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Is 2016 the year of gold and silver?

Mumbai: Global economic and political instability (including geopolitical tension) has prompted investors to resort to safe haven assets in 2016, with bullion being the most preferred investment instrument this year.

Gold is back after a three-year bear market and has emerged as the best performing asset across classes. The yellow metal has risen close to 25% since 1 January, the best half-year performance since 1980, Bloomberg data showed.

Silver, following gold, has appreciated 28% in the first six months, leaving other assets such as the US and German bonds, Japanese yen and the US dollar far behind.

The US 10-year bond yields are down close to 80 basis points (bps) since 1 January, while the Germany 10-year bond yields are down 73 bps. Japanese yen has risen 17%, while the dollar index is down 2.53%. One basis point is one-hundredth of a percentage point.

Analysts said the shock result of UK’s EU referendum vote last week further strengthens bullion’s appeal as a safe haven asset.

The past three sessions following the Brexit vote saw gold prices spike about 5%, while silver advanced about 3%.

Strength in the US dollar was the major contributor to weakness in gold and commodity prices for the past few years. However, increasing uncertainty about economic and political developments, low-to-negative interest rate environment as well as doubts over global economic recovery post the collapse of Lehman Bothers in 2008 have led to demand for precious metals, analysts said.

Ronald Peter Stoeferle, managing partner and fund manager, Incrementum AG in Liechtenstein, attributes the

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Silver Price: Is it Undervalued?

Silver Investing

5 years ago, silver prices were sitting at over $40 an ounce, but have fallen drastically since then. Is the silver price undervalued?

silver eagle

It doesn’t seem like that long ago the silver price was sitting at $51.33 an ounce. That was back in the spring of 2011.

Since then, the white metal has steadily declined—a plummet of more than 73 percent—to dip below $14 an ounce in early 2016. However, the silver price seems to be making a comeback.

Year-to-date, the precious metal has made significant gains of 25.85 percent—which is a $3.64 increase—back up to $17.72. After a 52 percent vote for Britain to leave the European Union, Brexit fears have further helped the metal’s price make a comeback.

Despite silver prices slowly climbing back up, the majority of analysts polled by FocusEconomics for its June 2016 report see it declining to lower levels near the end of 2016.  In the fourth quarter, panelists expect the price to average $16.20 an ounce, with the white metal expected to rise back up to $17.60 per ounce in the fourth quarter of 2017.

With the silver price fluctuating so much in recent years, some believe the metal is undervalued given its versatility and the different sectors it’s used in.

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Why the Silver Price Will Rise in This Post-Brexit Environment

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Peter Krauth
Peter Krauth

The silver price saw a huge rally late last week thanks to arguably the biggest referendum in European history.

By now, you know the Brexit vote is over and Britons have chosen to leave the EU.

And the reaction was a classic “risk off/safety on” trade. Worldwide stock markets tanked, while the U.S. dollar, gold, and silver prices rose sharply.

I admit I was surprised. I thought the “Remain” side would win, even if by a slim margin. I expected Britons to stay with the status quo to avoid “rocking the boat.” Many are already saying they regret voting to leave.

As a result, British Prime Minister David Cameron promised to resign in October. But something interesting happened, especially with regards to European stocks.

Here’s how the FTSE, DAX, and CAC 40 – the respective benchmarks of the UK, Germany, and France – looked by the close on Friday…

silver price

You’ll notice the FTSE sold off by a massive 10% after the open but ended the day down “only” about 3%. By contrast, German and French stocks were still down by about 7% and 8%, respectively, as the end of the trading day neared.

What that tells me is Europe feels it has more to lose from Britain leaving the EU than does Britain itself.

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Gold and Silver Market Morning: June-27-2016 — Governments don’t know what lies ahead, try to calm markets!

 – Published: Monday, 27 June 2016 | Print  | Disqus 

Gold Today Gold closed in New York at $1,318.90 up from $1,257.50 on Friday a rise of $51.40.  Before the opening in London the gold price rose further to over $1,332, before pulling back to $1,325 after the market opened.


