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With so many gold and silver bears it doesn’t take much to trigger a short squeeze

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With so many gold and silver bears, it doesn't take much to trigger a short squeeze

The U.S. dollar's unrelenting rally at a 20-year high continues to force hedge funds to increase their bearish bets in gold, according to the latest data from the Commodity Futures Trading Commission.

Although there are risks that the U.S. dollar could push precious metal prices lower, analysts note that Monday's 2% rally in the gold market is an indication that the market is susceptible to a short-covering squeeze.

The silver market is seeing an even more substantial short squeeze as prices last traded at $20.71 an ounce, up nearly 9% on the day. Silver is seeing its best daily percentage gain since mid-August 2020.

Gold prices last traded at $1,704 an ounce, their highest level since Sept. 15. According to analysts, bearish gold investors are covering their short bets as rising global economic uncertainty and a potential international banking crisis are driving renewed interest for safe-haven assets.

"There are so many shorts that it just takes a small catalyst to ignite a much bigger rally," said Netish Shah, head of commodity research at WisdomTree.

Many analysts have been warning of the extreme short position building in the gold market as hedge funds increase their bearish bets for the seventh consecutive month.

The CFTC disaggregated Commitments of Traders report for the week ending Sept. 27 showed money managers dropped their speculative gross long positions in Comex gold futures by 4,373 contracts to 74,171. At the same time, short positions rose by 2,026 contracts to 117,265.

Gold's net short positioning now stands at 43,094 contracts, up nearly 17% from the previous week. Positioning is at its lowest point since November 2018.

"At this stage, the main buyer is likely to be money managers reducing short bets on COMEX gold," said Ole Hansen, head of commodity strategy at Saxo Bank.

Along with rising financial market uncertainty, Shah said that strong physical demand for gold should also support prices and put further pressure on short positioning. He explained that the disconnect between robust physical demand and weak paper investment is not sustainable.

Oxford Economics says 4% to 6% allocation in silver will be optimal over the next five years

Although some analysts see the extreme positioning as a buying opportunity, other analysts note that the market is still in a technical downtrend. Bearish analysts have said that these gold rallies could prove to be short-lived as the Federal Reserve's aggressive monetary policy stance drives the U.S. dollar and bond yields continue to move higher.

Commodity analysts at TD Securities said they still expect gold prices to push lower. They noted that gold still hasn't seen a significant capitulation moment.

"While rates markets continue to reflect a more aggressive Fed rate hiking path, gold markets are still not pricing in the next stage of the hiking cycle. Amid persistent inflation, a restrictive rates regime may last longer than historical precedents, pointing to a prolonged period of pronounced weakness in precious metals," the analysts said in a note.

While hedge funds remain significantly bearish on gold, they are reducing their overall exposure in silver.

The disaggregated report showed that money-managed speculative gross long positions in Comex silver futures fell by 2,165 contracts to 34,429. However, short positions also rose by 2,093 contracts to 42,522.

Silver's positioning is now net short by 8,093 contracts, relatively unchanged from the previous week.

Although silver's bearish positioning has bounced off its recent three-year lows, analysts note that sentiment is still significantly depressed and ripe for a short squeeze.

"When positioning becomes too stretched on the short side, we usually observe a wave of short-covering, which was the case at the end of 2018 and early 2019 said Edward Meir, commodity consultant at ED&F Man Capital Markets.

By Neils Christensen

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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Gold prices push to 1675 as US core PCE rises 06 in August

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Gold prices push to $1,675 as U.S. core PCE rises 0.6% in August

Hotter-than-expected inflation data is providing some initial support for the gold market as prices retest the long-term support/resistance level at $1,675 an ounce.

Friday, U.S. Department of Commerce said its core Personal Consumption Expenditures price index increased 0.6% last month, up from July’s reading of 0.1%. Economists were expecting to see a 0.5% rise.

According to some economists, the rise in core inflation is an indication that rising consumer prices are becoming entrenched in the economy, which will provide further challenges for the Federal Reserve.

The gold market has seen a modest jump in initial reaction to the latest inflation data. December gold futures last traded at $1,675.70 an ounce, up 0.44% on the day.

The latest economic report also noted that consumers are once again spending more than they are earnings. Personal income in August rose 0.3%, in line with expectations; meanwhile, personal spending rose 0.4%. The data beat expectations as economists were forecasting a 0.2% increase.

According to some economists, consumes are being forced to spending more because of inflation.

