Direct line: 1300 987 995
Gold & Silver not the only losers today!
From an all time high of US$1,925 in September 2011 to a low of US$1,325 in April 2013, Gold has since range traded and has tested US$1,400 3 times in the last week.
While in the short term we may see continued volatility between US$1,375 and US$1,415 the longer it stays in this range the more sure we can be that we have seen the bottom of a long term correction and that the price of physical Gold and Silver will rise.
The following details the closing prices in the last 5 weeks:
|
Closing Prices last 5 weeks ($USD) |
Gold |
Silver |
|
Week ending 7th June |
$1,386 |
$22.60 |
|
Week ending 31st May |
$1,396 |
$22.57 |
|
Week ending 24th May |
$1,390 |
$22.38 |
|
Week ending 17th May |
$1,369 |
$22.52 |
| Week ending 10th May | $1,426 |
$23.37 |
Gold closed down on Friday 7th June to below US$1,400 on the back of a continued rally of the US$ and a surge in US equity markets.
There continues to be talk by the media and the self-fulfilling Investor experts that the US Fed will pull back on its Quantative Easing (or money prining of US$85 Billion a month) and once again they predict that the first sign a pull back will be announced at this month's meeting on the 18th June.
Perhaps all this has been factored in through recent declines and even if there is some indication of a pull back it won't happen over night.
The demand for Physical Gold remains strong!
The appetite for physical Gold by China and India, in particular continues. This is despite what may be a slight slow down in economic growth in China and an effort by the Reserve Bank of India to curb imports of precious metals through increased duties and import taxes.
In April, China imported 200 tonnes of Gold while India imported 142.5 tonnes. India increased this to 162 tonnes in May. Consider that last year the global production of Gold totaled 2,800 tonnes (or 233 tonnes a month on average), even if the demand from China and India reduce in coming months, the overall demand for physical metal will remain strong.
The Global Macro perspective:
Recently Europe has been somewhat quiet, but there continues to be a lack of any really positive economic news. We await the next crisis!
Some good indicators economically out of the US, but even if there is a pull back in 'money printing' it will likely be small and is unlikely to increase interest rates.
In the meantime the Reserve Bank of Australia's decision to hold interest rates at 2.75% (the lowest in 5 years) and recent average economic data has had a downward impact on the Aussie $. It is hard to see this changing in the short term at least.
Peter Degraaf is a stock and bullion trader with over 50 years investing experience, and he was quoted last week offering the following comment: "The longer the stand off between Central Banks adding to the money supply and the Gold price being suppressed by the Bullion Banks selling contracts that represent nothing but 'I-Owe-U's', the higher the price of physical Gold and Silver will ultimately rise'.
In summary, watch the trends in the weeks ahead and form a view as to whether now is the time to invest.
Why AusMint?
Please call us at anytime if you wish to discuss any topic or questions you may have.
Check out our Charts at www.ausmint.com
DISCLAIMER: Australia Mint Bullion & Coin does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles or market updates are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
