Prices and Charts
Massive 5% Rise in NZ Gold This Week
We won’t bother with much commentary this week. Instead simply check out our featured article just posted this afternoon for a full run down on the price and chart action.
As that says the big occurrence this week was the long awaited breakout in US dollar gold above $1400.
NZD gold continues to shoot higher. Read the post for what we think happens from here.
NZD silver also looks to have broken out of the multiyear down trend. Don’t let the USD gold title fool you. We cover silver in this week’s featured post too.
While the NZ dollar plays second fiddle to the goings on in gold. The Kiwi continues trading between 0.65 and 0.67.
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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USD Gold Breakout – Above $1400 at 6 Year High – What Happens Now?
Is this breakout a big deal?
After many false starts over the past few years, it looks like most people still think this is another one.
We’re not so sure though.
Read on to see:
- How It’s Not Just USD Gold Rising
- What Happens Now That Gold Has Broken Out?
- Will We See a Correction Soon?
- What This Contrarian Indicator Might Mean
- What About NZ Dollar Gold?
- Is Silver About to Play Catch Up?
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.
Gold Cycles vs Property Cycles: When Will Gold Reach Peak Valuation?
Now that gold has broken out of the long term sideways range, it’s timely look at what might happen in the long run. When will gold reach peak valuation?
We compare the current bull market to that of the 1970’s.
Then we compare this current gold cycle to that of property. Are they related?
Also what is the “Sovereign Default Cycle”? When is this likely to occur?
How does it align with the Property and Gold cycles?
There’s some really interesting congruences between all of these…
Late Update: The RBNZ Left the OCR at 1.5%. But Lower Rates Are Coming
From the RBNZ press release:
“The Official Cash Rate (OCR) remains at 1.5 percent. Given the weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives.
Domestic growth has slowed over the past year. While construction activity strengthened in the March 2019 quarter, growth in the services sector continued to slow. Softer house prices and subdued business sentiment continue to dampen domestic spending.
The global economic outlook has weakened, and downside risks related to trade activity have intensified. A number of central banks are easing their monetary policy settings to support demand. The weaker global economy is affecting New Zealand through a range of trade, financial, and confidence channels.
We expect low interest rates and increased government spending to support a lift in economic growth and employment. Inflation is expected to rise to the 2 percent mid-point of our target range, and employment to remain near its maximum sustainable level.
Given the downside risks around the employment and inflation outlook, a lower OCR may be needed.”
RBNZ Review Panel Asking For Public Input on Quantitative Easing
Last week we covered how the ANZ thinks there’s a “very real” chance monetary policy will run out of ammo:
Now this week a panel set up to review the Reserve Bank’s governing legislation wants broader public input on the decision-making around quantitative easing.
Source: RBNZ review seeks wider input on quantitative easing
This once crazy notion of money printing in New Zealand seems to be getting a lot more serious.
As part of this RBNZ review, the government has also indicated they will introduce a bank deposit protection scheme.
We’ve run out of time to comment much on that today. So we’ll have more on that next week. Such as whether it makes you bank savings any safer or not.
As we allude to in our feature article, silver remains our best buy currently.
Give us a call if you have any questions about silver.
- How quantitative easing (where the Reserve Bank would inject money by buying government bonds or other financial assets) should be conducted.
- Would the central bank need ministerial consent to buy assets beyond government debt, and;
- Are there other issues the group should consider?
- Email: email@example.com
- Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
- or Shop Online with indicative pricing
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