Are Silver and Gold ‘at the Flood’?

Published here: http://goldsilverworlds.com/gold-silver-price-news/are-silver-and-gold-at-the-flood/

By David Smith, Money Metals Exchange

There is a tide in the affairs of men…

Thus, begins one of the most famous quotes ever uttered, taken from Shakespeare’s play, Julius Caesar. Brutus, talking to Cassius, says, “There is a tide in the affairs of men. Which taken at the flood, leads on to fortune…”

A flood tide takes place at the very crest in the water’s height. Once the “tide turns,” there is no stopping its ebb until, much later, it reaches an extended, even a minus low.

If you’re ashore in parts of Alaska, where a tide can run 20 feet, not embarking “at the flood” and waiting until it’s made an obvious turn can have important implications, leaving you and your craft high and dry.

The same applies in many areas in life, not least financial.

Shakespeare’s quote serves as a metaphor – a touchstone for deciding when, how, and even if to act on some particular circumstance in our lives.

It’s difficult, because though we may be certain we see a transformative event (or a series) in the process of taking place, there’s no way to know ahead of time how long or to what degree it may take.

In the case of the tightly-stretched “variance from the mean” in the market’s current opinion of where the precious metals are headed over the near to intermediate term, divining the outcome correctly in a timely manner could have decisive bottom-line consequences for those who decide to act… and for those who do not.

Even more important than trying to “score a quick profit,” if prices are making a major sustainable upside turn, those who have not established at least a core holding are likely to find themselves watching, waiting, and ultimately not participating at all as today’s levels recede in the rear-view mirror.

By the same token, waiting to buy until “it’s obvious” will lead to frustration if prices then move back into the large sideways action we’ve witnessed several times over the last few years.

By almost any measure, the precious metals’ sector is “stretched.”

Hedge fund silver shorts (betting on lower prices) – often a contrary indicator – are at all-time highs, as indicated by this chart:

Gold Commercial shorts – also a contrary indicator – are near all-time lows:

Physical gold and silver buying by China, India and Russia (gold) remain strong:

Palladium, often a “lead indicator” for the rest of the complex, has recently spiked $120 above its recent lows…

And platinum, which generally costs up to $300 an ounce more than gold, is trading at some of the largest ever recorded values below gold.

Trying to find an exact low in the price of any market is a losing proposition. But establishing holdings into a level which gives solid evidence of representing strong long-term value – well that’s an entirely different matter!

Brutus concludes his exchange with Cassius, remarking,

“Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves or lose our ventures.”

We’ll only know in the fullness of time, how closely the premise of this essay, the charts used to support it and the approach of tying it to Shakespeare’s quote, turn out to align with what Mr. Market has in store for us.

But it’s a sure bet that millions of market participants and those considering getting involved themselves will intently watch precious metals’ prices unfold in the coming days, weeks and months.

What a Bolivar buys – August 2018

There’s a lot to be said for reflecting deeply on the wisdom Brutus’ comments may portend. Do the directional arrows implied seem like a ‘fit’ for your belief about the state of things in today’s world, financially and politically? To your expectations, goals and resources? To your views on the metals’ supply-demand metrics?

Do you “have enough” metal right now to ’round out’ your position if this argument turns out in significant measure, to be correct?

Or are you still locked into “thinking mode” – hobbled by the opinions of the majority of market players currently crowded onto the same side of the proverbial investment boat, betting on still lower gold and silver prices?

Have you worked through the OODA Loop we discussed in earlier essays (see last month’s column For Sterling (Silver) Results, Repetition of the Basics is Worth its Weight in Gold).

Have you Observed, Oriented and Decided… but not Acted?

From this perspective, the precious metals’ “tide” looks to be very near a flood. Sensibly adjusting your current holdings or Acting to create and hold onto a new position might one day help keep you from being – unlike literally millions of Venezuelans who did not – “bound in shallows and in miseries.”

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com. For the past 15 years, he has investigated precious metals’ mines and exploration sites in Argentina, Chile, Mexico, Bolivia, China, Canada, and the U.S. He shares his resource sector findings with readers, the media, and North American investment conference attendees.

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The Bullion Market

Published here: http://goldsilverworlds.com/physical-market/the-bullion-market/

Bullion is any precious metal that is in the form of bars or ingots. It is usually used for trade in a market and comes from the original French word “bouillon” which means boiling. This was the term used to describe the activity of a melting metal.

Each Bullion varies when it comes to its value depending on its precious metal content which is determined by its purity and mass. To find out the purity of each gold bullion, they use the century-old method known as fire assay along with modern spectroscopic instrumentation to accurately determine its quality to ensure the owner receives fair market value for it. It is also weighed extremely accurately.

Understanding the bullion market

The bullion market is the avenue by which buyers and sellers can trade in gold or other precious metals. The London Bullion Market is known as the primary global bullion market trading platform for gold and silver.

The bullion market is where you can buy and sell your gold bullion or other precious metal ingots.  There are many bullion markets throughout the globe. These bullion markets are typically characterized as over the counter markets. Bullion markets exist in New York, Zurich, and Tokyo with London serving as the location for the largest global bullion market.

Bullion trade is considered to have a high turnover rate with transactions conducted over the phone or electronically, and its primary market is considered to be gold and silver. Gold and silver traded in the bullion market can sometimes be used as a safe-haven investment or hedge against inflation which may also affect its trading value.

The bullion market is one of several ways to invest in gold and precious metals. Other options like exchange-traded funds or mutual funds can also be good ways of investing in gold and precious metals.