Gold hasn’t been much of an inflation hedge through 2022 as higher consumer prices have forced the Federal Reserve to aggressive raise interest rates, which has pushed real yields into positive territory. However, some analysts have said that sentiment in the gold market could slowly be changing as the Fed’s monetary policy could be close to a breaking point

Massive volatility in global currency markets this week as been a signal for many investors that the surging momentum in the U.S. dollar, driven by the rising Fed Funds rate is causing problems for the global economy.

By Neils Christensen

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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Can gold price put an end to its six-month losing streak? Prices are at ‘critical juncture’ – analysts

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Can gold price put an end to its six-month losing streak? Prices are at 'critical juncture' – analysts

What gold does in the next two weeks will be critical for prices going into the year-end, according to analysts. All eyes are on the latest rounds of employment and inflation data as gold shows promising signs amid escalating geopolitical tensions and intensifying market volatility.

Gold saw a key development mid-week as prices rose from 2.5-year lows and headed towards the $1,700 an ounce level. At the time of writing, December Comex futures were trading at $1,673.70, up more than 1% on the week but down for the sixth month in a row.

"On Wednesday, gold had a key reversal. We made a new swing from the lows and ended up with a higher close. We had some follow-through Thursday and Friday. Looking at the gold chart, this is very positive. We go from a short-term trend down to sideways and up now," RJO Futures senior market strategist Frank Cholly told Kitco News.

If the gold market can get back above $1,700, the uptrend will be achieved, and a run to $1,740 would be possible, Cholly added.

Before this week, gold technicals were very negative, especially following a drop below $1,680. A steeper decline below $1,600 could have opened the door to a more significant selloff down to $1,290, said DailyFX strategist Michael Boutros.

"The technicals were very gloomy here," Boutros told Kitco News. "If gold prices are able to get above $1,706, we can dispel this downside break."

But the move higher needs to happen within the next two weeks. Otherwise, the downward trend will take over. "What happens in the next two weeks in price is paramount. The extraordinary speed and magnitude of Fed rate hikes put heavy pressure on gold," Boutros noted.
 

Geopolitical tensions could be one short-term driver that gets gold above $1,700. The latest development saw Russia annex four regions in south-eastern Ukraine, promising to use all means necessary to defend the territory.

"If escalation in Russia does start to mount the concern of real possible nuclear threat," that would be positive for gold, added Boutros.

However, it is essential to remember that any geopolitical gains in gold are likely only temporary, said TD Securities global head of commodity strategy Bart Melek. "Any time there is an increase in geopolitical risk, there is at least a temporary upside," he said.

But considering the monetary policy situation, it will be hard to shift gold's overall bearish trend.

"Ultimately, the U.S. dollar continues to be strong. The outlook hasn't changed. The Fed will continue to raise rates. And we'll have the Bank of England doing pretty aggressive tightening as well," Melek pointed out.

UK's market chaos, contagion risk: what it all means for gold price

Employment and inflation data

Gold's near-term direction will largely depend on the employment and inflation data released in the first two weeks of October.

"I don't see a breakout in gold until we see the employment and inflation numbers. If CPI or employment is stronger than expected, that is a negative for gold. It suggests that the Fed would be more likely to continue hiking as per its 4.6% outline in the dot plot. High inflation would also mean that market could price in something more aggressive down the road," Melek described.

Market consensus calls estimate the employment report to show the economy adding 250,000 positions in September and the unemployment rate remaining near 50-year lows at 3.7%.
 

The annual inflation number is expected to come at 8.1% in September after posting 8.3% in August.
 

Next week's data

Monday: U.S. ISM manufacturing PMI

Wednesday: U.S. ADP nonfarm employment, ISM non-manufacturing

Thursday: U.S. jobless claims

Friday: U.S. nonfarm payrolls
 

By Anna Golubova

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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GoldSilver – Use options to play a short covering rally

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Gold/Silver – Use options to play a short covering rally

What a volatile week it's been with the month and quarter ending after a downgrade of Apple stock sent retail stock investors scrambling for the exit signs and the British Pound falling to a record low against the Dollar. The U.K. government presented a fiscal spending plan that could put the next round of U.K. inflation through the roof. At the same time, the Bank of England admitted its first policy mistake and is in a state of "panic" that requires the need to deliver 175-200 bps in rate hikes over the next two meetings. Bringing it back to the U.S., Fed Fund futures are pricing in a 50/50 chance of another 50 or 75 bps rate hike at the next Fed meeting. That leaves traders wondering how long before the Fed admits its policy mistake of tightening too far into a recession.

