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- Gold Is The Mother Of All Bubbles, Which Is Why You Should Buy It
- Correction In Silver Is A Longer-Term Opportunity
- Silver Chart Update: 10.19.12
- Is The October Correction in Gold Already Over?
- Silver: The Train that Came Back to the Station
- Keiser Report: High on Delusions
- Egon von Greyerz talks with King World News
- Embry – London Trader, Commercials & A Spike In Gold
- Greyerz – Despite Manipulation, Swiss Gold To Become Money
- Richard Russell – What Current & Future Generations Face
- Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming
- Stocks Drop on Bank Margins; Crops Lead Commodities Lower
- Correction in Gold & Silver Stocks Nearing End
- Will silver see a major supply squeeze and massive price increase?
- Iran Says “Gold Is Money”
- Dollar Index Disguises Global Inflation Threat
- Bullion's Fall Blamed On 'Speculative Sellers'
- EU Leaders Agree on Bank Supervisor by Year-End
- Signs of Life Punctures Gold Price Surge For Now
- Silver Summit 10th Anniversary Gala Just Days Away
- Gold was only $10 away from commercial signal failure, London trader says
- Copper Stalls at Resistance & Crude Oil Treads Water
- On Further Inspection A Troubling Pattern May Be Taking Shape For Silver
- World gold holdings are overestimated by 10%, GoldMoney study concludes
- Investors seeking allocated gold
- Bullion's Final Leg Down in Progress
| Gold Is The Mother Of All Bubbles, Which Is Why You Should Buy It Posted: 19 Oct 2012 10:43 AM PDT Billionaire Frank Giustra: Gold Is The Mother Of All Bubbles, Which Is Why You Should Buy It Frik Els, Mining.com | Oct. 18, 2012, 9:09 PM | 10,512 | 26 Canaccord's Global Resource Conference happening in Miami at the moment featured a lengthy lunchtime chat with billionaire investor Frank Giustra where he said "he doesn't want to sound apocalyptic," but probably ended up scaring the bejezus out of the audience anyway. In 2002 Giustra wrote a book called A Tarnished Dollar Will Put the Shine on Gold. That was back when gold was trading below $300 and quantitative easing wasn't even a glint in Ben Bernanke's eye. A decade later he's sticking to his guns: "I don't know when and I don't know how high. But gold is going a lot higher. "Gold is the bubble of all bubbles. It's the mother of all bubbles. It's the bubble people will go to when they've exhausted all other bubbles. "Here's why: It is moveable. It is easily transferable across borders in times of crisis. It's a currency. It's liquid. It's easily tradeable. "I'm a fan of all hard assets, but particularly gold. It's the largest part of my portfolio and it will continue to be until this cycle is over." The reason for Giustra's confidence about the gold price – and gloom about the financial system – is all about US monetary policy. While it started with the so-called Greenspan-put in the Nineties, Giustra said the Fed "crossed the Rubicon" when it first embarked on quantitative easing (in December 2008, when gold was worth $830 an ounce). The Fed has already racked up close to $3 trillion and purchases of $40 billion a month for "at least the next 27 months" by the Fed's own calculations under open-ended QE3 will add another $1 trillion. "Everyone is frozen with fear. Everyone is in cash," says Giustra. "The only reason you haven't seen inflation – hyperinflation – yet" with all the cheap money flooding markets is because the velocity of money – the speed at which money changes hands in the economy – is at its lowest since 1959, when it was first measured: "If it [velocity of money] stays that way, you won't get inflation. But the first whiff of inflation and things can pick up quickly." Giustra says like in chess the Fed is in an "inescapable trap". It's been cornered by the queen, a rook and a bishop – a triple threat: It cannot rein in the excess liquidity by raising interest rates because it will destroy what is only a fragile recovery. With debt through budget deficits on its way to $20–$25 trillion, the US government will be the first in trouble if the Fed tries to normalize rates. Thirdly, the Fed's own balance sheet is such that it could become insolvent – its debt:equity ratio is 51:1 with the bulk of its holdings in longer maturities which they won't find buyers for. "It's the beginning of the end for the