Gold and Silver Update – w/e 30th June 2017
Welcome to illuminati silver, we tell you the truth about silver.
Today is Sunday 2nd July 2017 and we are providing our gold and silver weekly update for the
week ending 30th June. Gold fell $15 last week from $1,256 to $1241
having hit a high of $1,257 and a low of $1,238. In sterling terms gold finished the week at
£953 that’s down £35, and in Euros it closed at 1,086 that’s down 36 Euros on
the week. Silver fell 12 cents from $16.73 to $16.61
having hit a high of $16.90 and a low of $16.47. In sterling terms it closed at £12.75 that’s
down 40 pence for the week and in Euros it closed at 14.54 euros that’s down 0.41 euros.
The Gold to Silver Ratio fell slightly from 75.07:1 to 74.71:1
The Dow Jones closed on Friday at 21,349 up 62 points on the day and down 45 points on
the week, and the NASDAQ closed at 6,140 down 4 points on the day and down 125 points on
the week. Brent Crude rose $3.23 cents to $48.77 and
US Light Crude rose $3.03 to $46.04 The dollar index stands at 95.63 that’s
down 1.63 on the week. Gold fell early last Monday morning, attempted
a rally and then fell back again towards the end of the week. For many this was surprising,
especially as the dollar weakened quite significantly against other major world currencies. The
reason given for the initial fall was a ‘bad order’ entered by a clerk resulting in a
‘flash crash’ from which markets failed to recover fully. Whether true or not, one
cannot escape from the fact that the recovery failed even though there were significant
tailwinds behind gold; such as lower dollar value and slightly falling stock markets.
There have been in recent months a number of events political and economic which should
have caused a reasonable gold rally, and they failed to materialise. This coming week will
also prove interesting, in that we can expect the release of several key reports including
ISM Manufacturing PMI, ISM Non-Manufacturing PMI, the Fed Meeting Minutes and the U.S.
Non-Farm Payrolls report. If these reports result in a strengthening dollar, which is
indeed quite possible, or support the move towards higher interest rates later this year,
then gold will continue to remain under pressure and we may indeed see a fall back to the $1200
position, at which there has so far been considerable support, however one must not assume that
this support level is unbreakable. Keep an eye on interest rates in Europe and the UK
as suggestions for future rate hikes will certainly hinder golds progress in Euro and
sterling terms as we saw last week with gold down a quite significant £35 per oz and 36
Euros per oz. Silver prices last week displayed a similar
trend in price direction to gold but no-where near as severe. Nevertheless, dollar value,
interest rate forecasts, economic results all have a similar effect and this is something
we have continued to comment on for the past 2 years. Silver and gold trends, more or less
move together or at least in similar patterns – certainly in recent years. Yes the degrees
vary but one cannot escape from the fact that they are influenced by a majority of the same
factors. Silver has a beneficial or detrimental bearing because of its industrial use. In
times of poor industrial performance, silver prices are adversely affected and vice versa.
So its predilection to move in line with gold is predominantly based on its use as a monetary
metal or the view of it as a monetary metal. We have always been positive silver and gold
long term and generally bearish short term. We do believe that silver now has a floor
around the $15 level whereas 2 years ago that floor was around $12 but we also see a peak
this year of no more than $21 and the consensus at the moment is a hovering between $16 – $18.
In sterling terms we can see silver going lower as the value of the pound increases
against the dollar and so for Brits good times may be ahead for buying, though we have to
take into account that 20% VAT charged which puts us at a huge disadvantage to our American
colleagues. We often look with envy at US citizens who receive offers from large bullion
dealers of spot plus 60 cents or even less, when we have to pay at least £2.50 or $3.25
premium simply because of the VAT charged. Yes we can buy our silver from Estonia or
Germany, but we are still paying a premium and this is why to a large extent, silver
is not as popular as gold (which incurs zero VAT and sometimes zero CGT) in the UK and
Europe. We were pleased to have pointed out last week
that we expected gold and silver prices to fall but not significantly, which in dollar
terms is exactly what happened, and we are expecting continued weakness throughout the
Summer, unless of course some form of International political incident occurs.
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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.