Thursday

GLD Equity: Bullion Correlation Strengthening



Marc Elliot of Investec Securities reports that 2013 will be another sideways for all gild equities. Elliot says that as GLD Prices move above $1,600 per ounce, a lot of correlation has appeared among the gold equities.

He says that usually when gold prices fall below $1,600 then there is an excessive margin squeeze on many producers. And these margins don’t open to reflect the movements in gold prices directly.

Currently, the price of gold is mercilessly dwindling because mining companies have not controlled their prices. If they demonstrate their dedication to lowering the mining costs without missing to plan on how not to miss their targets then a positive correlation in the price trend will be realized. Hence, gold companies will fare well if at all the gold prices continued to rise.

You may not believe it but he proposes that gold prices will rise to $1,800 this year because of the investors’ optimism. However, volatility is anticipated because the prices of gold have lately been affected by the dollar.

Instability of gold prices due to dollar fluctuation has been largely contributed to by larger risks facing companies such as inflation, under-delivery, political risk and cost in a market which is risk averse. This has made operational gearing very difficult!


GLD Prices: For more information please clickhere!



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Wednesday

Large SLV Deposit on January 16th (2013). Did JPM close a short position?

An interesting piece of analysis here from about.ag suggesting that JP Morgan may have closed a significant short position in SLV without affecting the SLV price:

Why Was 18.3Moz Deposited?

The obvious answer is "JPM opened a new warehouse!".

However, that does not answer the question, as only 10Moz went into their new warehouse.

The experts seem to agree that one of the most plausible explanations is that JPM closed out their short position in SLV. One or more people have 17,016,600 shares of SLV short (about 16,458,115oz) at last count (which could be a couple weeks old). It is believed that JPM is likely responsible for much or all of that short position. The unexplained addition of 17,410,210.4oz to SLV (remember, 967,881.6oz are considered a 'normal deposit') would cover the entire short position and then some. Or if another 967,881.6oz (1M shares) were a normal deposit, that would leave 16,442,329.4oz unaccounted for, almost exactly matching the short position.

Another possibility is that someone wanted to purchase about $500M of silver, using SLV, with minimal change to the price of silver. Since it would be cheaper to store $500M of silver directly in warehouses (rather than via SLV), such a buyer would likely be a mutual fund (or similar) that is allowed to invest in ETFs, but not in silver directly. However, this theory seems less plausible given that the silver was all deposited on the day that the new JPM SLV warehouse was introduced.

Is the Selloff in Gold and Silver Overblown?


As the New Year progresses, many are worried about the position of GLD and SLV in the market. The euphoria of investment in precious metals has turned from the ever-blazing blissful glee to a cloud of worry in some markets.

Today the Gold Volatility Index hit 5.83%, reports SPDR GLD News. Gold has declined by 7.5$ for the last three months while silver has gone down by double that. What does the market hold for the precious metals?

Even though gold has shown signs of technical weakness, predictions from expert traders indicate that a steady rise is coming especially for silver. By the before the end of 2012 Fed Easing predicts that the price of gold will hit a record $2,000 an ounce.

As of now, GLD is at $1670.05 and it has hit the trend line; an indication that is a good selling signal for traders. On the other hand, SLV is a432.36 and predictions from experts in the precious metal market in China indicate that it will hit $50 before the end of this year.

When their performance is analyzed against the performance of other assets in the market, the performance index of GLD and SLV is still better compared to others—reports AGG News!

Clickhere for more information SLV Prices!
Click here for more information GLD Prices!


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Tuesday

The Excellence of SLV During Times of Broken Promises

Yahoo Finance reports that the price of silver is highly dependent on big banks which form the majority on the short side at COMEX.

Many ask themselves whether the price of SLV may go beyond $50 this year or at least hit the floor at $50. Well, many factors must be considered before drawing a conclusion.

