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From 'dead money' to a breakout: Silver's fortune is about to change
Silver has been "dead money" for the past six months, but its fortune is about to change with the precious metal's fundamentals pointing to a breakout towards $35, said Jim Iuorio, TJM Institutional Services managing director.
After frustrating several months, silver finally found its spotlight, Iuorio told Michelle Makori, editor-in-chief of Kitco News. Silver is up more than 4% on the week so far, with the potential to go a lot higher.
"I've been long silver for quite a while, and it's been a painful trade. Copper broke out of a pretty significant technical pattern last week, and I believe silver is following it today," Iuorio said. Read More
Gold price to double as Fed kicks off tightening and economy flatlines
Gold has the potential to double once the Federal Reserve begins to tighten and hike rates to fight off hotter-than-expected inflation, said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
"If you inflation adjust gold for its 1980 high, it can go to $2,500, it can overshoot $3,000 plus," Boockvar told Michelle Makori, editor-in-chief of Kitco News. "Silver … can get back to its highs of $50 plus. Name me one asset that's down 50% from its record high. I can't really think of many other than silver." Read More
Gold stock mean-reversion in progress
Despite long-term interest rates continuing to move upwards, the precious metal’s sector has been steadily finding buyers since late September. Previously, rising bond yields acted as a factor for selling both gold and silver, paying no dividends or coupons. I believe the main reason for the recent disconnect is investors viewing inflation differently since the end of September.
Never-ending supply chain problems, high energy prices, and accelerating wage growth has been amplifying pro-inflationary factors. This trend shows no sign of slowing down anytime soon and has investors questioning the world’s largest central bank’s “temporary” argument regarding inflation. Read More
Gold/Silver/Wheat: The next short squeeze
What is the next market to see a short squeeze? That is the question I have been asked most by clients this week. Shortages have been popping up everywhere within supply chains, especially where inventory remains low and bottlenecks in distribution occur. Multiple commodities such as Oats, Cotton, Crude Oil, and Gasoline have rallied double-digit percentage gains this month. I know you are thinking, when is it my time in Gold and Silver? Read More
The World Bank is looking for precious metals prices to pullback to averages
In the Word Banks' latest report, they have noted that its Precious Metals Index fell by 3 percent in the third quarter of 2021. It noted that this is due to declining investor sentiment stemming from higher real interest rates and a stronger U.S. dollar, as well as lower physical demand. Moving forward the projections are for the average price to move back to the averages (5% higher) in 2022 on expectations of a tightening of monetary policy. There are some upside risks to this outlook, these include the threat of new virus variants, amplified geopolitical tensions, and more persistent inflation than anticipated. Read More
Gold price hears Powell's hawkish comments loud and clear, drops $30, falling below $1,800
Federal Reserve Chair Jerome Powell has thrown a bucket of cold water on gold's Friday rally as prices fall back below $1,800 an ounce.
After a relatively quiet week, rising inflation pressures helped push gold prices to a six-week high. Many analysts were looking for the precious metal to end the week above $1,800 for the first time since early September. Read More
Strong Bullish sentiment in gold as Powell talks down inflation threat
The rising inflation threat is creating some significant bullish sentiment in the gold market, even as Federal Reserve Chair Jerome Powell tries to talk down those growing concerns
Early Friday, gold prices rose to a six-week high, pushing above $1,800 an ounce; however, most of those gains proved to be short-lived after Powell reiterated his stance that the U.S. central bank is on track to start reducing its monthly bond purchase. He added that he expects the tapering to be completed by mid-2022.
He noted that although there is a growing risk that supply-chain issues could keep inflation pressures elevated through 2022; however, he added that his base case is for the supply bottlenecks to be resolved and for inflation to push back to 2%. Read More
Powell talks down inflation and gold follows
As a gold investor, if you were expecting an easy end to what has been another relatively quiet week, you were unfortunately mistaken.
The day started with plenty of optimism in the precious metal market, with gold and silver prices soaring higher. Gold managed to push to a six-week high above $1,800 an ounce.
However, that initial optimism was short-lived after Federal Reserve Chair Jerome Powell talked down the growing inflation risks. Speaking during an online conference hosted by the South African Reserve Bank, despite significant sound issues, Powell said that the bank is on track to reduce its monthly bond purchase. Read More
To celebrate 50 episodes of demystifying the precious metals markets, Andrew Maguire takes the LFV audience for a sneak peek at the 20 tonnes of .9999 silver sitting in Kinesis’ new Liechtenstein vault.
In more silver news, the life-long wholesaler shares the word of new, unprecedented demand entering the physical silver market, with the impact on the paper-driven price yet to be felt.
In the aftermath of last Friday’s Consumer Price Index (CPI) shock, the precious metals expert reevaluates gold and silver and exposes the technical trickery behind gold’s sudden $30 drop.
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Inflation threat can drive gold prices back to $1,830 next week
The growing inflation threat remains the most extensive support for the gold market as analysts see the potential for prices to test critical resistance around $1,830 in the near term.
Friday morning, gold prices pushed to a six-week high as rising inflation pressures have pushed breakeven rates in the five-year bonds to their highest level in a decade. The breakeven rate is the difference in yields between bonds and Treasury Inflation-Protected Securities (TIPS). The difference represents the inflation rate needed to equalize their returns.
However, gold lost some significant ground, falling $30 in a matter of minutes after Federal Reserve Chair Jerome Powell tried to talk down the rising inflation threat. Read More
Cross-currents continue to have positive and negative influences on gold
Today is the perfect example of how enhanced inflationary pressures and the reaction to higher inflation by the Federal Reserve create cross-currents that take gold higher as well as pressure pricing lower. Gold futures basis most active December contract opened today at $1783.70. Continued concern about mounting inflationary pressures took gold prices substantially higher with the precious yellow metal breaking through $1800 in trading to a high today of $1815.50 before comments made by Federal Reserve Chairman Jerome Powell. Read More
Gold and silver head into the European open on a positive note
Gold and silver have started the week on the front foot. During the Asian session, the price of the yellow metal breached $1800/oz once again but has now settled at $1797/oz. Copper is also looking positive up 1.19% while spot WTI has risen 0.26%. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
