5 January 2015

CelticGold Market Report 5th January 2015

Gold Technical Chart 1 Year

Gold began the trading year modestly higher on Friday closing at about $1188. Since our last update two weeks ago, equities in Europe and the US continue to get all of the attention. UK and German stock indices are trading near all time highs despite signs of weakening growth. The Dow Industrials in the US continues it’s accent to all time highs regardless of the economic news.

In a recent interview on Bloomberg, Marc Faber highlighted the challenge of the current investment environment. He said that monetary intervention by the Central Banks makes it very difficult to predict markets right now. The only thing that seems relatively certain in 2015 is a continuation of high volatility in many markets. 

The currency volatility that we saw in 2014 is just the beginning of what may be a highly turbulent year for financial assets in 2015. The big question is whether or not a major currency like the Yen, Euro or Dollar will begin to loose confidence as a store of savings. For people living in Argentina, Russia and Venezuela holding Gold has proven to be an effective way to protect value. This trend should continue this year.

The highlighted links for this weeks update is an overview of Gold market predictions by a number of different experts. The first link provides a wide range of views on Gold for 2015 and beyond. The second link is to the latest episode of the Keiser Report. In the first half two professionals give their views on Gold for the year and discuss the issues they see for the global economy.

As was mentioned above, the financial markets are very difficult to predict right now. As a result, in our view its best to look at Gold and Silver as long term savings. The many geopolitical conflicts combined with the headwinds that the global economy face suggest that there is limited downside risk to Gold. 

However, given the volatility in the markets the metals could have some temporary pullbacks. Any weakness in price will most likely be short lived. So we’ll see if 2015 can be the year that Gold and Silver breakout to the upside.

GoldSilverWorlds Article: 2015 Forecasts Predictions

RT.com - Max Keiser Episode 700

Market Update for Silver

Silver Technical Chart 1 Year

After temporarily climbing above $16, Silver finished the first trading day of the year at $15.76. Much of what we mentioned in the Gold update also applies to Silver. Once Gold begins to rally Silver will follow suit.

In past updates we have highlighted the incredible investment demand that has come into the physical Silver market. In the article below, the author brings forth some additional data on the strong demand for Silver. 

In the chart provided, demand for coins and bars has grown from 53 million ounces in 2004 to 242 million ounces in 2013. Investment demand has been the biggest growth area. The article estimates that investment demand is only 2% of the population. One can see if demand grows by just a few percent the price appreciation of Silver could be significant. 

The article provides some good data points on the Silver market. The link is below.

Srsroccoreport Article: Global Silver Demand

Author: celticgold.eu

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