Impacts of Lock Down on NZ bullion market

Impacts of The Lock Down. Volatility Continues. Physical Gold & Silver Shortage in NZ and Everywhere?  Here’s an update on what has been happening in the world of precious metals… If you usually get our daily price alert, sorry for the lack of alerts the past 2 days. It has been all hands on deck to try and work through the many quote requests and queries we have received in the past crazy week. We are still behind but will continue to work our way through them. So please bear with us if we haven’t responded to you yet. Impacts of the Lock Down The lock down means our local gold and silver suppliers/refiners have to close their plants. They cannot cast any bullion or dispatch any orders. Rest assured that any product that has not been dispatched out to you, will remain safe in a secure vault and is fully insured during this period. There are also delays in offshore shipments coming into NZ due to the lack of planes in the air. Shipments are still coming however with delays. Thank you in advance for your understanding with this. The Royal Canadian Mint has shut so that will contribute to further delays on any products from there. 3 Suisse PAMP refineries on the Italian border have closed. So there will be unknown delays with PAMP products in the future too. Ongoing Trading We can continue to lock in trades with local suppliers during the close down. Albeit with some restrictions. There is an estimated 12+ week delay for delivery of local gold and silver on any trades made currently. Only 5kg per day per person of silver can be locked in. Gold has less restrictions. Prices continue to be hugely volatile. So it is proving difficult to lock orders in with suppliers. So please note your order isn’t confirmed until you receive a pro-forma invoice from us with the supplier details. Note: There is wide disparity in various gold and silver spot price feeds currently. So the NZ Dollar price feed on our website is resulting in lower prices than set by suppliers as we write.

Call David on 0800 888 465 to discuss your silver and gold requirements.
Buying Back 1oz NZ Gold 9999 Purity $n/a
Buying Back 1kg NZ Silver 999 Purity $n/a
Offshore Gold and Silver Commentary:
Since our last email on Friday, in the offshore markets, gold in US dollars rallied around $195 to $1656.16 per ounce. Silver gained around $2.56 cents to $14.73 per ounce.
Short Term Gold Chart in US Dollars
USD gold has surged higher the past 2 days. Now back close to the highs from earlier this month. Once again well above the 50 day and 200 day moving average. $1450 was a 50% retracement of the rise from late 2018. So the lows may now be in for gold.        
Short Term Silver Chart in US Dollars
Silver in US dollars has actually out-performed gold over the past couple of days. Moving up above $15 as we type. Silver has regained a good chunk of the massive fall from last week. We’ve been saying, silver looks to be following a very similar pattern to the 2008 crash. Where it followed sharemarkets lower and also fell more than gold. However, back then like gold, silver bounced back hugely. Also faster than the share markets did. That looks like it might be happening already. if that is the case it would be much faster than in 2008. As stated above the difficulty is that the lock down means physical silver is not currently available for pick up or delivery. But we can still lock prices in for later delivery.     
Gold and Silver Commentary in NZ Dollars:
Here in NZ the kiwi dollar is higher at 0.5808. Got as low as 0.55 in recent days (although not shown on the chart below). Now well below the support line at 0.6000. There is not much support now until the 2008 lows just below 0.50! Could we be headed there in the not too distant future? Since Friday, NZD gold has rallied around $259 to $2851.66 per ounce, while silver gained around $121 to $815.32 per kilo, or in ounces up $3.77 to $25.36. Late update – silver is now at $26.53.    
Short Term Gold Chart in NZ Dollars
Gold in NZ dollars has jumped massively in recent days. The recent fall took gold down to the 50% and 38.2% fibonacci levels. As suspected that is all the fall we have seen before this bounce back. Gold is holding up much better than just about every other market. Any pull back looks like being a definite “buy the dip” opportunity. If 2008 is anything to go buy, even if gold did go lower, it will likely only be for a short period of time, before bouncing back strongly. We may have seen all the correction we are going to.     
Long Term Gold Chart in NZ Dollars
NZ Dollar gold pulled back – but not for long. Now breaking clearly higher than the long term uptrend line. What we had been saying has proven to be the case…  consider layering in from here, in case we don’t see much more of a correction.
Short Term Silver Chart in NZ Dollars
Silver in NZ dollars bouncing back massively today. As we type it has now risen above $26. That means NZD silver has already regained all the losses of last week. We’ve been saying, this reminds us very much of 2008 when silver plunged before rising sharply in the following years. But this has all happened in only a week!
Long Term Silver Chart in NZ Dollars
After the strong moves higher in the third quarter of 2019, and the ensuing correction, NZ silver had been rising since December.
Recently plunged right back down to the long term uptrend line from way back in 2008.
But now shooting higher to get back to recent price levels.
Silver to Gold Ratio
The silver to gold ratio (how many ounces of silver to buy an ounce of gold) is down sharply to 106 as we type. Silver is still incredibly cheap compared to gold today. We’ve been saying, if we use use the 2008 crash as our guide, silver will likely rebound faster than gold at some point. Perhaps that is starting now?     

1 thoughts on “Impacts of Lock Down on NZ bullion market

  1. Pingback: Update on Bullion in New Zealand Post Lock Down - Gold Survival Guide

Leave a Reply

Your email address will not be published. Required fields are marked *