Concentration is the most important factor since hedging on short positions influences prices significantly. When concentration is determined without removing the swaps, the current level of short market concentration purely eclipses the amount and price of silver that Hunt brothers held for several years before being persecuted for it.

The price of silver has broken above its 200 day moving average today. It is now trading just below the normal 100 day moving average with any break above 100 receiving consideration as being a bullish technical signal.

Thus it is becoming clear that SLV has been undervalued for decades now. No wonder it has managed to retreat its price since June last year.

Check Silverseek to find out whether it will regain its high of $49.77 as of April 2011 or it will continuously decline in these economic unpromising times.

Click here for more information about SLV!
Click here for more information about GLD!

Saturday

iShares Silver Trust (SLV) and SPDR Gold Trust (GLD): Gold and Silver Price Drivers

According to Gold and Silver Market Morning, the price of gold pulled back by $18 to $1,667.70 an ounce. Silver traded strongly and closed $31.66 compared to the opening price at $31.69

But after that fall, it is expected that the price of GLD and SLV will rise according to mutual fund managers.

And wow! Federal Reserve’s bond has pushed the balance sheet value to a record $3 trillion which is equivalent to the reserves of China. Since the economy of China doesn’t seem to be taking off well, this has not been received as a positive gesture.

What follows is great uncertainty in the GLD and SLV markets; hence the investor should be very cautious now.

However, silver is enjoying a huge pullback than gold and the prices are far much excellent. In case the upward trend persists as mutual fund managers predict, then it will fly much higher than gold.

For more information, check Goldseek


Chart from Kitco

Thursday

Gold Price Today

Even though I wasn’t born a century ago, I have followed the trends of gold for several decades. And this precious metal has never stopped to overwhelm me.

Check 24hGold for more news!!

The gold high was at around $1,682 as indicated on the graph, an increase of $6.85 from yesterday.
However, the price of GLD was set to be affected earlier today when gold futures declined a great deal after the US House of Representatives voted to suspend the borrowing limit of the country temporarily.

David Lee, the Vice President at Heraeus Precious Metals said in a telephone interview earlier today that there is no incentive in the market for the price of gold to go higher. This came after the price of gold fell by 0.4% to $1,686.70 at 1.45 pm yesterday in New York.

On the Comex, Silver Prices rose by 0.8% to close at $32.439. This was a progressive seventh straight climb as it has been noted in the past 8 days.

For more information, visit Bloomberg now!

Silver Outperforms Gold in the Precious Markets Trends Latest


The precious metals market has been hot in the past but silver has come strongly to outperform gold since the 3rd Quarter of 2012.


Like it performed from July last year, silver outran gold by adding $0.262 to $32.409 while gold lost $6.50 to close at $1,686.30.

The Price of Gold hit $1,693.85 but there is no explanation whatsoever as to why it dropped suddenly. Even though the lowest it ever recorded was $1,626 on January 4th, the fall was predicted from last year. So long as it doesn’t close below $1,663.97, gold is performing well.

On the other hand, the Price of Silver has tremendously risen as the trend can be observed for the last 8 days. It hit the $34.49 mark. And since the beginning of 2013, gold drops by a higher percentage than silver. This trend is expected to continue for some time. So if you’ve not rushed to get SLV then this is the time. However, don’t ignore gold as well because its value will rise unannounced!

For more information, check Silver and Gold prices!

Gold Price Per Ounce                    Silver Price Per Ounce

Wednesday

GLD: Gold Ends in Technical Buying With Bullish Outside Markets

P.M. Kitco Metals, in its daily roundup, indicates that gold has ended up in a technical buying as a result of bullish outside markets. This is as a result of higher crude oil prices that provided support to gold and other precious metals.

Many traders are now focusing on the quarterly reports on corporate earnings since many companies had little effect on the prices of gold.

Overnight, the German economic index was stronger than expected due to the support it enjoyed from the Eurocurrency and the European stock markets. And the recent easing of the BOJ monetary policy is the principal underlying factor for the bullish trend of precious metal markets.

