Gold, Silver & Other Precious Metals 13 (Jun 15 - Feb 16)

[winston]

Gold Is Back in Fashion After a $15 Trillion Global Selloff

by Luzi-Ann Javier

Hedge funds more than double net-long position: CFTC

ETFs backed by precious metals saw most inflows in a year

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... o.headline

[winston]

Silver prices are up 5% in 2016.

[winston]

It's Time to Take Profits in Gold

By Jeff Clark

Gold has had a terrific run over the past month.

The precious metal is up $70 per ounce since mid-December. And if you've been following my advice here in Growth Stock Wire, you've had two chances to profit off of it.

I recommended buying gold back in late December to take advantage of the seasonal strength that typically occurs between December 18 and January 6. That trade was good for a gain of almost $50 per ounce.

Then, two weeks ago, after gold had pulled back and was testing the support of its moving average lines, I recommended buying it again because the technical condition looked bullish. Gold is up about $40 per ounce since that trade.

Now, it's time to take profits...

To be clear, I'm not suggesting you should sell your longer-term gold holdings – the stuff you bought to protect yourself against a drop in the dollar, an economic collapse, or the end of the world as we know it.

I like gold for the long term. Heck, I like it for the intermediate term, too. I think it will end 2016 much higher than where it is right now. But for the short term, as a trader, it's time to sell.

Take a look at this chart...

Please Enable Images to See this

Gold is approaching its 200-day moving average (DMA), the green line on the chart. That's a natural resistance level, and we shouldn't expect the metal to rally above that resistance on the first attempt.

After this week's solid move higher, gold is a bit overbought and extended above both its nine-day exponential moving average (EMA) – the red line – and its 50-DMA, the blue line. The action should be choppy for a bit up here and give the moving averages a chance to catch up to the price of gold. That would create a better-looking setup for gold to attempt to breakout above its 200-DMA a few weeks from now.

Gold is also getting overbought on a few of its technical indicators. For example, look at the stochastics indicator at the bottom of the chart. This is another way to measure overbought and oversold conditions. The stochastics indicator has rallied above 80, which means it's overbought.

We've seen this condition four previous times over the past six months. Each time marked a short-term top in the price of gold. The metal reversed and fell back toward its 50-DMA (or lower).

Similar action this time would mean a drop of about $40 an ounce from Tuesday's closing price. So if you bought gold two weeks ago based on my advice, you should consider taking profits as the metal approaches its 200-DMA.

We'll look to get back into the trade on any move back down toward the 50-DMA over the next few weeks.

Source: Growth Stock Wire

[winston]

3 Gold Stocks, 3 Trades That Will Catch Fire

A bottom is forming in gold miners ABX, NEM and GOLD

By Tyler Craig

Source: Tyler's Trading

http://investorplace.com/2016/01/3-gold ... qweB_l96M8

[winston]

Reasons for the Fearful to Be Fearful of Gold

By Matthew A. Winkler

Source: Bloomberg

http://www.bloombergview.com/articles/2 ... he-fearful

[winston]

Chart of the Day: A "Silver Rush" in China

By Eric Fry

Sometimes, if you can't get to a party, you've got to bring the party to you. This approximate philosophy seems to be inspiring a surge of silver buying by the Chinese.

Since the Chinese government is making it difficult for its citizens to take currency out of the country, many Chinese nationals are bringing a "better currency" into the country. They are buying silver hand over fist. (See above chart.)

China's silver imports recently hit their highest level in four years. Most likely, the Chinese are stepping up their silver purchases as a way to protect themselves from the risk that their currency, the renminbi, will continue to lose value against the U.S. dollar.

During the last five months, the renminbi has fallen more than 5% against the dollar. This loss of value, combined with China's collapsing property and stock markets, has triggered a massive "capital flight" from China into various offshore assets.

A whopping $1 trillion has fled the country during the last 12 months, according to estimates by Bloomberg Intelligence. That's about $770 for every man, woman and child in China!

Because so much capital is fleeing the country so quickly, the Chinese government has stepped up its efforts to block the exits.

The laws and regulations that were already on the books limited annual overseas transfers to $50,000 per person. But for many years, wealthy Chinese have used a variety of tactics to maneuver around this limitation.

The government is now making the game much more difficult.

Bloomberg News provided the following insight into the Chinese government's latest efforts to prevent capital flight:

Increased scrutiny of transfers overseas - Some Shanghai banks have recently asked their outlets to closely check whether individuals sent money abroad by breaking up foreign currency purchases into smaller transactions and to take punitive action if violations were discovered, according to people familiar with the matter. Each person can send $50,000 abroad annually, so large sums can be transferred by utilizing the bank accounts and quotas of a range of individuals, a tactic known as smurfing.

Outbound investment quotas frozen - China has suspended new applications under the Renminbi Qualified Domestic Institutional Investor (QDII) program, which allows yuan from the mainland to be used to buy offshore securities denominated in the currency. It has also refrained from granting new quotas for residents to invest in overseas markets via the QDII program.

UnionPay debit card clampdown - New measures were introduced in December to crack down on illegal China UnionPay card machines, which were suspected of being used to channel funds offshore via fake transactions, most notably in Macau casinos.

Underground banking clampdown - China busted the nation's biggest "underground bank," which handled 410 billion yuan ($62 billion) of illegal foreign exchange transactions, the official People's Daily reported in November. The Shanghai branch of the State Administration of Foreign Exchange said last week that it will crack down on illegal currency transactions, including underground banking.

Perhaps these new government tactics will slow the exodus of capital over the short term. But capital controls rarely succeed over the long term. To the contrary, they are an ominous warning sign - the reddest of red flags. They announce to the world that it's time to get local currency out of the country as fast as you can, and then swap that currency for hard assets offshore.

But since that is easier said than done in China, some Chinese nationals are doing the next best thing: They are importing the hard assets from offshore and using their local currency to do it.

So far, the recent surge of Chinese silver buying has not sparked a corresponding bounce in the silver price... at least not yet.

But interestingly, the last time the Chinese ramped up their silver buying was in 2009 and 2010 - several months before the silver price rocketed from $15 an ounce to $50 an ounce.

So if past is prologue, there might be a great big silver bull market heading our way.

Source: The Non-Dollar Report

[winston]

Gold: 1118.40, +2.80.

Up on the week though lost ground Thursday.

Moved up off the 10 day EMA Friday, likely trying to figure out what the Japan NIRP means.

Source: Investment House

[winston]

Silver Stocks Could Surge After Positive Start in Bullion Markets

Troubled silver stocks could pull off a huge comeback

By Josh Enomoto

Source: Investor Place

http://investorplace.com/2016/02/silver ... rG8Ifl96M8

[winston]

There's a Rush for Gold ETFs

By Eric Balchunas

Source: Bloomberg

http://finance.yahoo.com/news/theres-ru ... 03636.html

[winston]

When to buy gold in a bear market…

by Ben Morris

Source: DailyWealth Trader:

http://thecrux.com/heres-when-gold-will-likely-bottom/