US
UK
Spanish
Chinese
Japanese
Hong Kong
Canada
Australia
Korean
Deutsch
India
Gold and silver have fallen after yesterday's gains due to the very poor consumer confidence data and Federal Reserve murmurings of further monetary easing.
Silver Spot $/oz - G1 Daily 8/31/09-8/31/11, Bloomberg Finance
Gold's London AM fix this morning was USD 1,826.00, EUR 1,264.19, GBP 1,121.14 per ounce. Gold fix was higher than yesterday's AM Fix which was USD 1,791.00, EUR 1,243.49, GBP 1,097.56 per ounce.
Gold remains less than 5% from its record nominal high of $1,913.50 per ounce while silver remains nearly 20% below its record nominal high just below $50/oz.
Follow us
Gold has stolen the limelight from silver in recent weeks with gold reaching a series of new record nominal highs.
But silver has been quietly consolidating after the sharp falls seen at the end of April and in early May when many claimed the silver 'bubble' had burst.
Media coverage of silver remains nearly nonexistent which is bullish from a contrarian perspective.
Technically silver is looking better by the day and is now trading not far above its 50 and 100 day moving averages (see chart above).
Today the 50 day moving average is trading at $38.70/oz and the 100 day moving average is trading at $38.74/oz. The 50 DMA is rising after recent price gains and looks set to cross the 100 DMA in the coming days. This will be a bullish technical signal.
Silver's sell off was very sharp but volatility and a correction was expected and warned of once silver reached the nominal inflation adjusted high of $50 per ounce.
Value buyers continue to accumulate silver bullion. Jim Rogers, one of the most prescient investors of recent times and who arguably has a better track record than Soros in recent years, remains bullish on gold and particularly silver.
A tiny minority of retail investors has begun to look at silver, but it remains largely the preserve of the smart money, a very small amount of people in the United States and Europe concerns about currency devaluation and store of value buyers in Asia.
There are many factors that strongly suggest that silver remains a prudent buy and diversification today.