The aggressive tightening of monetary policy in the U.S. has created a strong bid under the U.S. Dollar that will keep pressure on Gold and Silver for the time being. Unfortunately for precious metals bulls, the labor market's strength is the glue that holds the Fed's foot firmly on the rate hike pedal. The only thing that can stop the Fed is both inflation and the labor market showing signs of cooling, which could provide a sharp setback in the Dollar, leaving way for a massive precious metal short-covering rally

How to play these markets?

I cannot reiterate enough that there is a possibility that the Fed will continue to tighten while all of Europe lags in its efforts. However, if the Fed pivots, a short covering rally could unfold. I have found that it is best to use a calculated risk Options strategy in deeply oversold markets that haven't solidified a technical bottom. An options bull call spread is a trading strategy aiming to capitalize on an increase in a given market or asset during times of high volatility or for counter-trend trades. The option strategy consists of two call options that create a range that outlines a lower strike point and an upper strike point. The bullish call spread strategy helps to cap your max loss if the price of an asset drops. However, the strategy also limits the potential gains in case of a price increase. Bullish investors often use this when trading futures as a calculated risk debit spread.

February 2023 Gold Options Trade

We use the February 2023 Gold futures contract in this bull call spread example. We are buying 1 February Gold 1750 call at $45 as our long call. We then simultaneously sell 1 February Gold 1850 call at $22 as our short call. This action creates our premium, which is $23. We then multiply that by $100 to account for Gold's multiplier (a 100-ounce contract) to get $2,300, or our total premium paid (plus any commissions or clearing fees).Knowing our premium paid, we can calculate our potential max profit simply by taking the difference in our strike prices ($1850 – $1750), which in this case is $100, then we multiply $100 by $100 because this is a futures contract. That gives us a total of $10,000 as our max gross profit, minus our

January Silver Options Trade

If you prefer Silver, we are looking at a year-end strategy that involves buying 1 January Silver $19.00 call at 120 cents as our long call. We then simultaneously sell 1 January Silver $19.75 call at 95 cents as our short call. This action creates our premium, which is 25. We then multiply that by $50 to account for Silver's multiplier to get $1,250, or our total premium (plus any commissions or clearing fees).

Knowing our premium paid, we can calculate our potential max profit simply by taking the difference in our strike prices ($19.75 – $19.00), which in this case is 75 cents, then we multiply 75 by $50 because this is a futures contract. That gives us a total of $3,750 as our max gross profit, minus our $1,250 premium, leaving us with a max net profit of $2,500 (less any commissions or clearing fees). If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on transferring your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.

By Phillip Streible

Contributing to kitco.comweek's low of $1,622.20. Wyckoff's Market Rating: 1.5.

December silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at this week's high of $19.045 and then at $19.40. Next support is seen at Tuesday's low of $18.295 and then at $18.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 670 points at 342.55 cents today. Prices closed near the session high today. The copper bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at 350.00 cents and then at 355.00 cents. First support is seen at today's low of 330.55 cents and then at this week's low of 324.30 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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Gold price weaker earlier but now catching safe-haven bid as US equities tank

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Gold price weaker earlier, but now catching safe-haven bid as U.S. equities tank

Gold prices are a bit higher and near daily highs in midday U.S. trading Thursday. The yellow metal has erased its early losses as is seeing some safe-haven buying the U.S. stock market is melting down again and risk aversion is on the rise, amid shaky currency and bond markets. Also, daily bullish elements for the precious metals include a slight drop in the U.S. dollar index and in Treasury yields at midday. December gold was last up $2.10 at $1,672.20 and December silver was down $0.08 at $18.80.

U.S. stock indexes are sharply lower and back near their recent lows at midday. The marketplace was only briefly assuaged by the Bank of England's surprise announcement Wednesday that it will begin purchases of U.K. government bonds in order to stabilize the rattled U.K. bond market. However, markets quickly brushed aside the move as being insufficient. Risk aversion remains significantly elevated late this week. The marketplace is spooked by rising inflation, the specter of global economic recession, and currency and financial markets instability.

The U.K. government has created a "loop of doom" that threatens the entire financial system and they must act urgently, said Nigel Green of the DeVere Group. "Markets now know where the weakness lies. Intervention paints a target on the back of the body that intervenes." If the U.K. government does not change its tax and spending plans, "they will have blown up the U.K. mortgage market, U.K. pensions, amongst others, and eventually (a contagion) could spread to the wider global financial markets which themselves are sitting on thin ice as liquidity disappears," said Green. His comments came after the Bank of England stepped in to buy U.K. bonds Wednesday. The BOE's announcement "is the right thing to do, of course, but it seems ludicrous that it has had to act in this way," said Green. The International Monetary Fund warned the U.K. government over its plan for tax cuts and spending, saying such is likely to increase inequality and add to pressures pushing up prices.

