The Precious Metals Correction Finally Arrives! Gold and Silver Down Sharply

Late Update – RBNZ Increases QE to $100 Billion

As we were about to hit send breaking news that the RBNZ just increased its currency printing from $60 billion to $100 billion. And extended the duration out to 2022. RBNZ says a package of additional monetary instruments, including possibly a negative Official Cash Rate ‘must remain in active preparation’ The Reserve Bank has again put the foot on the accelerator with its quantitative easing programme, increasing it to $100 billion from $60 billion – although it has also increased the duration of the programme by another 12 months. However, it has also indicated it is likely to “front load” its purchase of assets as the market for bonds is now bigger and central bank purchases would be able to absorb a bigger share now of the bonds without affecting market functioning. Additionally, the RBNZ appears to be opening the door ever wider for the prospect of a negative Official Cash Rate. Capital Economics Australia and New Zealand economist Ben Udy said the RBNZ had “sent its clearest message yet” that negative rates are coming. “We still expect the Bank to wait until next year before bringing the OCR into negative territory, though the risk now is that the Bank moves sooner rather than later.”

Prices and Charts

Change from last weeks gold and silver prices

Looking to sell your gold and silver? Visit this page for more information
Buying Back 1oz NZ Gold 9999 Purity $2792
Buying Back 1kg NZ Silver 999 Purity $1180

The Correction Finally Arrives!

The correction for which we have been preparing has finally arrived today. Gold is down around 5% from yesterday. Although compared to a week ago, NZD gold is down only about 4%. Having got as high as $3150 during the week, gold priced in New Zealand dollars is today sitting at $2920. The price has reached the first of the buy zones marked on our short term chart below. Now will it reach the next one is the bg question? We wouldn’t count on it. The RSI overbought oversold indicator is already back down to neutral territory. NZD gold is now sitting around the previous all time high from 2011. So this could be a decent support area. NZ Dollar Gold Chart We also wonder whether this 5th wave up could have further to run yet. The 5th wave up in elliott wave theory (if you follow such theories) could have room to run higher yet if this is just a short pause. How deep this correction will be is unknowable. So be careful about trying to pick the bottom. Consider breaking the amount you want to purchase into multiple tranches. Buy some now and keep some fund back in case of a deeper correction. NZ Dollar Gold Chart long temr

Silver Down 12% Overnight

Silver in New Zealand dollars is down 12% overnight. Whereas from last Wednesday silver is only down about half a percent. After reaching $45, as we suspected it might, NZD silver is down to $38 today. Retracing close to half the breakout move. NZ Dollar Silver Chart Like gold, silver is out of overbought territory already. So it’s an even bet whether we see lower prices yet, or whether silver starts moving higher again fairly soon. NZ Dollar Silver Chart LT

NZ Dollar Drifts Lower

The New Zealand dollar has taken a back seat to the movement in gold and silver this week. But the Kiwi is down close to one percent froma week ago. It could go lower yet too. As Roger J Kerr points out, August is never a happy month for the Kiwi dollar.
“The New Zealand dollar has depreciated in value during August in nine out of the past 10 years.”
NZ Dollar Chart

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:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below
—– OFFER FROM OUR SISTER COMPANY: Emergency Food NZ —–

NEW: Certified Organic Long Life Emergency Food

90 serve organic emergency food This easy to carry bucket has 90 servings of organic breakfasts and mains Free Shipping NZ Wide Get Peace of Mind For Your Family NOW….    —–

Question? If the US dollar Was to Crash How Do You Measure the Price of Silver and Gold?

The US dollar has been weakening in recent months against most other currencies. This has likely got people thinking about where this all ends? This week we answer a question from a reader, “if the US dollar was to crash how do you measure the price of silver and gold?” First we look at the 3 ways that a US dollar collapse could occur. Then we look at 7 scenarios that could play out in the aftermath…

If/When the US Dollar Collapses, What Will Gold be Priced in?

Gold Survival Guide Android App
Download on Google Play

Gold vs Collectibles: Should I Sell My Vintage Car and Buy Gold if Inflation is Coming?

Also another question answered this week: “Serious question related to future inflation. Let’s say you have a  collectible car from the 1968 era currently has seen massive inflation over 10 years.  Today would you hold or convert to PM? I’m confused and foggy on what will happen in nz will collectibles increase or decrease in fiat terms or will it depend on a multitude of drivers? We have seen inflation accelerating in very recent weeks in terms of food already what will be next. Any way what I’m really asking is, if you got a car worth 100k should I sell now? and get shinny  stuff. Not after advice I’m after an honest professional  opinion.” Obviously this is a question to which the answer may vary from person to person. But we have a crack at considering all the variables. Including:
  • Collectible Car vs Gold in Inflation
  • Collectible Car vs Gold in Deflation
  • Collectible Car vs Gold in Stagflation
  • Non-Monetary Benefits of a Collectible Car (and Gold)
  • How has the Collectible Car Performed Compared to Gold Over the Last 2 Decades?

Gold vs Collectibles: Should I Sell My Vintage Car and Buy Gold if Inflation is Coming?

