Recent commentaries

Inflationary pressures as well as currency market fluctuations are expected to supports gold market from the current levels. The current situation in gold:bonds ratio also appear to reflect a positive change in the yellow metal and the medium-term outlook appears more bullish now than it has been for the past few weeks.

Strong market fundamentals support speculative long positions in precious metals at this moment. However a strong correlation with the general stock market makes medium-term silver investments riskier in comparison with gold since silver is historically more correlated with stocks.

Several weaker members of the Eurozone would have defaulted already if they weren’t helped out by stronger members. Japan has the third largest economy and the country are swamped with debt. The US has the largest national debt of all. Meanwhile, a number of analysts predict that the Chinese yuan might overtake the US dollar as the global currency in a few years and last year and Chinese officials have announced that they will increase reserves to the tune of 10,000 tons over the next decade. Chinese central bank adviser Xia Bin has confirmed that China must increase its gold and silver reserves. With such enormous purchases most likely still ahead of us, correctly positioned Gold Investors are likely to reap massive profits over the next several years.

Fundamentals remain positive for the gold market and technicals indicate a short-term rally in gold market. While political unrest in Egypt influences the market, an increment in demand is expected during Chinese New Year celebrations. On the technical front, the Euro – USD indices and the SP Gold Bottom Indicator suggest a ’buy‘.

With rallying stocks, it might be the right time to consider diverting some funds to platinum and palladium. Gold’s and silver’s sister metals are expected to do well aided by a growing automotive market in the developing world, stricter emission norms and slower penetration of hybrids. While the time to entry may not be perfect today, the long-term picture appears bullish.