goldprices

What’s Next For The Silver Roller Coaster?

After a frenzy of Reddit induced activity that captivated everyone, silver painfully gave back what it gained. What’s next for the white metal? Q4 2020 hedge fund letters, conferences and more The Short SqueezeAs the precious metals’ version of moral hazard, silver tipped over the flowerpot, and left gold to clean up the mess. After silver’s short squeeze mania ended in tears on Feb. 2, the white metal gave back 97% of its squeeze -induced gains. Conversely, bearing the brunt of the market’s wrath, gold gave back 237% of the momentum-induced gains. Please see below: Figure 1 As a result, silve...

New POTUS, New Gold Bull Market?

Joe Biden’s election as president and his first economic proposal proved negative for gold prices, but the presidency might yet turn positive. Q4 2020 hedge fund letters, conferences and more What Does The New Presidency Mean For The Market?The 46 presidency of the United States has officially begun. What does that mean for the U.S. economy, politics and the precious metals market? Let’s start by noting that this will not be an easy presidency. The epidemic in the U.S. is raging, the economy is in recession , and public debt is ballooning. Foreign relations are strained while the nation is str...

Will Interest Rate Increase Cause Gold to Plunge in 2021?

The decline in the real interest rates is the most important downside risk for gold. Will it materialize, plunging the price of the yellow metal? Q4 2020 hedge fund letters, conferences and more Increase In Real Interest Rates Is A Downside For GoldThe rise in inflation is the most significant upside risk for gold this year, but there are also a few important downside risks. The most disturbing for us is the possibility that the real interest rates will increase. Why? Please take a look at the chart below. As you can see, there is a strong negative correlation between the real yields and gold ...

2021 Should See Improved Gold Demand

The World Gold Council recently published two interesting reports. Gold demand plunged in 2020, but 2021 should be positive for the yellow metal. Q4 2020 hedge fund letters, conferences and more Gold Demand TrendsOn Thursday (January 28), the WGC published its newest report about gold demand trends: Gold Demand Trends Full Year and Q4 2020 . The key message of this publication is that the gold demand of 783.4 tons (excluding over-the-counter activity) in the fourth quarter of 2020 was 28 percent lower year-over-year. As a result, it was the weakest quarter since the midst of the Great Recessio...

Crescat Capital Quarterly Investor Letter Q4 2020 “The Largest Wealth Transfer in History”

Crescat Capital commentary for the fourth quarter ended December 31, 2020, discussing that gold and silver mining companies now trade with a higher free cash flow yield than tech stocks. Q4 2020 hedge fund letters, conferences and more Dear Investors: Crescat finished strong in 2020 to capture the top three spots in the Bloomberg News US hedge fund performance table for December. All three Crescat funds made it into Bloomberg’s top 10 for the full year with the Crescat Precious Metals Fund taking the #1 spot. We are working as hard as ever to continue to deliver in 2021. We see an incredible m...

Gold Prices Pressured By The Fed Meeting, U.S. Dollar

Gold prices fell during and after the Fed meeting on Wednesday. Federal Reserve Chairman Jerome Powell left interest rates unchanged at around zero and pointed out that economic activity has moderated since the December meeting. Q4 2020 hedge fund letters, conferences and more Gold prices affected by the Fed meetingEconomists and analysts hadn't been expecting much from the Fed meeting, and although gold prices did fall, they remained within their previous range. Speculation had been growing that the Fed could start considering yield curve control. U.S. Treasury yields remain around 1%, which ...

S&P 500 and Gold Bulls, Get Ready to Meet the Bears

Yesterday‘s recovery ended on a weak note as stock bulls gave up the opening gap. Disappointing in the very short run, especially given that other key markets acted likewise weak. Neither corporate bonds, nor gold, nor oil could get their act together, and are hanging in the balance. Inviting the bears to probe the defences, how far south will they be able to get?Q4 2020 hedge fund letters, conferences and more We have the Fed meeting later today, and while I am not looking for hawkish surprises or any outright optimism, the investors aren‘t taking chances. Sell now, ask questions later seem t...

Will Biden’s Executive Blitzkrieg Defeat Gold?

A new sheriff is in in town, and he’s making some rearrangements. Will the new order of things support the price of gold? Q4 2020 hedge fund letters, conferences and more Reversal Of Many PoliciesWhat a blitzkrieg! Joe Biden certainly wastes no time in signing executive orders. Since inauguration, he introduced several policies, including mandating masks on federal property, in airports and on certain public transportation, and the end of a travel bank on some countries. Biden also terminated the construction of the wall at the Mexican border, halted the withdrawal from the WHO and placed the ...

After Your Recent High – Where To Now, Gold?

Gold And Silver: With Some Price Variations, But Without Trend

Although financial markets have lost their fear of the coronavirus pandemic, there are currently no strong trends in the gold and silver markets. While we agree that there is some downside risk to the US dollar, it should be insufficient to revive last year’s record trajectory, especially as safe haven demand will weaken further. Q4 2020 hedge fund letters, conferences and more This Rally Appears Positive For Gold And Silver MarketsAccording to the analysis of Carsten Menke, research director of Next Generation at Julius Baer, so far this year prices have remained within the range, but have sh...