US dollar. I don't want to sound apocalyptic, but how else does this end? You have to be on the right side of this trade." Giustra knows what he is talking about. He made his money in a rare combination of two very different industries – gold mining and movie making. And he has a rare knack for timing the market. Giustra started out at as mining industry dealmaker in the 1980s and got out when the market turned sour in the early nineties. He then founded Lionsgate, today the biggest independent Hollywood studio. By 2001 he was back in mining setting up among others Wheaton River which would morph into what is today the world's number two gold (Goldcorp) and silver (Silver Wheaton) companies with a combined market value of $48 billion. Click here to listen to the Canaccord Resource Conference webcast (registration required). Read more: http://www.mining.com/gold-is-the-ul...#ixzz29lg9K2BK |
| Correction In Silver Is A Longer-Term Opportunity Posted: 19 Oct 2012 10:11 AM PDT By Mark Thomas: As the author of SilverPriceAdvisor.com, I'm now advocating accumulating a large overweight position in silver relative to gold. First of all, just like stocks, high yield bonds, and most investment asset classes, I think precious metals peaked in price short term right after the Fed QE3 announcement. That is why my subscribers and I choose to take profits at the beginning of the fourth quarter, and reduced our precious metals ETF model portfolio exposure from the equivalent of 140% invested down to only 50%. It is also why I was taking profit gains in the mining stocks at the end of the third quarter. Since I now believe there is more opportunity in the silver market over the next two years relative to gold, and my subscribers and I have cash, the 7.4% correction in silver in the last two weeks has been welcome. However, there are three very important Complete Story » |
| Posted: 19 Oct 2012 10:01 AM PDT |
| Is The October Correction in Gold Already Over? Posted: 19 Oct 2012 10:00 AM PDT Based on the October 19th, 2012 Premium Update. Visit our archives for more gold & silver analysis.
In today's essay on the current correction in gold we would like to focus on one single question:
Is the correction in gold over?
In order to provide you with a reply to this question, we will analyze 2 charts (USD and gold) and the table that links them. Let's start with the former one.
Let's start with the USD Index chart (charts courtesy by http://stockcharts.com.)
On the above chart we see that a rally appears possible as we have seen a move to the upper part of our downside target red ellipse. Another significant rally could be seen from here with a local top in late October or early November. The maximum upside target level is shown with a black ellipse – the 80.50 to 82 range.
We don't expect major strength in the USD Index before the coming election as this could hurt the general stock market and that could cost votes.
Please take a look at the lower part of the above chart that features gold and silver and compare it to the recent performance of the USD Index. The key point here is that the recent sideways trading in the USD has resulted in lower precious metals prices – if we see more sideways trading, we can easily see more declines in the metals. If, however, the USD Index rallies (not even significantly) the metals could decline sharply. We expect this relationship to be short-lived, but still this is something that is currently in play.
Is the link between USD and gold really in place? The Correlation Matrix is a tool, which we have developed to analyze the impact of the currency markets and the general stock market upon the precious metals sector. The correlations (here: the above-mentioned link) have actually weakened since last week. What's most important is the way in which they weakened.
Precious metals prices moved lower even though the USD Index did not rally and in spite of the rally seen in stocks. With these two bullish indicators in place, gold did not respond positively; this is a sign of weakness. There are clearly bearish implications going forward. This lack of reaction to the strength in stocks means that the bullish picture in the latter is not necessarily a threat to our speculative short positions in gold and silver. We are concerned but not to a point of closing them.
