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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.
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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
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