Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19
Betting on Next British Prime Minister Tory Leadership Betfair Markets Forecast - 10th June 19
How Can Stock Market Go Up When We’re Headed Towards a Recession? - 10th June 19
If You Invest in Dividend Stocks, Do This to Double Your Returns - 10th June 19
Reasons for the Success of the Dating Market - 10th June 19
Gold Price Trend Analysis - Video - 10th June 19
US Stock Markets Rally Hard – Could Another Big Upside Leg Begin? - 10th June 19
Stock Market Huge Cosmic Cluster Ahead: Buckle Up! - 10th June 19
Stock Market Higher To Go? - 10th June 19
The Gold Price Golden Neckline… - 10th June 19
Gold Price Seasonal Trend Analysis - 9th June 19
The Fed Stops Pretending - 9th June 19
Fed Rate Cuts Soon; Bitcoin Enthusiasts Join Wall Street in Bashing Gold - 9th June 19
1990s vs. 2010s - Which Expansion Will be Better for Gold? - 9th June 19
Gold Price Trend Analysis, MACD, Trend Channels, Support / Resistance - 8th June 19
Gold Surges Near Breakout - 8th June 19
Could Gold Rally Above $3750 Before December 2019? - 8th June 19
5 Big Lies About Precious Metals Investing Exposed - 8th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Gold and Silver: Supreme Safe Haven Assets

Commodities / Gold and Silver 2011 Apr 21, 2011 - 12:28 PM GMT

By: Jeb_Handwerger

Commodities

Best Financial Markets Analysis ArticleSilver (iShares Silver Trust (SLV)) hit the ball out of the park yesterday as it hit a record high exceeding my late January target of $40. Silver has doubled in the past seven months alone. Poor man's gold is making some poor men rich as the US dollar (PowerShares DB US Dollar Index Bullish (UUP)) and long term US debt (iShares Barclays 20+ Year Treas Bond (TLT)) remain under pressure.


Think safe haven, particularly for the middle class citizens who sense that they are being caught between the rock of an out of control budget and the hard place of ineffective legislators posturing for the media. Silver (Proshares Ultra Silver (AGQ)) and gold (Proshares Ultra Gold (UGL)) are taking the reigns as the supreme safe haven asset.

Investing in silver presents an opportunity for the beleaguered middle class taxpayer to defend himself, while 50% of the population pays no taxes (and the same with corporate entities such as General Motors (GM) and General Electric (GE)). Gold (SPDR Gold Shares (GLD)) and silver provide a safe haven despite high prices because none of the budgetary, political and monetary concerns await resolution.

We hear of bubbles but gold and silver are still a small part of global financial assets. The price of gold in 1980 represented four times what it is today. China may be reentering the metals markets after taking a brief seventh-inning stretch adding impetus to the upward move in precious metals. Over 19 central banks were net buyers in the year 2010. This still leaves plenty of banks waiting in the wings. Gold supplies from scrap metals fell in 2010, while gold prices were higher, signifying that people are holding onto their scrap as they feel prices are going higher.

Protection against untenable fiscal imbalances and currency debasement is one of the few ways the middle class can defend themselves. Always remember that precious metals are on a long-term rising cycle and will remain a profitable focus for years to come. Often times the precious metals cycle moves slowly yet it bends upward. Long term US debt and the US dollar are in secular downtrends.

I am acutely aware that our valuable service has protected investors in this climate. Since the depths of the credit crisis, I have been alerting my readers to protect their assets through movement away from the US dollar and into the safe harbor of precious metals and natural resources.

There are many concerns about the falling dollar against the rising euro (CurrencyShares Euro Trust (FXE)) as this may put pressure on debt-ridden countries such as Greece, Portugal and Ireland. The question on the table is how should investors react in such a scenario. As the middle class loses buying power daily supporting corporate thieves and non-tax-paying entitlement brigands, we stand ready to monitor this situation on an hourly basis. If economic weakness occurs in the eurozone due to rapid currency appreciation you can be sure central banks will continue to ease liquidity into the system.

For the time being as we approach our measured targets in gold at $1600, it might be prudent to use this benchmark as a metric to dictate a commensurate sale. Playing with the house's money is a conservative position in a highly manipulated market. Remember: The Fed is answerable to no one, and with one stroke could cause a temporary short-lived sell-off in precious metals. Notice how Goldman Sachs this week came out with a bearish report on commodities. In yesteryear's markets this may have caused a prolonged decline, yet investors have shrugged off that report. Commodities have rebounded since that release.

One technique you can use to secure these hard-earned gains is to follow the 20-day moving average, which has historically proven to be an excellent short-term indicator as a trailing stop loss. If gold or silver breaks below the 20-day or short-term trend, then one can secure profits and not have to sit through a sell-off on the upward secular path.

I believe we are about halfway from the January buy signal to our $1600. My time frame is that precious metals should still see strength into the end of May or early June.

Grab your free 30-day trial of my Members-Only Premium Stock Analysis Service NOW at:
http://goldstocktrades.com/premium-service-trial

By Jeb Handwerger

http://goldstocktrades.com

© 2011 Copyright Jeb Handwerger- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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