Category: Gold and Silver 2014
The analysis published under this category are as follows.
Saturday, December 06, 2014
Gold-Backed Currency? Not Any Time Soon, But Be Prepared / Commodities / Gold and Silver 2014
By: Michael_Noonan
Last year, many in 2013 were calling for the price of gold and silver to double, and more! Then came 2014 and those dashed hopes were pushed back to the second half of 2014. Earlier, in the first half of the year, we said that the second half could likely be more of the same, as in 2013, [See 2014 Could Be A Yawner]. With just a few weeks away from the end of the year, prospects for 2015 can equally be brought into question re PM price appreciation.
Is the petrodollar on the way out? More frequently, the signs say yes. Is a gold-backed currency standard waiting to replace it? Beliefs, at least in the PM community, remain high, but facts to substantiate the beliefs are hard to find. Sure, China and Russia have been and continue to be the largest buyers of physical gold, but is either the Renminbe or the Ruble ready for Prime Time? The short answer is no, and more emphatically for the Ruble. While the Renminbe is becoming more widely viewed as a potential replacement for the "dollar," China has nowhere near the capability of a world reserve currency system and all that it entails.
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Friday, December 05, 2014
Gold Shorting Exhaustion / Commodities / Gold and Silver 2014
By: Zeal_LLC
Gold’s been on an incredible roller-coaster ride over the past couple months, whipsawing like crazy. And contrary to popular rationalizations, these swings had absolutely nothing to do with fundamentals. Their sole driver has been American speculators’ extreme shorting of gold futures, which has battered gold’s price around in the absence of investment demand. But this epic gold shorting looks exhausted.
The core mission of all trading, whether long-term investing or rapid-fire speculation, is buying low and selling high. That’s the only way to multiply wealth in the financial markets. Short sellers execute this same strategy, but reverse the order. They borrow assets they don’t own, sell them presumably high, and later hopefully buy them back low to repay their debts. The key to shorting is selling high, not selling low.
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Friday, December 05, 2014
Gold Price Post Referendum Bounce / Commodities / Gold and Silver 2014
By: Alasdair_Macleod
It turns out the Swiss referendum last weekend which sought to force the Swiss National Bank to maintain 20% gold reserves was a red herring so far as precious metal markets are concerned. It was fairly obvious before the referendum that no sensible trader would had bought gold in the expectation it would go through, so there would be few short-term sellers afterwards. Equally, it was so obvious to traders the referendum would fail that there may have been some short-sellers, or perhaps deferred buying waiting for the event to pass.
Friday, December 05, 2014
ECB Draghi’s QE Battle With Germany; Rules Out ECB Gold Buying / Commodities / Gold and Silver 2014
By: GoldCore
The European Central Bank will decide early next year whether to follow the Federal Reserve, Bank of England and the Bank of Japan with quantitative easing or money creation to buy government bonds and other assets but will not buy gold, its president Mario Draghi said yesterday.
Speaking in the ECB's new 1.3 billion euro headquarters, an imposing Frankfurt skyscraper designed to show the strength of the ‘single’ currency, Draghi threw down the gauntlet to Germany and signaled that he would not allow opposition from Germany or anyone else to stop the ECB’s QE.
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Friday, December 05, 2014
The Precious Metals Guarantee / Commodities / Gold and Silver 2014
By: Dr_Jeff_Lewis
A friend recently sent me a picture of a 1957 $1 silver certificate he found in his change while buying a cup of coffee. He’d been a coin collector as a kid and learned that his father carried nearly the same note in his wallet.
When I brought up Gresham’s law and the recent news that U.S. public and private debt had just breached the $18 trillion mark, it made very little impression, other than a brief pause in thought, though barely recognition.
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Friday, December 05, 2014
Gold Market Manipulation, US Resorts to Illegality to Protect Failed Financial Policies / Commodities / Gold and Silver 2014
By: Paul_Craig_Roberts
In a blatant and massive market intervention, the price of gold was smashed on Friday. Right after the Comex opened on Friday morning 7,008 paper gold contracts representing 20 tonnes of gold were dumped in the New York Comex futures market at 8:50 a.m. EST. At 12:35 a.m. EST 10,324 contracts representing 30 tonnes of gold were dropped on the Comex futures market:
Friday, December 05, 2014
US's Debt Not Such a Big Deal - Mr. Gold / Commodities / Gold and Silver 2014
By: Gary_Tanashian
Mr. Gold's last paragraph is the tell on his bias, as he is unwilling or unable to conceal the contempt he has for people who were absolutely right for 10 years+ and are now suffering a bear market, both to their asset of choice and in sound monetary thinking.
