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GLD vs. SLV: Investors Favor Less Successful Gold

Aibek Burabayev - INO.com Contributor - Metals


Today I would like to share with you an analysis of precious metals ETFs. The goal of the study is to identify the correlation of price moves in both gold and silver with the demand for their ETF shares, represented by an appropriate precious metals holdings change. Below the chart you will read some interesting findings.

Chart 1. Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support

Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support
Chart by Aibek Burabayev, data source: spdrgoldshares.com; ishares.com

In the first quarter of the last year, we can see that investors were betting on a bottoming gold price with a 4% rise in SPDR Gold Trust (PACF:GLD) holdings despite the 1% fall in price. It’s interesting that at the same period, investors, on the contrary, cut their silver ETF holdings despite the rising silver price; it looks like they used the ‘sell silver on spike’ approach to gain on metals correlation. It’s amazing! But they were right shorting silver as it fell in three consecutive periods exceeding gold’s losing streak. [Read more...]

It Feels Like Inflation

By: Gary Tanashian of Biiwii.com

Last night’s post on the US stock market ended as follows:

“As far as the Fed and its puny rate hikes are concerned, that is irrelevant.  This market is flipping them the bird.  Markets can rise a long way before a rate hike regime finally kills them.  It feels like inflation folks.”

This prompted a question from an NFTRH subscriber about what markets would benefit, and in what differing ways would they benefit if an inflationary phase comes to dominate?  That is a far reaching question and a difficult one as well, because inflation’s effects have a way of being unpredictable (how many would have answered ‘US stock market’ in the spring of 2011 to the question “where will the post-crisis inflation to date manifest on this cycle”?).

Last weekend, in an NFTRH 396 excerpt we talked about Applied Materials stellar quarterly report and what it might mean for the economy, the Fed, the gold sector and most of all the idea of an inflationary backdrop becoming more readily apparent (2003-2007 Greenspan style). [Read more...]

Pro-Inflation? Anti-USD?

By: Gary Tanashian of Biiwii.com

This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395.  I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week.  So the information (including the charts) is slightly dated, but becoming intensely relevant as of now.

We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently.

gold.spx.crb.silver.eem

So why again did the US stock market react negatively to good economic data on Friday? [Read more...]

Gold And Silver Companies With The Potential To Move The Needle

The two times mining companies add the most value are upon first discovery and when they are nearing development and production. Joe Reagor of ROTH Capital Partners focuses on the latter group, and in this interview with The Gold Report, he discusses a handful of gold and silver companies poised to move up the value curve even if gold and silver don't go up.

Gold Six-Month Chart

The Gold Report: What's your macro outlook for gold?

Joe Reagor: International debt concerns are going to drive gold this year into next year, in our view. A number of countries with mounting debt loads can't continue to pay the interest portion of their debt, let alone ever pay it back. Total world debt continues to increase year after year. If the solution is for everybody to print the money that they need to pay everybody else back with, that's going to be a massive inflationary event, which would bode well for gold.

TGR: Silver has been up dramatically vis-a-vis gold. Do you expect that trend to continue? [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/6rEX-yx8Wkc/16957

All Hail the Mighty Silver Bugs...

Precious metals expert Michael Ballanger examines silver's recent moves upward.

LL

In my business, there is a great deal of travel, be it to properties in the Peruvian Andes or the Canadian Yukon or to the investment conferences in New Orleans or San Francisco or London, so I get a full psychographic cross section of every type of investor imaginable. First of all, the audiences I have encountered at the "Sound Money" conferences in Nassau or Bermuda are usually quite conservative and usually well-dressed and well-groomed. When the topic is gold and it is a controversial speaker looking for "the end of Western civilization," the audiences tend to be a tad different with hair length and dress code noticeably more avant-garde.

However, when the topic is confined to silver, while the speakers tend to be "evangelical," the audiences appear to be (operative word being "appear") simply stark-raving madmen of the first order. They usually dress in military fatigues, the males are all in ponytails, the women weigh more than the men, and the T-shirts and baseball caps on both males and females carry logos from either the WWF or the Monster Truck conventions. However, they are usually quite erudite when discussing "survival techniques"; they are usually extremely well educated and they are all able to rhyme off the silver production numbers for the past 20 years BY COUNTRY; and most importantly, they carry high distain for anyone who fails to know these facts. [Read more...]

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/bIkOdeGRGww/16946

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