Supply & Demand

Gold will fall hundreds of Dollars on its way to $5000, $10,000 or more. It's crucial to be mentally prepared.

On a day where real yields are spiking, seemingly sparking a degrossing in gold futures, we found it rather noptable that BofA's Global Commodities Research team publish a note highlighting the fact that recent flow data suggests that paper gold is no longer as important as it used to be.

Quarterly charts show the bigger trend. Even if silver fell another 25%, it wouldn't alter the huge bullish set-up here.

The historical relationship between silver and the stock market provides great insight as to where we are currently in this cycle. Traditionally, the best part of silver rallies come after a significant Dow peak.

After three consecutive weeks of growth, Russian forex holdings have reached a total of $591.8 billion, according to the latest data released by the country’s central bank.

Gold/Silver ratio has broken down. Gold and silver big picture and latest breakout.

Bank of Nova Scotia has reached settlement agreements with the U.S. Department of Justice and the Commodity Futures Trading Commission over charges of metals market manipulation.

Today, if gold had the same kind of performance as the Dow since around the creation of the Federal Reserve in 1913, then it would have topped out at around $7 758 [(29568/78.78)*20.67]. Yet, it only has an all-time high of about $2 089.

It is fascinating that only 0,5% of global financial assets are invested in the only asset that has held its purchasing power in history. In the next few years investors, from retail to institutional, will all want gold. GOLD will be the SINE QUA NON investment that everyone wants to own.

Silver is expected to break through $26 resistance in mid August, before bumping into resistance at $27.50 and hanging off a bit. The level of $30 could be reached at the end of September, a deadline each year very important for the silver market.