Not much to say, it was an excellent year for silver. As the price of gold is moving higher silver will follow and might lead. Small physical buyers who can’t afford gold will often go and buy silver.Click on the chart below to enlarge a 1 year silver price chart
Good year for Gold, Silver, Metals and most of the Commodity sector. Nice gains for the companies who dig for all the stuff we need. The global population is growing and developing countries need more basic materials to produce a higher standard of living.Don’t forget the commodities are just climbing out of a 20 years devastating bear market hole.I Don’t have any prediction for the paper Forex
Not much change today in the precious metals market, at least from a price perspective. Spot gold is basing around the 50% Fibonacci level.Watch out for more and more volatility and expending daily trading range. The same goes for Silver which is doing just fine. Click on the chart below to enlarge.
Thoughts:The Bond market is sending signals, reflecting a good chance for economic slowdown and lower Interest rates ahead. While some say gold reflecting higher inflation expectations. Forex traders are just trading this way today and that way tomorrow - You win some you lose some. Central banks however are walking on a thin line like a bunch of jugglers, very cautious not to hurt the fragile
Good progress for gold and silver today. Silver continue to lead the move upward, already around (above?) the 61 Fibonacci line. Gold is still struggling with the 50 Fibonacci line and the gold stocks indices are breaking to new highs. See charts below :
Gold is up 20$ since its last bottom one week ago. Gold is trying to break out of the 20$ range box formation and the Bollinger bands look to be expending. The top of the box is exactly at the 38 Fibonacci line. So if its basing around, this line should provide good short term support. In my opinion, it will not be long before the price of gold will make new high.The paper monies markets are less
Silver working it’s way back up, just broke out of the Box - leading gold . The price of silver is now above the 38 Fibonacci line and the 20 period moving average. Will gold follow ?
China should increase its gold reserve from 600 tons to about 2,500 tons in a short term and to 3,000 tons in a long term to cope with the versatile exchange rate risks, said Teng Tai, an economist of China Galaxy Securities Company.Too little gold reserve would pose threat not only to China, but also to the global monetary system, Teng said.China should increase gold reserve to reduce the
How many barrels of Texas Light sweet crude oil you can buy with one ounce of gold?I will post more about this important ratio as well as other gold ratios in the future , but for now just two points :1)Gold is far more ancient commodity then oil.2) Oil is consumed and destroyed , Gold is durable !Here is a 12 year chart of gold/oil ratio.
Click on the chart below to enlarge.I will post more charts over the weekend , Merry Christmas and Happy Holidays to all !
After reviewing the BIS OTC derivative report It is clear that gold and other commodities ( oil and maybe silver ) are still very important to the global monetary system , It’s very difficult to understand the report for several reasons :1) The definitions are very general to say the least.2) The data regarding Commodity contracts ( Gold & other) as well as E. “Other” (defined as : “ Include
There are 3 main gold stocks( gold and sometimes silver mining companies) Indices: CBOE GOLD INDEX(GOX) , AMEX GOLD BUGS INDEX(HUI) and the most known PHLX GOLD AND SILVER SECTOR IND (XAU).The fact that the gold stock indices had very small correction is a positive sign for the near future price of gold ( the gold indices tend to lead the gold price most of the time).Not much have changed today
Some(most ?) people still wrongly think that gold is just another commodity that lost its monetary role a long time ago. It’s true that since 1971 when President Nixon closed the gold window (making the dollar inconvertible to gold directly, except on the open market) the global monetary system is not officially backed by gold.So in 1971 a great economic experiment have started – a completely ‘
Both are building a triangle which can break up or down , price is close to the third fib line (61.8% retracement).Please view this interesting report by GFMSWe will see... More later - real1.
Gold Investors getting washed out …The thing to watch is the Fibonacci retracements levels.See charts below for gold & silver fibs.
As the year end coming everything is being made(in the future I Will write about the “powers” working behind the scene) to downgrade gold fantastic appreciation for 2005.So what we have is a Gold correction. When will this correction end ? – see chart for clues.I am going to reveal very interesting facts about the gold market fundamentals so be sure to come back and check for updates.I would like
The Price of goldGold is real money hence it doesn’t really have a price but an exchange rate with other currencies.Since the US dollar is still the most used currency the Most important gold exchange rate is gold / US dollar(USD).Other then the US dollar the 2 other most used currencies are Euro and Yen. Therefore it is important to track the Euro & yen /gold exchange rate .Please see annotated
Since gold is real money it doesn’t really have a price but more of an exchange rate with other currencies.Gold measuring is usually done from 2 points of view:Purity and WeightPurityThe purity of gold articles may be described in three ways:Karat, meaning parts of gold per 24.Percent, meaning parts of gold per 100 .Fineness, meaning parts of gold per 1,000 (European System) .WeightThe most
Gold is a chemical element in the periodic table that has the symbol Au (L. aurum) and atomic number 79. A soft, shiny, yellow, dense, malleable, ductile (trivalent and univalent) transition metal, gold does not react with most chemicals but is attacked by chlorine, fluorine and aqua regia. The metal occurs as nuggets or grains in rocks and in alluvial deposits and is one of the coinage
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