth clients. Many of those decisions involve strategically positioning investors in small- and micro-cap gold and silver plays. In this exclusive interview with The Gold Report, you will learn some of the names of those plays and how they use Mosseri and Loud as hedges against a failing economy.
By: Mac Slavo
Whether you are planning for a multi-year recessionary crisis, economic collapse, deflation, hyperinflationary depression, or Mad Max, gold seems to be the one physical asset that promises to provide some level of protection when the future of paper currencies and other asset classes is in question. Though it’s not often mentioned as one of the investing tools at one’s disposal, by all accounts it does seem to be gaining acceptance by mainstream investors.
By: Richard Daughty, The Mogambo Guru
From Bloomberg.com we get the bad news that “Bank of England Governor Mervyn King said inflation is likely to exceed the UK government’s upper 3% limit in coming months as higher sales taxes drive gains in consumer prices,” which “rose 3.1% in July from a year earlier after climbing 3.2% in June.”
Apparently, he has to write a letter about it, probably something along the lines of “Dear British taxpayer, Our stupidity and incompetence have caused prices to rise more than 3% in a year, which means you are all doomed unless we government lowlife halfwits stop being incompetent, especially as regards monetary policy in general and creating far too much new money in particular, which we won’t. Terribly sorry, old chap. Respectfully yours, Mervyn.”
By: GoldCore
Concerns that the US economy is sliding back into recession has led to equities internationally coming under pressure and further flows into safe-haven assets. Gold and silver have consolidated from last week's gains and remain near closing levels from yesterday and last week. The yen - a preferred carry trade at times of financial stress - rose back to a 15-year high against the dollar as doubts remain about Japan's attempt to weaken the currency. Interestingly, despite the yen's recent strength, gold remains near multiyear record highs in the Japanese currency.
By: Chris Wood, Casey Research
Here at Casey Research, we really don’t enjoy being a buzz-kill. It’s just that we think it’s more important for investors to be well informed about the reality in which we find ourselves today than it is to be happy-go-lucky all the time.
The good news is that when the stuff hits the fan, as it has for going on two years now, it opens up a number of unexpected opportunities for profit. Even in the hairiest situations, there are ways to protect yourself.
By: Lorimer Wilson
Analysing the long-term relationships of gold with other assets suggests that, in most instances, physical gold and silver and the shares of the companies that mine those precious metals have major upside potential – truly major – in the years to come.
By: Jeb Handwerger
The global debt crisis and the war on deflation by the Federal Reserve is causing precious metals to approach a key resistance level. Gold is nearing a 52 week high while silver is close to breaking $19. A break above these levels on high volume could be the beginning of a major move higher.
By: Jason Hommel, Silver Stock Report
Many analysts and investors try to guess when silver prices will explode. They make these guesses based on the charts, or even by the fundamentals like I do. I pointed out the fundamental supply and demand numbers in my last article, "1% of 1%".
The Tiny Silver Market attracts 1% of 1%, or $1 out of every $10,000 in the US Banking system, each year.
By the time 1% of paper money tries to buy silver in one year, there will be 100 times as much investor buying of silver as today, which will be about $180 billion trying to buy only 750 million ounces of annual world production, which implies a silver price of about $240/oz., or perhaps higher.
By: GoldCore
Markets nervously await data this week including the important monthly jobs number which will likely again underline the risks of a double dip recession. While Asian shares advanced, European shares (London closed for a public holiday) have been more tentative this morning and the US futures are marginally positive. Currencies markets have not seen much movement but yen is stronger again today despite concerns that the government action will not be able to control currency price movements.
By: Jordan Roy-Byrne, CMT
The various large-cap gold stock indices are readying for a major breakout. As we’ve noted, this isn’t just a breakout through 2008 highs but a breakout through highs dating back to 1980. Yes, there are some gold stock indices like the Barron’s Gold Mining Index and others, which show a 30-year base dating back to 1980. This will be a historic breakout for the gold stocks.
By: The Gold Report
Listening to Trader Tracks Editor Roger Wiegand talk about market conditions and precious metals is like listening to your favorite uncle tell stories at Thanksgiving. The difference is that Roger's stories are a lot more likely to make you money. In this exclusive interview with The Gold Report, Roger offers up a few of his favorite gold and silver plays and some sage market advice.