On Tuesday, the index of the US Dollar was generally low and greenback bears had the overall near-term advantage which was a superb supporting factor towards the bullish trend of precious metals. Crude oil bulls have also had an upside near-term momentum; a strong underlying factor for the bullish trend of the precious metals.

The gold future prices for February actually closed very near to the session on Tuesday and the gold bears and bulls are technically back on a near-term technical ground. However, bulls are now gaining an upside near-term technical momentum with prices from last week indicating that the bull's breakout objective was to close above the psychological resistance valued at $1,700.00. On the other hand, the near-side downside breakout price of gold's objective was to close the prices below the established solid technical of $1,650.00

The GLD Price was last trading at $163.67, while SLV Price was trading at $31.12 as per below charts from stockcharts

Click here for more information about P.M. Kitco Metals

Chart from StockCharts

Saturday

SPDR Gold Trust (GLD) & iShares Silver Trust (SLV): Finish Week Higher

Find a weekly wrap on GLD & SLV below from Wall Street Cheat Sheet:

Gold and Silver Finish Week Higher


On Friday, gold (NYSEARCA:GLD) futures for February delivery, the most active contract, decreased $3.80 to settle at $1,687 per ounce, while silver (NYSEARCA:SLV) futures for March rose 12 cents to close at $31.93. Both precious metals finished the week higher.

Precious metals continue to receive support from mixed economic reports and healthy demand. Consumer sentiment, as measured by Thomson Reuters and the University of Michigan, reached its lowest level since December 2011. Meanwhile, China, the world’s second-largest gold consumer, said its gross domestic product increased by 7.9 percent in the fourth quarter.

The U.S. Mint also suspended sales of the new American Silver Eagle. In a statement to authorized purchasers, the Mint explains, “The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process.” The announcement comes after the iShares Silver Trust (NYSEARCA:SLV) added 572 tons of silver to the ETF.

By the end of the day, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.16 percent lower, while the iShares Silver Trust gained 0.46 percent. Gold miners (NYSEARCA:GDX) such as Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY) increased 1.01 percent and 0.35 percent, respectively. However, First Majestic Silver (NYSE:AG) and Endeavour Silver (NYSE:EXK) both fell more than 1 percent. Wall Street Cheat Sheet

Click here for more information about the SPDR Gold Trust.
Click here for more information about the iShares Silver Trust.

SPDR Gold Trust (GLD): Gold ETF Bull Market Run It's Course?

Yahoo! Finance publishes an article asking whether the bull market in SPDR Gold Trust and other Gold ETFs has run it's course:

Has the Gold ETF Bull Market Run Its Course?


Is the 14-year bull market in gold winding down? As equities rally early on in 2013, some are betting that the run-up in gold is over, evidenced by the poor performance of the metal and related exchange traded fund in the fourth quarter.

“Many analysts have declared that the bull market for gold is over and that its price will not advance much further than $1,700 per ounce,” John Nyaradi wrote for MarketWatch. [Gold ETFs: Bullion Prices Up for the 12th Straight Year]

Meanwhile, Goldman Sachs commodity analysts introduced a new call: gold at $1,200 an ounce by 2018, Business Insider reports. The analysts think an improving economy will lower demand for safe-haven assets like gold, and they expect interest rates to rise. Also, outflows from gold-back ETFs would speed a decline in prices, they said.

Gold prices and the largest focused ETF, SPDR Gold Shares (GLD), have been in a downtrend since the fourth quarter of 2012, although the 200-day simple moving average has provided support recently.

China’s role in gold’s performance is a huge factor. Gold imports for China in 2012 are exceeding acquisitions in 2011 by a few hundred tons and the physically-backed gold ETF is about to debut in the country. [Tom Lydon Outlines the Case for Holding Gold ETFs]

However, central banks are still buying up physical gold and inflation is another factor that looms in the near future. Since so many banks are printing currency, gold is the safe haven that will hold its value. Plus, many investors are weary of paper money and financial markets at this time. These are reasons why gold can continue in bull market mode.