New Pacific Metals advances a project near 'one of the largest silver deposits in the world'

Read a Barron's headline today: "Things are starting to break. But the Fed and BOE aren't done hiking."

The key outside markets today see Nymex crude oil prices firmer and trading around $83.00 a barrel. Meantime, the yield on the 10-year U.S. Treasury note is rising and presently fetching 3.729% after rising above 4.0% overnight. The 2-year Treasury note yield is 4.39%.

]

Technically, December gold futures bears still have the solid overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at $1,685.00 and then at $1,700.00. First support is seen at today's low of $1,649.30 and then at this week's low of $1,622.20. Wyckoff's Market Rating: 1.5.

]

December silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at this week's high of $19.045 and then at $19.40. Next support is seen at Tuesday's low of $18.295 and then at $18.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 670 points at 342.55 cents today. Prices closed near the session high today. The copper bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at 350.00 cents and then at 355.00 cents. First support is seen at today's low of 330.55 cents and then at this week's low of 324.30 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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This Is What Being A Hiver Is All About

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This Is What Being A Hiver Is All About

by Julia Travers writer, artist, and teacher

 

Thiis Is What Beiing A Hiver Is All About

 

After becoming deaf and blind at age two, Helen Keller faced her challenges with a singular optimism and strength. She became a trailblazing advocate for disability rights, and the first person who was deaf and blind to earn a college degree in the United States. She graduated in 1904, when women were significantly outnumbered by men in higher education, special education was in its infancy, and the disability rights movement was just beginning to pick up steam.

Keller’s mastery of multiple forms of communication, and lifelong activism on behalf of people with disabilities, women, Black people, and other socially sidelined groups, brought her international celebrity. She lectured throughout the U.S. and abroad, and authored 14 books, including a famous memoir published in 1905, The Story of My Life, which was translated into 50 languages and remains in print.

While Keller embraced the limelight, she did so in order to campaign for fair treatment and equal rights for everyone, regardless of gender, race, or disability. She supported the growth of several major U.S. institutions, including Helen Keller International, the ACLU, and the NAACP. She believed true happiness came from helping and working in partnership with others, aligning oneself with a higher purpose, and from within oneself.

“When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has been opened for us,” she wrote in 1929. Helen Keller was a passionate proponent of hope and courage in the face of adversity, and her words continue to inspire. Here are some of her most well-known and poignant statements.

 

A happy life consists not in the absence, but in the mastery of hardships.

Keller was born in 1880 in Alabama. When she was two years old, she became deaf and blind due to a fever. Her early childhood was reportedly filled with tantrums and disruptive behaviors. But when Keller was seven years old, her parents hired Anne Sullivan, a recent graduate from the Perkins Institute for the Blind in Boston, Massachusetts, to work with their daughter. Sullivan’s arrival and her persistent and creative instruction were turning points in Keller’s life.

 

Optimism is the faith that leads to achievement; nothing can be done without hope.

After initial struggles, a breakthrough occurred when Sullivan repeatedly ran water over one of Keller’s palms while fingerspelling the word “water” into the other. After many tries, Keller was able to connect the tactile experience of flowing water with the letter signals.

After comprehending the sign for water, she was able to learn 30 more signs that same day. Working with Sullivan stoked her ambitions to pursue an education and learn to speak. Keller was eventually able to communicate through finger spelling, typing, Braille, touch-lip reading, and speech.

 

I would rather walk with a friend in the dark, than alone in the light.

The friendship that developed between Keller and her mentor, Sullivan, spanned decades, and the pair lived together during different periods of their lives. Like Keller, Sullivan was a member of the disability community — she had vision impairments that increased as she aged.

 

One can never consent to creep when one feels an impulse to soar.

During her teenage years and young adulthood, Keller painstakingly learned to speak in a way that could be understood by people who could hear. She went to multiple schools for people who were deaf and a preparatory school for women before setting her sights on a new goal: attending college.

Meanwhile, Keller’s advancements became publicly known and drew the attention of influential people including Mark Twain, Alexander Graham Bell, and Henry H. Rogers, an oil magnate who offered to pay Keller’s tuition for Radcliffe College. In 1899, when she passed her entrance exams, only 36% of college students were women.

Sullivan accompanied Keller at Radcliffe, interpreting in classes until Keller graduated cum laude in 1904 at age 24. She was the first individual who was blind and deaf to earn a higher education degree in the U.S. Her autobiography, The Story of My Life, was published a year later in 1905 and was widely read.

