In case you haven’t noticed, Goldbroker.com has been a Liberty Blitzkrieg partner for several months now. If you care about the precious metals market, then you should know about them. Not only do they deal in the metals, but their site provides some excellent commentary on the market. Such as the latest by Dan Popescu titled, The Calm Before the Storm in the Gold Market.
Here are some excerpts:
Again this week the gold price tested the $1,200 level dropping below it on higher US dollar against most fiat currencies. It is assumed that a stronger US dollar against the euro and other fiat currencies is also negative for the price of gold. However gold is not a hedge against the US dollar but rather against all fiat currencies. Even though gold’s price has been falling, in India and China gold premiums have increased signifying a rising demand. We have also seen a substantial increase in silver and gold coin sales in the US. Actually gold coin sales doubled in September compared to August.
With sentiment at historic low as I explained in my previous article Gold Sentiment, $1,200 and more specifically $1,180 is more a correction within a secular bull market than a pause in a larger bear market. With more and more articles coming out with titles like “Gold Dies”, I am more convinced than ever that we are seeing a major bottom being crated. Eastern central banks are still buying massively and Western central banks are holding on to their stock. This doesn’t look to me as a continuation of a downtrend.
On November 30, Swiss citizens will go to the polls to vote on three areas; whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its gold and that all its gold should be held within the country. If by any chance the Swiss people votes in favor I expect major tremors in the gold market. Just the fact that Switzerland will have to buy a large amount of gold to reach the 20% will have a major psychological effect on the gold market not to mention also the snowball effect it will have on other countries. Switzerland is a very small country but with a long history of gold ownership. A vote in favor in the Swiss Gold Initiative referendum would mean that Switzerland would have to buy 1,700 tonnes of gold. This represents 70% of annual world gold production. The Swiss National Bank has 5 years to acquire the 1,700 tons if the initiative passes.
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G
Follow me on Twitter.