Investment

The specifications of bullion prices are often regulated by legislation or market bodies. In the European Union, the minimum purity for gold bullion, which is treated as investment gold with regards to taxation, is 99.5% for gold bullion bars and 90% for bullion coins. You can choose to buy gold for many different investment reasons.

Most investors consider and use actual gold for a few reasons, one of which is that gold has proven to be a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio.

Conclusion

The Gold bullion market is the market by which buyers and sellers of gold and other precious metals trade and from which they gain profit.  Gold bullion has been considered a hedge against currency crisis, inflation risks, geopolitical risks, or to add diversification to an investment portfolio. Whatever the case, gold bullion has proven to be a worthy investment and has a high turnover rate, which is something investors also consider most when it comes to finding profit and returns. Like any other economic investment, the investor must always consider all the factors and the consequences of each of his decisions and hope that it will lead to good returns and profit whether it may be short term or long term.

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What is a Gold IRA?

Published here: http://goldsilverworlds.com/investing/what-is-a-gold-ira/

A Gold IRA is a type of retirement account by which physical gold or other precious metals are held in custody for the benefit of the IRA account owner. It works like a regular IRA but instead of using paper assets, The IRA holds bullions and coins. So basically, Gold IRA is a type of investment vehicle used to save for retirement by buying or holding gold bullions and other approved precious metals. with your traditional or Roth IRA, you stash your savings in the form of stocks, bonds or mutual funds.  In a Gold IRA, you use precious metals. You can also own many other precious metals aside from gold, examples of which are silver, palladium, and platinum.

This also allows you to invest in other gold-related options like stock in gold mining companies, precious metals mutual funds, precious metals commodity futures or Exchange Traded Funds (ETF).

How to get Gold IRA

Not all precious metals and gold can qualify for an IRA. These metals will have to meet IRA standards. If you have metals that you wish to deposit but have not been checked or approved, you might get rejected. Some accepted forms are the gold and silver American Eagle and Canadian Maple Leaf coins, the Austrian Philharmonic coin, PAMP Suisse Gold bars, Sunshine Gold and Silver Bars and most platinum bars. To get a Gold IRA, you will need a custodian to hold and provide the account for you. This is because the gold will be deposited into an IRS-approved depository and not a regular savings account. So to find an approved custodian, you can go to your nearest bank, credit union, trust company or brokerage firm and acquire a custodian for your gold.  Of course, you would want a qualified custodian you can trust with your asset and not just any company or person.

Weighing the costs: Pros and cons

One of the benefits of holding or owning physical gold or gold IRA is that it adds diversity to your retirement portfolio. Having this type of investment provides security for you and your money in the event of an economic meltdown or should stocks go south. Gold has already proven to be a considerable hedge against inflation, unlike stocks and bonds. One of the major cons could be the requirement to find a trustworthy custodian rather than just committing to the first person you meet. Another risk of having a gold IRA is the instability surrounding gold mines or companies. Other investors also dislike that gold IRAs don’t pay dividends.  One good thing is that your gold or precious metals are insured up to a certain amount when kept by the custodian which gives you a safer investment.  Some advisors say that you would be better off with an account that pays dividends.  Bottom line is to think everything through and spend more time understanding the economic decision you are making.  This will not only ensure wise decision making but allow you to plan your investment portfolio properly.

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5 Reasons to Buy Silver instead of Gold

Published here: http://goldsilverworlds.com/physical-market/5-reasons-to-buy-silver-instead-of-gold/

Is silver really better than gold? Why should someone buy silver instead of buying gold? What potentials does silver have as an investment? All these questions will be answered right here. It is natural of an investor to be curious and want to discover if one type of asset is better than another. This is particularly true when it comes to silver and gold since both markets generally differ in size.

1. Money in silver

Silver isn’t part of our currency, yet it is still considered of value along with gold. One evidence is that this cannot be generated easily and thus depreciates like paper or digital forms. And by real money, we do mean physical silver—not ETFs or certificates or futures contracts.

Here’s why silver and gold has potential value,

• They have never been defaulted on.
• They have no counter party risk.
• They have long term use as money.

So as a general overview, owning physical silver gives you a real asset that has served as money for thousands of years.

2. Silver is practical for small purchases

Silver itself is not cheap to buy but can be more practical when you want to use it. Perhaps you don’t want to use a full ounce of gold to meet a small financial need, hence silver could be of more potential value. Since it frequently comes in smaller denominations than gold, you can sell only what you want or need at the time.

3. Silver outperforms gold in bull markets

The market for silver is so small, in fact, that a little money moving into or out of the industry can impact the price to a much greater degree than other assets which include gold itself. This higher volatility rate also signifies that in bear markets, silver falls more than gold but soars further and higher than gold in bull markets.

4. Global demand is growing

World demand for silver is already growing.  Almost all major government mints have seen record levels of sales, with most already operating at peak production. Rising demand, especially in China and India, is very evident in today’s world. Both countries have very long histories when it comes to an affinity with precious metals. Thus, since these surging demands don’t happen so often, there will be consequences later when rising demands meet low supply.

5. Silver is a hard asset

There are a limited number of investments that you can hold in your hand, silver and gold are one of them.

The markets are full of paper profits, digital trading, and currency creation. However, this is in contrast with gold and silver investment options as these are one of the rare few you can store, hold or even have in your pocket. And it can be as private and confidential as you want. Physical silver is also a tangible hedge against all forms of hacking and cybercrime.

So generally these are some of the reasons why silver is generally better than gold and why investing in silver is also a good option, not only does it diversify your portfolio, it also has many more benefits along with gold and other precious metals.

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