The futures markets for precious metals are now at a crossroad. The short positions of the hedge funds, which have driven gold and silver prices higher have now been significantly reduced and are no longer extreme. In gold the bullion banks appear to have taken these positions onto their books and also as swaps. In silver, the shorts have been crossed out against matching longs with open interest falling by 18,000 contracts since mid-February. So instead of precious metals being driven by a bear squeeze, the market will need to either continue to lose physical metal to Asia or find growing support from new bulls attracted by the reversal in trend. [Read more...]
In his latest public update, SmartKnowledgeU’s JSKim discusses how studying the history of gold and silver clearly tells us where it is heading in the future.
Kim also explains how examining the historical anti-gold, anti-silver banker propaganda campaigns should prevent us from falling for the same dirty bag of tricks they are playing today. [Read more...]
Circumstances are at such a point that one no longer needs a justifiable reason for being long PHYSICAL gold and/or silver. Does it matter that the 50 day moving average is going to cross the 200 day moving average, now being bandied about as though there were a degree of magic associated with the event? Does it matter any more that China remains a record buyer of physical gold for over a year? Did it ever matter that coin sales to the public have been setting records for well over a year?
Those who already own gold and silver will be protected, to a larger degree than otherwise, against the certain-to-come devaluation[s]. We have been advocating the buy and hold strategy for over a year, specifically for physical gold and silver and personally holding the PMs, as well. One of the provisions of the Patriot Act, forced through at the direction of the elites to gain further control over unaware citizens, allows the government to raid anyone’s safe deposit box that may hold either gold or silver. Still trust the banks?
Some own gold and silver from much higher prices. That is okay and not a cause for concern! When the fiat Ponzi scheme fails, the unnaturally suppressed prices for both PMs will make $50 silver and $1800 gold look like an incredible bargain.
The takeaway from all of this is the more than ever pressing need to keep on buying as much gold and silver as one can afford. Forget price. Ownership is all that matters.
The rise in the gold price ran into profit-taking on Wednesday. Having risen $160 to $1345 some short-term profit taking is only to be expected, and silver followed suit.
The correction in silver will not last long before lower prices attract more genuine buying.
The same is broadly true in gold, though this is a more liquid market. Demand for physical metal from China and Hong Kong continues at record levels, and there is talk of the Indian Government relaxing import restrictions in this election year. I personally think it unlikely, but given that Indians are currently paying well over $1400 equivalent the effect on markets of such a move would be immensely bullish.
Gold & silver have just made a rare vertical (to the upside) move on today’s COMEX open, as the shorts looking for sub $18 silver and $1000 gold appear to be receiving the squeeze treatment. [Read more...]
Our good friend Ned Naylor-Leyland of Cheviot Asset Management is back with a MUST READ update on gold.
In light of the deep sell-off in the Gold price, I present 3 charts to clarify what has (and hasn’t) happened.
Chart 1 is a chart of Spot Gold, the second an illustration of what makes up the daily ‘Gold’ market, the third shows the enormous flow of physical metal from West to East in the context of Global mine supply.
There is an ongoing clash between the forces of paper supply and physical demand – paper supply has won the latest round, but its objective of satisfying and slaking demand for the real metal has failed entirely.
Leyland’s full report on gold is below: [Read more...]
Submitted by Morris Hubbartt:
Ultimately, markets are driven by fear and greed. In the current gold market, there is a lot of fear. Also, most mainstream money managers believe a full economic recovery is underway, so there is no need to own gold. My worst-case scenario model shows that gold could fall to $1350, but I don’t see that happening.
Only a small amount of gold is brought to market each year. Most assets can be substantially diluted in one way or another, but not gold. Physical gold and silver are probably the highest quality assets that an investor can own. Fear of lower prices should not deter anyone from holding gold. Note the oversold condition of the slow Stokes indicator and RSI on this weekly chart. There is only one thing for long term investors to do, and that is to hold their positions. Buy more, if additional weakness comes.
All h*ll appears to have broken loose in the electronic paper metals market overnight Thursday and into Friday, as numerous live metals feeds are fluctuating in price by more than $1 in silver, and several metals dealers are reportedly refusing to make any sales as they have no idea what the current price of silver is.
Got Gold Report’s Gene Arensberg updates subscribers on a dramatic imbalance which has developed in the CFTC commitments of traders (COT) report structure.
The video covers the huge imbalance which has developed in the structure of the Commodity Futures Trading Commission (CFTC) commitments of traders reports (COT) for gold futures on the COMEX bourse in New York. Although we conclude that the setup is “dangerously imbalanced,” we also have to view the conditions as of March 12 as “the most bullish in a contrary sense we have seen since December of 2008.” [Read more...]