Trump as President Means a $500 Jump in Gold Prices

August 10, 2016 at 08:00


Regardless of their political leanings, serious buyers of gold and investors in all precious metals understand these are very unusual times. This reality is driving a great deal of discussion, particularly in a post-Brexit world. Many respected analysts and pundits were proved wrong about the possibility of a successful leave vote coming out of the Brexit referendum. As a result, they are now particularly focused on trying to access the ultimate victor in the U.S. elections and what such an outcome will mean to financial markets generally, and gold specifically. Of course, from the perspective of a long-term investor in gold, it is difficult, yet essential, to separ...

Gold and Silver Dominate

August 8, 2016 at 10:48


It has been a golden year for precious-metal ETFs. This year’s top 10 nonleveraged ETFs by returns through July are focused on gold and silver, with all of them up at least 100% since the start of 2016. The funds take varying approaches, but they invest in mining companies. The top spot is held by PureFunds ISE Junior Silver (SILJ), which rose more than 250% through July. At the beginning of the year, it had assets under management of about $3.5 million, according to PureFunds Chief Executive Andrew Chanin, meaning the fund was costing more to run than it was generating in revenue. Its assets now exceed $91 million. “It’s been a wild year,” says Mr. Chanin. “Ther...

Monetary exhaustion means rising gold prices

August 8, 2016 at 10:43


Around mid-April, when the price of gold was still about US$1,290, I made a projection that gold had a bright, though bumpy future. Since then, gold price has climbed to US$1,365 before its recent pause. In fact, gold has barely started its climb and is likely to exceed US$1,400 by the year-end. Between fall 2011 and fall 2015, gold suffered its steepest losses since 1999, plunging from nearly US$1,880 to US$1,060. So a quarter ago, the conventional wisdom was that US rate hikes would ensure gold’s further decline. However, if that’s the case, why did gold prices soar during the first quarter? At the turn of 2015, gold’s plunge was still being driven by the broad...

Sheep flock to gold

August 1, 2016 at 10:39


Directly following Britain's vote to leave the European Union, for example, the price of gold reached its highest level in two years, closing at $1,320 US an ounce, up $58.80 on that day. "When there's instability in the world, everybody, it's like a herd of sheep, they just flock to gold," said Van Rijk. RBC Capital Markets released a report in July forecasting the price of gold will reach $1,500 US an ounce by 2017, a value it hasn't seen in three years. The report's authors are anticipating this higher price "as investors look to gold as a safe haven investment" at a time of geopolitical uncertainty and ultra-low interest rates. Glowing through the ages,our...

Gold price rally ‘set to continue’

August 1, 2016 at 10:26


The rally in gold prices is expected to continue as global uncertainty and volatility persists while economic growth remains weak, former International Monetary Fund deputy head John Lipsky says. In the face of a global outlook based on negative risks and pockets of problems, Australia’s financial system is still rated as one of the most resilient in the world, Mr Lipsky says. “The happy news for the gold miners is that in the near term the uncertainty is not a bad thing for the gold price,” Mr Lipsky told the Diggers and Dealers Mining conference in Kalgoorlie on Monday. Gold producers have benefited from a surge in prices amid uncertainty, with the precious met...

GFMS raises Gold target

July 28, 2016 at 10:28


Factors that helped boost western gold demand to unprecedented levels will continue to play a role in the second half of the year, according to GFMS Thomson Reuters. GFMS upgrading its average gold price for 2016 to $1,279 an ounce, up from the previous forecast of $1,184 an ounce. The revision is a mark to market of the impressive gains that gold has posted so far this year, and reflecting the changed sentiment stemming from increased uncertainty from economic and political outlooks. In a webinar following the release of the report, the analysts explained that gold prices are being driven by renewed western investment demand, particularly demand for gold-backed exc...

QE looks set to spark race for gold and silver

July 28, 2016 at 10:00


With just days until the Olympic opening ceremony, today’s sharp appreciation in gold and silver comes at a relatively opportune moment. July has not been particularly kind to either market, with gold falling 4% lower from the month’s high, while its more volatile running partner silver lost 9%. This will likely be associated with the fact that despite high expectations, we are yet to see any of the main central banks cut rates in the wake of the EU referendum. From a technical point of view, both markets seemed to be primed for a sharp rebound, with silver in a descending triangle and gold in a symmetrical triangle. Today we seem to be seeing the beginning of that mov...