Precious Metals

April 10 2013 8:17 AM

The recent rally in the US$ was more a product of the fall in other currencies than a strengthening of the dollar. In particular we have seen the British Pound fall dramatically in the first two months of this year and this was followed by the Japanese Yen which tumbled recently on the inflationary actions introduced by the Bank of Japan. The value of a position in the precious metals sector would have increased for those living in the UK or Japan, but for investors living in the United States the strength of the dollar has eroded the value of their holdings in the gold and silver space.

April 03 2013 9:31 AM

Today's AM fix was USD 1,568.50, EUR 1,222.81 and GBP 1,038.40 per ounce. Tuesday's AM fix was USD 1,597.75, EUR 1,244.64 and GBP 1,051.64 per ounce. Gold fell $23 or 1.45% yesterday while silver fell 76 cents or 2.7%.

April 01 2013 7:58 AM

When we discuss gold stocks we often refer to gold and silver stocks. Today we take a look at the silver stocks specifically. Below is a chart of our partially weighted producers index which contains 14 of the largest silver producers. We didn’t cherry pick the 14. We went down the list and that includes a handful of companies which have really struggled in recent years. Anyway, the 56% in the current cyclical bear is well in line with history. Previous downturns have been 51% and 49% and then 85% from 2007-2008.

March 22 2013 7:42 AM

Our title seems obvious. We all know that the US$ tends to be negatively correlated with commodity prices. This is true in the short-term but not always so over the long-term. The US$ index is currently nearing 83. It’s at the same level it was in 2007 when Gold was trading in the $600s and the CCI (currently 554) was trading near 400. The US$ index is near the same level it was at the end of 2005 when Gold was trading below $400 and the CCI was trading below 300. This tells us that the bull market in precious and hard assets goes way beyond simple US$ weakness. It is driven by long-term supply and demand dynamics as well as rampant monetary inflation from global parties and not just the USA. Throughout this bull market, key advances and turning points have originated from strength against foreign currencies and then sustained strength amid textbook US$ weakness.

March 21 2013 7:52 AM

As the chart shows silver prices have been trading in a range of approximately $35.00 to the high side and $27.50 at the lower end for over a year now. The oscillations appear to be a lot less volatile of late which is surprising given the financial turmoil in Cyprus. Usually when there is uncertainty in the financial markets gold and silver are seen as safe havens and experience some upward price pressure.

March 18 2013 8:51 AM

Gold was marginally higher yesterday and silver marginally lower. Gold rose just 20 cents and closed at $1,588.50/oz. Silver fell 15 cents to close at $28.75/oz. Silver is trading at $28.80/oz, €22.40/oz and £19.20/oz. Platinum rose to $1,587.25/oz, palladium to $771.00/oz and rhodium stayed at $1,250/oz.

March 13 2013 8:53 AM

With silver prices off 10% in the last 30 days, it’s hard to believe there is a growing silver shortage. I liken it to crossing the desert with a canteen full of water. As long as there is at least one drink of water left in the canteen, there is no shortage. And then with the last drink, as you attempt to shake out the last drop, you realize your canteen is empty. But, even then you don’t totally believe it. As thirst sets in you desperately try one more time to pour out any remaining drops. Then, it hits you. Ahh Nuts!

March 12 2013 11:14 AM

On Monday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, increased $1.10 to close at $1,578 per ounce, while silver (NYSEARCA:SLV) futures for May fell 10 cents to finish at $28.85. Both precious metals were relatively quiet, as speculation continues to build on how the Federal Reserve will conduct an exit strategy, if ever. The central bank’s balance sheet has exploded to more than $3 trillion. On a recent trip to Capitol Hill, Fed Chairman Ben Bernanke claimed a review of an exit strategy will be done “sometime soon.”

March 08 2013 9:39 AM

Gold appears to be consolidating just below the $1,600/oz level. It is 0.3% higher in dollar terms for the week, 0.4% higher in pound terms and 2.3% higher against the yen which has fallen sharply this week.