Chart canGOLD   Chart canSILVER  
 
Food for thought
Time is more important (in markets), than price; when time is up, price will reverse
W. D. Gann  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1241.850.85
Silver 17.180.04
Platinum 1260.255.15
Palladium 768.002.70
WORLD MARKETS
DOWJONES 16461-154
NASDAQ 4383-37
NIKKEI 15196391
ASX 537361
CAC 40 410524
DAX 894053
HUI 185-6
XAU 76-3
CURRENCIES (€)
AUS $ 1.4424
CAN $ 1.4228
US $ 1.2642
GBP (£) 0.7879
Sw Fr 1.2062
YEN 135.4900
CURRENCIES ($)
AUS $ 1.1412
CAN $ 1.1252
Euro 0.7911
GBP (£) 0.6233
Sw Fr 0.9540
YEN 107.1790
RATIOS & INDEXES
Gold / Silver72.28
Gold / Oil15.22
Dowjones / Gold13.26
COMMODITIES
Copper 3.03-0.01
WTI Oil 81.58-0.38
Nat. Gas 3.69-0.02
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Gold signals trouble ahead
Published : May 22nd, 2012
330 words - Reading time : 0 - 1 minutes
( 2 votes, 4.5/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

Precious metals are still struggling to gain ground in the face of persistent fears about the eurozone and the threat of a 2008-style market meltdown. The CFTC’s latest Commitments of Traders Reports for the gold and silver futures market in America shows managed money (read: hedge funds, commodity trading advisors, etc) holding their largest short positions in these markets since September 2008. Is The Great Crash coming?

The GotGoldReport comments, however, that if recent history is any guide these large short positions are more often that not an indicator that we are getting close to a bottom, as the chart below suggests:


Gold remains trapped in a range between $1,550 and $1,600, after failing yesterday to settle above $1,600. Silver is holding above $28 just about, but it’s not going to take much in the way of selling to take the price down to just above $26 if we get more depressing economic news. The plunge in the newly issued Facebook shares is an apt metaphor for the broader malaise affecting markets at the moment.

Why, you may ask, are precious metals – and in particular, gold – not doing well in such an environment? Isn’t gold supposed to be a hedge against financial Armageddon?

As John Butler addresses in a new article at the Cobden Centre Blog, as far as financial regulators are concerned, it is not a safe haven asset. Crucially, it is not counted towards banks’ “Tier 1 capital” – those assets such as highly liquid government bonds that regulators deem the “safestinvestments. This means that when the going gets tough, banks are forced to sell gold, silver, and other liquid non-Tier 1 assets in order to raise Tier 1 capital.

Over longer periods of market strife however, this is negated by the fact that trust in financial assets is lost, meaning that precious metals increase in value relative to manypaperassets. But violent corrections are inevitable on the road to peak precious metal valuation.

 

 

Thanks to Goldmoney from www.goldmoney.com
Tweet
Rate :Average note :4.5 (2 votes)View Top rated
Previous article by
Goldmoney
All articles by
Goldmoney
Next article by
Goldmoney
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis
Most recent articles by Goldmoney
9/18/2014
12/12/2013
12/6/2013
11/15/2013
10/1/2013
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer