Have Silver Prices Reached a Bottom?

November 25, 2015 at 11:20


There is no doubt that silver has taken cues from the recent free fall in gold prices amid concerns of an interest rate hike by the Fed in their December meeting. A rising interest rate environment lowers the appeal for zero-yielding precious metals like silver. Spot silver prices were recovering for most of October but started dropping from the end of the month following the Fed’s hawkish meeting and stellar jobs report. After enjoying a short-term spike in the wake of the gruesome Paris terror attack last Friday, spot silver prices fell again to its three-month low this week and are currently down more than 9% year to date and below the one-year high by 22%. The...

Why gold may finally be nearing a bottom

November 25, 2015 at 11:15


George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, said gold should find solid support around $1,050 an ounce—the bottom end of its recent trading range. Milling-Stanley offered his thoughts on gold’s trading patterns, the impact of the Paris terror attacks and his outlook for prices. Question: Gold recently settled at a more than 5-year low. Where would you say gold sentiment is right now? Gold sentiment is very mixed right now. ETFs have experienced outflows in 2015, although at nothing like the levels seen in 2012 and 2013. But investor flows into small bars and coins have grown significantly, both world-wide and here in the...

Indian smuggling defies steep drop in gold prices

November 24, 2015 at 11:02


The steep drop in gold price - over the past two years has failed to put brakes on the smuggling of the yellow metal into Hyderabad. The reason - the continuing high margin of profit coupled with increase in quantity of smuggled gold. In 2013, when the gold price in India touched a peak of $1900 per oz, smugglers pocketed a hefty profit. Now, with the price dropping, the earnings of smugglers too have taken a southward turn especially after clearing all `commissions' - to carriers and other associates including government or private employees at airports. While that, on paper, indicates a slump in business, senior cops argue how the money made through gold smuggling...

Hedge funds bail out, ready for short squeeze?

November 24, 2015 at 10:58


Gold futures with December delivery dates fell more than 1% to trade at a fresh five year low. Settling at $1,065.00 gold is down $110 an ounce or just under 10% from where it was trading just before the Federal Reserve's interest rate announcement last month which opened the door for a rate rise – which would be the first in nine years – when the bank next meets in December. The likelihood that Fed will raise rates from near zero where they have been since December 2008, before the end of the year prompted large futures speculators or "managed money" investors such as hedge funds to dramatically raise bearish bets on the metal. Higher interest rates boost the va...

Search for body uncovers $220,000 in Silver bars

November 23, 2015 at 11:38


Authorities searched a 140-acre property in central Indiana in early November for a murder victim believed to be buried there. Instead of a body, they uncovered a small treasure, an estimated $220,000 in silver bars found in a safe during a search of the Delaware County property, the Muncie Star Press reported. Other coins found during the Nov. 5-7 search are believed to be worth thousands. Inside the safe were 120 silver bars weighing 100 ounces, and 338 smaller silver bars, each weighing 10 ounces. The total weight of the silver exceeded 950 pounds. Authorities haven't been able to open three of the five safes located on the property. A search of the propert...

Analysis of new Gold fix

November 23, 2015 at 11:29


There are two gold price fixings in London, an AM one and a PM one. Statistical studies have shown evidence of price anomalies around these points in time during the previous fixing process that suggested price manipulation was taking place. I have first drawn attention to the anomalies surrounding the fixings in 2002. At the time I introduced an examination method designed to uncover price manipulation based on creating an average of intraday price performance. This study showed regularly repeating price declines around the time of the fixing. We want to examine now whether anything has changed with respect to price manipulation since the introduction of the new fixin...

Silver out of favour

November 20, 2015 at 11:59


Silver has been hit by weak industrial and investor demand and analysts are predicting more pain for the precious metal. Due to its duality as a precious and industrial metal, it’s almost impossible for silver to decouple from the pressure experienced by gold and industrial metals. The market for silver is expected to be in an annual physical deficit of 42.7 million troy ounces (Moz) this year, marking it the third consecutive year the market has experienced a shortfall. Weakening growth in China will continue to weigh on physical demand. “The slowdown in China’s economy has had a significant impact on the off-take for silver and it’s a theme expected to continue into ...