Gold & Precious Metals

Doug Casey on Silver’s Many Uses and What It Means for Its Future Price

Throughout history, three metals have been used as money: gold, silver, and copper. All share the five qualities of good money—durability, divisibility, portability, consistency, and intrinsic value—but in different proportions. All three metals can be bought for the same reasons…Click to read full article.

The Silver Lining in the Gold Bull Market

This article was suggested by our friends at Endeavour Silver.

Gold prices, which are up more than 35% during the past four years, recently eased into a trading range following a double digit price jump during 2019. So far this year, silver prices are running just slightly behind.

Long-time traders liken silver to “gold on steroids” because in past rallies it has tended to lag the yellow metal at the start, but then vault past as retail buyers flocked in.

I remember well silver nearly tripling in value to nearly $50 USD an ounce amidst the 2008 financial crisis.

We are seeing many of the same signs right now. Silver shipments by the Royal Canadian Mint spiked by 42% during the third quarter and are up 29% year to date.

Wholesalers tell me they can’t get enough of the stuff, particularly 100 ounce silver bars….CLICK for complete article

Three Reasons Precious Metals Are On The Rise

For what seems like an eternity for the bulls, the gold market has suffered from a strange cognitive dissonance, stubbornly refusing to react to the signs of the times.

At a time when interest rates everywhere fell to historical lows, signs of a synchronized slowdown of the global economy abounded while trade wars and geopolitical tensions continued to rise, the gold market remained a snoozefest as investors’ love affair with the stock market endured.

But reality appears to have hit home–finally.

Gold prices have hit the highest level since 2013 as declining housing market sales, intensifying geopolitical risks and a retest of key levels worked in tandem to fuel a massive rally…CLICK for complete article

The last few months have seen a major improvement in investor sentiment towards silver, according to Philip Newman, Director at Metals Focus, who recently presented the Metals Focus / Silver Institute Interim Silver Market Review. The silver price benefitted in 2019 from a host of factors, including global economic and political concerns, as some investors sought safe haven investments, such as silver.

Highlights of the Interim Silver Market Review include:
• Healthy gains were projected for physical silver investment in 2019, with sales of silver bars and coins projected to rise by 7% to a three-year high. In the US, investment was on track to record its first annual increase in four years, thanks to improving price expectations and rising price volatility, although levels remained historically low. In India, the partial recovery that started in 2017 continued in 2019, although the sharp rally in the rupee price saw sales ease recently, particularly in rural areas.

• Disruptions and strikes across South America impacted global mine production, which was expected to fall by 0.7% in 2019 to 849.3 million ounces.

• For the second year in a row, silver industrial fabrication was expected to hold at a record high. However, in the wake of the escalating US-China trade war, several areas of silver electrical and electronic end-uses have struggled. That said, any negative impact on silver demand had been mitigated by higher silver usage in other categories, especially in the automotive sector.

• Global silver jewelry and silverware demand was projected to grow by 3% and 4% respectively in 2019. For both, the year’s increases were almost entirely led by India, where gains had been assisted by increasing awareness of sterling silver, and growth in organized retailing, along with the benefits from restrained silver prices in the first half of 2019. • Overall, the silver market was expected to record a small surplus in 2019. However, this metal should have been easily absorbed by investors as rising macroeconomic uncertainties and fresh monetary easing by major central banks rejuvenated the appeal of safe haven assets from mid-2019 onwards which, looking ahead, should continue to benefit precious metal prices.

For more information about the report including a supply & demand chart, click here.

Will Gold Stocks Continue To Climb Higher?

Gold miners’ stocks blasted higher this past week, breaking out of their correction downtrend. Rapidly-improving psychology fueled such strong upside momentum that sector benchmarks are challenging months-old upleg highs. Most traders assume this is righteous, that gold stocks’ next upleg is starting to accelerate. But key indicators argue the contrarian side, that this breakout surge is a head fake within a correction.

In early September, a major gold-stock upleg peaked after soaring higher on gold’s decisive bull-market breakout in late June. The GDX VanEck Vectors Gold Miners ETF, this sector’s leading benchmark and trading vehicle, had powered 76.2% higher over 11.8 months. It crested the same day gold’s own upleg did, hitting $30.95 on close. That major 3.1-year high proved the apex of that impressive gold-stock upleg…CLICK for complete article

Gold Trend Bullish – Short and Long Term

Gold’s current strength is driven primarily on the short-term weakness in the $US and this short-term trend will likely continue until mid/late January, when we could see the effects of a Repo crisis start to affect all markets. We will be watching the next month very closely and subscribers can expect Flash Reports should things start to unravel. Investors need to understand that although gold does act as a safe-haven play it is usually the $US where the first wave of safe-haven capital flows to.

While gold and the $US typically move inverse to each other (gold up when $US down, gold down when $US up), there are times when gold…click here for full article.