This Week:
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Yawnfest Continues in Precious Metals Land
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QE for Dummies
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Platinum and Palladium Leading the Way
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Contrarian Indicator for US Dollar to Head Higher Now?
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Gold Storage – Why Not to Use Bank Vaults
A short week here in NZ for most and so it will be a short and sweet update today too!
Yawnfest Continues in Precious Metals Land
Well, the boring sideways action continues in both silver and gold.
Gold in NZ dollars continues to bounce along around the lows from last year. You can see in the chart below we currently sit just under the NZ$2000 – still.
Silver in NZ dollars is also little changed from a week ago. Currently sitting at NZ$37.82 with quite strong support not too far below these levels as can be seen on the trend lines in the chart below.
As reader “Stephen” commented to us last week “There is a window of opportunity with the PM current prices and the Strong NZ dollar- very few countries have this advantage at the moment”.
We can’t disagree with that. While the likes of US, UK Switzerland and Japan are actively trying to manipulate their currencies lower through quantitative easing/money printing, the strong NZ dollar and low US gold and silver prices means we NZers can buy gold and silver at cheaper prices presently. Who knows how long this will last? (Of course cheap can always get cheaper too!)
QE for Dummies
Speaking of quantitative easing, we stumbled across this post from Chris Martenson during the week titled “QE For Dummies”.
Don’t beat yourself up if you choose to read a post “for dummies”! It is as clear an explanation of exactly what quantitative easing is and how it works as we’ve seen.
Platinum and Palladium Leading the Way
This morning we read the daily update from Angus Geddes of Fat Prophets in Australia where he pointed out that the precious metals group of Platinum, Palladium, Gold and Silver often move in a pack but just take it in turns to lead.
Last year with mine strikes in South Africa we saw platinum move sharply higher and this past month it has been palladiums turn to march higher. Overnight platinum also broke out sharply higher and so Angus “anticipate(s) gold and silver to shortly breakout and follow their other two cousins to the upside.”
Contrarian Indicator for US Dollar to Head Higher Now?
Chris Weber, who is probably our favourite newsletter writer, had an interesting annecdote in his latest newsletter as to why the US dollar could head higher soon. He said he had received many letters from subscribers recently asking about how to get out of the US dollar and what other currencies to be in. In the past whenever he has seen many letters from readers on the same topic it has often been a precursor to a move lower in that sector.
So it’s got him wondering if the fact so many people are bearish on the US dollar could mean the dollar is likely to rise soon? Given Mr Weber seems to get the big picture macro calls right more than not, we made a mental note of this.
Of course gold and the US dollar generally move inversely to each other. So a higher dollar usually coincides with lower gold prices. However we have seen periods before where both have risen together. Also gold could fall but the USD could rise faster meaning a rising gold price in NZ dollar terms. Anywhere we will watch to see if his “spider sense” is right on this one as he often is.
This Weeks Articles
As always these are linked at the bottom of this post. We have another good one from Hugo Salinas Price following on from last week and a couple others as well that are worth the look.
Gold Storage – Why Not to Use Bank Safety Deposit Boxes
This article from the Age in Australia is a good reason not to use a bank safety deposit box to store bullion we’d say.
The ANZ in Sydney gave customers just 2 months to clear their boxes out without explanation. In the end it was nothing sinister. It seems the bank had sold the building where the safety deposit boxes were held. But it wasn’t clear what would happen if you hadn’t removed your contents before the deadline.
Anyway, it shows that looking after valuables is not a banks main role (making money by lending more money than they have of course is!). So if you’re thinking of storing bullion in a vault or safety deposit box go for an independent one. While there are risks wherever you go, at least with an independent stand alone vault this is their main business and so looking after you should be their main priority.
There aren’t too many to choose from across NZ but we know most of them so drop us a line if you ever need any help with locating the closest one to you.
And of course if you need some bullion to fill a deposit box then we can help out there too! Just get in contact:
1. Email: orders@goldsurvivalguide.com
2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
3. or Online order form with indicative pricing
Have a golden week!
Glenn (and David)
Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.com
This Weeks Articles:
| Silver Technical Analysis – Here’s Hoping This Chart is Correct |
 2013-01-30 00:25:33-05
This Week: Silver Technical Analysis – Here’s Hoping This Chart is Correct What Could Cause the Silver Price to Break Out? Updates from last week on: Indian Import Duties, Chinese Reserves, and German Repatriation We really could cut and paste our commentary from the past few weeks in here today and head to the beach! […]
read more… |
| Is Germany Preparing for Future Capital Controls? |
 2013-02-03 19:58:32-05
Casey Research’s Jeff Clark has a different angle on Germany’s repatriation of a decent chunk of it’s gold reserves than what has been reported in the mainstream… Is Germany preparing for future capital controls? By Jeff Clark, Senior Precious Metals Analyst The best indicator of a chess player’s form is his ability to sense the […]
read more… |
| Candidates for 2013 Gold Stock of the Year |
 2013-02-03 20:37:26-05
While gold stocks have underperformed the metal itself for the past 18 months or more, Casey Research’s Jeff Clark believes this won’t last forever. Here’s 5 factors to bear in mind with regard to gold stocks. And if you want help with point 3 (buying physical gold) you know here to find us!… Candidates for […]
read more… |
| Salinas Price: Thoughts on Gold and Humanity |
 2013-02-06 18:15:59-05
This piece from Mexican Billionaire Hugo Salinas Price follows on from the article of his we posted last week. He turns his thoughts to what the global “gold supply” is really made up of. How most of it is “in hiding” and he comments on what it will take to bring it out from hiding. […]
read more… |
The Legal stuff – Disclaimer:
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.
For more on this topic see: Gold and Silver Storage Options
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