 

Many persons have a wrong idea of what constitutes true happiness. It is not attained through self-gratification but through fidelity to a worthy purpose.

After graduation, Keller set out to share what she had learned and to advocate for people with disabilities. From universities to the halls of Congress, she lectured and testified on her experiences supporting blind and deaf communities. She is considered an early pioneer of the disability rights movement, which began to pick up steam in the early 1900s.

 

Alone we can do so little; together we can do so much.

Keller participated in numerous social movements of her era, including women's suffrage. In 1915, she cofounded Helen Keller International to address blindness and malnutrition around the world. She also helped found the ACLU and was an active member in the American Federation for the Blind, the Socialist Party, and other organizations. Despite being raised in the post-Reconstruction era South, she supported the recently founded NAACP advocating for civil rights for Black people.

 

Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing.

Keller was an intrepid world traveler and activist. In 1946, she became the counselor of international relations for the American Foundation for Overseas Blind. During the next 11 years, she spread her message across five continents and 35 countries. For her efforts, Keller was awarded several honorary degrees and the Presidential Medal of Freedom. Her autobiography inspired the 1957 television drama The Miracle Worker, as well as a Broadway play and film of the same title.

 

No pessimist ever discovered the secrets of the stars, or sailed to an uncharted island, or opened a new heaven to the human spirit.

Despite facing many challenges, Keller lived a life full of meaning and happiness before her death in 1968 at age 87. Sullivan died in 1936 at the age of 70, after becoming nearly blind. She spent much of her life by Keller’s side. Beginning with a single hand sign, the impact of these two women’s accomplishments rippled throughout the global disability rights community, and beyond. Through the words Keller worked so hard to impart, their story endures today as a beacon of hope and possibility.

 

New Opportunities Are Emerging For Citizens of The World.

Freedom and democracy may appear to be struggling to stay alive in America, but there may be a knock-out punch ready to be released. The evolution of the blockchain-enabled metaverse is going to enable the 'Citizens of the World' to gain their own Freedom by democratizing power and creating a new world with new rules, new players, and new opportunities. For 99.99% of us, the metaverse will improve our real-world lives by democratizing power and opportunity.

Along with the major long-term trend of society towards decentralization and smaller-scale organizations, there are new opportunities developing to help 'Preparers' in the cryptocurrency sector. Businesses are beginning to issue their own Crypto Coins that can be traded on Cryptocoin Exchanges.

Markethive.com will release its HiveCoin (HIV) in the coming weeks. It has tremendous upside potential that is outlined in a Video by Founder Tom Prendergast, "Entrepreneur Advantage…".

Not only that, if you go to their website and register as a FREE Member, you will be given 500 HiveCoins for "FREE" along with access to several Earning Opportunities and online tools to increase your HiveCoin balance.

Be sure to check it out today – Markethive.com

Markethive

Tim Moseley

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Resellers Club Product Of The Day

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Resellers Club Product Of The Day

Wow! This baby is selling FAAAAAAAAAST! No wonder! It's the best bargain on the net, bar none!!!

 

       

"Discover 7 Powerful Ways To Generate UNLIMITED Traffic To Your Site And The Best Part Is — It's FREE!"

Piggy Back On These High Traffic Websites To Gain More Customers, Profits and Traffic!

Just imagine how much more traffic you'll gain by knowing exactly how to take advantage of these high-traffic social sites.

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*Full Turn-Key Reseller Website AND Payment System Included.

Tim Moseley

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Gold silver rally on safe-haven buying bullish outside markets

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Gold, silver rally on safe-haven buying, bullish outside markets

JGold and silver prices are solidly higher and near daily highs in midday U.S. trading Wednesday, on safe-haven demand amid a nervous marketplace as the calendar is set to turn to what can be a tumultuous month of October for stock and financial markets. The U.S. dollar index is trading solidly lower at midday, bond yields have also dropped during today's session, and crude oil prices are solidly higher—all bullish daily outside market elements for the metals markets. Gold prices did drop to a nearly 2.5-year low overnight. December gold was last up $30.00 at $1,666.00 and December silver was up $0.468 at $18.805.