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.
Win a silver coin

Gold – A Doubt Infested Bull Market

This week Dan Denning had some interesting thoughts on the gold market. Granted, this was before todays huge plunge lower in gold and silver. But we think he has the “feeling” about right.
“…there is still a lot of doubt [about a precious metals bull market], even from hardened gold bugs. Why? Because we’ve seen this script before. Just when all of our arguments about fiat money and government deficits and sound money seem to be coming true, the central bank pulls out another fake ace from its sleeve or some mysterious large sell order appears in the futures market to smash the price of gold down. What’s telling about the recent price action is that the four and five percent moves in the futures markets are to the upside. Since gold last peaked in 2011, big one-day moves have almost always been to the downside. The price action seems favourable as gold or silver reaches some technically significant point and then BAM! A big decline, often in the space of minutes. Is this time different? Another telling data point is that 3.27 million ounces of physical gold were delivered on the first day of August on COMEX. Traders seem to be taking physical possession of gold. The ‘paper’ gold market, where huge short positions have traditionally existed (often the bullion banks themselves) are getting squeezed. This could be another example of Thiers’ Law: good money drives out bad. When in doubt, take the gold. It’s good money. If the bears in the ‘paper’ gold market are under pressure, the upside for the gold price — in all currencies — could be much higher than anyone currently imagines. And I can imagine a LOT.”
We don’t know whether gold and silver will go much lower in this correction. We are much more confident that their prices in the long run will be, as Dan says, “much higher than anyone currently imagines”. So to repeat ourselves, consider breaking up any funds you want to hoard gold and silver with, into a number of tranches. Then split your purchases over the coming weeks or even months. Please get in touch if you have any questions about buying gold or silver.
  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Shop Online with indicative pricing

— Prepared for the unexpected? —

Here’s how to always have clean fresh drinking water on hand.

The Sport Berkey Water Filter Bottle – $69 Delivered

Ideal for travel. Driving, camping, backpacking.

Free Shipping NZ Wide. Berkey Sport Bottle

—–

This Weeks Articles:

Gold vs Collectibles: Should I Sell My Vintage Car and Buy Gold if Inflation is Coming?

Tue, 11 Aug 2020 3:33 PM NZST
This week an excellent question. Partly about inflation and partly about gold versus a collectible car. Question: “Serious question related to future inflation. Let’s say you have a  collectible car from the 1968 era currently has seen massive inflation over 10 years.  Today would you hold or convert to PM? I’m confused and foggy on […] The post Gold vs Collectibles: Should I Sell My Vintage Car and Buy Gold if Inflation is Coming? appeared first on Gold Survival Guide.
Read More…

If/When the US Dollar Collapses, What Will Gold be Priced in?

Tue, 11 Aug 2020 9:41 AM NZST
The US Dollar Index lost 7% in the past 3 months. As a result more people are thinking about a potential collapse of the US dollar. This week someone asked: “If the US dollar was to crash how do you measure the price of silver and gold?” We’ve had a very similar question previously too: […] The post If/When the US Dollar Collapses, What Will Gold be Priced in? appeared first on Gold Survival Guide.
Read More…

More All Time Highs: USD Gold Breaking $2000 – NZD Gold Over $3050

Wed, 5 Aug 2020 12:25 PM NZST
Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $2936 Buying Back 1kg NZ Silver 999 Purity $1232 Gold Breaks US$2000 and NZ$3050 This gold bull market looks serious. Gold doesn’t seem to be down for more than a day or […] The post More All Time Highs: USD Gold Breaking $2000 – NZD Gold Over $3050 appeared first on Gold Survival Guide.
Read More…

Is Inflation Coming? If So, What Kind?

Wed, 5 Aug 2020 11:02 AM NZST
Is Inflation Coming_ If So, What Kind_Is inflation coming? Central Banks the world over have engaged in massive amounts of currency printing in recent months as a response to government imposed lock downs. Surely this means inflation is inevitable? Here’s a few opinions on inflation that we’ve come across recently. Along with our thoughts on the matter at the end… Firstly […] The post Is Inflation Coming? If So, What Kind? appeared first on Gold Survival Guide.
Read More…
As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.
  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide Today’s Prices to Buy
1oz NZ 99.99% pure gold bar 1oz NZ Gold Ingot $2993
1kg ABC 99.9% pure silver bar 1 Kilo NZ Silver Bar $1315
Order Now Button
1kg “Scottsdale Gold” Bar 99.99% with unique serial number $96,628
1oz 2020 Royal Australian Mint 99.99% Gold Coin $3094 – Phone or email to order
1oz Canadian Gold Maple 99.99% pure gold coin (2020) Gold Maple $3076
1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins) Silver Monster Box Tube of 25 $N/A Box of 500 $n/a  (Fully insured and delivered)
Order Now Button

Note:
  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Plus we accept BTC, BCH, Visa and Mastercard
  • Note: For local gold and silver orders your funds are deposited into our suppliers bank account. We receive a finders fee direct from them. Pricing is as good or sometimes even better than if you went direct.
Order Now Button

Can’t Get Enough of Gold Survival Guide? If once a week isn’t enough sign up to get daily price alerts every weekday around 9am Click here for more info

We look forward to hearing from you soon. Have a golden week! David (and Glenn) GoldSurvivalGuide.co.nz Ph: 0800 888 465 From outside NZ: +64 9 281 3898 email: orders@goldsurvivalguide.co.nz
Follow us on Twitter Find us on Facebook

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.
Copyright © 2019 Gold Survival Guide. All Rights Reserved.

Get Free Gold & Silver Tips and Deals!

  • Get weekly news and tips on buying, storing, and selling gold and silver.
  • Be the first to know about limited quantity gold and silver deals.
  • Get our free 19 Nuggets on Buying Gold and Silver guide right away to help you become a bullion expert.
Email Address *
First Name
*Required Fields
Note: It is our responsibility to protect your privacy and we guarantee that your data will be completely confidential.

One thought on “The Precious Metals Correction Finally Arrives! Gold and Silver Down Sharply

  1. Pingback: A Warning If Waiting For a Bigger Correction - Gold Survival Guide

Leave a Reply

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

Want to Track Gold & Silver Prices Every Day?

Get a daily price alert every weekday.

 

Along with free charts and analysis of what the price may do.

Email Address *
First Name
*Required Fields

You have Successfully Subscribed!