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What Would Fractional Silver Mean?
In Mid-may of this year, something curious happened, which I’d not seen before.
I’ve been following the course of where the dollar was heading and how it related to the pricing of gold and silver. Typically, I follow a number of sources for information, then try to wrap all those opinions into something concise, allowing me to share it with others. Most everyone following precious metals knows how GATA has been beating the drum about gold manipulation for quite some time now. History (past and current) is a very good place to start down the rabbit trail.
Informed people (like Paul Craig Roberts, Bob Chapman, Gerald Celente, Robby Noel, Lindsey Williams) have also helped shape a number of my opinions and speculations regarding where this economy is heading. Again, these are all very credible individuals who’ve been reporting on “real” financial issues for a number of years, if not decades now. And, even though it can be a bad habit, tune into the mainstream media to hear what they are trying to make the public believe for that moment. Every so often, they slip and Read more…
China Prepares To Launch Gold ETFs As Utah Becomes First State To Make Gold And Silver Legal Tender
Following Friday’s news that China has now surpassed India as the world’s largest buyer of gold, it is becoming increasingly obvious that the country is trying to capitalize on the popular interest in the precious metal by transferring the trading infrastructure away from US to domestic capital markets. First, it recently launched a 1 kilo gold futures contract on the HK Merc in an obvious attempt to undermine the Comex monopoly in the space, and next it seems that China has the GLD plain in its sights, as it plans to start exchange-traded funds, tapping rising demand in China, the world’s biggest investment market for the precious metal. Often blamed for the recent volatility in the price of gold, precious metal ETFs have been primarily an instrument available to those with access to the US market. That appears to be ending, and with an entire nation suffering from gold fever (as inflation continues to be goalseeked by the China politburo above expectations in what appears to be a programmed attempt by the Chinese central planners to push its population into gold hoarding) and about to be offered a simple way of investing in (paper) gold, it is likely that the price of gold (and soon thereafter all other commodities) will see unprecedented spikes in price in either direction as millions more are given direct exposure to trading the non-dilutable currency equivalent.
From Bloomberg:
“There are some complexities, as the central bank is in charge of gold management, while we still need to go through the procedures for launching new exchange products,” Wang Zhe, chairman of the bourse, said at a Shanghai forum. There is no timetable and the exchange is working with regulators on the plan, Wang said. China is the world’s largest gold producer and second-largest in overall consumption.
China doesn’t have gold ETFs and investors usually choose to buy physical gold, or invest through contracts traded on the Shanghai Gold Exchange, the Read more…
Silver to Surge to $450/oz and Gold to $12,000/oz – Cazenove’s Robin Griffiths
Gold and silver are higher this morning with the dollar, the British pound and commodity currencies falling in value. It is too early to tell whether the recent margin driven, paper sell off on the COMEX is over but physical supply remains limited while demand remains robust, particularly in China, India and wider Asia.
Cross Currency Rates
Knowledgeable experts continue to urge investors to own gold and silver due to the likelihood of much higher prices, currency and inflation risk.
One of the most respected global technical and macro strategists in the world, Robin Griffiths has said that silver and gold could rise to $450 and $12,000 per ounce respectively due to the debasement of Read more…
How Far Does Silver Fall?
With silver dropping roughly 19% in the last three days, a correction is clearly under way. Let’s take a quick look at how far it might drop.
I’ve updated the “corrections” chart, which shows all major pullbacks in silver since our bull market began in 2001. The data measure any clearly visible drop in price greater than 10%, regardless of time length. As you’ll see, some drops occurred over short periods of time, while others were prolonged.
It’s clear that silver has had some large and scary sell-offs. But the “silver” lining to that fact is the realization that our current volatility is perfectly normal.
The average of all corrections is 19%. Applied to our high of $48.70 on April 28, silver would fall to Read more…
Mexico ramps up gold reserves at dollar’s expense
* Mexico ups gold reserves by over 90 tonnes in two months
* Mexic onow ranks 33 among official holders of gold (Changes dateline, pvs LONDON; adds comment, details)
By Dave Graham
The price of gold has risen by 11% this yearMEXICO CITY, May 4 (Reuters) – Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.
The third biggest one-off purchase of gold by any country over the past decade took Mexico’s reserves to 100.15 tonnes — or 3.22 million ounces — by the end of March from just 6.84 tonnes at the end of January, according to the International Monetary Fund and Mexico’s central bank.
Gold has gained 11 percent this year, driven by concern over euro zone debt and the violence in the Arab world, as well as by the U.S. dollar’s 7.6 percent decline against a basket of currencies .DXY.
Sergio Martin, chief economist for HSBC in Mexico, said the government probably saw gold as a highly liquid asset that would reduce exposure to the falling greenback.
“They’re probably thinking that getting out of dollars and into gold makes sense because we know that the dollar has some trend to depreciate in the near future at least,” said Martin. “I don’t think they’re going to lose money Read more…
Where is the Global Economy Headed? The Experts Weigh In
I’m writing today after spending the last three days in Boca Raton, Florida, attending The Next Few Years: A Casey Research Summit. If you’re not already familiar, the purpose of this summit was to bring together many of the world’s top economic and investing minds to share with us where they believe we’re headed in the months and years ahead.
