Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Gold Reaches $1,913.50 – Smart Money Moving into Silver as UBS Says $50 Silver in 3 Months

IMG Auteur
Published : August 23rd, 2011
634 words - Reading time : 1 - 2 minutes
( 2 votes, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

All major currencies are higher against gold today including the US dollar, despite the dollar falling on international markets.


Gold reached new record nominal highs at $1,913.50/oz overnight and profit taking and traders nervous about potential margin increases have led to a 1% fall in dollar terms today. Gold has fallen by more in euro and sterling.



Cross Currency Table


Gold remains higher than at this time yesterday and is trading at 1,876.60 USD, 1,295.40 EUR, 1,135.40 GBP, 1,470.90 CHF and 143,670 JPY per ounce.


Gold’s London AM fix this morning was a new record nominal dollar high - 1,886.50 USD, 1,301.75 EUR, 1,138.64 GBP per ounce (from yesterday’s 1,877.75 USD, 1,303.17 EUR, 1,139.55 GBP per ounce).


Silver has also fallen after yesterdays and last week’s sharp rise. However smart, risk averse money sees silver bullion as a buying opportunity at these levels after the recent period of consolidation between $33/oz and $42/oz.



Silver  – 1 Year (Daily)


UBS have raised their 3 month forecast for silver sharply from $30/oz to $50/oz. They suggest that investors are too nervous to short gold and may prefer to buy silver instead.


Silver remains more than 16% below the record nominal high seen in late April 2011, and in January 1980. While gold at $1,888 is now 120% above its nominal 1980 high of $850/oz.


The inflation adjusted high for silver is over $130/oz and those who understand the fundamentals of the silver market are positioning themselves for the possibility of a move to these levels in the coming months.



Silver Adjusted for Inflation – Monthly (40 Years) - Bloomberg CPURNSA


The autumn months are traditionally the best months to own gold and silver.


Speculative fever in the silver futures market remains muted with COT data showing net longs well below the records seen in April.


Silver is volatile but in the current climate what isn’t? Recently, there has been huge volatility in currency and bond markets and entire equity indices have been as volatile as silver.


While silver is volatile, what makes silver valuable is the fact that like gold it has no counterparty liability or risk (with silver coins, bars or allocated storage) and therefore cannot go bankrupt unlike banks and sovereign governments.


Media coverage of silver remains minimal with big brother gold getting some of the limelight recently.


From a contrarian perspective silver remains massively under owned by investors and not known about – this is bullish.


Leveraged speculation of silver (futures, spread betting, CFDs) should be avoided in favour of physical bullion as volatility is likely to increase and even experienced speculators could incur brutal losses speculating with silver.


For the latest news and commentary on gold and financial markets please follow us on Twitter.


SILVER 
Silver is trading at $42.77/oz, €29.59/oz and £25.91/oz. 


PLATINUM GROUP METALS 
Platinum is trading at $1,887.50oz, palladium at $761/oz and rhodium at $1,800/oz. 


NEWS
(Bloomberg)  
Gold Declines From Record Above $1,910


(Bloomberg)  
Gold Tops $1,900 for First Time as Economic Concerns Lift Demand


(MarketWatch)
Gold futures move past $1,900 an ounce


(Reuters)
Gold tops $1,900/oz to new record on world economic woes


(Reuters)
Shanghai Gold Exchange lifts margins for gold forwards


BLOOMBERG WIRE
-- Gold Margins Assessed on Market Volatility, CME’s Hunnable Says
-- UBS Raises 3-Month Silver Forecast to $50 From $33 An Ounce
-- UBS Physical Gold Sales to India Yesterday Highest Since May 10 (Double the daily averagevolumes this year)
-- Economist Dennis Gartman Said He’s Reducing His Gold Position (Warned would go parabolic on Monday)


COMMENTARY
(Reuters)
How to get $12 billion of gold to Venezuela


(ZeroHedge)
S&P Board Fires CEO For Telling The Truth, To Be Replaced With COO Of Citibank


(GoldSeek)
The Neverending Story of a “Gold Bubble”


(Reuters)
Analysis: Gold shines as Swiss franc's haven appeal dims



Mark O’Byrne

 

Goldcore

 

 

Companies Mentionned : Metals X | Platinum Group Metals |
Data and Statistics for these countries : Venezuela | All
Gold and Silver Prices for these countries : Venezuela | All
<< Previous article
Rate : Average :5 (2 votes)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Royal Dutch Shell(Oil)RDSA.AS
Hull damage forces Shell Arctic support ship in for repairs
€UR 24.84-1.97%Trend Power :
Corporate news
Royal Dutch Shell(Oil)RDSA.AS
Oil & Gas Stock Roundup: BP Resolves GoM Claims for $18.7B, Shell OKs Appomattox Project - Analyst Blog
€UR 24.84-1.97%Trend Power :
Corporate news
NextEraNEE
FPL announces plans to move forward with next major investment in continued modernization of its power plant fleet, building on successful strategy of advancing affordable clean energy in Flori
US$ 102.88+2.41%Trend Power :
Corporate news
Scorpio GoldSGN.V
Scorpio Gold Reports Results from 2015 Exploration Drilling at the Bluelite North Target Area, Mineral Ridge Project, Nevada
CA$ 0.12-4.17%Trend Power :
Corporate news
Manas Resources(Au)MSR.AX
7 July - Board Changes
AU$ 0.01+0.00%Trend Power :
Corporate news
Excelsior MiningMIN.V
Excelsior Announces Updated Mineral Resource Estimate
CA$ 0.38-2.60%Trend Power :
Corporate news
Alcoa Inc.AA
With global economic policies hamstrung, investors turn to earnings
US$ 11.06+0.27%Trend Power :
Corporate news
Alcoa Inc.AA
July 7 Premarket Briefing: 10 Things You Should Know
US$ 11.06+0.27%Trend Power :
Corporate news
Alcoa Inc.AA
Why The Container Store and Alcoa need to beat earnings
US$ 11.06+0.27%Trend Power :
Corporate news
Anaconda Min.(Au)ANX.TO
Kevin Bullock Joins Board of Directors of Anaconda Mining
CA$ 0.05+0.00%Trend Power :
Nominations
Comments closed