On the flip side, the value of the U.S. dollar is expected to rise once quantitative easing is over. This could spark further flights from gold, as has been evidenced since October 2012. According to the U.S. mint, the sale of gold coins has declined 25% since 2011, reinforcing the October 2012 downtrend. [Gold Coin Sales Keep Falling as Investors Buy Bullion ETFs]

Long term, gold still has the capacity to finish off 2013 in a bull market, but for the near term, gold does not have the same shine as it did at the same time last year.

Other physically-backed gold ETFs include:

    iShares COMEX Gold Trust (IAU)
    ETFS Physical Swiss Gold Shares (SGOL)
    ETFS Physical Asian Gold Shares (AGOL)

Yahoo! Finance


Click here for more information about the SPDR Gold Trust.

Friday

iShares Silver Trust (SLV): $600 Million This Week to Lead ETF Inflows

Yahoo! Finance reports on a massive inflow of funds into the iShares Silver Trust (SLV):

Silver Fund Gathers $600 Million This Week to Lead ETF Inflows


The iShares Silver Trust (SLV) has gathered inflows of more than $600 million so far this week, which represents approximately 6% of the assets under management in the fund, to lead all ETFs.

The silver ETF, which has an expense ratio of 0.50%, has also seen call activity in the options market for the past few sessions as the ETF has bounced off of multi-month lows and is now above its 200 day moving average and within shouting distance of its 50 day MA.

Going back to asset flows, SLV is among the top of all ETFs in recent sessions in terms of net creation activity.

In what is likely related activity, price action in long Gold linked products has been similar to that of SLV lately, and there has been a presence of call buyers in SPDR Gold Shares (GLD), Expense Ratio 0.40%, as well.

SLV has been around since 2006 and trades on average more than 11 million shares, so it is clearly on the radars of institutional portfolio managers whom are looking for exposure to this specific metal.

Other ETPs in the “long” Silver space that may see accelerated activity in the near term include AGQ (ProShares Ultra Silver, Expense Ratio, 0.95%), SIVR (ETFS Silver Trust, Expense Ratio, 0.30%), USLV (VelocityShares 3X Long Silver ETN, Expense Ratio 1.65%), and DBS (PowerShares DB Silver, Expense Ratio, 0.79%) for instance. Yahoo! Finance


Click here for more information about the iShares Silver Trust.

iShares Silver Trust (SLV): 571 Tonnes of Silver Added in Single Day

Zero Hedge reports on the massive addition of Silver to the iShares Silver Trust (SLV):

SLV Adds Record 572 Tons Of Silver In One Day, More Than In All Of 2012


Technically the addition of 572 tons, or a massive 18,378,092 ounces of physical silver, to the SLV ETF, in one day is not a record, as it excludes one amount which however was a year end rebalance at the end of 2007 offset promptly on the next day, but it certainly is the biggest one day addition of physical silver to SLV in ordinary course operations. It is also more silver added to the ETF in all of 2012, when just 544 tons were added in the entire year. This was driven by the creation of some 19,000,000 shares of SLV overnight which brought the total to 356.8 million shares. And since there has been no move in the price of silver, which certainly would have soared had this amount been purchased in the open market we can only assume this has to do with in kind basket creation taking place. Whether this was due to arbitrage, or simply the need to create inventory we don't know: we are confident however, that SLV custodian, money laundering expert extraordinaire HSBC, will have no comment. Just as there is no comment why in the days following the epic May 1, 2011 take down of silver, a nearly just as large 522 tons of silver poured out the ETF on May 4, 2011. What is certain is that a move of this size is certainly notable. Zero Hedge


Click here for more information about the iShares Silver Trust.