The cast of speakers was impressive, to say the least. They brought a variety of view points, an almost overwhelming amount of data and analysis, and a perspective on what the current world means for investors that would be hard to build on. Yet, with all this variety of thought and perspective, one central theme seemed to emerge.
If you’re able to see the annihilation of your currency coming down the pike, and you take the right steps to protect your wealth, you can come out on the other side largely unscathed. Given the right investment strategy, you may even be able to grow your wealth significantly during this time.
While I knew this on some level coming into this event – I’ve been reading Casey Research’s work for just a few months now, and this was the first of their events I’ve attended – I was given pause by Casey CEO Olivier Garret’s welcoming remarks.
“While no one can predict the future with complete certainty,” he said, “it should give you comfort to know that the faculty for this summit have in common that they correctly anticipated the trends now dominating the global landscape.”
When you bring together 35 experts who each correctly predicted what’s happened in recent years – while the mainstream media Read more…
Why Investors Are Buying Silver As If There Is No Tomorrow
The price of silver has been absolutely exploding lately. It has reached heights not seen since the Hunt Brothers attempted to corner the silver market over three decades ago. But this time there are no Hunt Brothers to blame for the stunning rise in the price of silver. So exactly why are investors buying silver as if there is no tomorrow right now? Well, the truth is that there are a lot of reasons. Investors have been flocking to precious metals such as gold and silver as the value of paper currencies has declined. The euro is incredibly weak right now and the U.S. dollar appears to be on the verge of a major collapse. In fact, the entire financial system is highly unstable right now. In such an environment, investors seek some place safe to park their money, and right now gold and silver are seen as safe harbors. But gold and silver have not been going up in price at the same pace. So why is silver outperforming gold so significantly?
The price of silver has increased by more than 150% over the past 12 months. But the price of gold has only gone up about 30%.
If you invested $100 in the S&P 500 ten years ago it would be worth about Read more…
QE2 Is Damaging The Economy And Reducing GDP Growth
QE2 is going to go down as one of the worst monetary policy initiatives in the history of the modern Federal Reserve era. On almost any metric applied, QE2 ends up not only falling well short of its proposed goals, but actually turns certain metrics like GDP growth negative compared with the prior quarter, and heading in the wrong direction.
Costs Eat into Corporate Profits = No Hiring
Analysts all over Wall Street are starting to revise their 2nd quarter GDP forecasts down, and some like Goldman Sachs have made several downward revisions as higher input costs due to a weak dollar are creating an additional burden on businesses and consumers and thus slowing economic growth.
A weak dollar (Fig. 1) to a point can help exports, but an extremely weak dollar which in combination with QE2 liquidity juicing up commodities even further, turns out to be a net negative on the economy, and risks sending the Read more…
Gold and silver: through the roof
All that glitters is gold, and silver… at least that’s what the market thinks. The price of spot silver jumped 5 per cent to hit $49 a troy ounce, and gold hit a record high for the seventh consecutive session, at $1,517.71 a troy ounce in early trading on Monday. Meanwhile, the US dollar fell to a three-year low.
According to reports from Reuters, much of the interest looks to be coming from India and China.
“Everyone is buying… there is stop-loss buying, as well as a good buying interest from China,” Reuters reported, citing a trader in Hong Kong.
Gold has been at all time highs since the start of the year when oil prices jumped and geo-political concerns in the Middle East began to shake confidence in a global economic recovery. According to the FT’s Jack Farchy, investor holdings in gold through exchange traded funds have risen 1.38 per cent in April this year – the strongest monthly gain since August 2010.
But it’s not just gold that has generated interest in recent months. Holdings in iShares Silver trust, the Read more…
Dollar keeps sinking while gold tops $1,500
Silver, Gold up 49% 6% respectively on the year while Dollar keeps tumbling
The dollar is getting trashed again, driving a key index of the U.S. currency’s value to its lowest level in more than two years.
And as the greenback slumps further, gold and silver — the hard-money alternatives to paper currencies — are hitting new highs. Gold closed above $1,500 an ounce for the first time.
The DXY index, which measures the dollar’s value against six other major currencies (including the euro, the yen and the Swiss franc), slid to 74.10 on Thursday, down 0.4% from Wednesday and the lowest since August 2008.
Year-to-date the DXY index (charted at left) is down 6.2%.
“It’s a ‘sell the dollar, buy everything else’ market,” said Win Thin, a currency strategist at Brown Bros. Harriman in New York.
The euro hit a new 16-month high of $1.454 on Thursday, up from $1.451 on Wednesday. The dollar also hit a record low of 6.52 Chinese yuan, down from 6.56 yuan a month ago, as the Chinese government allows its currency to steadily strengthen.
The buck’s slump this year has been fueled in large part by the widening gulf between U.S. interest rates and Read more…
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