If you’ve subscribed to our new daily gold and silver price alert (go here if you haven’t but would like to learn why you should), we have now also updated this weekly newsletter template with this mornings indicative prices as you can see over on the right.
Also if you had subscribed to our daily price alert already, you’ll recall we’ve commented the past couple of days how gold and silver in NZ dollars have been trading in a narrow range over the past week although both up from their lows in the middle of the month.
This trend has changed as of this morning as the kiwi dollar is slightly stronger again and gold and silver have dropped overnight in US markets so today we have cheaper prices to buy gold and silver today.
NZD gold is down about $30 an ounce from yesterday at around NZ$2043 an ounce as we type this morning. Lower than its been for more than a week.
Meanwhile checking out silver – it is down around $26 a kilo from yesterday at NZ$1178. Or around NZ$36.64 an ounce which is also lower than it has been for most of the past week.
If we had a gun to our head we would guess (and that is what it would be) that prices might continue to meander for a while yet in absence of some major event anyway.
Bit of a slow news week this week for precious metals. Of interest though was the announcement that the precious metals futures clearing housing CME was voted as too big to fail this week. So the Fed will now backstop them if they get into trouble. But also the margin requirements for futures traders on the Comex were cut by 13% this week. You may or may not recall that margin increases occurred last year in gold and silver and precluded significant price drops. So an article we came across this morning outlines how these margin increases might have helped put a floor under the price of gold…
“By lowering the margin requirements for both gold and oil, this tells me, along with a few other factors that the floor has been put under the price of both commodities. Lowering margin requirements makes it easier for speculative money to flow into the market. With volumes and open interest in gold futures at levels not seen since late 2008, enticing more activity on the exchange makes sense. The SPDR Gold ETF (AMEX:GLD) saw inflows this week of $1.1 billion after losing $2.4 billion in redemptions for the first three weeks in May.” Source
Seems everything is all beer and skittles with the world now that polls in Greece show a likelihood of pro bailout parties gaining power in the 2nd elections in June. This potential outcome actually follows the lines of an article we read a couple weeks ago where the blogger Bruce Krasting wrote about his conversation with an Athens resident.
This local predicted that Greeks were looking likely to vote in favour of the centrist parties this time around to remain a member of the Euro. However even this local did not think this would result in a long term recovery for Greece. In answer to the question – “Do you really believe that Greece can achieve a long-term recovery with this?”, the locals answer was – “Not a chance. Everything will blow up again in less than one year.” Seems like a pretty good guess to us.
This could then well fit in with Jim Sinclair’s recent thoughts that the Euro is not likely to head down the toilet yet and surprise everyone with a rise against the US dollar. This would conversely result in a rise in gold.
Well we’d guess it would mean a rise in the kiwi dollar against the US dollar again. So it would then depend on the ratio of this rise in comparison to the rise of the USD gold price as to what it would mean to the local gold price.
2 articles and 2 videos this week.
First up we’ve posted an old but very worthwhile article by Mexican billionaire Hugo Salinas Price: The gold standard: generator and protector of jobs
This a great read on just how a gold standard functions to create balance and order in global trade.
Then we’ve got something for anyone looking at investing in gold mining shares which are looking as cheap as they were in the aftermath of 2008: What Is Volume Telling Us about Gold Stocks?
By the way, if you don’t want to subscribe to our daily price alerts, but you are looking at purchasing some gold and/or silver then you might want to consider our free “Price Watch” service. Simply drop us an email with the retail or spot price you’d like to buy at, and we will make a note of it. Then David will spend 9 hours a day watching the chart to see if your price gets hit and then send you a quote when the price gets near to that level. No charge to you for his optometrist visits for eye strain!
Or if you’re ready to buy now then get in touch with David by:
1. Email: firstname.lastname@example.org
2. Phone: 0800 888 GOLD ( 0800 888 465 )
3. or new and improved Online order form with indicative pricing
Have a golden week!
Glenn (and David)
This Weeks Articles:
This week: Useful website updates Is the bottom in for gold and silver? Word of the week: “Grexit” Gold and silver in backwardation What is the Gold Offered Forward Rate? It’s been a week of action in the markets but before we get to that, we’ve had a few updates on the website over the […] read more…
“Currencies are in effect the ocean” that all the fish, including the great white shark, fear, says investment manager and author of Currency Wars, James Rickards. Sometimes the ocean is calm, but in times like ours it becomes a much more hostile and dangerous environment. Find out how currencies interact globally and why governments manipulate […] read more…
A few weeks back we commented that there seemed to be a bit of a slow awakening occurring in the masses with a regard to the global monetary system. We mentioned a few more articles had surfaced recently regarding an evolution of gold as money. For some reason this triggered a memory of […] read more…
In the below video creator Chris Duane outlines his 6 Simple Reasons for why Hyperinflation will occur in the USA. These include: 1/ The sick symbiotic relationship between bankers and politicians 2/ How this is the first time in history that the entire world is unhinged from any monetary anchor 3/ Inflation benefits those who […] read more…