– Report suggests the “selloff” in gold could already be over
– Unique new service offers option of stock dividends in physical gold
– RBNZ on Quantitative Easing in NZ
– 2012 – a year of opportunity so far
As we suggested last week after the 2nd sell off in gold and silver, these are the levels we like to buy at, because it’s when the Asia buyers like to as well. Well it seems there were either many who agreed or at least one big buyer who did. Eric Kings London Trader “insider” reported that there was a “very large sovereign order near the $1,680 area”. He then went on to say that as gold droped below this level over 40 tons of physical gold were bought! That’s some deep pockets!
And there were similar thoughts from Caesar Bryan of the Gabelli Gold Fund also at King World News.
Also following on from last week, Bloomberg is now on the case about the ISDA and Credit Default Swap’s. Pointing out that Banks shouldn’t be Judge and Jury on deciding on what is a credit default. No awards given for stating the obvious.
Significant news this week under the radar was a unique new service that could allow investors to receive stock dividends in physical gold.
One gold miner Gold Resource Corp has signed up already giving shareholders the option “to establish an “individual bullion account”, whereby cash dividends are converted into “Double Eagle” one ounce .999 fine gold and/or one ounce .999 fine silver rounds. GBI will facilitate the cash dividend to physical conversion, drawing gold and silver Gold Resource Corporation Double Eagles from the company’s minted physical treasury and distributing precious metals when directed by shareholders.”
A sign that gold is moving closer to a more widely accepted position in the financial system? Seems like it.
In short – he didn’t know! To be fair he didn’t think it would be warranted right now and the markets would be rather confused if NZ did engage in QE right now. Although he did state that they still had more tools in the chest with the OCR at 2.5% so they could cut further if needs be.
This got us thinking, – as we do a couple times a year! Things still seem relatively rosy here in NZ. Recent reports of a number of billionaires buying land and building houses here could perhaps indicate that they see NZ as a somewhat safer place to be than elsewhere in the western world?
But we think there is still plenty to be uncertain about in the future. All the talk from mainstream economists is of when the RBNZ will raise interest rates – theories seem to be possibly not until late this year or even next. Well, perhaps this is a contrarian signal that instead someway down the track they will lower them further? Not that we’re experts at picking interest rate moves but given that no ones discussing this, seems it could be a possibility.
We’ve written repeatedly about how the 200 day moving average has historically been a good low risk place to buy gold. Well, the chart below shows that so far 2012 has been a year of opportunity for NZ gold buyers. You can see the gold price has not strayed too far from the moving average red line. It’s dipped below it a few times but each time not as far as the last. It also hasn’t risen too far above the 200 day MA.
So two questions:
How much longer will this last? That really is the great unknown. History says not forever.
But the other question is have you made the most of the opportunity to date? So far in this bull market in gold these dips have usually not lasted very long.
As we write the gold spot price in NZD is at $2041 which is not too far off the lows of a couple of weeks ago. So the question to ask as per one of this weeks articles below is “Do I own enough gold and silver for what lies ahead?”
(As always links and intros to our articles for the week are at the end of this email. In particular we’d recommend you check out “Just what might future gold and silver volatility look like?” If you think prices have been volatile lately, this look at the past says you aint seen nothing yet!)
So if you don’t think you have enough gold and silver give us a call, email or live chat and we can discuss what products are available to you.
1. Email: firstname.lastname@example.org
2. Phone: 0800 888 GOLD ( 0800 888 465 )
Have a golden week!
Glenn (and David).
Gold Survival Guide
Just What Might Future Gold and Silver Volatility Look Like?
We’ve discussed in the past how gold and silver are likely to get more volatile as this current precious metals bull market gets more mature. We knew this had happened during the 1970′s market. However we hadn’t previously seen an actual detailed analysis of what these extremes in price variation looked like. So read on […] read more…
Time to Accumulate Gold and Silver
We’ve asked this question of ourselves in the past – “Do I own enough gold or silver for what lies ahead?” As they point out in the article below, Casey Research believes if you don’t have 10% of your investable assets in gold and silver you are under exposed. Another way to frame the […] read more…
Today’s previous article we just posted looked at loss of purchasing power by adjusting the US and Canadian dollars for inflation compared to gold adjusted for inflation. Well this article shows a different way of looking at share market returns. Rather than just adjusting share market returns for inflation – how about pricing them in […] read more…