Tag Archives: india

Ever since their brief correction from April to June, gold and silver have been on a tear. Last Wednesday, gold reached a 3-month high, and silver hit a 4-month high. Think it’s too late to get started now? Think again. As we enter September, in this week’s Market Update we look at ten reasons why gold and silver are conspiring to climb even higher in the coming months.

There’s no two ways about it: Indians are enamored with their gold. For wedding, for holidays, for any number of celebrations, they snatch up the yellow metal at every opportunity. This “Love Trade” will always hold in India. But today a new force has been added to the equation, and it is proving to create even more demand for gold in the country: fear. As Indians double down on their desire for gold, read in this week’s Market Update how gold’s prices could be impacted.

Our nation’s spirit of independence, first embodied by our forefathers, won’t endure on its own. Today, with politicians and the media alike trying to dictate the narrative that is in their own best interest, we must constantly live up to our independent ways. For us at Birch Gold Group, this is especially true when it comes to protecting your savings. Given all of the investment options available to you, rarely do we see those in the mainstream media give precious metals fair consideration. So for this month, in the spirit of America’s Independence Day, we encourage you to declare your independence from what some would like us to rely on. What can you declare your independence from?

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.

Gold closed down on Friday at $1612.25, indicating a full correction may be in effect. President Obama’s State of the Union Address did very little to change the market realities, resulting in sideways motion for silver, down to $30.18, now walking independent of gold. With the dollar strengthening and Europe indicating that it may have a fix in the works for Greece and Spain, risk-seeking investors who have traditionally favored gold ETFs are looking elsewhere, trying to find big returns in more volatile markets. Ironically, because these folks were so stocked up on paper gold, the net effect on the price was stunning, with the yellow metal recording as much as a 5% decline at one point during the week. The source of all hoopla was two whales dumping their positions in search of action in Europe. George Soros sold 55% of his positions while Louie Moore Bacon relinquished every single gold share in his portfolio. Meanwhile, physical gold holders and those long on the yellow metal will swoop in early this week to score some real deals. With the week in the U.S. potentially off to a slow start due to the President’s Day holiday, this may be just the time to get in; the bulls look poised to take off again.

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.

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.

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.