-         The $: plunged lower on Monday morning to $1.1004 from [pre-Brexit] Thursdays $1.1336.

-         The dollar index moved higher to 96.37 up from the pre-Brexit, 93.48.

-         The Yen continues to strengthen [101.70] after central bank indicated it may well intervene to weaken the Yen.

-         The Yuan continues to weaken to 6.65 respectively. The Yuan fix showed the Chinese authorities are taking pulling the Yuan down more in line with the euro than the dollar.

-         The dollar is strong on the Index so we do expect action to weaken the dollar even if it is just through swaps. The Fed expressed their worries at their last statement, so we doubt they will tolerate such strength.


Yuan Gold Fix


With the Yuan now being pulled down by the authorities in China,  we expect the Yuan price of gold to rise faster, as the Yuan falls.


Gold is rising against all currencies describing the real weakness of all currencies, even though the dollar is the least weak of them.


The positive Technical picture continues to promise higher

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Silver Prices Hold Higher following Brexit; Gold Surges

Silver futures held firm Monday, as gold prices approached new two-year highs in the wake of Britain’s vote to leave the European Union.

Silver for September delivery advanced 4 cents or 0.1% to $17.84 a troy ounce, its highest level in 15 months. Silver futures are considered technically bullish according to the short-term momentum indicators. Relative strength is in the high 60s, while the MACD shows continuing upward momentum.

silver prices daily chart 06-27-16

Gold futures surged on Monday, climbing $11.30 or 0.9% to reach a nearly two-year high of $1,333.70 as troy ounce.

The gold-silver ratio used by investors to determine when to buy and sell precious metals was at 74.22 on Friday, reflecting gold’s recent surge.

The US dollar, which normally trades inversely with precious metals, continues to surge on Monday. The dollar index rose 1% to 96.41, its highest level since March.

The British pound sold off again on Monday, reaching its lowest level in more than three decades. The GBP/USD exchange rate referenced by the global financial markets plunged 2% to 1.3156. The pair declined around 9% on Friday, having been down more than 11% earlier that day.

Precious metals spiked on Friday as investors entered into the safety of precious metals following Britain’s historic decision to leave the EU. Global stock prices declined, with markets from Tokyo to New York suffering massive declines.

Japan’s Nikkei 225 index rebounded Monday after

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Gold, silver prices rise due to Brexit

Kathmandu, June 25

Gold and silver prices increased by a whopping Rs 2,000 and Rs 20 per tola, over the week between June 19 and 24.

Bullion price rallied in the international market after the referendum in Britain gave a mandate to exit from the European Union, which caused unpredictability in the global economy. Investors sought a safe haven from the plunging pound, which tumbled to its lowest level in 30 years on Friday. The precious yellow metal shot up 4.7 per cent to $1,315 an ounce in a single day on Friday after the result of the referendum was declared.

Gold price also shot up in the domestic market as the prices of the precious metals in the domestic market are governed by the rates set in the international market.

The market opened on Sunday with gold price fixed at Rs 57,000 per tola. Price of the precious yellow metal, however, dropped marginally by Rs 200 per tola on Monday and was traded at Rs 56,800 a tola. Its price remained constant till Tuesday. Bullion price tumbled by Rs 300 a tola on Wednesday to be traded at Rs 56,500 per tola and continued to free fall by Rs 500 a tola on Thursday. Gold price shot up by Rs 3,000 per tola in the domestic market, which is highest single-day gain in recent times, to settle at Rs 59,000 a tola on Friday as buying spree in the international market increased the demand of gold after

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Gold and Silver Market Morning: June-23-2016 — Brexit vote Day – All quiet on the ‘Western Front’ for now!

 – Published: Thursday, 23 June 2016 | Print  | Disqus 

Gold Today Gold closed in New York at $1,266.20 up $0.30 on Wednesday ahead of the start of voting in Britain.  Asia took it up to $1,270 and London let it slip a dollar and a half, despite strong demand for physical gold in the U.S.


The $: moved lower to $1.1336 from Wednesdays $1.1271. The dollar index moved to 93.48 down from 93.89. It is a day when the dollar is weaker in the worlds main currencies, but the Yuan was weaker too.


Yuan Gold Fix


While the Yuan weakened against the dollar, the gold price in Shanghai was slightly stronger than New York, which led the way for London to follow. This showed clearly the small change in direction was due to the influence of Shanghai showing a measure of pricing power.


Gold prices worldwide are on hold pending tomorrows result in Britain, after which we will see strong movements.


We believe that a stay in vote has been discounted in global financial markets, to some extent.


At the moment, the positive Technical picture remains unchanged. We dont expect any change, subject to tomorrows vote.


LBMA price setting:  $1,265.75 up from Wednesday 22nd Junes $1,265.00.


The gold price in the euro was set at 1,110.21 down from Wednesdays 1,119.96.


Ahead of

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Gold, silver prices skyrocketing after Brexit vote | Coin World

The value of the pound and euro are tanking Friday morning after the
United Kingdom voted to leave the European Union, and the value of
gold and silver are flying high. 

Safe-haven precious metals purchasing is likely behind the surge in
the prices of gold and silver, which currently stand at $1,321.30 and
$17.81 per ounce, respectively, according to Bloomberg. 

Kitco News reported Friday morning that gold
rallied approximately $100 overnight, but fell back by about $40
“as profit-taking set in.”

Connect with Coin World:  

The vote in support of the UK leaving the EU, which is being
referred to as the Brexit, was confirmed in news reports overnight.  

RELATED: Coin dealer issues Brexit medal for undecided
voters in referendum

“Global markets have been in a tizzy,” Kitco reports,
“with the British pound tumbling to a three-decade low, the euro
also weakening, global stock bourses

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Gold and Silver Market Morning: June-24-2016 — Voila! The Brexit happened, gold soars with silver, the pound …

 – Published: Friday, 24 June 2016 | Print  | Disqus 

Gold Today Gold closed in New York at $1,257.50 down $8.70 on Thursday ahead of the start of voting in Britain.  This morning Asia took it up to $1,310 as they were the first market to see the Brexit. At the opening on London the gold price the gold price pulled back to $1,319.


The $: plunged lower to $1.1069 from Thursdays $1.1336. The dollar index moved higher to 95.77 up from 93.48. It is a day when the dollar is stronger overall but weaker in the Yen. The Euro and Yuan were much weaker, alongside sterling.


Yuan Gold Fix


With the Yuan tumbling against the dollar, the gold price in Shanghai was much stronger and led the way for Londons pricing.


While investors cant export physical gold, they can take a position in Shanghai ahead of London, take their profits and export those. In this way they can arbitrage, matching their long positions in London at higher prices, should they wish.  Above shows that they could have taken a position in Shanghai, well ahead of Londons opening in physical then match the position in London selling out the Shanghai position in Shanghai afterward, before the close. Then it would have shifted the funds to London and not the gold. This makes the International side of the Shanghai Stock Exchange

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What’s Next for Silver Prices in 2016 After Brexit

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price of silverSilver prices are climbing 0.56% today (Friday) after Britain voted to leave the European Union (EU).

On May 25, the price of silver was trading for $16.30 an ounce. Now, silver prices are trading at $17.76. That’s an 8.95% increase in about a month. Silver prices are now up 27% for the year.

In times of economic uncertainty, precious metals are a safe haven for investors. That’s because as currency loses its power and stocks plummet, the demand for silver and gold usually increases.

When demand increases, so too does the price of silver.

Brexit fears are helping silver prices climb today, but Money Morning wanted to make sure investors were focused on the long-term silver price outlook.

And Money Morning Resource Specialist Peter Krauth believes that silver will trade for $20 an ounce by the end of 2016. We will tell you why, but first we wanted to make sure our readers understood why the Brexit vote today was so significant for the price of silver.

The main reason the stock market and certain currencies are tanking today is because of economic uncertainty.

You see, there is simply no way of knowing the long-term consequences of Britain leaving the EU. Leaving the EU involves:

  • The resignation of Prime Minister David Cameron
  • Volatile price swings in the euro and the pound
  • Other

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