December 15, 2012 10:50 am
It wasn't enough that our mysterious traders struck again last Wednesday, throwing speculators of paper gold into a frenzy, thus driving down precious metals prices for the close of the week, gold at $1696.25 and silver at 32.52. Nor was it sufficient that fiscal cliff conversations have now gone completely behind closed doors while the light is finally shining on the Libor scandal which got this entire party started to begin with. No, we still needed more news of the wild as the Tankan survey in Japan marks the country's 5th straight year of recession, the rupee in India has strengthened a bit to ease anxiety over the price of gold, and China swears it's not in a bubble, it's not in a bubble. So with all this wild news and uncertainty still swirling around the domestic and global markets, coupled with sales of gold American Eagles reaching a 14 year high and the precious metals market heading for crisis due to US banks' huge short positions in gold and silver, Egon von Greyerz proclaims, "A major short squeeze could be imminent."
December 28, 2012 5:45 pm
Despite a fourth week beneath $1700, physical gold continues to inspire confidence, remaining a safe haven during this rather frantic close of the year. Gold closed up Friday at $1657.50 while silver closed up at $30.15. With the country now coming ever so close to going over the fiscal cliff, many analysts believe that the U.S. will end up doing just that. Meanwhile, forecasters are calling for the European Union to remain intact, but with significant shocks for 2013. Renewed unrest in the Congo throws Chinese mining interests in the region into flux. Ongoing tensions in Sudan, Libya, Egypt, Israel, Palestine and Syria complicates the future of oil, rare earth and precious metal prices creating a fiscal time bomb in the region. In Asia, Japan's growth has come to an almost complete halt, but South Korea is seeing surpluses. The Chinese business sector is chomping at the bit for a stabilized stock market, looking to initiate a backlog of IPOs. Brazil's economy is on fire, but they are importing gold. Bolivia has made good on nationalizing a few mines and Peru may finally make that move in early 2013. The world continues to spin, and precious metals and rare earths continue to be its axis. Have a prosperous New Year.
January 9, 2013 10:46 am
December 2012 was a touch-and-go month for gold, as it ended the month about $50 lower than it started. Some may be led to think that the value of the metal had tanked, at least judging from recent sensationalist headlines calling it a risk asset rather than the traditional hedge against inflation that it has served for centuries. A number of pundits have gone so far as to show the numbers behind why gold prices should be marked to oil, not the dollar. Others have begun to realize that gold has not tanked because more than Americans buy and trade the metal. Still others claim that like fiat money, gold's value is a group hallucination.
But no one can deny one simple fact: Since 2001 – and including in 2012 – the price of gold has climbed each year over the previous.
January 11, 2013 6:36 pm
Sales of physical gold are expected to pick up in the coming weeks as China, the world's second largest consumer of gold, prepares for celebrations in February when it will ring in its new year and mark the arrival of the Black Water Snake during its Spring Festival. Gold's movement last week certainly looked like a serpent swimming in a pond, and closed the week up %0.6 at $1,657.50. Silver picked up slack and closed a full 4.6% higher, docking at $30.67. Chatter has begun about a possible hard landing for China's economy. Rough rumors or real talk? As the U.S. fiscal follies come back into view with debate over the debt ceiling, prepare for some jitters in the market. From the outside, the Eurozone seems to be stable (if you consider a slowed slide into collapse as stable), but citizens in each country continue to launch local, alternative currencies. The unrest in the Central Republic of Africa has been halted by a cease fire agreement, but the citizens of the country still clamor for greater redistribution of the wealth generated by the national mining industry. This could be bad news for French mining concerns. Further pressure in Africa: if China does have a hard landing, Angola, Congo, Ghana, Zambia could also see major disruption to their economies. Like the predictions for the Year of the Black Snake, gold will have its ups and downs. Keep your eyes on China these next few weeks.
January 18, 2013 8:58 pm
The historic Kumbh Mela ended in India this week; it is said that bathing near the event clears away all of ones sins. Maybe a wise man took a bath for gold and silver, with prices resurrecting and closing at $1675 and $31.50, respectively. Indians have come under increasing pressure from their own financial minister to curb their consumption of gold, but since there is not a viable Social Security system in the country, consumption is set to continue at current levels, even if taxes on the yellow metal goes up another 6%. A lot of the purchasing may even move to the black market. China has yet to surpass India in consumption of gold and is currently showing signs of an economic slowdown. Keep a close eye on India's financial minister's next move; nothing fuels social instability like unnecessary taxes; just ask Algeria, likely suffering from all that under-the-table gold moving between Turkey and Iran.
January 26, 2013 11:28 am
With gold prices pinging around like a thought in a schizophrenic's head, the real story this week is profit taking from gold and silver backed paper holders who are scrambling to get out of the way of the Eurozone meltdown. Gold closed down on Friday at $1,660 with silver making a lateral move closing down at $31.50. After a downgrade from Moody's, Commerzbank in Germany announced the slashing of 6,000 full time jobs by 2016. Italy's Unicredit is following suit with a shedding of 1,000 employees of their own. There are known issues in Asian investment banking and the "perp walks" have started for the Libor scandal. Emerging markets are trying to avoid joining in the currency battles initiated by all the quantitative easing of more advanced economies. Thailand is running a surplus, and will seek to create a "pleasant deficit" by shoring up its infrastructure to ease the pressure on its business community. Those addicted to the fast pace of burning paper are rabidly jumping from one investment vehicle to the next, trying to outpace everything from conversations on the U.S. debt ceiling to the IPO freeze in China. Those who possess gold can sit back and enjoy the show in peace. The fools are rushing out.
March 10, 2013 5:00 pm
Stocks hit record highs last week. And if you only listened to some in the mainstream media, you'd think that this is the perfect time to pour your money into the market. But many experts are seeing past the hype; they're keeping some perspective on these gains and seeing the forest for the trees. What do you need to know? Read on to find out.
March 17, 2013 3:31 pm
Gold has lowered in recent weeks and found a level of support just south of $1,600. But that's when measured against the U.S. Dollar. Against other currencies, for example in Japan, Brazil, Iceland, India, Argentina and England, gold is experiencing a "secret bull market" as it hits all-time highs.
April 13, 2013 1:47 am
Gold and silver closed down Friday at $1535.50 and $27.40, respectively, leaving many to ponder the future of the metals. For those who have chosen to protect their savings with precious metals, and not just to make a quick buck, we react to these events with a bigger-picture view: Remain diversified.
April 21, 2013 4:07 pm
You probably know that gold and silver dropped quite a bit last week. Despite that, every reason to protect your savings with physical precious metals still stands. But now you can get them at their lowest levels in over two years. If you liked gold and silver two weeks ago, you have to love them at today's prices. Read why, in four simple points.