Tag Archives: Gold

Gold to Make a Comeback, Analysts Predict

Commodities, Investments, , , ,

As a hedge against inflation, gold

Native gold from Nevada, USA. (3.7 ounces). Courtesy of James St. John

gleams. But the stronger the dollar, the lower the price of gold tends to fall.

According to Bart Melek, the global head of commodity strategy at TD Securities in Toronto, investors and observers can expect to see the price of gold to climb as the dollar continues to weaken.

Since April 11, 2018 gold bullion lost about 5% in value, due to a surging dollar. Despite confusion in Italy and other uncertainties around the world, gold was selling for under $1300. Melek is predicting a surge in the price during the final quarter of 2018 to an average of $1375 an ounce, and could possibly hit a high price of $1400.

“As time moves on, there’ll be less and less reasons to get into the U.S. dollar, which will likely reverse some of the flows,” said Melek, a speaker at a precious metals conference in Singapore. “We do ultimately think that as we move into 2019, the U.S. dollar will weaken, which is a very powerful fuel for the gold complex.”

The outlook for the very near future is less optimistic for gold, whcich Melek does not believe will rise given the dollars continued strengthening. In addtion, the Fed is expected to raise interest rates two more times this year. Prices for gold will most likely average at about $1290 in the third quarter, and $1300 in the fourth quarter of 2018.

Endeavor Silver Reports Excellent Third Quarter

Companies, Mining, , , , , , , ,

Silver Bullion
Endeavor Silver (Exk) had a solid third quarter. Gold mined rose by 7% yoy to 4,926 ounces. Silver mined rose by 8% to 858,738 ounces. Revenues rose by 93% to $38 million for the sale of silver and gold mined and produced by the company. Endeavor has also expanded its Guanajuato plant and remained within its expansion budget.

While the stock tumbled From $12.60 to $8.04 in late September due to the fall in the stock market, Endeavor stock has stabilized and seems to be headed up. It is presently selling at $9.83. Its 200-day moving average is $10.57 and its 50 day moving average is $10.10. Endeavor also has agreements to purchase silver at cheap prices from silver mines in Mexico and Chile. In addition, since silver has industrial and jewelry applications, it should go up over the long term.

Mario D. Szotlender and Ricardo M. Campoy are 2 directors at the company.

Disclaimer: The information contained in this article is for educational purposes. All investments decisions should be thoroughly analyzed before purchase.

Is There No End To Gold’s High?

Economy, ,

With the Dow plunging 6.66% yesterday and with its continuing travails in negative territory today, the only safe haven (outside of the Franc and Australian Dollar) seems to be gold.  The price of gold keeps climbing and is nearing 1750.  As long as the economy keeps worsening and sovereign debt and currency issues are not taken care of, gold will continue to climb.

The Only Real Currency

Many analysts see gold as the only real “currency.” It is the only thing with value. With increased skepticism growing about the strength of the US Dollar and the world has begun to murmur the possibility of dropping the greenback as the world’s reserve currency.  Russia and China have suggested a basket of currencies replace the dollar.  This writer suggests backing it with…gold.