Charts vs. Hearts: How Technical and Fundamental Analysis of Gold Compare
Posted onIn the simplest form, there are two basic strategies for investing, technical and fundamental analysis. Technical analysts seek opportunities to make money by watching price movement patterns. These traders aren’t concerned with broad economic factors or monetary policies that may have implications for gold. When you think of technical analysis picture someone sitting behind three screens covered with charts and intimidating graphs.
Fundamental analysts take the 30,000-foot view. Rather than immerse themselves in the minutia of decimal points and short-term price movements, they examine the market as a whole. When making an investment in gold they make a judgment on whether the price is reflective of the intrinsic, or fundamental value of the asset.
Why do these two groups disagree on the best method for investing? Technical analysts believe that the market is efficient. That is, the market, at all times, prices in all the pertinent information regarding an asset. Under this assumption, there is no way to make strategic investments based on fundamentals because the current price accounts for the most likely future outcome. Meanwhile, fundamental analysts believe that a read of the general market can yield opportunities for price appreciation.
So, who is right?
The debate will never end. Both sides can point to gains and claim success. In the end, the question of which is better is best answered by considering one’s risk tolerance. Technical analysts live in the narrow spaces between the dots on their charts. Fundamental analysts make a trade then wait, sometimes for years.
What can these two different styles tell us about the future of gold? Recently, a technical analyst with Evercore ISI cited “symmetrical triangles,” “reverse head-and-shoulders bottom,” and a “double top.” What do all these measurements add up to? He sees gold as “quite bullish.”
Much of this analysis comes from a common technical measure of momentum. In short, an asset that’s rising in value is likely to continue rising according to technical analysts. Given gold’s recent rise many such analysts have high expectations for growth.
How does this compare to a fundamental analysis of gold? Interestingly, the perspective on the other side of the table is equally positive. Looking to 2017 The World Gold Council has shared an optimistic outlook explaining that new markets, Asian growth, and rising inflation will all buoy the metal’s performance for the year.
These symmetrical perspectives illustrate how investors can take cues from both camps. When technical and fundamental analysts agree there’s good reason to be bullish on an asset. When considering an investment take a moment to see if the charts match the heart. Do the numbers, movements, and prices reflect your inward feeling about the investment?
Many brokers have already made their decision. “There’s no denying, gold has its buy boots on,” remarked one trader. Today, inflows to increasing as more investors seek the benefits of growth seen in the last several weeks. When the market is high even technical and fundamental analysts can agree it’s time to buy.
Soft Jobs Data Triggers Big Rally in Gold
Posted onGold prices soared sharply higher Friday, as weaker-than-expected U.S. employment numbers are expected to keep a lid on Federal Reserve interest rate hikes this year.
The May U.S. employment report showed that job creation slowed significantly last month. Economists had forecast 184,000 new jobs for May, but only 138,000 new jobs were reported.
Interest rates on the 10-year yield fell, precious metals climbed and the U.S. dollar sold off against major U.S. currencies following the employment data.
What does the latest data show about the economy? “Given reports that job openings are near all-time highs, it suggests that businesses are struggling to fill these positions in an increasingly tighter market,” says Satyam R. Panday, U.S. economist, at S&P Global, Ratings.
“Meanwhile, the unemployment rate ticked down 0.2 percentage points to a new cycle low of 4.3%, but for the wrong reasons–it was largely because lots of people left the labor force and fewer people were employed compared with the month before. Wage gains remained on a soft track with a mere 0.2% month-over-month rise, holding the year-over-year rate at 2.5%.
Panday says.
Gold investors believe this means the Federal Reserve will not be in a hurry to significantly raise interest rates as that could harm the U.S. economic growth picture. The Federal Reserve is still expected to hike interest rates at its mid-June meeting, but rates remain far below historically normal levels.
“We still expect the Fed to lift policy rates later this month. Recent Federal Reserve communications have telegraphed that a June rate hike is all but certain. However, the monetary authorities will certainly be watching the job numbers in the coming months before they consider moving in September,” Panday says.
The Federal Reserve has kept interest rates at historically low levels in order to protect the fragile economic recovery in the years since the 2008 global financial crisis. The latest jobs numbers suggest the Fed will continue to tip toe higher at a very slow and gradual pace. That is positive for gold, which competes with yield-bearing instruments.
