Gold and silver prices are trading higher Friday morning after more questionable dumping on Thursday. U.S. GDP for the fourth quarter came in at 2.6 percent down from an expected 3.2 percent adding to precious metals gains. Gold last reported a.m. is $1273.30 up $17.20 and silver is $17.17 up 38 cents.
The London Bullion Market Association hand picked a group of “experts” to predict precious metals prices for 2015. Ironically the LBMA and New York COMEX have been caught repeatedly rigging gold prices over the past several years. Over the past two weeks we’ve seen reports concerning the outlook for gold in 2015 coming from Barclays and Goldman Sachs downplaying gold as well. Surprise, surprise that the bullion bankers are all toting the same bucket of water.
The experts are predicting that gold will remain flat for 2015 with an average spot of $1211 an ounce. Silver is expected to average $16.76 which means more manipulation in the futures markets. It’s important to remember that the majority of gold and silver traded in the futures markets is not for physical gold and silver. These are paper contracts placed in two categories, registered and eligible.
Reasons cited why gold prices will be restrained in 2015 are the possible strengthening of the U.S. dollar, interest rate hikes by the Fed, quantitative easing by the European Central Bank and weak oil prices reducing gold’s attraction as a hedge against inflation. The analysts speculated that gold could be supported by record demand from China and India but failed to mention other BRICS countries and the Middle East.
Silver received slightly more approval as the LBMA “mouthpieces” believe silver will come in between $13.91 to $19.36. Negative events that could impact silver included disinflation and an economic slowdown in China. If we were to pay the “experts” two cents for their predictions they would have been over-paid by exactly two cents. Does it really take a lot of effort or imagination forecasting market prices when you own the auction house? It’s very interesting that these individuals didn’t take into account rising military escalations in the Middle East and Europe or the fact that we are in a currency war. When the ECB prints money it’s good for the dollar, when the Fed prints money, it’s good for the dollar. We can’t have it both ways folks.
As the Fed and LBMA downplay gold, nations continue purchasing all they can get. Kazakhstan for example is buying all of the fine mined gold in the country due to “turbulent global economic conditions”. It seem’s like someone is paying attention. Annual production output runs 22 tonnes a year.
As a rule prices for gold grow as demand rises but again this only occurs in markets that are not rigged. It’s called the law of supply and demand.
2015 will bring more wars, more debt, more money printing and more manipulation in all futures markets. What precious metals will do depends on turmoil and how the bullion bankers devise scheme’s to keep gold prices down regardless of negative global happenings. All ponzi scheme’s end and playing the ostrich with its head in the sand rarely has a good ending.
Contact us for specials on the 1 ounce Silver Canadian Maple Leaf and the 1 ounce silver bar. Bullion is generally offered at less premium than “legal tender” coins and is an excellent choice for investors looking for metal content at the lowest price.