31 August 2014

CelticGold Gold and Silver Market Update 31st August 2014

Gold Chart

 

Gold closed out the week at $1287 and has been trading in a tight range over the last month or so. As we mentioned in our last update August is a slow trading month for Gold. Next week most traders will be back from summer holiday and as a result volumes will back to normal.

 

From a technical standpoint, according to Gary Wagner who provides technical analysis of the Gold market for Kitco, $1280 remains an important support level for Gold to hold. The next area of resistance is $1311. September and October tend to be strong months for Gold so we’ll see if a rally can develop. 

 

In addition to the news items about the various geopolitical conflicts around the world, the big financial news items in the past two weeks have been the strong performance of equity markets with the S&P 500 in the US making a new high and crossing 2000 for the first time. 

 

These new highs have been made on very low volume which is not a good sign if you are an equity bull. The chance of a major correction is high as stocks enter September and October which are historically challenging months for equities.

 

With the somewhat lackluster performance of Gold and Silver recently we found a short video that discusses the 5 most important reasons to own Gold right now. It is always a good idea to now and then revisit the reason for holding an investment.   

 

An important point the author makes is holding Gold as an insurance against the unknown. This in our view is one of the major reasons to own Gold. It is very challenging to understand the true health of the major global financial institutions and how they will hold up should another financial crisis develop. Having hard money in the form of physical Gold and Silver is one of the best ways to protect yourself financially.

 

The link to the video is below.

Telegraph: The 5 most important reasons to hold gold.

Update for the Silver Market 

Silver Chart

 

Silver closed the week at $19.44 and like Gold has been underperforming as of late. For Silver to begin to stage some sort of rally, it must first recapture $20 again and hold this price level.

 

Over the last several months we have posted many articles that highlight the investment potential of Silver right now. While there is no such thing as a risk free investment, the fundamentals of the Silver market look very good. 

 

Below is another excellent article from Jeff Clark of Casey Research that provides more analysis of the Silver market. The data makes a strong case for owning Silver. As we have mentioned in the past the volatility will likely be high, so it is best in our view to look at Silver as a long term investment.

Caseyresearch Article on Silver

Author: celticgold.eu

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