Friday, 19 November 2010

Silver in 2011.

To buy an ounce of gold from UOB will now cost S$1,975 while to buy an ounce of silver will now cost S$35.49. Gold fell from yesterday while silver rose. This supports the idea that silver is more likely to appreciate at a faster pace than gold, all else remaining equal.

In a presentation Wednesday to the Silver Institute in New York City, GFMS forecast an average silver price of US$19.94 this year, a gain of 36% year-on-year.

Despite what currently appears to be a substantial year-end correction in the price, GFMS Chairman Philip Klapwijk said he expects the silver price to trade over US$30 per ounce in 2011, "with the annual average likely to easily surpass the current all-time high of US$20.98/oz."

"However, we are doubtful such elevated levels will be sustained throughout the year, as a result, we seen an annual average either side of US$28 as more likely," GFMS said. "We could also add that a retreat from the over US$30 would not necessarily imply an end to the multi-year rally in 2011."

Read article here.

Related post:
Buy more silver on weakness.

Saturday, 13 November 2010

Gold and silver: Correction time.

On 6 Oct, Jim Rogers suggested that "Gold could correct for a few months [but] the bull market in gold is not over - far from it".  So, wait for a correction to buy more gold.

A correction could be anywhere from 10% to 20% decline in price.  Anything more than 20% would suggest the start of a bear market. Gold has retreated to US$ 1,365.40 /oz in the last session after going to an all time high of US$ 1,412.75 /oz.

Just as a rough gauge, 10% correction would see gold at US$ 1,271.48 /oz while a 20% correction would see gold at US$ 1,129.60 /oz. On 6 Oct, I said that "In case of a correction, I see immediate support at US$1,250 an ounce, followed by US$1,200 an ounce."  I would buy more then.

What about silver? For me, it is quite easy as silver generally tracks the movement of gold although imperfectly. When I buy more gold, I would buy more silver.

Related post:
Buying gold? Wait for a correction.

Tuesday, 9 November 2010

Gold and silver at record highs.

On 7 February 10, I mentioned that my research showed that silver was very undervalued and was trading at the higher end of the Gold:Silver ratio since 1980. At that time, silver was US$15.15/oz while gold was US$ 1,052.20/oz. Anyone who bought some of these precious metals then would be deep in the money now.

To buy a 1oz Gold Bullion coin now from UOB would cost S$2,029.00.  To buy 1 oz of silver in UOB's Silver Savings Account would now cost S$36.44!

Gold rose to a record high for the fourth straight session on Tuesday, as inflation worries and euro zone sovereign debt woes continue to lure investors to precious metals. Spot silver hit a new 30-year high just below US$28, and palladium extended gains to a new nine-year peak of US$712.75. Spot gold rose to an all-time high of US$1,412.75 an ounce, before easing to US$1,410.45. 
Read article here.

Related post:
Buy more silver on weakness.

Silver hits a new high!


Monday, 8 November 2010

Gold, silver and oil.

The bounce in the U.S. dollar did little to crimp demand for commodities. Gold, a traditional hedge against inflation, powered to a record above $1.398 an ounce.

Oil prices held above $87 a barrel near a two-year high and silver hit a new 30-year peak.

Read article here.

Gold may also remain in favour with investors, as the threat of inflation in faster-growing economies, coupled with a big surge in global money supply, could encourage buying in the precious metal.

Read article here

Friday, 5 November 2010

Gold set another record high.

Gold for December delivery settled at a record high of US$1,383.10 an ounce, up US$45.50, or 3.4 percent.

Many analysts expect the price to continue to climb, perhaps hitting US$1,450 an ounce by year end. "Next year, who knows? If this continues like this we can march on higher," MF Global senior commodities analyst Edward Meir said.

In other metals contracts for December, silver jumped US$1.607 to settle at US$26.043 an ounce, copper gained 12.7 cents, or to settle at US$3.9120 a pound and palladium rose $32.05 to $674.75 an ounce.

Read article published Thursday, November 4, 2010 at 1:33 PM by SANDY SHORE, AP Business Writer, here.