While the full version of this article includes gold seen from various perspectives (and it's literally 12 times bigger than the essay that you are currently reading), we believe some important points can be made using only one of them – let's have a look at the yellow metal from the non-USD perspective. It is a non-USD gold chart, meaning a weighted average of gold priced in different currencies, other than the USD – the weights are as in the USD Index, so this charts is similar to the one featuring gold priced in euro. In the chart, a correction now appears to be underway with gold reaching its 2012 high, and the correction does not appear to be over yet. The 200-day moving average (blue-sloping line) has provided support in the past and it seems that it will stop the current decline as well. The declining support line based on 2011 and 2012 highs is also just a bit below Thursday's price level. In fact these two support lines intersect at approximately 62 level and this is where we expect the decline to end. All in all, this means that the correction – seen from this perspective – is about halfway done.
Is the correction in gold over? Not likely.
In order to make sure that you won't miss any of our free essays, we strongly suggest that you sign up for our gold & silver investment mailing list. Sign up today and you'll also receive 7 days of access to our premium updates, market alerts, premium charts and tools. You'll also receive 12 best practice e-mails as a starting bonus.
Thank you for reading. Have a great and profitable week!
Przemyslaw Radomski, CFA Editor
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All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.
By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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| Silver: The Train that Came Back to the Station Posted: 19 Oct 2012 09:55 AM PDT |
| Keiser Report: High on Delusions Posted: 19 Oct 2012 09:46 AM PDT In this episode, Max Keiser and Stacy Herbert discuss the Bobo and Gono global central banking clown show featuring Ben Bernanke and Gideon Gono and their crowd pleasing echo bubble gags and hyperinflationary squirting money printing flowers. In the second half of the show, Max Keiser talks to Jim Rickards, author of CURRENCY WARS, about Ben Bernanke's speech in Japan where America's chief currency warrior warned emerging economies to appreciate their currencies or suffer inflation. Rickards also notes it could be the first time the head of the Federal Reserve has ever talked about the US dollar, normally the domain of the US Treasury.. from russiatoday: ~TVR |
| Egon von Greyerz talks with King World News Posted: 19 Oct 2012 09:38 AM PDT Egon von Greyerz talks with King World News
Egon von Greyerz (EvG): Founder and Managing Partner of Matterhorn Asset Management AG & GoldSwitzerland – EvG forecasted the current economic problems over 10 years ago. In 2002 (gold $300/ oz.) MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system. EvG specialises in M&A and Asset allocation consultancy for private family funds. MAM (based in Zurich, Switzerland) specialises in wealth preservation for high net worth individuals as well as institutions. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds.
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| Embry – London Trader, Commercials & A Spike In Gold Posted: 19 Oct 2012 09:35 AM PDT
from kingworldnews.com: Today John Embry told King World News, "What the London Trader was discussing with you was the fact that we were within $10 of a commercial signal failure, which is just astonishing." Embry also stated, "These commercials are incredibly short … So if this market starts going against them, the price rise will be extraordinary." Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: "Im focused on two things in the short-term. I'm not too concerned with the fact that gold is being knocked around here. There are two factors at work. One, and the 'London Trader' spoke so eloquently of it in your interviews with that source, is this massive short position by the bullion banks." Keep on reading @ kingworldnews.com |
| Greyerz – Despite Manipulation, Swiss Gold To Become Money Posted: 19 Oct 2012 09:33 AM PDT
from kingworldnews.com: Today Egon von Greyerz spoke with King World News about the, "… incredible amount of intervention and manipulation (in the gold and silver markets)." Greyerz, who is founder and managing partner at Matterhorn Asset Management, also spoke with KWN about an initiative to make gold money in Switzerland, "It is an initiative that will introduce a Swiss gold coin as a parallel currency." Here is what Greyerz had to say: "It's ridiculous, Eric, what is happening now. There is an incredible amount of intervention and manipulation (in the gold and silver markets). I know you've had these superb interviews with the 'London Trader,' but just looking at the screen, at every important level, the gold and silver prices are being attacked and there is selling taking place." Keep on reading @ kingworldnews.com |
