Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Silver Closes Above $20/oz - Higest Silver Close Since March 2008

Commodities / Gold and Silver 2010 Sep 14, 2010 - 06:04 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleThe Japanese yen, Swiss franc, gold and particularly silver are stronger this morning as risk aversion has returned as seen in lower European equity markets. The dollar has recovered from earlier weakness and the euro has fallen to 1.284 USD and €976/oz. Oil back above $77 a barrel and rising commodity prices is likely also supporting gold and silver.


Gold is currently trading at $1,253.10/oz, €975.55/oz, £812.96/oz.

Inflation pressures in the UK continue as seen in this morning's UK inflation figures again exceeding the government's 3 percent limit for a sixth month in August. Higher costs of items from air fares to food stoked price pressures in the economy. This saw sterling fall and gold has risen to £814.20/oz.

The ECB bought some €237 million of European sovereign debt last week and this along with the continuing dependency of some European banks on continued ECB funding clearly shows that the debt crisis is not over yet. Indeed, we could soon see a second more serious phase of the sovereign debt crisis. This should lead to continuing safe haven demand in Germany and other European countries affected by the crisis.

Silver

Silver closed over the important $20/oz level yesterday, up 19 cents to close at $20.11/oz which is its highest close since March 2008. It is trading even more robustly than gold with sell offs increasingly shallow and indeed it has been leading gold in the recent move up. It has even managed to close higher when gold has been lower on certain days which is very unusual and may be an indication that silver's historical underperformance of gold may be changing leading to silver outperforming gold in the coming months.

Silver is currently trading at $20.25/oz, €15.77/oz and £13.14/oz.

Silver in USD - 5 Year (Daily)


Technically silver looks very well and may challenge the 2008 record daily close of $20.81/oz. Above this level silver would be in territory not seen since the late 1970's and it is possible that silver could rise as high as $25/oz in the coming months. Conversely, a failure to reach new record highs would see a new period of correction and consolidation which could see silver fall back to support at $18/oz.

Silver in USD - 5 Year (Daily)


It is worthwhile looking at silver's quarterly chart which takes out the volatility and speculative froth from the price. It shows that the record quarterly close for silver was on the last day of 1979 (31/12/79) at $32.20/oz. Given the even stronger fundamentals today and the fact that a huge amount of silver has been used in a variety of industrial applications in the last 30 years, many analysts expect silver to replicate gold and reach record highs in the coming years.

This is especially the case because while silver was demonetised in the 20th Century and became seen more as an industrial metal, more recently investors and savers are looking to silver as a safe haven asset and a store of value (see http://www.goldcore.com/research/silver-set-soar-it-did-1970s). This trend looks set to continue with value buyers switching from gold to "poor man's gold" which remains cheap on a comparative basis to gold and other asset classes.

Platinum Group Metals

Platinum is trading at $1,565.10/oz, palladium is at $538/oz and rhodium is at $2,050/oz.

This update can be found on the GoldCore blog here.

Mark O'Byrne
Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules