Don’t Underestimate the Effects of Quantitative Tightening


This Week:

  • How to Buy Gold and Silver with Bitcoin
  • Why Gold Could Go “Hyperbolic” in This New Bull Market For Gold
  • Incrementum Board: Don’t Underestimate the Effects of Quantitative Tightening
  • Gold To Silver Ratio Above 80: History Says Buy Silver
  • “Rules-Based” Monetary Proposals Won’t Create Stable Money

Prices and Charts

Change from last weeks gold and silver prices

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NZD Gold Trading in a Tight Range So Far This Year

NZD Gold continues trading between $1800 and $1850 as it has done so far for most of this year. The consolidation above the 200 day moving average line continued this past week.

NZ Dollar Gold Chart

NZD Silver fell about 1.50% last week. It is again around the lows from December. Silver is now not too far from the long term uptrend around $21.50. It would not be a massive surprise if silver dipped to that level. Although that is not far from here. Silver is getting more and more compressed between the 2 thick blue lines of this wedge formation and so is nearing a breakout.

NZ Dollar Silver Chart

The Kiwi while up just under 1% for the week, once again failed to close above the overhead resistance line at 0.74 and looks to be heading a bit lower again now. Perhaps back towards the 0.72 level.

NZ Dollar Chart

Unsure About Any Terms We Use When Discussing the Charts?

Remember to check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below




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Gold To Silver Ratio Above 80: History Says Buy Silver

We’ve added the gold to silver ratio chart again this week. The ratio dipped lower during the week. But is now back above the key 80 level today.

3 Year Gold/Silver Ratio: Buy Signal For Silver

Silver remains very cheap compared to gold. Above 80 we prefer to buy silver exclusively over gold.


Because history shows that from this level silver usually stages a large rally.

Last July at the Sprott Natural Resource Symposium in Vancouver, Keith Neumeyer, head of First Majestic Silver, spoke about this. He pointed out that the gold-silver ratio has only hit this level four times in the last three decades.

Each time it did, silver had a large rally.

“After hitting this level in 1990, it went on to surge 47%.

Thirteen years later, the ratio hit 80 again. This time, silver soared 224% over the following three years.

30 Year Gold/Silver Ratio: Buy Signal For Silver

It happened for a third time in 2008. Silver went on to soar 371% over the following three years.

The ratio hit 80 for the fourth and most recent time back in February 2016.”

Silver rose around 25% after that. After a pull back last year the ratio is again back over 80. So history says silver is likely to surge higher when the ratio turns lower.

That likely makes now an excellent time to be buying silver.

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We Now Accept Bitcoin To Buy Gold and Silver

In case you missed our email on Friday, we are now able to accept bitcoin in payment for gold and silver.

So if you’ve made some profits in cryptocurrency and want to divest some of those then check out the details below. With the Bitcoin price bouncing sharply over the last week, now might be a good time.

How to Buy Gold and Silver with Bitcoin

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Incrementum Board: Don’t Underestimate the Effects of Quantitative Tightening

We finally got around to reading the Incrementum Advisory Board minutes this week. We often gain some insights from this.

A key point was not to underestimate the effects that the Fed reversing it’s quantitative easing program will have. Ronni Stoeferle commented that:

“Quantitative easing was positive for asset prices, why shouldn’t quantitative tightening be negative?”

Jim Rickards went on to say:

I would not underestimate the impact of quantitative tightening, I think it will affect asset prices, but with a lag. It is a very serious danger. It started at a slow tempo, but it ramps up every month. Remember what quantitative tightening is; you are destroying money. This has never happened before. This is a giant experiment, and there is no precedent. And it’s happening concurrently with rising interest rates. In my view the Fed is underestimating the tightening impact.

Heinz Blasnik:

Jim, I am on the same page as you when it comes to the Fed and tightening. And I think we will soon see the impacts of quantitative tightening increasing because there is a delay in the settlement of redeemed mortgage backed securities, i.e. the effects of quantitative tightening that has already taken place have yet to appear in the data. I think we will see this show up on the Fed’s balance sheet soon. Consider also that money supply growth declined dramatically even before QT started.

And just a final note on gold; from a technical perspective a breakout in gold will be quite significant because the recent consolidation in gold has been in such a wide range and has taken so long. In many ways the current situation is very reminiscent of what happened at the end of 2015. You have insiders at gold companies buying like crazy – we have rarely seen them buy that much, it doesn’t happen often in this sector. And the situation in the options market for gold stocks is precisely the same that I saw in late 2015 and in the first week of January 2016. Nobody is interested. Nobody is buying any calls and trading volume is very low. Consequently, I am quite bullish on gold at the moment, despite the dubious macro-fundamentals.

Insider Activity according to INK Research: Lately insider buying at gold companies has basically “gone off the charts” compared to historical standards.The spike in insider buying in the gold sector this fall (which went hand in hand with the decline in prices) was already the second one this year, but it attained extraordinary proportions.

Basic Minerals Gold Sentiment Indicator

Don’t forget to check out our other posts below.

If you think the insiders at gold companies might be worth following and buying some gold then get in touch. Or maybe given the gold silver ratio history outlined above you’d prefer silver?

Get in touch to discuss your options:

  1. Email:
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing

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This Weeks Articles:

“Rules-Based” Monetary Proposals Won’t Create Stable Money

Wed, 21 Feb 2018 11:24 AM NZST

With the emergence of cryptocurrencies in recent years, it is interesting to ponder, what might money look like in the future. Nathan Lewis, author of the book, Gold: the Once and Future Money, gives a simple account of what really creates stable money. No surprise, his view is that it it isn’t central bank policies […]
Read More…

Why Gold Could Go “Hyperbolic” in This New Bull Market For Gold

Tue, 20 Feb 2018 11:52 AM NZST

Doug Casey makes some fairly bold claims in this interview such as how by the end of 2018 “gold will hit $2,000” in this new bull market for gold. We too believe gold could make some good gains this year, even if US$2000 seems a long way off yet. One thing we do agree on […]
Read More…

Using the Gold Silver Ratio to Time Buying Silver

Fri, 16 Feb 2018 10:42 AM NZST

  This Week: Using the Gold Silver Ratio to Time Buying Silver RBNZ Cryptocurrency to Replace NZ Physical Currency with a Digital Alternative? What’s “Changing”: Interbank Lending, Interest Rates and Inflation? The Ultimate Iron Lady Prices and Charts Looking to sell your gold and silver?Visit this page for more information Buying Back 1oz NZ Gold […]
Read More…

How to Buy Gold and Silver with Bitcoin

Wed, 14 Feb 2018 3:19 PM NZST

Bitcoin was modelled upon gold. So not surprisingly many people interested in Bitcoin and cryptocurrencies are also interested in buying gold and silver bullion. While Bitcoin has gained massively in price since its creation in 2009, it has also now become a widely accepted method of payment. Some people who have made significant profits in […]
Read More…
As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.

  1. Email:
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing

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Today’s Prices to Buy
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1 Kilo NZ Silver Bar
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$801 (price is per kilo only for orders of 5 kgs or more)
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1oz PAMP Suisse 99.99% pure gold bar
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1kg PAMP 99.9% pure silver bar
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1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple
$1956 (or $1941 for 5 or more Backdated Year Coins)
1oz Canadian Silver Maple 99.99% pure silver coin
(Minimum order size tube of 25 coins)

Silver Maple Silver Box
Tube of 25 $740
Box of 500 $13,650 (2018’s) or $13,430 (backdated years)
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  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Note: For local gold and silver orders your funds are deposited into our suppliers bank account. We receive a finders fee direct from them. Pricing is as good or sometimes even better than if you went direct.

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Our Mission

  1. To demystify the concept of protecting and increasing ones wealth through owning gold and silver in the current turbulent economic environment.
  2. To simplify the process of purchasing physical gold and silver bullion in NZ – particularly for first time buyers.

We look forward to hearing from you soon.

Have a golden week!

David (and Glenn)
Ph: 0800 888 465
From outside NZ: +64 9 281 3898

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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.

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