First up in case you missed our email earlier this week…
With record low interest rates generating a yield today is really tough.
We’ve convinced a past client of ours who is a full time forex trader and also a forex trading coach to come along to a webinar and share some of his 12 years worth of knowledge.
In this webinar you will get information on technical analysis for beginners that can be used in the gold and silver futures markets. So you can increase your potential profit when timing purchases of physical gold and silver.
Come along and you can also learn about how to generate an ongoing income via foreign currency trading strategies as well as via gold and silver futures. So you can spend more time doing what you enjoy with your family and friends, and less time working.
He’s not one of the guys you hear advertising on the radio from Australia or the US. He’s an ex-dairy farmer based right here in Hamilton, New Zealand.
You’ll hear him present in a laid back, low pressure and no hype style, from a Kiwi point of view.
You won’t hear promises of get rich quick or make millions in just 10 minutes a day. You will learn how to make a steady profit over many years regardless of market conditions.
We’re hoping to have a recording of the event to share later. So even if you can’t make it live we encourage you to sign up to be sure you don’t miss it.
We look forward to seeing you there.
Now we return to our usual broadcast…
|Spot Price Today / oz||Weekly Change ($)||Weekly Change (%)|
|NZD Gold||$1808.98||– $9.96||– 0.54%|
|USD Gold||$1345.70||+ $29.52||+ 2.24%|
|NZD Silver||$26.64||+ $0.80||+ 3.09%|
|USD Silver||$19.82||+ $1.12||+ 5.98%|
|NZD/USD||0.7439||+ 0.0203||+ 2.80%|
|Looking to sell your gold and silver?|
|Buying Back 1oz NZ Gold 9999 Purity||$1738|
|Buying Back 1kg NZ Silver 999 Purity||$816|
The realisation that the US Fed is yet again unlikely to raise interest rates in the short term seems to have set in this week. The US Dollar has been falling and so gold and silver have risen, but so has the kiwi dollar.
The upshot is gold in NZ dollars is down slightly on a week ago. But perhaps more importantly NZD gold actually bounced off the 200 day moving average line.
As noted in the chart below NZD gold could still head lower again and test the horizontal support level at $1775. But since early January it has managed to stay above the 200 day MA apart from 2 intraday blips.
So anything close to the $1800 mark could well prove a good entry point.
Silver too bounced higher this week. Even the stronger NZ Dollar couldn’t dent the sharpness of the rise.
NZD silver touched the rising trendline overnight and has turned lower. So any purchase around the $25.50 to $26.00 mark could be a good buying zone.
As noted the NZ dollar strengthened sharply this week. It is now above 0.74 and at a new high. But it is now close to getting overbought and outside the Bollinger Bands so a pull back is likely.
So it we may see the continuing trend of this year. Which is rising gold and silver prices, but slightly dulled by an also rising NZ dollar.
The strange dichotomy in the precious metals markets continues. That is where demand doesn’t necessarily correlate with price.
During the multi year correction we’ve had, there were times of intense demand for physical metal, but the price continued to fall. Conversely currently we are seeing a drop off in demand in the 2 biggest markets in the world – China and India – yet prices have been rising.
Adrian Ash of Bullionvault explains why:
This sentiment from Adrian Ash is echoed in an article on the website from Stewart Thomson.
Thomson also argues that because of this a big spike in the gold price up or down is not likely in the short to medium term.
Earlier this year we wrote a couple of articles on our theories on the state of house prices in New Zealand. See:
Seems our “crazy” house prices are not going unnoticed by our neighbours across the ditch. Port Phillip Publishings Kris Sayce wrote about Auckland house prices on Tuesday and has a theory similar to ours:
Bill Bonner had a few thoughts on US interest rates this week after Yellen’s speech at the recent central banker gathering in Jackson Hole:
“Yellen said the case for raising rates had “strengthened in recent months.” She cited the “continued solid performance of the labor market” as a reason for optimism. She didn’t mention that the “labor market picture” she’s looking at – based on the government’s own figures – are heavily photoshopped, screening out the long-term unemployed and adding in fictitious jobs based on various theories and models.
And what happens to those nice (though largely fictitious) jobs numbers after you raise rates?
Isn’t that the real problem?
Having created a world where businesses and consumers barely have their heads above water… even with the EZ-iest borrowing costs in history, what will happen to them when rates rise?
She certainly wasn’t going to bring that up!”
At some point rates will rise. Likely when pretty much no expects it’s even possible. In terms of US treasury Bonds we may even be in the early stages of such a rise now.
The chart below shows US 30 Year Treasury Bond yields appear to have bottomed out back in July.
Rising interest rates will likely come hand in hand with rising inflation. Something else that most people probably don’t have on their horizon currently either.
But the world’s largest money manager does…
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Kris Sayce notes via a Bloomberg report:
This morning we read something else that backs up the CIO of BlackRock’s theory on inflation.
In the latest monthly report from trading teacher Van Tharp, his inflation-deflation model indicates that a trend of rising inflation might be beginning:
A reminder that even though the talk always reverts to how gold will be hit when the Fed raises interest rates, the exact opposite happened with the first tiny rate rise late last year. This kicked off a corresponding rise in gold and silver.
Here’s an article that delves into the reasons why gold will actually rise when interest rates rise. Much like it did in the 1970’s.
There’s a lot going on in the next month or so with respect to the international monetary system. Jim Rickards gave a good summary of the action to come.
If you agree with Rickards advice that the time to start preparing is now, then get in touch for a quote.
If you’d like to hear more on the SDR we’ve posted a video from Max Keiser where he and Stacy Herbert discuss this new m-SDR and cover Rickards theory too.
Lastly, don’t forget to check out the other articles posted on the site this week linked below.
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Thu, 8 Sep 2016 10:31 AM NZST
Last week as part of an article we discussed Jim Rickards theory as to how the changes to the global monetary system may play out. This week Stacy Herbert and Max Keiser discussed the recent issuance of IMF Special Drawing Right (SDR) bonds for the first time in 35 years sold to Chinese Investors. They […]
Wed, 7 Sep 2016 2:54 PM NZST
It’s not just a huge overhang of debt, a lack of confidence, or a bank run that poses a risk to the banking system. Read on to discover what perhaps the biggest ongoing threat is to the banking system… The Biggest Threat to the Banking System Is “Here to Stay” By Justin Spittler The banking […]
Wed, 7 Sep 2016 12:41 PM NZST
Stewart Thomson was on the ball with his recent call that gold could likely find a bottom following the latest US jobs numbers announcement. That is exactly what happened with gold bouncing higher from just above US$1300 last week. So let’s check back in on what his latest thoughts are. He has some interesting thoughts on […]
Wed, 7 Sep 2016 9:43 AM NZST
How do you know that the world financial system has gone completely screwy? How about when an investing system that has provided safe steady returns for 29 years is now proving to be very risky and likely to get even riskier if the central planners and busy-bodies have their way. The following article outlines how […]
Thu, 1 Sep 2016 6:18 PM NZST
This Week: What “unconventional monetary policy” may look like in New Zealand How Will the Global Monetary System Change Take Place? The Night That Is Upon Us and the Dawn of a New Era Dollar – The Greatest Pyramid Scheme Of All Time Prices and Charts Spot Price Today / oz Weekly Change ($) Weekly […]
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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.
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