A Barron's headline today reads, "The greenback has gone ballistic." The generally strong U.S. dollar is putting serious pressure on the currencies of many smaller countries, which is very worrisome to those who endured currency crises of past decades. The main concern is a general marketplace contagion developing if secondary currencies dislocations and illiquidity spill over into extreme anxiety and lack of confidence in the global financial transactions system. The Chinese yuan hit a record low against the U.S. dollar today. Major economies have taken steps over the years to prevent another global financial market crisis, but when everyone runs for the exit doors at once, even robust systems can be over-run. Any investment bank or big hedge fund that appears to be in trouble may provide the first clue of a much bigger problem developing. Such a scenario would likely prompt a bigger move into the hard assets, safe-haven gold and silver.

BMO downgrades gold and silver prices for 2023, upgrades uranium outlook

Global stock markets were mostly lower overnight. U.S. stock indexes are higher at midday on short covering. The marketplace was somewhat assuaged overnight when the Bank of England made a surprise announcement that it will begin purchases of U.K. government bonds in order to stabilize the rattled U.K. bond market. The International Monetary Fund said the U.K. government should re-examine its stated plan to stimulate its economy through massive borrowing and bond sales.

Technically, December gold prices hit a nearly 2.5-year low early on today. Prices also scored a bullish "outside day" up today. The gold futures bears still have the solid overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,600.00. First resistance is seen at today's high of $1,669.40 and then at $1,680.00. First support is seen at $1,650.00 and then at $1,635.00. Wyckoff's Market Rating: 1.5.

December silver futures prices scored a bullish "outside day" up today after hitting a three-week low early on. The silver bears still have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at this week's high of $19.045 and then at $19.40. Next support is seen at Tuesday's low of $18.295 and then at $18.00. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 735 points at 335.70 cents today. Prices closed nearer the session high today and scored a bullish "outside day" up after hitting a nine-week low early on. The copper bears have the firm overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at 340.00 cents and then at 348.00 cents. First support is seen at 330.00 cents and then at today's low of 324.30 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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Three Wise Investing Principles For The Current Times

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Three Wise Investing Principles For The Current Times

This article explores the importance of an investment portfolio and the process of setting it up. 

Why Consider an Investment Portfolio?

Perhaps one of the hardest lessons of these last two years is the realization that you can be great at what you do, and yet see all your efforts go up in smoke during economic turmoil. We live in a rapidly changing world and no industry is immune from the potential fallout of economic events.

Certainly the case for having more than one income stream has been underlined in these last two years, and being able to work online from home has taken on a new advantage. For many the idea of having an online business from home solves a lot of issues and generates money in the short term. At the same time it can be overwhelming to be wearing many hats in business without an established team around you. It is important to take a step back and put all of these things in a bigger context in terms of your life aspirations and how money plays its part in that scenario.

The Benefits of An Investment Portfolio?

There are several good reasons to consider an investment portfolio. This is not the same as portfolio income. When approached properly it helps you become proficient in financial literacy which you can pass on to your children. 

Financial investments give you financial assets which can produce cash flow in the medium to long term income. Central to the theme of investments is that money is working for you rather than the other way round. It is a smart move to work in partnership with money, as opposed to simply working for it.

The key is to have a diverse portfolio across several sectors to spread the risk and create good upside potential for profits. This is what Warren Buffet reportedly did so successfully. For many the word investment may sound a bit daunting, and too long term to be a serious consideration.


Image Source: Investment Portfolio

This gives clues as to where to start. Many people are caught up with the immediate short term things, only to regret not taking a more holistic long term view.  Here are three wise principles to apply to investing.

The First Investment

Steven Covey, author of ‘The 7 Principles of Highly Effective People’, advocates where life decisions are concerned, that you start with the end in mind and use that as a main reference point. This is all about the context in which all decisions play out.

So you need to start with yourself, and decide what you want your life to be about moving forward and build accordingly.  ‘Know thyself’ is a phrase often read, but how well do you really know yourself?  Take the time to do this and you will reap dividends, pun intended!!

The Second Investment

Once you have done so take the time to invest in your financial education. Financial literacy worldwide is very low, and yet significant money decisions are made everyday. This means there are likely to be far more speculators than investors involved in investing. 

Teach a Man to Fish

There are many experts in investing with free videos on youtube to get you off the mark. Robert Kiyosaki is a well known expert who talks in terms of six basic rules. He uses debt to invest and get rich while reducing or avoiding taxes with this strategy. He walks through the use of other people’s money, the three types of income, financial education, investing for cashflow, risk and raising capital.

On the other hand the investment community I joined teaches the opposite in advocating not to use loans to invest. Only you can decide which path you will take, but know the ‘why’ and the consequence of each decision. Weigh up the pros and cons. This is why it is important to become educated, so you can make informed decisions.

