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 & Silver Prices in

Gold and silver off to the races?

IMG Auteur
 
Published : August 27th, 2012
388 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

Gold and silver prices posted very strong finishes to the end of last week, and look like they could at long last be at the start of a significant trending move higher. Gold gained 3.46% over the week, with silver recording an impressive 8.98% weekly gain. The white metal has broken above an important resistance level at $30, and judging from the price action this morning looks like it could launch a quick assault on $32.50 – a level that marked stubborn resistance for much of the first half of this year.

Over at KingWorldNews, commodity guru Dan Norcini notes the rash of short covering that took place in the silver market last week. He points to $35-$35.50 as the last “line in the sand” for these speculative shorts, and thinks that we could see a huge new influx of money on the long side of the market if this price level is bested. $40 will then be in play again.

The story is similar in gold. If the yellow metal rises above $1,700, we can expect to see speculators dashing to cover their short positions. Aside from the increasing likelihood that the Federal Reserve is getting ready to launch another money printing scheme within the next few weeks, gold bugs have also been encouraged by chatter about the Republican National Convention (due to meet in Tampa this week, barring problems with hurricanes) including a plank in the convention platform calling for a “gold commission” to study the feasibility of relinking the US dollar to gold.

Of course, a similar congressional commission was convened in the early 1980s, and to nobody’s great surprise endorsed the (non gold standard) status quo. Given the restraints that a genuine gold-dollar link would impose on federal spending, it is in fact almost inconceivable to imagine Washington voluntarily agreeing to return to a gold standard. But even accounting for these caveats and the fact that this latest idea probably owes more to Romney-Ryan trying to secure votes from Ron Paul supporters (many of whom will be tempted to stay at home on election day), it is at least encouraging to see gold once again becoming a mainstream discussion point.

Less encouraging are the continuing misconceptions fostered by lazy and/or ignorant journalists about gold’s use as money. But that’s a discussion for another article.

 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Libertarian Paradox
24 Sepsam_site
As your article suggests, the state claims to insure an orderly environment so liberty can flourish. The reality is that the state promotes f...
The Truth About War and the State
24 Sepsam_site
Waugh Despite rigging as you say, Ron Paul couldn't even get eight states in 2012. He was too honest - with his "we can't afford the welfare a...
John Maynard Keynes, Immoralist
23 Sepsam_site
Intense Article. Behind the scenes, a Globalist cabal requires a champion like Keynes to legitimize the creation of fake money so the central...
What Gold and Silver Analysts Ov...
19 SepS W.
Well here it is 12 years on and never a truer article has been written. Gold is money and every thing else is "toilet paper" .. to paraphr...
Allegations of Fraud Surface Ove...
18 Sepkevthorne
Excellent article, Mish - it's about time this was highlighted - it is happening all the time here in the UK, with insurance companies, 'phone comp...
Ken Rogoff’s Government Debt Def...
18 SepDRGEORGE1
I thought James Grant's dismissal of this dangerous piece of propaganda was good but yours, Peter, was even better. Please, everyone, who reads and...
Allegations of Fraud Surface Ove...
17 SepGoldGrl0
Mish, you should stick to finance. Publishing unsupported attack rumors won't hurt H, but will hurt your reputation.
The Truth About War and the State
17 Sepkev43211
We will never get anywhere with this characterization of the state. The state is not some malevolent monster always seeking war. However, the sta...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS