Here Comes The Rise Of The Silver Tide
Seeking Alpha
Silver has now been through a correction and consolidation phase and is all set for the next leg up. We’ll start with a quick look at the chart. First of all, please note that the gap between the price of silver and the 200dma has closed considerably as this moving average heads north in support of silver prices. The RSI is now middle of the road at 54.39 with room to go either way, but we expect silver to move higher from here.
Conventional wisdom tells us to buy the dips. The difficulty with this old adage is how to know when the dip is complete and it is safe to re-enter the market. There are a myriad of factors to be considered, and any number of one-off events that can wreak havoc on the best of plans. There are also changes to the rules that impacted on the margin requirements recently, that were not included in your plan. The prospect of peace in Libya appears to have helped ease the tension a little in that area, although there is still a long way to go in order to truly stabilize the situation.
However, the fundamentals that have supported the rise in silver prices remain intact, with the popularity of silver increasing on a frequent basis, thus adding to the demand side of the equation. The lack of political will to implement prudent fiscal measures along with the "print now, pay later" actions of various governments has led to a distrust of both the political system and the fiat currency of which they are the guardians.
Almost everyone can now see that costs of just about everything are rising at an alarming rate. This is what happens when there is too much money chasing a set amount of goods and services. The really sad thing about this situation is not the oscillations of the stock market or the price of a new set of window wipers for the Mercedes. Its that the people who had very little to start with now face starvation. When faced with a situation of hopelessness, real or perceived, people will demonstrate -- and should their concerns be ignored, fists will fly.
We would all prefer to be a part of a balanced society where honest toil is rewarded and opportunity is visibly there for everyone to see and grasp with both hands, should they wish do so. However, we are where we are, and need to do what we can, no matter how small the effort, to protect ourselves.
This takes us back to silver. Having been a form of money for 6,000 years, we see its resurgence as symptomatic of a society leaning towards hard assets as opposed to the folding stuff. We have advocated its acquisition for some years now, and our strategy has remained consistent with this thinking. Firstly, buy the physical silver and keep it in your possession. Secondly, acquire a selection of good quality silver producers. Finally, if you have the stomach for it, the purchase of options where both silver and/or gold are the underlying commodities can help to turbo-charge your trading account.
Your trading account can be thought of as the riskiest element of your portfolio. With stocks, your core holdings, being less risky, we must remind you that there are numerous risks associated with the profession of mining. Owning the physical metal puts you in control and removes any third-party dependencies. Yes, you might need to buy a large dog, but the exercise will do you good.
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Gold Rises to Record Above $1,450 on Inflation Fears
Reuters
Gold prices rose to an all-time highs above $1,450 an ounce on Tuesday, as new peaks in crude oil and grains fueled inflation fears and a downgrade of Portugal's credit rating fed safe-haven demand.
Bullion prices broke out after a struggle to sustain new highs in the last month, and silver soared to a 31-year peak after Federal Reserve Chairman Ben Bernanke suggested he was committed to complete a $600 billion stimulus program as scheduled in June.
"What it shows is that big money continues to believe gold will go higher...because Bernanke wants to grow at any cost," said Axel Merk, portfolio manager of the $600 million Merk Mutual Funds. "The other reason for gold to go up is that there was a downgrade in Portugal, so people realize there are still some issues."
Spot gold was up 1.1 percent to $1,446.40 an ounce at 11:46 a.m. EDT, off the session high, a record $1,450.14 an ounce.
U.S. gold futures for June delivery rose 1.1 percent to $1,448.80 in modest trading volume.
Silver gained 1.2 percent to $38.88 an ounce, after hitting a session high of $38.99, the highest since the Hunt Brothers cornered the market in the early 1980s, when prices briefly hit a record of just below $50 an ounce.
Silver has outperformed gold in recent months, rising 22 percent in the first quarter compared with gold's 0.7 percent. The gold:silver ratio, which shows how many silver ounces are needed to buy an ounce of gold, fell to a 28-year low at 37.3.
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Gold Rises 1%, Trades in Record Territory
Futures are up more than 1% year-to-date and poised for a gain of around 1.9% from Feb. 28.
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Gold Heads for Longest Run of Quarterly Gains in 3 Decades on Libya, Debt
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Gold & Silver Bullion Hit New Record Highs, Price Ratio “Has Plenty More Room”
International Business Times
Gold hit its second new record high on the trot at the London Gold Fix on Thursday morning, hitting $1441.25 per ounce for US investors as the Dollar held flat on the forex market, and US crude oil rose.
New York's stock markets opened the day 0.5% higher. Silver Bullion jumped to fresh 31-year highs above $37.85 per ounce.
The ratio of gold to Silver Prices "is now convincingly through the 1998 weekly low" notes the London dealing team at Japanese conglomerate Mitsui.
"Technically there is plenty of room for the ratio to continue lower" they reckon, as Silver Prices rise faster than gold, cutting the ratio to barely 38 times at Thursday morning's London fixes, down from a peak near 85 immediately after the 2008 collapse of Lehman Bros.
Trading on Egypt's re-launched stock exchange was meantime halted today for the second day running after another sharp drop at the opening bell.
Between 15 and 25 people were reported killed in Syria, where the ruling dynasty's security forces fired on protesters in Deraa on Wednesday.