Give A Man A Fish | Teach A Man To Fish

In the community I joined they allow you to partake in their portfolio. At the same time they encourage you to learn how to create your own portfolio, which I have since been doing. It’s a combination of two strategic approaches –  ‘teach a man to fish’ and ‘give a man a fish’.

I learned about 8 Rules to govern my investment practice. I share them here in slightly paraphrased fashion so you can use these as guidance by way of developing your own portfolio.

  • Know what financial independence and financial freedom specifically mean to you. In other words what figures would equate to financial independence and freedom from your perspective.
  • The second rule references 5 commandments to follow. Firstly put 10% of your income aside for the purposes of investing. Always control revenue and expenditures. Protect your money from losses. Learn to invest. Learn to earn more.
  • Choose your financial plan and stick to it.
  • Don’t put all your eggs in one basket so to speak. Learn to diversify.
  • Always keep investment discipline.
  • Greed and laziness leads to bankruptcy and ruin.
  • Always study investing.
  • Always increase your investment deductions.

By having the above structure I was able to start developing my own portfolio. One of the key things in addition is to know your risk profile. In other words, how much are you prepared to risk when investing in something?

A positive way to rephrase this would be the price you are willing to pay for your education and research concerning that investment.  For example I decided to do a certificate of deposit strategy on a new project, but since this was new, I was very risk averse, and took a conservative approach.

I put $16 in and was able to 10x it into $160 in 1.5years. I was happy because the key objective was to get some wins from sound practice rather than simply hope I would rake in a lot of money. I was able to add to this after.

One of the first things taught in investment is not to put in anything you are not prepared to lose, and yet you see many doing the opposite. For example the enticement of short term and lucrative income pulls many a speculator in, only to see a rug pull happen quite suddenly. One thing the above two approaches agree on is the importance of financial education and investing for the long-term, not just the short-term.

The Third Investment
 

Source Image: Wisdom

This may present controversy for some but warrants serious consideration, and that is the wisdom of ethical investing. With everything that is currently going on in the world, what principles drive your investment strategy.?

I for one will not invest in Big Pharma because their profits depend on people being sick and therefore there is both an orchestration and a monopoly to dominate the markets so that people buy their stuff. There are people whose mindset is solely on what will make them money regardless of consequences. That may be driven by a survival mentality, impatience, greed or lack of education regarding alternative and lucrative choices.

Catherine Austin Fitts is an investment banker and former US Secretary of Housing during the Bush Administration. She is the creator of the Solari Report, which is an advisory publication for investors. In many of her talks she puts investment within the context of what has been going on in the world from a political and economic standpoint. She gives a comprehensive educational assessment from an aerial viewpoint with regards the plan of the globalists and its relationship to investing.

While she is not a fan of cryptocurrency for valid reasons, her core message is an important consideration in choosing investments, because what you invest in does not just shape your life, but also impacts the political and economic landscape. The bottom line of her message is that since the globalists such as the W.E.F. and their associates are wanting to enslave us, it is incumbent that we do not ‘build their prisons for them’ because they intend to put us in them!

You don’t have to invest in the Monsanto’s of this world for example. You can invest ethically and profit while changing the structures of society for the better. In doing so you stop feeding the beast so to speak.

Types of Investment

With the above three investment tips in mind, when it comes to what to invest in, that depends on you, your educational assessment and your life governing ethical principles, as to what you choose and prioritize. 

Traditionally there are different sectors such as technology, advertising, property, money, real estate to name a few. You can invest in property, technology, media, precious metals, restaurants, start up companies or already established companies. Basically any financial vehicle which creates cash flow can be considered an asset for the purpose of investing. Make sure to create your own investment criteria, by which you select or deselect investments.

As far as company investments are concerned, look at the company's vision, community, financial assets and projections, along with market statistics when assessing viability. Is it a liquid or illiquid asset? Who are the owners? Is there an advisory board?  What is the benefit to society?

Maybe you decide to do a safe haven play and invest in gold as an inflation hedge. Now it is easier to liquidate gold too. Study the precious metals and decide what best fits your needs. There may be certain companies you like which you could invest in. Maybe you choose to invest in projects that you are interested in such as cryptocurrency. Currently this is like the wild west and a very volatile market. So you need to have a firm sense of how risk averse you are, while keeping a very disciplined mindset. Maybe you go for projects that have real utility or are tied to real world assets.

Exploration of Investments

You might wish to look into legacy projects that are trying to improve the world we live in. Markethive is an obvious example of investing in a company that is building an ecosystem for the entrepreneur to thrive. Constellation DAG is an example of a blockchain that is fast and feeless in response to the issues with other blockchains such as ethereum etc.

