Gold and Silver Update w/e 18th March 2016 – by illuminati silver


Welcome to illuminati silver, we tell you
the truth about silver. Today is Saturday 19th March 2016 and we are
providing our gold and silver update for week ending 18th March.
Gold rose in US dollar terms last week by $10 from $1245 to $1255 having been as high
as $1270 and as low as $1227. In sterling terms gold rose by £1 and in Euro terms it
fell by 3 Euros. Silver rose by 32 cents from $15.49 – $15.81
having reached a high of $16.11 and a low of $15.22. In sterling terms it rose 15 pence,
and in Euros it rose by 0.13 Euros. The Gold to Silver Ratio fell from 80.3:1 to 79.4:1
– its second consecutive weekly fall. The Dow Jones closed on Friday at 17,602 up
120 points on the day and up some 389 points on the week, and the NASDAQ closed at 4,795
up 20 for the day and up some 47 points on the week. Brent Crude was almost $1 up on
the week at $41.20 and US Light Crude was also up almost $1 at $39.44. The dollar index
stands at 95.08 down 1.09 on the week. Gold ended an interesting week at $1255.00
after jumping to $1270.00 following dovish comments from the FOMC putting off rate increases
until later in the year. Gold headed for a weekly gain as the dollar fell after the US
Federal Reserve dialled back forecasts for interest rate increases this year, igniting
a commodities rebound. With the SPDR Gold Shares the world’s largest
physically-backed gold exchange traded fund, up nearly 19% year-to-date and ranking as
this year’s top asset-gathering ETF, perhaps it is not surprising that there is a growing
chorus of naysayers claiming that now is the time to sell gold and gold ETFs.
Silver is interesting to note. The latest CFTC (Commodity Futures Trading Commission)
data for the week up to March 8th showed the net long fund position (NLFP) climbed 4,404
contracts via 1,272 contracts of fresh buying and 3,132 contracts of short-covering, which
was bullish. One potential dampener is that the long position is already high and, with
the short position at 19,995 lots, down from a peak of 63,993 contracts in July and 47,746
contacts at the start of the year, there may not be much more short-covering to be done.
Some argue that Silver’s charts look more bullish now. With the gold/silver ratio having
been at its highest since the 2008 peaks and has been at an extreme, thereby suggesting
silver prices are cheap relative to gold, the ratio may be turning lower now, which
is bullish for silver. And with the Fed worried about the global markets and turning dovish,
the background has improved for gold and, with it, silver.
We are a little more cautious in our thinking. As our very basic gold and silver performance
chart shows that over the past year silver has consistently underperformed gold until
this month when it more or less equals its rise. This supports our hypothesis that silver’s
rise is the consequence of the gold rise, held back a little because of reduced or lower
industrial demand for it. The trend between the two currently is almost inseparable and
we suggest that a mixture of gold demand by investors plus a slightly weaker dollar has
indeed benefitted silver. The GSR is in our opinion worth watching but currently is of
limited importance. Why? Because it is highly unlikely people are going to sell their gold
and swap it for silver. In a rapidly rising market where one is a clear laggard perhaps
so but under current conditions we cannot see this happening and indeed, with concerns
over industrial output we still expect to see a high GSR. Now if what the governments
are telling us is the truth and that the world economies will grow and in future years, and
will grow steadily, then we shall indeed hold a different opinion but not until then.
Technical Analysts are stating that gold may now be in a position of consolidation within
the $1220 – $1280 level while silver will oscillate between $15.20 and $16.20. Indeed
we see this too and are noting with greater interest the actions of other Central Banks
in response to a slightly weaker dollar. At this stage we just reiterate, that should
you be underweight in metals in your portfolio, then you should at least consider purchasing
on dips. For those who are living in countries other than the US which are adopting negative
interest rates and feel that rates may go even lower, should bear in mind that the acquiring
of gold and silver should be considered as a hedge.
We hope you have found this video interesting and informative and if so, please give it
a thumb up and share it on twitter. Also kindly visit our website at www.illuminatisilver.com
and look at our Facebook page which is updated daily at www.facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

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