| Richard Russell – What Current & Future Generations Face Posted: 19 Oct 2012 09:32 AM PDT
from kingworldnews.com: Today the Godfather of newsletter writers, Richard Russell, writes, "My kids and your kids and grandkids will curse the day when the Federal Reserve was secretly made master of the US monetary system." Russell discussed gold, the Fed, market timing, and even Google in his latest note to subscribers. Here are Russell's thoughts: "I'm torn between two emotions. I want to be bullish for the good of the nation and for the good of my five kids. But I'm miffed at myself because I wasn't bolder and because I didn't tell my subscribers to hop in on the bull side and play this rally." Keep on reading @ kingworldnews.com |
| Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming Posted: 19 Oct 2012 09:22 AM PDT
from theeconomiccollapseblog.com: Are you willing to bet against three of the wealthiest men in the entire world? Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down. Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up. And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter. So will the euro plummet like a rock? Will the price of gold absolutely soar? Well, if a massive financial disaster does occur both of those two things are likely to happen. The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money. The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions. Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don't. The fact that they are all behaving in a consistent manner right now should be alarming for all of us. Let's start with Jacob Rothschild. Apparently he believes that the euro is headed for quite a tumble. The following is from a recent CNBC article…. You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild takes a £130 million ($200 million) bet against it. Okay, but the euro has already been falling dramatically. In mid-2011, the EUR/USD was above the 1.40 mark, and right now it is at about 1.23. Does it really have that much more that it can fall? If the eurozone ends up breaking apart it sure does. If there is a Greek default, or if Germany leaves the euro, or if a new currency comes along to replace the euro those currently betting against it will end up looking like geniuses. Another big name in the financial world that is betting against the euro right now is John Paulson. The following is from a recent Der Spiegel article…. One of these warriors is John Paulson. The hedge fund manager once made billions by betting on a collapse of the American real estate market. Not surprisingly, the financial world sat up and took notice when Paulson, who is now widely despised in America as a crisis profiteer, announced in the spring that he would bet on a collapse of the euro. And as I noted in my last article, Paulson has also been putting billions of dollars into gold. So just what are Rothschild and Paulson anticipating? Could we be on the verge of a massive financial collapse in Europe? According to the Der Spiegel article mentioned above, a lot of investors seem to be preparing for such a possibility right now…. Keep on reading @ theeconomiccollapseblog.com |
| Stocks Drop on Bank Margins; Crops Lead Commodities Lower Posted: 19 Oct 2012 08:08 AM PDT
by Inyoung Hwang and Michael P. Regan - U.S. stocks erased an early rally as Wells Fargo & Co. (WFC)'s shrinking profit margin and weakness in European markets overshadowed a jump in consumer confidence to the highest level since the recession started. Commodities sank and the euro trimmed an early gain. The Standard & Poor's 500 Index slipped 0.3 percent to 1,428.59 at 4 p.m. in New York, after rising as much as 0.4 percent, and the Stoxx Europe 600 Index lost 0.5 percent. Ten- year Treasury yields fell one basis point to 1.66 percent. Industrial metals and crops led commodities lower. The euro was up 0.2 percent at $1.2955 after rising as much as 0.5 percent, while South Africa's rand erased gains and tumbled 0.8 percent as the nation's credit rating was cut to BBB at S&P. Traders works on the floor of the New York Stock Exchange in New York. Photographer: Scott Eells/Bloomberg Oct. 12 (Bloomberg) — Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks fell, giving the Standard & Poor's 500 Index its biggest weekly drop in four months, as a slump in European and financial shares overshadowed an unexpected jump in consumer confidence. (Source: Bloomberg) Oct. 12 (Bloomberg) — Bloomberg's Alix Steel, Matt Miller and Adam Johnson report on today's ten most important stocks including Ecolab. Workday and Wells Fargo. (Source: Bloomberg) Oct. 12 (Bloomberg) — Albert Friedberg, president and chief executive