Gold still the ultimate hard currency

August 27, 2015 at 11:40


While gold hasn’t been rising in tough periods as many investors would expect, it does appear that investors have been buying into the commodity this month, following a positive 3.35 per cent return from the S&P GSCI Gold Spot index. The obvious guess as to why this is the case is the global volatility we have experienced in recent months. This came to a head on Monday, when the FTSE 100 had £74bn wiped off its value, the Dow Jones ended the day down 558 points and the Shanghai Composite dropped by 8.5 per cent. In the past, gold has been seen as a safe haven because it is hard currency that is stored in vaults and cannot be printed. However, since the fall from...

Silver Coin Buyers See the Bargains

August 27, 2015 at 11:18


Buyers of silver coins in the U.S. are seeing bargains at a time when investors are dumping precious metals. Prices tumbled into Thursday to a six-year low. Investors have been selling silver amid a rout across commodities and ignoring the precious metal’s haven appeal. While options contracts show that traders are bracing for more declines, the rout is only increasing the allure of silver coins for retail buyers. Sales at the U.S. Mint, the world’s largest, are on pace to a reach a record this year, according to an e-mailed statement. Coin purchases are up about 13 percent this year through Aug. 24. Surging demand prompted the Mint to suspend sales last month for m...

Silver set up to $64?

August 26, 2015 at 10:30


We have said many times that the outlook for silver is bright. The grey metal, unlike gold, is not only an investment vehicle, but also an industrial metal that has growing demand from electronics manufacturers and solar panel producers. This time, let’s look at one of the most important ratios in precious metals—the gold to silver price ratio. You see, for the most part, precious metals prices move in the same manner: when gold goes up, so does silver, and vice versa. However, despite going in the same directions, the magnitude of the moves in gold and silver prices could differ. We use the gold to silver price ratio to track the divergence of the two metals prices. A...

The Chinese relationship with Silver

August 26, 2015 at 10:21


China’s devaluation of the yuan last week surprised many market observers. The yuan, which is pegged to the dollar, had been rising in tandem with the U.S. currency -- in part because of expectations the Federal Reserve will increase interest rates soon. With China's economy slowing, currency markets were pressing for the yuan to depreciate, and the Chinese government, seeking to boost competitiveness in export markets, gave in to the pressure and moved the peg. This isn't the first time the two countries’ monetary policies have been closely intertwined. In the Great Depression, China found itself vulnerable to the price of silver, thanks to the misguided moves of U.S....

Silver: Fundamentals & Technicals Align

August 25, 2015 at 11:13


Silver has been at the mercy of the global markets over the last 24 hours as it was seen more as a commodity than a store of wealth. That has led to a head and shoulders pattern forming that provides an entry point to take advantage of the softer interest rate outlook. As panic swept through global markets over the last 24 hours, Silver was a deer in the headlights. It was heavily sold off by more than 3.6% thanks to the fear that China will slip into recession. Silver is used in industrial applications far more than its more precious counterpart, Gold, so it was no real surprise to see it sold off on fear China, the world’s factory, will grind to a halt. But Silver...

Gold Technicals: Bullish break coming

August 25, 2015 at 11:01


As the turmoil from the equity market decline spreads around the globe, Gold looks like it might be finally ready to challenge the long term bearish trend line. The precious metal has steadily fallen since January on the belief that the U.S. economy was doing better and the Fed was close to raising rates (Protip: They’re not!). Subsequently, Gold prices have steadily declined from the January high of $1307.32 until resting well below the $1100 handle. That was until approximately two weeks ago when something inexplicable occurred…traders woke up to the fact they had been fooled. Instead of a rampant U.S. economy with strong price inflation, we ended up with a declin...

How I Learned To Stop Worrying And Buy Silver

August 24, 2015 at 11:04


  Very few people want silver and very few are buying. The price has been pushed down from the 2011 highs of $49 per ounce to the $15 range today. But even with few buyers, supplies seem to be getting thin, according to a growing body of anecdotal evidence. Such evidence will cross a threshold into generalizableempirical evidence as the individual stories of tightness become the norm and not the exception. For now, buyers like us can still find as much silver as we can buy — for less than the cost to mine it. How soon will silver gain value? Nobody can be sure. Probably not until the world economies collapse and after the rebuilding begins. In the meantime, it ...