Better late than never! Sorry for the delay…
3 weeks ago we mentioned a significant technical indicator was about to occur in both gold and silver in New Zealand dollars.
This was that the 50 day moving average (MA) was about to turn up and cross over the 200 day MA. This is known as the “Golden Cross” and it occurred in NZD gold at the end of September and for NZD silver in early October. We’ve marked it in both charts below with a green circle.
This is significant as it is usually an indicator of a change in trend back to a longer term bullish rise. As we said a few weeks ago when this last happened in late 2009 it preceded 2 years worth of rising prices in gold and 18 months in silver. So while we can’t guarantee it, it does bode well for higher prices in the long run for both metals in NZ dollar terms.
As we’ve said before in the manipulated world we live in, with the price of money (interests rates) manipulated super low, forcing people into buying, technical analysis is of only so much use, but combined with looking at the fundamentals can still help with picking decent entry points.
Both metals are slightly down on their recent highs today. Gold in NZD is trading in what appears to be a rising channel, having bounced off overhead resistance last week.
Silver too is also backing off it’s overhead resistance line.
Interestingly both metals are also no longer in overbought territory on the daily charts (see the RSI at the top of the charts is now back down in the 50’s for both gold and silver). While many have been expecting a decent fall this lowering of the overbought indicator has instead come about by both metals pretty much trading sideways.
So seems they might be building a good base for the next move.
While on the topic of moves, how much have the metals moved so far this year?
While it may seem that gold and silver haven’t done much so far for 2012 they’re both actually up significantly in kiwi dollar terms.
For the first 3 quarters of the year through to end of September gold is up 5.85% and silver in New Zealand dollars is up 16.42%. So if they close the year anywhere near where they are now that will be a pretty positive year for both metals.
You’ve no doubt heard the Greens policy announced this week that the Reserve Bank of New Zealand (RBNZ) should print money to buy $2 billion dollars worth of Canterbury reconstruction bonds and overseas assets.
Well we jotted down our thoughts on the proposal earlier today in our feature article for the week. One of our main points – sorry Russell but there’s no such thing as a little bit of money printing! Why the Greens Are Wrong About Money Printing
Last week we wrote about all the reasons we could come up with as to why to buy silver. The following article goes into detail as to the industrial uses for silver and in particular the growing demands for solar power… The Solar Silver Thrust
As you could see in the kiwi dollar gold and silver charts above there is a real battle going at certain price levels. Darryl Schoon writes how the gold price of US$1900 is being defended just like the US$1000 price was in 2008-2009 in… Crossing the Line in The Sand
Speaking of Mexican billionaires, (we mention Hugo Salinas Price in Our Greens and Money Printing article linked above) they seem to know a thing or 2 about gold compared to western billionaires like Warren Buffett and Bill Gates. You may recall Buffett and Gates have been very negative on gold in recent months. Well, a company owned by the worlds richest man Carlos Slim todayannounced they have bought a mine off a company called AuRico Gold who we’ve kept an eye on of late.
Slim made his money in Telecommunication but Minera Frisco was spun off from his main holding company a while back and invests in gold, silver and minerals now. Maybe Mr Slim sees trouble ahead due the money printing policies globally? When you have billions it’s hard to buy gold and silver bars in size (we imagine anyway – what a good problem to have!), so the next best thing is probably to own it in the ground.
If you’re worried about how all this extra paper and digital money flooding the world will affect you and your families purchasing power, and you want “hard assets” like Carlos Slim, then get in touch and we’ll “hook you up” with some shiny metal.
1. Email: firstname.lastname@example.org
2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
3. or Online order form with indicative pricing
Have a golden Week!
This Weeks Articles:
Winston Peters – Let’s Join the Currency Wars
This week: There’s a Battle in Silver Going On Why Buy Silver? Winston Peters – Let’s Join the Currency Wars RBNZ Chiefs Parting Comments: High Bank Profits Price We Pay for Stability A Visual Reason to Buy Gold There’s a Battle in Silver Going On Swords have been clashing over the past week. In the […] read more…
CROSSING THE LINE IN THE SAND
Darryl Schoon compares the action of gold at $1900 now to 2008-09 when it was $1000 that was being defended. He argues that $1900 will also fall before too long just like $1000 did… The bankers have drawn a line in the sand at $1900 for gold. The sand, however, is far more important than […] read more…
The Solar Silver Thrust
Last week we discussed the many and varied reasons to buy silver. A significant point was that of silvers growing industrial demands. We only devoted a couple of paragraphs to the 10,000 uses of silver, but this article delves deeper into one of its major industrial uses – that of solar energy production. Along with […] read more…
Why the Greens Are Wrong About Money Printing
Everyone Else is Printing Why Shouldn’t We? You’ve no doubt heard the Greens theory announced this week that the Reserve Bank of New Zealand (RBNZ) should print money to buy $2 billion dollars worth of Canterbury reconstruction bonds and overseas assets. Their theory being we will restock the Governments Disaster Fund and lower the NZD […] read more…
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.