officer of the Friedberg Mercantile Group, talks about the shares of Apple Inc. and the hedge fund's investment strategy. He speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television's "Market Makers." (Source: Bloomberg) Oct. 12 (Bloomberg) — Mary Ann Bartels, head of technical and market analysis at Bank of America Merrill Lynch, talks about the U.S. equity market and investment strategy. She speaks with Betty Liu, Julie Hyman and Dominic Chu on Bloomberg Television's "In the Loop." (Source: Bloomberg) Wells Fargo and JPMorgan Chase & Co. paced a retreat in banks as improving earnings were overshadowed by a drop in net- interest margin, a gauge of the profitability of lending. U.S. equities rallied earlier after the Thomson Reuters/University of Michigan preliminary October consumer sentiment index increased to 83.1 from 78.3 the prior month, topping the median estimate of 78 in a survey of economists. "The headline macro numbers are getting diminished by the fact that you're not seeing the follow-through on earnings, revenues, outlooks," Matt McCormick, who helps oversee $7 billion at Cincinnati-based Bahl & Gaynor Inc., said in a telephone interview. "There was a lot of build-up and high expectations for Wells Fargo and JPMorgan and people were underwhelmed." The S&P 500 has lost more than 2.5 percent since climbing to an almost five-year high on Sept. 14 after the Federal Reserve announced plans to buy $40 billion of mortgage securities a month to stoke economic growth. The benchmark index lost 2.2 percent this week, its biggest drop since late May and early June. Advanced Micro Devices Inc., the second-largest maker of processors for personal computers, plunged 14 percent today to lead declines after it cut its third-quarter revenue forecast, citing weak demand across all product lines in a challenging economic environment. Banks in the S&P 500 led declines among 24 industries today, losing 2.7 percent as a group. JPMorgan, the largest U.S. bank by assets, slid 1.1 percent even after posting net income rose 34 percent on gains from mortgages and trading. Wells Fargo tumbled as its shrinking lending margin overshadowed record earnings. Wells Fargo's net-interest margin, the difference between what the bank makes on loans and pays for funds, narrowed 0.25 percentage point to 3.66 percent in the quarter. JPMorgan's margin slipped to 2.43 percent from 2.66 percent a year earlier. First Horizon National Corp., Regions Financial Corp., SunTrust Banks Inc., Fifth Third Bancorp and PNC Financial Services Group Inc., all lenders that will report results this month, slumped more than 3 percent and were among the largest declines in the S&P 500. Signs of a housing recovery prompted Wall Street firms to raise estimates for profit growth at banks to 17 percent for the third quarter and 33 percent in the fourth. Companies in the S&P 500 are expected to snap a three-year streak of profit growth, with earnings last quarter projected to decrease 0.9 percent from the previous year, according to analyst estimates compiled by Bloomberg. Earnings pessimism among U.S. companies is climbing to levels last seen when stocks were mired in bear markets. Over the last four weeks, the ratio of companies saying profits will trail estimates compared with those saying they will exceed them climbed to 4.3, according to 69 earnings previews compiled by Bloomberg. The rate matches peaks reached in February 2009 and October 2001, the data show. The start of the earnings season has overshadowed recent better-than-estimated U.S. economic data, including a drop in the unemployment rate to 7.8 percent, according to a Labor Department report last week. The jobless rate has become a focal point in President Barack Obama's bid for a second term. Vice President Joe Biden and Republican Paul Ryan each said in a TV debate yesterday that their parties' proposals would bring the rate below 6 percent. The S&P GSCI Index retreated 1 percent as 19 of 24 commodities declined. Crude oil slipped 21 cents to $91.86 a barrel. Gasoline tumbled more than 3 percent in New York, dropping for a second day. Global refiners will process 400,000 barrels a day less crude in the fourth quarter because of plant halts and a lower demand outlook, the Paris-based International Energy Agency said in a monthly report today. Corn fell from a three-week high and soybeans declined after a government report showed slowing demand for supplies from the U.S., the world's biggest grower and exporter. The euro was stronger against 12 of 16 major peers while retreating from its high of the day of almost $1.30 against the dollar. The 17-nation currency pared its advance and European stocks extended losses after Reuters reported that the European Stability Mechanism lacks the cash to bail out Spain if the country asks for help before the end of the year. However, guidelines obtained by Bloomberg News last month showed the fund has the authority to raise funds through the sale of fixed- income securities. The Stoxx 600's decline extended this week's drop to 1.7 percent. The region's equities fell for the fourth time in five days as International Monetary Fund Managing Director Christine Lagarde said global growth is not fast enough to curb unemployment, and Chinese new lending missed estimates. Keep on reading @ bloomberg.com |
