Gold and Silver Price Action
Both precious metals are up quite sharply today on last week’s prices. Gold in NZD is at NZ$1933, up $33 per ounce on a week ago care of a slightly weaker kiwi and a strengthening USD gold price.
Silver today is NZ$35.45 versus $34.61 per ounce last Wednesday.
Interestingly the precious metals miners have had a couple of large bounces higher in the past week. They often seem to lead the prices of the actual metals themselves. With the mining shares having been so decimated they are certainly due for a sharp increase sooner or later. Sooner perhaps?
The charts of both metals don’t look markedly different than a week ago and so we don’t have a lot of insight to share with you today on them other than what’s already written in them.
Here’s Why Not to Believe the NZ Government’s Inflation Statistics
Our feature article this week came out of the blue really. We were flicking through a great site full of information – tradingeconomics.com – and looking at various bits of data on New Zealand, when we stumbled across an M3 money supply chart. If you’ve read much on money supply you’ll recall that in the USA they stopped reporting this awhile back. However shadow stats continues to gather the data privately and report it.
Anyway it caught our eye, in particular the growth in the NZ supply over the past decade.
If you read it you’ll see why the money supply growth rate sparked the thought of how house prices “always” double every 10 years.
Anyway the headline for our article is:
But we added a sub heading that probably explains the full gist of the post better:
Comparing Money Supply, Government Inflation Statistics, Property Prices, and Gold Prices for the Last 10 Years
Gold in NZD: We Have Been Here Before
While looking up the data from 10 years ago for our feature article mentioned above, it reminded us of what gold in NZ dollars did in the early 2000’s.
Below is a chart of the USD price of gold and below it the NZD price of gold for the last 20 years.
We’ve added a red arrow showing the direction of the gold price in both currencies from the early 2000’s until 2005. In USD terms gold was trending up steadily over this time. Whereas looking at gold in kiwi dollars it was flat to trending down during this time due to a strengthening kiwi dollar (ringing any bells yet?).
The green arrow on the chart then shows that priced in NZ dollars gold proceeded to rise much faster and higher than in US dollars.
Fast forward to the last couple of years and we see USD gold going sideways and again NZD gold actually trending slightly down due to the strengthening NZD/USD cross rate.
In 2008-2009 we also saw the NZD gold price rise higher and faster than the USD price. And then fall more sharply too.
So, the point being that these periods where the NZD gold price does nothing or falls sharply is not new in this bull market. And maybe, just maybe, we might again get a period where the NZD gold price outperforms the USD gold price?
And while gold negative articles appear in the press like this one below in yesterday’s Sydney Morning Herald we are likely closer to a bottom than a top is our guess.
Gold Confiscation Infographic
Just over a year ago we wrote an article entitled,
Yesterday we stumbled across this interesting infographic which outlines the cases in history where gold has been confiscated. As mentioned in our article New Zealand is yet to feature in the confiscation history books. But it was interesting to note that this infographic did detail the Australian law passed in 1959 making “it legal to seize private citizens gold in return for paper money.”
For more infographics check out MINING.com.
Other articles this week:
We’ve also got a couple other posts on the website this week:
Hear from Bud Conrad on why he believes we may be close to bond markets collapsing.
See how it might be psychological factors that eventually send poor mans gold much higher.
If you agree with the points in “Hi Ho Silver”, and would like to add to your hoard or begin hoarding some then get in touch:
1. Email: email@example.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
This Weeks Articles:
|What is Causing the Falling NZD Gold Price?|
Gold Survival Gold Article Updates: 06 March 2013 This Week: What is Causing the Falling NZ Dollar Gold Price? RBNZ: Making the NZ Banking Less âœSystemically Riskyâ Jim Sinclair: The Big Falls in Gold are in the Future Warning: Do You Have An Aussie Bank Account? Gold and Silver Price Action Given the big […]
|Hi Ho Silver: Making the Case for This Precious Metal|
There are many supply and demand reasons that can be used to make the case for purchasing silver bullion. Jeff Clark makes a point that is more psychological based upon a recent interaction with a nurse. He makes a good point as to why buying âœpoor mans goldâ at these current levels will pay off in the […]
|Here’s Why Not to Believe the NZ Government’s Inflation Statistics|
House prices double every ten yearsâ, the old adage goes. So why is this? Well, we reckon the following chart pretty much answers the question. Source: tradingeconomics.com The chart is taken from a very intersting website called tradingeconomics.com. They have all sorts of data from just about any country on the planet. Inflation, GDP, Debt. […]
|The Coming Crash in the Bond Market|
Bud Conrad makes a good case as to why the global bond market may be close to exploding. With global interest rates at 50 year lows and debt at record highs it makes sense that it is only a matter of time before higher interest rates. However we have to temper these logical thoughts based […]
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.