CelticGold Gold and Silver Market Report 29th September 2014

2014-09-29  |  Gold & Financial News

1 Year Gold Chart Technical -Sep 2014

This week we are combining the Gold and Silver market updates into one report. Gold closed on Friday at $1217 and Silver closed at $17.60. Both metals have continued to drift lower since our last update. There is a perception in the market right now that inflation is not a threat over the short term which is causing many traders and investors to abandon their paper Gold and Silver positions.

In addition, as we mentioned in the last update the overall commodity sector is continuing to come under pressure as copper, oil, iron ore and many other commodities have all been trading lower. As of now the Gold market is lacking the broad market participation needed to resume the bull market.

Over the last several months we have presented many opinions of expert analysts who follow the Gold and Silver markets. Almost all of them have been wrong in their predictions of the short term movements in the Gold and Silver price. 

This highlights the challenge of trying to predict market movements with such unprecedented intervention from the worlds central banks. Traders and investors are addicted to the minute by minute news and have completely bought into the illusion that the central banks have control over interest rates and financial markets. 

With Gold and Silver suffering another decline over the last several weeks it begs the question of whether the bottom is here and also the timing of the next sustained rally? The answer of course is that no one really knows for sure. Gold and Silver could begin their march toward new highs next week, or maybe even a year from now. 

Even in the unlikely event that Gold drops to $1,000 an ounce it will ultimately not affect the long term market fundamentals for both Gold and Silver. The current bull market in the precious metals that began in 2001 still has many more years to go. This is why we always recommend allocating your purchase over many months if you interested in buying right now. 

Revaluation of Gold and Silver

One of the more interesting presentations that we have seen recently was authored by Mike Maloney. In the short video below Mr. Maloney outlines what could be a real scenario for paper currency.

The example he uses in the presentation is the Russian Ruble. The statistics he provides are truly stunning. The Ruble was devalued many times from 1922-1998 and the extent of the revaluation is a real eye opener to how fast paper money can lose it’s value. History shows that these revaluations happen literally overnight. Those who are unprepared usually take heavy losses. 

The future of today’s major currencies are all uncertain. The Dollar, Pound, Yen and Euro all face big challenges in the coming years. Physical Gold and Silver will both be a hedge against any future devaluation in the currency markets.

The information in the video is a good reminder of why it is vital to have a position in the physical metals ahead of any type of revaluation that might occur.

Hidden Secrets of Money Video