| Correction in Gold & Silver Stocks Nearing End Posted: 19 Oct 2012 07:58 AM PDT |
| Will silver see a major supply squeeze and massive price increase? Posted: 19 Oct 2012 07:44 AM PDT
by Author: Lawrence Williams A note by long term silver analyst (and silver bull), Israel Freidman published on Ted Butler's internet site contains some true gems which will be manna to the ears (if you can have such a thing) of silver investors everywhere. Leading off with the comment that silver is, in Freidman's view, the best raw material of all for the investor to hold, he says he held this opinion 30 years ago (when silver was under $5 an ounce) and holds the same view today (at $33) and that for the investor in bullion, silver remains one of the few commodities that the average person can actually hold in his possession (gold is another but the price precludes the 'average' investor holding all but a tiny amount in comparison). And he waxes enthusiastic, particularly about the US Mint's silver eagle coin which he describes as the most beautiful, and popular, coin in the world. He is convinced that it is so popular that one day the US Mint will not be able to keep up with demand (we have seen occasional times in the recent past when the Mint has had to ration sales) and that premiums on the coins will explode if, and when, the Mint has to stop producing them. In part he bases this premise on what he sees as the hugely growing demand in the industrial usage of silver – notably in the electrical sector where silver is perhaps the best conductor of all – and with electrical power taking over the world, as Freidman sees it, demand growth for silver will expand dramatically along with global population and GDP growth. He adds in a huge global increase in solar panel manufacture and usage as another key new market for silver. There are, of course a host of other new uses too as we pointed out here in our recent article: New innovations boost silver demand. This aside, silver has managed to maintain its price growth despite an enormous, seemingly adverse, change in its industrial usage. For most of the 20th Century silver's industrial demand was dominated by its use in the photographic field – a usage that has been decimated in recent years by the virtual takeover in the general photographic sector by digital photography which does not require silver in film, or in general reproduction and processing. That the silver price has, for the most part, continued to rise strongly in the face of such a drastic fall in consumption in what used to be its most dominant industrial usage sector could be seen as indeed a sign of huge, and ever-growing, underlying strength in demand for the metal in other fields. For the most part silver demand has been particularly strengthened over the past decade through investment growth – both in terms of physical bullion purchases (as with the U.S. Silver Eagles noted above), purchases from specialists who organise vaulted holdings of allocated metal on an investor's behalf and in the ever growing off take into silver ETFs. On the price front silver has largely tracked gold with the occasional wild short, but extremely sharp, differential – notably on the downside which some observers put down to price manipulation by some very large short position holders. As with gold, while fundamental supply/demand factors tend to basically underpin the price, it is this investment interest which is currently holding the key. Freidman's premise is that this investment demand "will compete long term with the silver users who must have silver as a raw material. This is a potential buying combination that is not present in any other commodity. That's what makes silver so special." he notes. With industrial demand in a major growth phase through the new technology uses and in medical usage too where silver is an important bactericide and also in water purification, Freidman's long-held view is that at some stage silver will be seen to be in hugely short supply (a contrary position to many analysts who see it in potential surplus – at least at the moment). Where perhaps Freidman's views might really be considered a little over the top is his conviction that one day silver will be more valuable than gold based upon its importance as a raw material in industrial use as well as as an investment metal. While few even of the most ardent silver bulls