Prices and Charts
NZD Gold Down Due to Stronger NZ Dollar
Gold priced in New Zealand dollars was down on a week ago solely due to the strengthening Kiwi dollar.
During the week NZD gold got down into the low $2400’s before bouncing back up off the horizontal support line from March last year. Has a bottom been put in there for this correction?
There’s no way to know until after the fact. What we can say is that this current area of support/resistance on the chart (blue shaded area) would certainly be a good place to see gold bottom out. As it is the high from 2019 and the low in the sharp correction during the Covid panic.
Then a little lower is the red/green horizontal support resistance line. This dates all the way back to the high in 2011. So we are not too far from that level.
The upshot is that there is probably not too much downside in gold right here. So it should make for a fairly low risk entry point currently.
Silver Down, But Less Than Gold
Silver was also down this week. But by just half a percent versus gold’s one and half percent. So silver continues to outperform gold.
Silver has been in an uptrend for the past few months whereas gold has been locked in a downtrend (albeit a trend that might be coming to an end).
New Zealand Dollar Up by Almost 2%
Local precious metals prices were down solely due to the 2% rise in the kiwi dollar this past 7 days. The NZ dollar has gotten above 0.73 for the first time since early 2018. It looks like it might be heading for the 0.74-0.75 area yet too.
Need Help Understanding the Charts?
Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:
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Gold Silver Ratio Back Close to 7 Year Low
As noted already, silver continues to outperform gold. This is clearly shown by the gold silver ratio chart below. The ratio (how many ounces of silver one ounce of gold buys) is back very close to the 7 year low from 3 weeks ago.
At 65 the ratio has pretty much halved where it was last March. So it is now in much more neutral territory. Our guess is that it may move back up again before too long with gold perhaps reversing its current downtrend.
But we are looking for a return to at least as low as 30 in the long run. Signaling much higher silver prices than where we sit currently.
Learn more: What is the Gold Silver Ratio?
Your Questions Wanted
Remember, if you’ve got a specific question, be sure to send it in to be in the running for a 1oz silver coin.
Inflation in 2021 and Beyond: What’s Different to 2009?
The official government inflation numbers show that consumer price inflation remains pretty benign.
However we think there is enough data floating around currently to give pause to the idea that inflation will remain as low as it has done in recent years.
This may not happen overnight, but we think there is a heightened and underestimated risk of significantly higher inflation in the coming years due to central planners’ responses to the COVID19 lockdowns globally.
So this week we have taken an in depth look at inflation. Including:
- Inflation: What’s Different Between 2009 and 2021?
- How Headline Inflation Rates Remain Low
- But Why Food Price Inflation is the Best Predictor
- How Inflation Expectations Are Also Rising Here in New Zealand
- If Consumer Price Inflation is Starting to Heat Up, Will Central Banks Raise Interest Rates Soon?
- Why Central Banks Might Move to Average Inflation Targeting
- What is Average Inflation Targeting?
- Views From Other Analysts on Why Inflation is Coming
Current Stock Levels Update
Silver still remains the most popular of the two precious metals for buyers.
We still have some silver coins available to order where the premiums have hardly changed since this recent surge in demand began. See the deal at the top of this email on the limited mintage 2021 Cayman Islands Marlin 1 oz Silver Coins, if you want to avoid paying higher premiums.
Otherwise in silver coins we only have Royal Mint Britannia available (see below). We now also have South African Krugerrand’s on back order. Along with Silver Maple monster boxes once again available on back order with a 4 week estimated ship time.
Silver bars can be locked in but there is a 4 week wait on ABC bars and a 2 week wait on local silver bars.
There are a lot more options available in gold.
Get in touch if you have any questions about buying…
- Email: [email protected]
- Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
- or Shop Online with indicative pricing
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