Gold, Silver & Other Precious Metals 17 (May 19 - Dec 24)

[winston]

Squeeze Play Added Fuel to Rising Silver Prices. Here’s Why the Metal Remains Undervalued.

By Myra P. Saefong

Silver could be on the cusp of a long-term bull market.

Frenzied trading in silver recently lifted prices to an eight-year high. But fundamentals already pointed to a break out in the metal before the latest rally, some analysts say, and prices remain undervalued.

“Reddit-triggered buying” was a significant event that “lit a fuse,” says Paul Mladjenovic, author of “Investing in Gold and Silver for Dummies.”

The physical market is extremely tight and demand is stronger than usual, so there is power to the upside for silver prices.

Source: Barron's

https://www.barrons.com/articles/silver ... azine_Feb6

[winston]

vested

The Most Obvious Long-Term Bet in Today’s Market

by Dr. Steve Sjuggerud

Given what’s happening in our government, it’s the most obvious long-term bet I see in the market today.

Source: DailyWealth.com

https://dailytradealert.com/2021/02/09/ ... ys-market/

[winston]

Silver Shortages Suggest We Are Only Months Away From $50 Silver

Summary

Premiums on physical silver coins are at records, and shortages are widespread internationally. This is only possible if silver futures are not priced for a sudden flood of monetary demand.

Monetary demand tends to feed on itself, as the higher the price goes for a monetary asset like silver, the higher the demand for it goes, risking a dollar run.

Monetary demand for silver suddenly woke up in early February, causing shortages and rare backwardation in silver that we last saw in March 2020, September 2015, and February 2011.

After each of those backwardation periods, the paper price of silver skyrocketed within months as arbitrageurs moved in to bridge the physical/paper gap.

This backwardation is most similar to February 2011, with silver nowhere near lows, and if history rhymes, it suggests we are only months away from $50 silver.

Source: Seeking Alpha

https://seekingalpha.com/article/440496 ... king_alpha

[winston]

Commodities To Invest In: Gold

By Faisal Humayun

Among commodities to invest in, I would not hesitate in considering fresh exposure to gold.

In August 2020, gold touched highs of over $2,000. The precious metal currently trades lower by 16% at $1,717.

In the recent past, there has been a significant flow of money into Bitcoin (CCC:BTC-USD) and other crypto. This is one possible reason for a correction in gold.

However, gold is likely to remain in an uptrend. At current levels, the precious metal is worth considering. The biggest reason to be bullish on gold is expansionary monetary policies.

As central banks globally continue to flood the economic system with liquidity, inflation is a concern. To put things into perspective, the total assets in the Federal Reserve’s balance sheet has swelled from $4.2 trillion to nearly $7.6 trillion in the last one year.

The Fed has already signaled that near-zero interest rates will last through fiscal year 2023. I believe that the best part of the rally for gold is still to come.

From an investment perspective, it makes sense to consider some exposure to physical gold. Additionally, there are some attractive gold mining stocks worth considering.

I like Newmont Corporation (NYSE:NEM) from an asset and fundamental perspective. With $8.5 billion in liquidity, low debt and 94 million ounces of gold reserves, NEM stock is attractive at current levels. Among the relatively smaller names, Kirkland Lake Gold (NYSE:KL) is worth considering for the long-term.

Even after the recent correction, gold has delivered annual returns of 12.6% in the last five years. The precious metal can outperform in the coming years with expansionary monetary policy and inflation being the upside triggers.

Source: Investor Place

[behappyalways]

U.S. at risk of insolvency from higher yields; these assets would be ‘destroyed’ - Michael Gentile
https://m.youtube.com/watch?v=O8JFFK71PCc

[winston]

Gold Is Getting Its Shine Back - Here’s the Trade

As gold marches higher, the yellow metal is regaining its shine. Here's a look at some potential upside targets from here.

by BRET KENWELL

Gold has finally started looking better on the long side, something bulls have been craving considering the action in other assets and economic data.

The news out of China seems to be helping, where the country opens its borders for multi-billion dollar gold imports.

For instance, bitcoin has been exploding higher - as Paul Tudor Jones rightfully picked as his inflation play in 2020 - while other commodities have rallied too.

Oil, lumber and real estate prices have been moving higher, while economic data continues to flash inflation signs. Lastly, the dollar has been under pressure.

So where has gold been? Thankfully for bulls, the yellow metal has been on the rise lately.

Gold gave investors a standard three-wave decline down to the 21-month moving average, where it firmed up and found support.

Bouncing off that level now, the GLD ETF went monthly-up when it cleared back over that $164.50 area and accelerated back over the 10-week moving average.

From here, it’s now contending with the 10-month moving average, but I’m mostly interested in whether it can actually hold up from this point.

With momentum in all other seemingly inflation-sensitive assets, the hope here is that gold can continue to find buyers. Specifically, I would love for it to hold up over the 10-week moving average and $164.40.

Below could put another test of the 21-month moving average in play.

On the upside, let’s see if the GLD can push higher to the $170 level, clearing the 21-week moving average in the process and putting the 50-week moving average on the table.

If it can go on to clear $175, it could put the $183.50 level in play, which has been stout resistance since the stock failed to hold $180.

Finally, a close below the double-bottom low near $157.50 does not bode well for bulls and could open up even more downside in the GLD ETF.

Source: TheStreet, Inc.

https://www.thestreet.com/investing/gol ... +the+Trade

[winston]

PRC May Approve 150 Tonnes of Gold Imports: Wire

China is set to grant permission to import large amounts of gold into the country, involving roughly 150 tonnes and US$8.5 billion, Reuters learnt from sources familiar with the matter.

The gold will be imported this month, said the insiders.

Source: AAStocks Financial News

[winston]

Countries That Control the World’s Gold

by Grant Suneson

Just five countries hold the majority of the 35,000 tonnes of the world’s gold reserves. Only 34 nations have over 100 tonnes of gold reserves on hand.

Source: 24/7 Wall Street

https://247wallst.com/special-report/20 ... Newsletter

[winston]

Gold stocks soar as metal regains shine

By GANESHWARAN KANA

Late last month, Bloomberg reported that India’s gold imports from Switzerland in March 2021 rose to the highest in almost eight years as jewellery buyers took advantage of the lower gold prices.

China’s gold imports from Switzerland surged nearly four-fold to a seven-month high following the resumption of purchases in February.

Quoting sources, Bloomberg said China’s central bank is approving imports of about 75 tonnes a month to meet domestic consumption.

Source: The Star

https://www.thestar.com.my/business/bus ... e=smartech

[winston]

France's Macron Urges G-7 To Sell Gold Reserves To Fund Bailout For Africa

BY TYLER DURDEN

World finance chiefs agreed in April to boost reserves (SDR)at the International Monetary Fund by $650 billion and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion will be allocated to Africa.

He called on G7 nations to find an agreement as part of efforts to reallocate $100 billion in International Monetary Fund (IMF) special drawing rights to African states.

Source: Zero Hedge

https://www.zerohedge.com/geopolitical/ ... newsletter