Forces loyal to Colonel Gaddafi continued to attack rebel-held towns in Libya, despite the fifth night of joint-United Nation airstrikes against him.
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Silver Surges Over $37.25 On Way to Record At $50, Gold On Way to $5,000 in 3 or 4 Years?
GoldSeek
Gold and silver have rallied again today in all currencies but particularly the British pound, Swiss franc and the euro. The euro has fallen on concerns that the eurozone debt crisis may be entering a new phase (see chart below). Silver surged to $37.25/oz its highest nominal price since February 1980 and gold is just shy of its nominal record high of $1444.95/oz.
It would be hard to imagine a more bullish scenario for gold and silver given the real macroeconomic and geopolitical uncertainty and risk in the world today. Higher oil prices on geopolitical tension in oil producing regions and talk of QE3 is also strongly supporting the precious metals and leading to safe haven demand. So too is the deteriorating nuclear contamination situation in Japan.
The eurozone debt crisis had not gone away and has reared its ugly head again as Irish and Portuguese debt has been sold aggressively resulting in bond yields rising sharply. The Irish 10 year rose to an all time high of 10.185% on concerns of default.
Reuters reports that respected Rob McEwen, chairman of two gold mining companies, believes that gold will reach $5,000/oz in 3 to 4 years.
Telling the future remains impossible and we are always wary of specific time predictions. However, GoldCore stand by our prediction in 2004 (when gold was trading below $500/oz) that gold would reach its inflation adjusted high of $2,400/oz and silver would trade over $100/oz between 2012 and 2020.
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Gold Climbs Near Record on Middle East Tension, Europe Debt; Silver Gains
Bloomberg
Pham-Duy-Nguyen
Gold rose for the sixth straight session, nearing a record in New York, as unrest in Libya and the Middle East and Europe’s lingering debt crisis spurred demand for the precious metal as an alternative investment. Silver rose to the highest since 1980.
A U.S.-led alliance is preparing to direct more attacks against Libyan leader Muammar Qaddafi’s ground forces, as coalition members try to resolve disputes over who will take command. European leaders will meet this week to seek a permanent solution to the region’s debt crisis, amid concern Portugal’s government will collapse today. Gold futures reached a record $1,445.70 an ounce on March 7.
“There’s so much going on in the world that it’s hard to find a reason not to own gold,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “There’s a flight-to-quality to metals across the board.”
Gold futures for April delivery rose $10.40, or 0.7 percent, to settle at $1,438 at 1:34 p.m. on the Comex in New York.
Crude-oil touched a two week-high on concern that supply will be disrupted. A bomb exploded at a bus stop outside Jerusalem killing one person and injuring at least 30, and protesters clashed with the Syrian government. Stocks in Asia fell after Japan said there were traces of radiation in Tokyo’s tap water.
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Gold Near Record, Silver Tops $37 on Safehaven Bid
Reuters
Frank Tang
Gold rose to within a whisker of its all-time high on Wednesday, as record low U.S. new home sales stirred talk of extended central banks' accommodative policies, and a possible collapse of Portugal's government rekindled euro zone debt worries.
Bullion rose 0.6 percent to just short of its record $1,444.40 an ounce set on March 7, rebounding over 4 percent in the last eight sessions amid safe-haven buying and ongoing Western air strikes on Libya.
Political unrest in other Arab countries also underpinned gold as Yemen's president offered to step down by year end to appease mounting demands for his resignation.
Spot gold rose 0.6 percent to $1,437.55 an ounce by 2:29 p.m. EDT.
Gold accelerated gains to hit a session high of $1,440.90, its highest since March 7, after data showed the U.S. housing market slide was deepening as new home prices fell to their weakest since 2003.
U.S. April futures settled up 0.7 percent at $1,438 an ounce.
"The new home sales data inspired some to think that we may not see the demise of QE2, and we are going to see money printing continue past its potential expiration at the end of June," said Mark Luschini, chief investment strategist of broker-dealer Janney Montgomery Scott with $53 billion assets under management.
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Gold Futures Notch Record High
MarketWatch
Claudia Assis
Gold futures settled at a record high on Wednesday as a rally for crude reinforced fears of inflation and investors remained concerned about the Middle East and North Africa and Japan.
Gold for April delivery /quotes/comstock/21e!f:gc\j11 (GCJ11 1,439, +11.80, +0.83%) rose $10.40, or 0.7%, to $1,438 an ounce on the Comex division of the New York Mercantile Exchange.
That was enough to beat the previous record settlement of March 2, when gold closed at $1,437.70 an ounce.
“Instead of looking for a reason to buy gold, no one can find a reason not to buy gold,” said Adam Klopfenstein, a senior market strategist with Lind Waldock in Chicago.
Unrest in the Middle East and North Africa, the destruction in Japan, continuation of the U.S. Federal Reserve’s easing policy, and inflation are all working to support the metal, he added.
Gold is likely to challenge $1,500 sooner rather than later, especially if prices firm around $1,475 an ounce in the coming sessions, Klopfenstein said.
Gold gained momentum as the session progressed, leaving behind tepid early gains to rally as crude oil also jumped.
Investors are worried about food and energy inflation on the back of rallying crude, said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago.
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