Category Archives: Precious Metals

Worldwide Interest Rate Cuts Could Spur Second Half Rally In Gold and Silver

Precious metal investors appear to be optimistic as the European Central Bank and the People's Bank of China concurrently will ease interest rates to stimulate global growth in the depressed Eurozone which is experiencing record unemployment. So optimism is returning to Europe while the U.S. which has heretofore been a safe haven is beginning to show signs that unemployment may be lurking higher.
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Key Support Levels In Gold and Silver Price Should Hold On European Summit Decision

Silver is testing 2011 lows and is extremely oversold with an RSI reading below 30. We believe silver could rebound off of these extreme oversold levels and possibly break resistance to the upside. The world is navigating very troubled waters. For over four years the top Central Banks orchestrated by the Federal Reserve Chief injected a flood of trillions of dollars into an ailing financial system. The result has been extremely volatile upswings as QE1 and QE2 were introduced and gut wrenching declines after QE2 expired. Gold and silver are building bases, while mining equities are reflecting valuations priced in for a pandemic meltdown. Little do they realize the main problem is not just European Debt, but U.S. debt. Now is the time to buy insurance in precious metals...on sale...!
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QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?
We believe that these decisions may become baked into the pie during this Federal Reserve Meeting. Gold and silver traders are betting big money on buying contracts expiring in July that become profitable if gold should reach $2000 by that date. Based on what we know is smart money expecting a golden or silver swan?
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Greek Election and Fed Decision Should Boost Gold, Silver and The Miners

Greek Election and Fed Decision Should Boost Gold, Silver and The Miners
Silver (SLV) and gold are forming a descending triangle for many months but has not violated 2011 lows. After QE2 we saw a massive move into silver when it outperformed gold...could QE3 be a catalyst to start something similar? Markets reacted negatively to the Spanish Bailout of a $125 billion as they keep a close eye on a Greek election this Sunday and the Federal Reserve Board meeting on June 19th and 20th.
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Correction In Precious Metals and Miners Creates Buying Opportunity

Correction In Precious Metals and Miners Creates Buying Opportunity
Recently the gold and silver miners have been outperforming the S&P 500 indicating that we may be seeing the rotation from overvalued equities into the undervalued miners. This is occurring on large volume indicating major investors are beginning to enter the deeply undervalued sector. The gold miners appear to be reversing on high volume indicating that we are seeing major accumulation at these price levels. A few bullish, high volume reversal days within a couple of weeks indicates that we could be very close or near the bottom of this consolidation.
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Gold, Silver and The Miners Bottoming While Facebook Is Busting

Gold, Silver and The Miners Bottoming While Facebook Is Busting
Take a look at Groupon, Zynga, LinkedIn, etc. Their vogue will not last forever. Sentiment for the social media sector may be reaching an euphoric extreme, while the mining stocks have fallen into public disfavor. The miners are bottoming at historic low valuations while the initial public offering of Facebook is valued at 100 times trailing earnings. This eerily reminds us of the dot-com bubble in 2000. Recall a company such as “theglobe.com” which made the largest gain in history on the day of its IPO only to be bankrupt two years later. The CEO was also in his twenties. The brokers were able to find myriads of buyers beating at their gates. As the French say, “The more things change, the more they remain the same.”
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Will A Euro Breakup Boost Gold and Silver Prices?

Will A Euro Breakup Boost Gold and Silver Prices?
Support for gold is at $1600 and $27.50. We may see an initial correction in US dollar terms but gold and silver are near key support levels, oversold and possibly just about to takeoff. We are reaching extremely negative sentiment indicators indicating a bottom both in precious metals and the extremely undervalued miners. When indicators reach this level a bottom reversal may occur sooner rather than later. Operation Twist is set to expire in June. If we don't hear word of a QE3 or additional stimulus then we can see a downward move in U.S equities. We saw this in the summer of 2011 as QE2 expired and in the summer of 2010 as QE1 expired.
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