After surging over 5% last week, gold and silver continue to move higher as concerns about the U.S. and global economy saw more sharp stock market falls and reduced expectations of the Fed increasing interest rates.
Gold is 3.6% higher this week and is now over 9% higher year to date. The dollar saw sharp falls this week on growing doubts that the Federal Reserve will be able to raise interest rates. The gains this week were due to increasing concerns about the U.S. and global economy.
Important to own “physical gold” coins and bars in safest vaults in world. Increasing likelihood of COMEX default means should own physical. Given risks today – higher allocations of as much as 30% are merited.
Wavelet models used to surface the relationship between gold miners stock prices and the price of gold.
The surge in physical silver investment demand indicates that intelligent minds realize it’s a rising “High-quality store of value” compared to most other paper assets trading by mindless computer algorithms.
Faber warns that the S&P 500, which fell to 1,881 on the 19th of January, could drop to its 2011 low below 1,200.
Gold retains a key role of a major diversifier in well-structured retail investment and pension portfolios ... core defensive and hedging properties vis-à-vis global currencies and fixed income, as well as oil and a range of other commodities.
UBS has warned that the seven-year cycle in equities is rolling over, we could see a sharp 30% correction in stocks and that as per the headline of their ‘Technical Outlook 2016?, it is time to “buy gold” ... "So if gold moves into a bubble, we would need to see a gold price of minimum $3,300 ..."
John Hathaway, respected authority on the gold market and senior portfolio manager with Tocqueville Asset Management has written an excellent research paper on the fundamentals driving the gold market today.
The sole focus of gold in dollar terms and the 10% fall of gold priced in dollars has led to some negative comment about gold's annual fall, the "third year of losses."
Silver stackers continued to accumulate silver coins and bars.
Gold has has been one of the best months for gold in terms of monthly performance in the last 10 years. Bloomberg confirms that today.
EU countries join the UK, the U.S., Canada, Australia and New Zealand in having plans for bail-ins in the event of banks and other large financial institutions getting into difficulty.
Gold is poised to rebound dramatically this year, mean reverting out of its recent deep secular lows. The drivers of gold’s weakness have soared to such extremes that they have to reverse hard. The resulting heavy buying from dominant groups of traders will fuel gold’s 2016 upleg.
“Joseph urged the Pharaoh to set aside one fifth of the crop in the good times and store the grain to ease the famine in the bad times, because if he didn’t do that, the good times would be forgotten and all the people would remember was the bad times. This wouldn’t be politically good for the Pharaoh.”