Prices and Charts
Gold Hovering Near All-Time Highs in USD and NZD
Gold in NZ dollars was up $32 from 7 days ago to $4893. It continues to consolidate between $4800 and $4900, just down from the all-time high from earlier this month. The blue uptrend line now coincides with the 50-day moving average. So buying on any dip down near there should hold you in good stead in the long term.
While in US dollars gold was up $17 to $2766. It broke above the blue downtrend line, before turning down from the $2800 overhead resistance line and all-time high. Today it is rising up off the downtrend line again. So can it now break that line and set a new all-time high in USD terms?
Silver Back to Uptrend Line – Buying Zone
Meanwhile NZD silver is down from last week. Dropping 69 cents to $53.95, it continues to hover around the 50-day MA. This still looks like a very good buying zone, as it coincides with the green uptrend line, which has been a good place to buy throughout the last year.
While USD silver is down 40 cents to $30.50, just above the 200-day moving average. This zone has been a great place to buy too. Especially if silver is close to breaking higher as we think it might be.
Kiwi Dollar Steady at 0.5553
The Kiwi dollar was down just 2 basis points from a week ago to 0.5653. It has bounced up after briefly touching 0.5500 for a double bottom. In the longer term, we’d expect to see the USD weaken versus the Kiwi – but then again we have been expecting that for a long while now!
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:
Continues below
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Should You Pay Off Debt or Buy Gold and Silver? Key Factors to Consider
In this week’s feature article, we consider the dilemma many face: Should you pay down debt or invest in precious metals? We discuss factors to consider, such as:
- interest rates on existing debt,
- potential returns from gold and silver investments,
- and individual financial situations.
The article emphasizes the importance of balancing debt reduction with investment in assets like gold and silver, which can serve as a hedge against economic uncertainty.
Understanding these factors will help you make informed decisions that align with your financial goals.
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Interested? Contact us today to learn more!
Gold’s Breakout Moment: Are We Witnessing History in the Making?
It wasn’t just gold priced in NZ dollars that recently hit a new all-time high. Ronni Stoeferle’s chart below shows that compared to previous breakouts, gold is likely only just getting started.
“Gold has recently set new all-time highs in several currencies, and this chart reveals why this could be only the beginning.
Looking at historical analogs of major gold breakouts (1972, 1978, 2007, average), 2024 could mark the start of a multi-year rally with extraordinary potential.
Could this be the era where gold crosses $10,000 per ounce? The parallels with the past are too strong to ignore, and the implications for investors are profound. At In Gold We Trust Report , we’ve been analyzing these trends closely, and this chart underscores the opportunity ahead.”
Source
Don’t Expect Large Lows in Gold Price Declines
Technical analyst Graddhy also believes we are only 2.5 years into an 8-year upcycle in gold. He also points out that this means we shouldn’t expect very low lows during any pullbacks:
One can not play a bull very well without believing in it. One can not make use of a bull with a bearish mindset. If you constantly doubt the bull, you will not be able to change mindset. You have to believe in the bull or you end up being a victim of the wall of worry.
Gold had the 8 year cycle low back in 2022 (which I called in real-time), and broke out of a 13-year bullish pattern a year ago (which I posted on when it happened). Means gold is only 2.5 year into this 8 year cycle, and that it broke out of a 13-year pattern base a year ago.
With a bull market backdrop like that, then do not listen to the ones calling for outrageously low numbers during the declines, since gold is now in a resumed, raging bull market.
Source.
USA: Highest Debt Service Ratio
There have been many announcements since Trump was inaugurated. One of them is that he will demand interest rates drop immediately. Tavi Costa points out again that the US debt levels mean they won’t have any choice but to artificially lower short-term interest rates.
“Reminder:
The US economy currently bears the highest debt service ratio among the world’s largest economies.
Reducing interest rates remains the most efficient and immediate way for the government to reduce fiscal expenditures.
This approach comes with a cost—one that Trump often perceives as a benefit: a weaker US dollar.”
Source.
However as one insightful commenter noted. “Reducing interest rates also comes with inflation.”
Nick Giambruno: Currency Debasement Not US Government Cuts
The alternative to lowering interest rates and weakening the dollar is to drastically cut spending. Much like Argentina has done. However, Nick Giambruno via International Man points out why this will likely be much harder to do in the USA:
“In other words, the US would need a leader who—at a minimum—returns the federal government to a limited Constitutional Republic, closes the 128 military bases abroad, ends entitlements, kills the welfare state, and repays a large portion of the national debt.
However, that’s a completely unrealistic fantasy. It would be foolish to bet on that happening.
That’s why Elon Musk and DOGE are being set up for failure.
The Bottom Line
The government cannot even slow the spending growth rate, let alone cut it.
Expenditures have nowhere to go but up—way up.
The most likely outcome is that the US will try to have its cake and eat it too by paying for both growing defense and domestic obligations via currency debasement.
That’s why I’m confident that ever-increasing currency debasement is the inevitable outcome of the US government’s debt spiral.
It’s a self-perpetuating doom loop from which they cannot escape.
It’s like being on a runaway train with no brakes.
I suspect 2025 will be the year this becomes evident as previous mainstream conceptions about the national debt collapse.
“We owe it to ourselves.”
“Deficits don’t matter.”
“Treasuries are risk-free return.”
“The national debt is sustainable as long as we can print money.”
“The US will never default.”
These have long been ridiculous tropes that many investors believed.
2025 could be the year the people who believe this nonsense receive a harsh reality check.
As this trend unfolds, I expect the rate of debasement will far exceed the nominal yield that Treasuries and most other bonds will offer.
That means people will look for alternatives to park their savings to preserve their purchasing power.
Instead of parking their savings in Treasuries, I believe people, companies, and countries will increasingly park their savings in gold. It’s already happening in a big way.
While this megatrend is already well underway, I believe the most significant gains in precious metals are still ahead.”
Source
China Continues Making Covert Gold Purchases in London
Jan Nieuwenhuijs outlines how China is one of those continuing to “park their savings in gold”. He highlights China’s most recent import numbers on gold by the tonne. China is buying more than it is declaring… using a backdoor through London (which is currently hemorrhaging gold at an unprecedented rate).
SCOOP: China Continues Making Covert Gold Purchases in London
“By now we know from U.K. customs (HMRC) that it was 50 tonnes, bringing total exports to China since 2022 to 1,050 tonnes. Over this period, China’s monetary authority has bought at least three times as much gold than formally reported.
I was able to foresee strong buying because Chinese customs (GACPRC) is quicker to release its statistics than HMRC. For November – when the SGE was still trading at a discount – China’s gross import accounted for 124 tonnes.
Nations don’t import 124 tonnes when demand is subdued. And again, the majority of this gold was imported into the Beijing region where the central bank vaults are located.
All signals flash PBoC buying.
China, as well as Saudi Arabia, are obviously preparing for a multipolar world in which the dollar’s role as a reserve asset will be gently reduced.
Gold’s hedging benefits against geopolitical shocks, and fears of a debt spiral and yield curve control will keep central bank gold demand in the East structurally higher. (Eastern central banks own a lot less monetary gold relative to their Western counterparts.)
There is no indication the PBoC has bought any [BTC].”
Source Or alternatively on Seeking Alpha.
So perhaps consider “parking your savings” in gold (and silver) too.
Please get in contact for a gold or silver quote, or if you have any questions:
- Email: orders@goldsurvivalguide.co.nz
- Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
- or Shop Online with indicative pricing
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