would anticipate such an enormous change in role, Freidman reckons that if shortages do occur and the big silver short positions on COMEX have to be unwound and thus put into a massive short squeeze situation – then the sky's the limit, although this probably does not take into account the likely big fall in industrial usage if prices were seen to be rising this sharply. Perhaps such a day will come, but even so for silver to surpass gold in price does seem in the realms of fantasy to this writer. But stranger things have happened! But overall Freidman's views are indeed interesting and represent one end of the spectrum on likely silver price performance countering those who reckon the price will crash – with the most likely scenario being somewhere between the two – in other words the status quo. So will silver see massive price rises because of the industrial and investment demand combination? Probably not in the writer's view, although some improvement (from the silver investor's point of view) in the gold:silver ratio is certainly not outside the bounds of probability in a rising gold price scenario. This would see silver rise faster than gold in percentage terms – that does tend to be the general pattern. But even the ultra-bullish Freidman warns "..it is clear that there are some big shorts that do nothing but try to knock the price down. Try to be prepared for sharp sell offs and use them to add positions at times when the price is down." Keep on reading @ mineweb.com |
| Posted: 19 Oct 2012 07:00 AM PDT
by Louis James Economic crises signal that the current system isn't working as expected and needs improvement. When it comes to monetary systems, questioning their fundamentals can lead to doubts about whether the preferred medium of exchange will continue to be preferred for long. The large-scale whirlwind of economic trouble around the globe has pushed some to rethink the role of gold in the economy – and to actually move toward bringing it back. A month ago, a rumor that India is going to pay in gold for oil imported from sanction-struck Iran sent shockwaves through the markets. It was no small deal, both in principle and volume: India is one of Iran's largest oil buyers, responsible for about 22 percent of total exports and worth about US$12 billion per year. China is next with 13 percent, and Japan is third with about ten. All of them are having a hard time dealing with Iranian oil imports, as the country is under sanctions caused by Western fears regarding its nuclear program. Keep on reading @ goldnews.com |
| Dollar Index Disguises Global Inflation Threat Posted: 19 Oct 2012 06:32 AM PDT USA Gold |
| Bullion's Fall Blamed On 'Speculative Sellers' Posted: 19 Oct 2012 05:30 AM PDT The spot gold price traded lower to $1,732 an ounce Friday morning in London, near one-month lows, while stock markets and the euro also fell as a two-day European summit came to a close with several issues unresolved. |
| EU Leaders Agree on Bank Supervisor by Year-End Posted: 19 Oct 2012 05:19 AM PDT Gold pulled back on Friday as shares in Asia were off following a three day rally as investor's maintained positions ahead of the EU summit outcome on the euro-zone debt crisis which should support the euro. |
| Signs of Life Punctures Gold Price Surge For Now Posted: 19 Oct 2012 04:58 AM PDT Enthusiasm for gold has waned a bit given stronger data from the US and China which may mean policy makers do not need to stimulate the economy as much. |
| Silver Summit 10th Anniversary Gala Just Days Away Posted: 19 Oct 2012 04:51 AM PDT |
| Gold was only $10 away from commercial signal failure, London trader says Posted: 19 Oct 2012 04:48 AM PDT |
| Copper Stalls at Resistance & Crude Oil Treads Water Posted: 19 Oct 2012 04:43 AM PDT Commodities turned lower yesterday as a disappointing day on Wall Street buoyed safe-haven demand for the US dollar. Crude oil continued to tread water while copper mirrored some of the weakness. |
| On Further Inspection A Troubling Pattern May Be Taking Shape For Silver Posted: 19 Oct 2012 04:19 AM PDT The Fundamental View |
| World gold holdings are overestimated by 10%, GoldMoney study concludes Posted: 19 Oct 2012 04:12 AM PDT |
| Investors seeking allocated gold Posted: 19 Oct 2012 04:00 AM PDT Another weak day for gold and silver yesterday has continued during Asian and European trading today, with gold falling below $1,750 and silver once again trading under $32.50. Yesterday brought mixed ... |
| Bullion's Final Leg Down in Progress Posted: 19 Oct 2012 03:44 AM PDT Just as I was expecting the HUI exploded out of that July bottom racking up a 38% gain in a little over two months. I think we will see something very similar during the next intermediate cycle and miners will test the all-time highs before the end of the year.... |
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