Read full article... Read full article..."The vastly improved fiscal situation may last only a few years, but it's a big plus for U.S. markets and the U.S. dollar -- and another nail in the coffin for the gold bugs and doom-and-gloomers who can add one more item to the long list of things they got really, really wrong."
Thursday, December 04, 2014
New Signs Gold and Silver Are Returning as Monetary Assets / Commodities / Gold and Silver 2014
By: Submissions
Stefan Gleason writes: Much to the chagrin of the financial elite, gold and silver are reentering the American consciousness and starting to shake the wing nutty image of their recent past. But it’s taken a global financial crisis to get the public’s attention – one that could wipe out our nation at almost any moment.
The U.S. government’s role in the economy is on a seemingly interminable upward trajectory. The government’s official debt balance that just crossed the $18 trillion mark (with additional unfunded liabilities estimated at more than $100 trillion). Half the population now lives in households that receive government payments.
Thursday, December 04, 2014
With The U.S Market Looking Bullish, How Do You Invest In Gold? / Commodities / Gold and Silver 2014
By: Submissions
Nicholas Maithya writes: This year has been one of the best for US equities in recent times, at least judging by the movement of the leading indices – the S&P 500 (SPX), the Dow Jones Industrial Average (DJIA), and the NASDAQ Composite (IXIX), along with their corresponding ETFS. They have all rallied to record highs this year, albeit with dips and rebounds that often characterize an upward trending market.
Thursday, December 04, 2014
Gold 2014 YTD in JPY, EUR, GBP and USD / Commodities / Gold and Silver 2014
By: GoldCore
Despite the worst sentiment towards gold we have seen since the brief 30% price fall in 2008, gold continues to eke out gains in all major currencies. So far in 2014, gold is 14.3%, 12.3%, 5.8% and 0.4% higher in japanese yen, euros, sterling and dollars respectively (see chart).
Wednesday, December 03, 2014
Silver Turns Strongly Bullish / Commodities / Gold and Silver 2014
By: Clive_Maund
Much of what is written in the parallel Gold Market update applies equally to silver, and it will not be repeated here.
On silver's 6-month chart we can see how it broke well below its November lows in the early trade yesterday, in response to the "No" vote in Switzerland on the referendum on whether to partially back the Swiss Franc with gold, but then it came back strongly on big volume to almost entirely erase Friday's sharp losses, leaving behind a large Bull Hammer on its chart. While the "tail" of this hammer is rather short in relation to its "real body", meaning the trading between the open and the close, the big daily range and massive volume means that it can be considered as a valid reversal hammer. This action is indicative of an important reversal, and here we should note that it is normal for the price to back and fill for a little while after the appearance of such a hammer, before the nascent uptrend it signifies gets underway, which is why we are not concerned by today's reaction. As we can see on the chart, the price is still being constrained by the downtrend line shown and the 50-day moving average, but these impediments should not stop it for long - once the price does break above them it should advance smartly, especially as sentiment towards silver has been terribly negative in the recent past.
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Wednesday, December 03, 2014
Gold Turns Bullish / Commodities / Gold and Silver 2014
By: Clive_Maund
Yesterday was an extraordinary day in the Precious Metals markets, with a good chance that it signals the reversal from the brutal 3-year plus bear market that so many have waited so long to see. The day started with gold and silver plunging on the news that the Swiss voted against backing their currency with gold, but later in the day they rallied strongly on heavy turnover to close with giant reversal candlesticks on their charts. Regardless of the reasons for this bizarre behavior, technically this action looks very positive, and this is written with the awareness that gold has reacted back this morning on dollar strength.
On gold's 6-month chart we can see how it approached its November lows in the early trade after the Swiss vote, but rallied strongly on big volume to close above its November highs, above the recently failed key support that is now resistance and above its 50-day moving average, which was quite an accomplishment, leaving behind a large "Bullish Engulfing Pattern" on its chart. This points to a probable strong advance dead ahead, so today's reaction should be used to clear out any short positions, and also to go long aggressively with stops below the November low. This action by gold, and by silver, suggests that the current bull Flag in the dollar, which is getting a bit "long in the tooth", may be about to abort.
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Tuesday, December 02, 2014
Silver Open Interest Anomaly / Commodities / Gold and Silver 2014
By: DeviantInvestor
Each week the CFTC publishes data from futures and options contracts for many commodities. Open interest shows the number of open contracts – one long for each short – in a particular commodity, say silver.