Market Update – Flight to Safety Trade Seen Within the Equity Market
The U.S. stock market continues to climb to new all-time highs, while gold and silver post strong rallies as well. Digging deeper inside the stock market rally, one finds interesting clues that signal a flight-to-safety trade within the equity arena.
The S&P 500 is divided into various sectors, such as Financials, Consumer Staples, Energy, Health Care and more. Investor sentiment can be determined from which sectors gain the most investment.
There are typical defensive and safe-haven sectors within the equity market – and that is where investors are gravitating toward now. In May, investors poured money into the high yielding utilities and consumer staples sectors, which advanced 3.6% and 2.7%, respectively. Only technology had a better performance in the month, ending up 4.2%.
“The outperformance of these sectors well-known for paying generous dividends seems to go against ones’ investing intuition in a rising rate environment,” says Lindsey Bell, investment strategist at CFRA.
“Investor’s recent tendency toward the defensive, high yielding sectors likely reflects the increased level of political uncertainty in the marketplace and a flight to safety,” Bell explains.
“Utilities, real estate and staples achieved most of their May gains in final two weeks of the month, when concern regarding the Trump administration was heightened. Over the course of the same period, the 10-year Treasury yield declined from 2.34% on May 15, to 2.21% on May 31,” Bell adds.
Even equity investors are getting nervous and are moving money to more defensive areas of the stock market. Meanwhile, gold and silver prices continue to advance.
The new all-time highs in stocks offer savvy investors the opportunity to cash out on high-priced equities and shift those assets into gold and silver now at relatively attractive prices. Once equities turn, you will have missed the opportunity to lock in the high equity price and the low metals prices. Discuss your portfolio diversification strategy with your Blanchard portfolio manager today at 1-800-880-4653.
An American Original
Posted onAmerican coinage hadn’t changed in decades, and President Roosevelt wasn’t happy about it. He found the designs tired, and he envisioned an American coinage inspired by the artistic qualities of ancient Greek coinage.
This resulted in 1907 in the minting of the Saint-Gaudens Double Eagle, now thought by many to be the most beautiful coin in the world. Roosevelt himself said that, “It is the best coin that has been struck for two thousand years.” The design is a perfect balance of vitality, motion, and grandeur—a bold contrast to the Liberty Head double eagle it replaced.
Less known but no less exciting is the Buffalo Nickel. The coin was designed by sculptor James Earle Fraser, whose work you can see throughout Washington, D.C., including at Arlington National Cemetery, the U.S. Treasury building, and the U.S. Supreme Court building.
Fraser was born in Minnesota and as a child witnessed the ever-increasing push of Native Americans onto reservations by the federal government. His father, in fact, was a railroad engineer who was sent with a group to recover the remains of federal troops from the site of the Battle of the Little Bighorn. Fraser represented Native Americans in many of his works.
In 1911, the Taft administration commissioned Fraser to produce designs to replace the Liberty Head nickel, which had been struck 1883–1912. The Mint Director at first wanted a design featuring Lincoln, but when Fraser developed a design showing a Native American on one side and a bison on the other, it quickly gained support within the Mint.
Then, however, a bizarre external dispute arose, lasting for six months. When news of the design became public, manufacturers of coin-operated machines requested further information. The answers they received satisfied them, as the new nickel was no different in weight, thickness, or diameter from the Liberty Head Nickel.
One company, however, was not satisfied. Hobbs Manufacturing Company produced a machine that it claimed would detect counterfeit nickels inserted into vending machines. The company demanded changes to the coin’s design, at one point even submitting their own design. Even after the Mint Director approved Fraser’s design, Hobbs continued lodging objections, until a meeting with lawyers ended the dispute. Perhaps most bizarre of all: the Hobbs anti-counterfeit device wasn’t widely sold anywhere, and one company that did use it was dissatisfied and discontinued its use.
In February 1913, minting of the Buffalo Nickel started. The first coins were given out while President Taft presided over the groundbreaking of the National American Indian Memorial in New York. The Buffalo Nickel was officially released in March of that year. Tens of millions were struck, and acclaim was widespread. The coin depicted American scenes, and it was a bold departure from earlier American coinage, which was more heavily influenced by British and European numismatic traditions.
