Recent commentaries

The supply side is undeniably more significant in determining prices for precious metals than other commodities. The significance of the supply side stems from the depleting natural reserves for precious metals and a perceivable stagnation in exploration activities. We analyze the supply side of precious metals in this commentary and reinforce the bullish view in the long term. A favorable demand-supply gap makes it the perfect place to park your funds for protection against adverse market fluctuations and steady long term returns.

This week we provide three different gold charts that tell us that the gold price did not fall enough nor is the decline severe enough to be clearly seen from a very long-term perspective. We will have a period of price correction and consolidation as gold gathers strength to again move higher. This could take a while.

It’s possible that the Federal Reserve is fueling expectations on inflation to encourage American consumers to spend more of their money today. But the question is, “Can this untested theory really work and won’t it backfire?”

With investors returning to the markets post recession and industrial demand picking up, precious metals appear set for gains in the next few years. Gold prices are likely to be boosted by investment demand. Other precious metals, particularly palladium and platinum, are expected to remain closely tied to industrial activity.

Based on past trends for similar length rallies, there is a good chance we will see a sharp decline in silver’s price very soon. Indications from the XAU Index chart have strong bearish implications in the short term, even considered apart from other signals.