Usually price direction is consistent with open interest trend.
See the 14 year graph of open interest and prices in the silver market. Prices are shown on a log scale with silver prices in black, while open interest (per CFTC) is shown on the left in red.
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Tuesday, December 02, 2014
Gold, What Does the End of QE3 Really Mean? / Commodities / Gold and Silver 2014
By: Arkadiusz_Sieron
So it finally happened. The Federal Reserve ended its Quantitative Easing program on October 29, 2014 due to concerns that keeping QE for so long could fuel excessive risk-taking by investors. The U.S. dollar continued to conquer new heights, while gold did not welcome this central bank action. Its price fell in November to $1,142, a four-year low. This is not surprising given the fact that as we wrote (in the last Market Overview), the condition of the U.S. dollar is one of the most important drivers of gold prices.
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Tuesday, December 02, 2014
On the Swiss Gold Referendum / Commodities / Gold and Silver 2014
By: Frank_Hollenbeck
The Swiss gold initiative has come and gone. It can be summarized as much ado about nothing. Even if it had passed, the initiative would have had no real impact on the Swiss National Bank’s ability to print money or conduct monetary policy.
The central bank is currently defending a 1.2 Swiss franc to the euro floor. By pegging its currency, the Swiss central bank has basically opted to follow its neighbor’s excessively easy monetary policy. To keep the peg, the central bank has been purchasing euros by printing Swiss francs. The central bank then returns the euros to the Euro money supply by purchasing European government bonds. It could have just as easily used those euros to buy dollars for gold. In either case, the euros or dollars are returned to the market, and therefore the Swiss action does not influence the respective Euro or US money supplies. We must remember that exchange rates are determined by differences in monetary growth rates and anticipation of what those differences will be in the future.
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Tuesday, December 02, 2014
Gold and Silver Bears Shocked By Unusual Intra-Day Reversal / Commodities / Gold and Silver 2014
By: Jesse
"Through the mills of God grind slowly, yet they grind exceeding small;
With patience He stands waiting, with exactness He grinds all."- Baron Friedrich von Logau, Sinngedichte
As you know the Swiss gold referendum was defeated this Sunday, along with all the other initiatives issues like tax reform and immigration.
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Monday, December 01, 2014
Gold - Bloomberg TV Blows It Big Time / Commodities / Gold and Silver 2014
By: Jesse
Sometimes you just have to chuckle. I had been out all morning picking up some visiting in-laws in the City. When I came home I flipped on the news, and turned on the equipment in my home office.
The mid-day news highlight on Bloomberg TV at about fifteen minutes after noon today was to say that gold was down sharply, over fifty dollars, because of the Swiss gold referendum vote.
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Monday, December 01, 2014
Swiss Gold No - Repatriation, Demand from Russia, India and China More Important / Commodities / Gold and Silver 2014
By: GoldCore
Ronan Manly writes:
Switzerland’s ‘Save our Swiss Gold’ referendum was convincingly rejected yesterday by the Swiss electorate following an aggressive anti-gold campaign in recent weeks that had been closely watched both in Switzerland and abroad.
Unusually, it involved the Swiss National Bank (SNB) very actively, and ultimately successfully, trying to convince the electorate along with the main political parties to return a ‘no’ vote.
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Monday, December 01, 2014
The Swiss Gold Referendum Was Just a Storm in a Teacup / Commodities / Gold and Silver 2014
By: Bob_Kirtley
Results for Swiss gold referendum were released today, ending weeks of enthusiastic bulls calling for gold to rally to new highs on a “yes” vote and countless articles speculating about the impact of the result. The Swiss people voted overwhelmingly against the policy of that would have caused the Swiss National Bank to significantly increase their gold reserves. However, the excitement and the speculation around the potential impact of the result represents a misunderstanding of the event and indeed, the gold market as a whole.
Sunday, November 30, 2014
Swiss Gold Vote Result - Anti-Gold Propaganda Prevails! / Commodities / Gold and Silver 2014
By: GoldSilverWorlds
This morning the final votes were cast on the Swiss Gold Initiative (most votes were submitted via post). As we speak the final votes are still being counted however we already know: The initiative has been rejected!
- The majority of votes of most individual cantons (some cantons’ votes are yet to be released) were against the initiative. As Switzerland has a federalist structure, this by itself already means that the initiative has been rejected.
- Public votes are still not final, but indications show that about 25% of the population voted for the initiative.