By: Merv Burak
Too much verbal euphoria, not enough trading euphoria. As an old underground gold miner from long ago I remain somewhat of a gold bug BUT looking at the charts one must be very, very cautious here. The futures trading activity just doesn’t seems to match the expectations of many commentators at this point.
By: Lorimer Wilson
The numbers don’t lie, and statistic after statistic shows that the economic fundamentals continue to get progressively worse… and anyone who claims that things are getting “better” is either ignorant, completely deluded or is purposely lying. The U.S. economy is not getting “better”. The U.S. economy is dying.
By: Larry Edelson
I’m seeing unusual strength in the gold market. Strength that has reversed the very short-term negative trends in gold to positive, and even given me a new cycle projection on my software.
In fact, I believe gold’s recent action is so significant, it’s bearing important messages about the future. I’ll get to those in a minute, and how you should prepare your finances. First, more on the recent action in gold …
By: Clive Maund
In the last update we were looking for gold to turn lower, it did turn lower and dropped quite heavily back to its 200-day moving average. However, it has risen all the way back up again and is now within striking distance of breaking out to new highs.
By: Clive Maund
After looking extremely vulnerable for weeks, silver staged an upside breakout last week that has taken the price away from the danger zone and also signaled a probable breakout to new highs that, should it occur after such a prolonged standoff, can be expected to lead to a powerful uptrend that takes the price to a target area in the high $20’s.
By: Richard Daughty, The Mogambo Guru
For some reason, everyone is taken aback because, as James Mackintosh at The Financial Times puts it, “Stanley Druckenmiller, one of the masters of the investment world, this week announced his retirement saying that he had become frustrated over the past three years with his inability to make outsized returns,” which makes me laugh my Huge Mogambo Butt (HMB) off at Mr. Druckenmiller, and laugh at hedge funds everywhere because, as Mr. Mackintosh reports, “the average macro fund had lost 1.2 per cent, after small gains last year, according to Hedge Fund Research. By contrast, global equities are down 5 per cent since January.”
By: Przemyslaw Radomski
With gold rising almost each day now, those of you, who are holding the yellow metal as a long-term investment are most likely happy with this situation. However, Speculators, and particularly Contrarians are probably waiting for the slightest sign of weakness in order to profit in the following correction. As we all know, no market - virtually regardless of the fundamental situation - moves in a given direction in a straight line.
By: Julian D. W. Phillips, Gold/Silver Forecaster
Nearly all the commentary we have heard on this question says the same. “Yes, the prospects of a Double-Dip recession have increased but it remains unlikely that it will happen”. We feel that there may be just a hint of self-interest in these answers. The shockwaves that will reverberate should some say it is going to happen, or if the news confirmed that it had started would rattle the markets hugely. Despite the ability to disseminate news instantly, we have to wait a month before reliable figures are published to confirm one way or the other that this is or is not the case.
By: Dorothy Kosich
If gold really is supposed to shine during tough economic times, former International Royalty Corp. founder Doug Silver wonders why gold prices haven't soared much higher by now.
By: The Gold Report
Casey Research Senior Editor Louis James is very familiar with the gold market and with junior gold companies that have projects all over the world. In fact, he's visited many of the most promising ones. In this exclusive interview with The Gold Report, Louis offers tips on how to own physical gold and "paper" gold, and even picks some junior gold and silver plays with significant potential.
By: David Galland
The latest data on global gold trends, Q2 2010, just popped into my email box from the World Gold Council.
The bad news is that the higher nominal price of gold has caused a 5% decrease in jewelry sales over the prior year.
If you’re thinking “Hey, that’s not that bad!”, you’d be right. On this date last year, gold closed at $950… which is $286 below where it trades as I write. In other words, a 30% rise in price has resulted in a decrease of just 5% in jewelry sales.
By: Bob Kirtley
There is much debate within the precious metals industry regarding the alleged suppression, or at least manipulation to an extent, by either central banks or the proprietary trading divisions of large banks, or a combination of the two.
In April the US Commodity Futures Trading Commission CFTC fined Hedge Fund Moore Capital for manipulation of the New York platinum and palladium futures market, as the firm was found to be “banging the close”, which involves entering orders in a manner designed to inflate the closing price, which other various derivatives contracts could be based on. So that is irrefutable evidence that the precious metals futures market is, at least to some extent, being manipulated. However a large concentration of this debate is based not on platinum and palladium, but on gold and silver, and particularly gold.
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