As readers of lawrieongold.com will already know, I also write for other websites and usually the terms of so doing are that I can’t publish those full articles here as well – but I can publish synopses and links so you can read the full articles on the other sites.
So here are a couple of articles I’ve published over the past couple of days on Sharpspixley.com
The first is an article on palladium the metal virtually all the mainstream analysts reckoned would be the best performing precious metal last year – but it turned out to be the worst performer in the precious metals complex – so don’t believe what the mainstream analysts tell you. They are wrong probably as often as they are right!
In its latest weekly newsletter to clients, London’s Metals Focus consultancy looks at palladium’s almost horrendous fall from grace pricewise and asks the question : Palladium’s dismal performance: buying opportunity or trend?
Indeed palladium is a terrific example of markets trumping analysts and that in these days of High Frequency Trading and enormous speculation on the futures markets, it is other factors than fundamentals that really move the prices in a relatively small market like that for palladium. Last year virtually every precious metals analyst out there was predicting that palladium would be by far the strongest performing precious metal as its fundamentals looked so positive. In the event it was about the worst performer of all. You can’t rely on the analysts to make you money in these hugely manipulated markets where futures, coupled with high frequency trading, and a major degree of investor sentiment, really call the tune…..
To read the full article on Sharpspixley.com click here
The second looks at the Gold:Silver ratio and the silver price, and how it is very much tied to gold’s performance, but with more volatility.
The gold:silver ratio (GSR), much followed mainly by silver investors convinced that one day it will come down to its reputed historical level of 16:1, remains languishing in the high 70s. Personally I doubt whether we will ever see the 16:1 level again – certainly not in my lifetime (but I am getting old!) Apart from the very brief silver price spike when the Hunt Brothers tried to corner the silver market (and almost succeeded before being brought down and bankrupted) the GSR has moved since then in the range of 31.5 (a very shortlived spike downwards coinciding with the brief silver price peak in April 2011) and close to 100. As I write it is standing at 77.6.
Silver, sometimes known in the trade as ‘the devil’s metal’ is renowned for its price volatility. The fact is, that in most views, it can no longer be really considered a monetary metal per se. There is, though, still a substantial trade in officially issued silver coins which does, I suppose, give it some kind of monetary credibility although the sale value thereof tends to be substantially higher than any face value that may be put on them. They are minted very much for the investment market. But overall principal global demand for silver is industrial so the price movement relationship with gold is not necessarily a logical one – but it is ongoing nonetheless….
To read the full article click here