It’s understandable that people want to know where the precious metals market is headed next. And not just because big fluctuations can be nerve-wracking, but because it makes a big difference how you’d invest today if, for instance, you think there’s a big correction ahead (save cash to buy cheaper) or not (load up and ride the wave).
Finance Mining News
So frequently today we rely on economically established perceptions that fail time and again, simply because the conditions in which they were established have changed. One of the economic clichés is that exchange rates will rise if interest rates rise.
April 7, 2011 (Robin Bromby, Editor www.RareMetalBlog.com) - China is going to be a net importer of REE from about 2015, right? Well, that seems the latest consensus.
In an attempt to understand the relatively new but wildly popular Exchange Traded Funds (ETFs), Dr. Bogan did extensive research into the structures used by ETF operators, with a special focus on the potential risks that might arise should they be faced with large and sudden liquidations. Given that there are about 2,000 ETFs in existence, with assets totaling over $1 trillion, we thought it appropriate to find out what Dr. Bogan has learned in his research.
We obviously have been too cautious on Silver. The metal has been on a tear and has shown no weakness in the past few weeks.
While the oil price does continue to creep up, this is not the cause of gold and silver’s rise.
Gold's high price in Far East trading came minutes before 3:00 p.m. Hong Kong time...and from there it was a long, slow decline of about eight bucks...and then it bounced off $1,430 a couple of times.
The main feature of the day was the rising oil price at $118 for Brent Crude and $108 for West Texas. It continues to creep higher.
Monday was a very quiet trading day in the world's gold markets yesterday. It traded ruler flat in the Far East...and only bumped up at the London open...and then climbed to its high of the day [$1,440.00 spot] about ten minutes after Comex trading began. Then a seller showed up and quietly sold gold down to its low of the day [$1,429.60 spot] at 11:45 a.m. Eastern...but once that seller disappeared, gold inched higher...and finished the New York trading day up about five bucks from Friday's close. Volume was very light.
Current expansionary monetary policy of central bankers is going drive inflation upwards as well as the price of gold.
Overnight Asia lifted the gold price to $1,432. After London opened and the Fix was set at $1,432.50 and €1,008.16 gold traded higher $1,437.35 and €1,011.26 where it held through London’s morning. The euro held at $1.4212 where it had been in Asia before London’s opening.
After viewing a few hundred charts, I have determined that while I am still leaning into higher prices at this point in time, I will not totally rule out a rollover on the S&P 500. In coming days the news flow will be extreme and headline risk will be everywhere we look. The S&P 500 has been able to deflect worry for quite some time now and in every case the resiliency is unquestionable.
The gold price fell in Asia after the 125-page report on world markets was issued by the People’s Bank of China, the Chinese central bank. In it, it said, "We need to note that gold prices have reached historical highs, and its downward risks should not be overlooked."
All in all it was a great week. Markets rebounded nicely and shrugged off higher oil prices and put in very good performances.
The metals markets were briefly sidetracked by the Japanese earthquake and subsequent nuclear emergency. Gold did not know whether to go up or down in response to the damage wrought in Japan and the financial measures the Japanese government took. Was it inflationary? Or was it the straw that broke the camel's back of global recovery? Read the full report
Gold attracts tremendous emotion from people and it has always done so. It manages to bring out the extremes in investors, reporters, governments.
Silver is continuing to trade stronger than gold and is rising today too.
Cloth-dying and soap-making have employed residue from boiled plant material since ancient times. The plants are reduced to brine and that evaporated until only the useful “potash” remains.
Why do you suppose that gasoline prices at stations on the corner near your home generally post the same price? While the companies might contend that their product’s secret additive will make your car run faster, last longer, and cause your love life to be better, most of us cannot tell the difference.
To put it in a nutshell stagflation is where economies do not grow or fall, while money cheapens persistently, ensuring no protection against wealth attrition.
Equities and Precious Metals are on the edge of another rally and it could start as early as tomorrow.
Many analysts focus on the seasonality of Gold and Silver. Why? It plays out most of the time.
Where next? In such an environment there is little prospect of raising confidence, lowering uncertainty and stabilizing the developed world’s economies. In such an environment which fully reasoning investor is going to exit precious metals?
The aftershocks of the Japanese earthquake are still being felt around the world. People everywhere are reeling from the triple whammy of a massive earthquake, a terrifying tsunami and now the prospects of a nuclear accident. The human misery is unimaginable, with thousands or even tens of thousands killed and hundreds of thousands of people left homeless. On top of the devastation already unleashed on Japan, the drama continues at the Fukushima nuclear plant.
The Australian miner said annual sales could fall by around a fifth as a result of the heavy flooding that in the country that affected some of its collieries Australian miner Macarthur Coal's annual sales could fall by around a fifth