Image Source: Constellation DAG

Qortal is a project that is building a new internet built around privacy and accessibility. Debtbox on the other hand is a project tied to real world investments using innovative scanning technology, for example. Bobcoin is tackling unemployment in Africa and pollution with its cryptocurrency based project.

None of the above are recommendations, but hopefully will stimulate critical thinking. Know your values, develop an investment mindset, otherwise you are effectively gambling. Also think about the world you wish to create through your investment choices.

For me I am looking to bring balance to my investments to include those I wish to see become part of our future such as Markethive, and technologies that allow me to create my own banking system as part of a parallel society to the one we are currently living in. 

Image Source: Markethive

Words of Wisdom

The Chinese bamboo tree has much to teach us about abundance in the long term. In the first four years there is no visible sign of growth. Yet in the 5th year when it breaks through the surface of the ground, it grows significantly to 90 feet tall within 5 weeks. So the question is posed – did it take 5 weeks or 5 years to grow 90 feet tall?

The answer is the latter because had it not been consistently watered and nurtured on a daily basis the growth spurt could not have happened. So be encouraged even if you have yet to start an investment portfolio.  It is never too late to do the right thing by you, especially if it creates a legacy that will inspire others beyond your life. 

Can you imagine the world we would live in if more did that, and what would happen if we started to thrive through making wise, ethical investments? This is how you change the world, one step at a time. Hold that thought, and live it out.

 

 

About: Anita Narayan. (United Kingdom) My life's work is about helping individuals to greater freedom through joy and purpose without self-sabotage, so that inspirational legacy can serve generations to come. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

 

Tim Moseley

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Gold’s weakness remains as the dollar dominates with more upside potential

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Gold's weakness remains as the dollar dominates with more upside potential

Although gold is trading fractionally higher today, by no means can we say that a rally has begun or that this is the beginning of a potential pivot and key reversal from bearish to bullish. The fate of gold pricing remains intrinsically tied to dollar strength or weakness. In the current economic scenario, it is dollar strength that is overwhelmingly moving gold to lower pricing. The dollar has been moving in a near parabolic manner and today is fractionally higher following exceedingly strong upside moves of 1% each day for the last two trading days.

As of 4:50 PM EDT, the dollar index is up 12 points or 0.11% and is currently fixed at 114.14. The chart above is a weekly chart of the dollar index in which we have added a Fibonacci extension. This extension was created over two weeks ago and currently, the dollar index is just below the forecast created from the extension.

According to Investopedia, "Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the price may reverse.

They're created from three price points marking price levels of key tops and bottoms. In essence, a Fibonacci extension will forecast how far the next price wave or rally could move before finding resistance. In the case of the chart above, we used a weekly chart beginning at 88.095 the low achieved during the beginning of 2018 as the first price point. The second price point occurred in April 2020 when the rally that began in 2018 concluded with the dollar index at 104.825. The third price point is based upon the correction from the termination of the rally in April 2020 at 104.825 to the conclusion of the correction in January 2021 when the dollar corrected to 89.175.

From these three price points, we then do a price extension and in the case of a strong rally, we will look for the rally to move as high as 1.618% of the price differential between the first two price points. In the case of the Fibonacci extension study above a 1.618 extension occurs at 114.497. Today the dollar continues to move fractionally higher trading to a high of 114.425 and is currently fixed at 114.13. In other words, the Fibonacci extension was able to forecast the first level at which the dollar might encounter some resistance.

Fibonacci extensions can be created from different time cycles or using different tops and bottoms. The second chart is also a Fibonacci extension from a weekly chart. However, we are using a much longer time sequence beginning at a low that occurred during the first quarter of 1995 when the dollar index concluded a correction at 79.921. The rally that followed lasted until 2002 when the dollar index reached 121.144. The third price point is the conclusion of the correction that began at 121.144 and occurred at 70.993. In this study, we are looking at the potential for the Fibonacci extension to go to either 1.23% which occurs at 121.696, or 1.382% which occurs at 127.962.

In other words, based on these technical studies the dollar index may find fractional resistance at its current pricing of 114.49. However, any correction will probably be shallow and short-lived and the dollar will return to its upward trajectory reaching 121.70 at minimum.

As long as the Dollar remains strong and moves to higher ground, which is likely as the Federal Reserve continues to raise rates which will increase the yields on U.S. debt instruments that will lead to more dollar strength, gold will continue to remain under pressure.

By Gary Wagner

Contributing to kitco.com

Time to buy Gold and Silver on the dips

Tim Moseley

The Artist that came out of the Winter