Today’s gold and silver price in perspective

Posted | 18/09/2013 / Views | 1668
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Why are gold and silver so low again? A pretty common question lately, so let’s look at what’s happened (assuming we’ve written enough about how we got to the 28 June secular market correction low)… Gold and Silver saw a bull rally in August largely off the back of speculation of a war in Syria, mixed messages on QE tapering, visibility of the bullion banks massive gold long position, and rampant demand from China and India.  It saw a 22% gain for gold and 37% for silver to the peak from the June low.  Since Syria is in abeyance, QE tapering at some level looks almost certain tonight, and India’s import restrictions finally started to work with huge reductions in August, we’ve seen a correction of this rally.  But for perspective, at today’s prices gold has still increased 8% and silver 16% off the 28 June low.  Annualised that is about 36% and 75%.  So yes it’s come off since late August but Syria was an anomaly (and far from resolved anyway), QE may be tapered not turned off and still high on any account, JPM et al are still very long on gold, China is still buying rampantly, and Indians will no doubt find a way around their Government’s controls.