The obverse features the profile of a Native American in impressive detail, including the feathers he wears and individual strands of hair. The profile is a composite of several Native American chiefs from different tribes. The reverse shows a buffalo standing atop a mound of dirt. Fraser’s design has proven enduring popular, and it has been used on commemorative coins and on the 24-karat gold buffalo series released in 2006.
At the Denver Mint, a worker accidentally created a new variety of the coin. While attempting to remove marks from a reverse die, he removed one of the buffalo’s legs. Thousands of these pieces were struck before the error was discovered, creating the highly sought-after three-legged variety of the Buffalo Nickel.
The Buffalo Nickel is an essential part of a U.S. coin collection, and few coins are more popular with American coin collectors.
Stocks Continue Winning Streak
Posted onIn another stellar week for stocks, benchmark US stock indices continued to climb and make new all-time record highs. In what has only happened a handful of times in trading history, Nasdaq 100 index futures, traded on the CME, have not closed in the red for the past 11 consecutive trading days. What also might seem unbelievable, Nasdaq 100 index futures are officially up more than 20% for 2017. Evidently, market participants have had no hesitation to buy expensive stocks with lofty valuations.
However, this truly historical stock rally is not just confined to the country with the largest economy in the world. Japan’s Nikkei 225 stock average index soared past 20,000 for the first time in history, and other markets seemed to tag along for the ride in overnight US trading on Friday. England’s FTSE 100 index made a new all-time high during Friday’s trading. Similarly, Germany’s DAX 30 index, rallied past 12,822.94 thereby making a new all-time record high. It’s safe to say stocks around the world are being purchased en masse. But can it last? Most analysts concur the answer lies in the economic data.
Despite a small sell-off due to a weaker than expected job’s report on Friday, stocks around the world quickly recovered. Economists were forecasting somewhere around 180,000 new jobs for the month of May, but only 138,000 jobs were added. Often times when jobs reports disappoint, the reaction in the market can be mixed. Occasionally, a weak jobs report is healthy for the market, because it indicates the Federal Reserve might be more cautious to raise interest rates.
The underwhelming jobs report certainly assisted the gold market, as spot gold soared 0.80% to climb above $1,280 a troy ounce upon news of the weak than anticipated report. Traders are now pricing in a slight possibility of a delay in an interest rate increase that was originally expected this month.
“This is undoubtedly a weak jobs report, especially with downward revisions. But it’s just one data point that will not change the Fed’s course, which is to raise rates at its June meeting,” said Michael Antonelli, equity sales trader at Robert W. Baird & Co.
Regardless of the outcome of the Fed’s meeting in the coming weeks, stocks and gold have appreciated almost in unison this year. Despite the seemingly endless gains in the stock market this year, gold is still outperforming the S&P 500. Gold is currently up 10.31% for the year while the S&P 500 is up 9.34%. The only asset (besides live feeder cattle) that tops the Nasdaq 100’s impressive 20% YTD gain is palladium which is currently up 22.70% for the year.
Meanwhile, in other global economic news, the price of crude oil continued to sink last week and weigh heavily on shares of companies in energy sectors around the world.
Moving forward in the weeks ahead, all eyes are still glued on the president’s every move as well as the Fed’s every move, because both entities evidently have an increasing effect all markets around the world.
A Good Summer Read for Gold Investors
Posted onThe novel is set in the year 2029. Interest rates are skyrocketing higher. A dollar crisis has emerged. Inflation is running rampant. America has lost its superpower status and has become a near pariah state.
If you are looking for a good summer read, check out the The Mandibles: A Family 2029-2047 by Lionel Shriver. (2016 HarperCollins Publishers). It reads like a fast-paced thriller, with an economic scenario that has realistic roots.
As the U.S. dollar crashes it is replaced by a new global reserve currency. Countries are now using a new global reserve currency called the Bancor – which is physically backed by a basket of real commodities, including corn, soy oil, natural gas, rare earths copper and, of course, gold.
As the economic crisis unfolds, the U.S. president freezes all money transfers out of the U.S. Capital controls are established and no amount above $100 is allowed to leave the U.S.
Airport security officials search all those departing the country and businessman with suitcases bursting full of dollars lose their money to confiscation.
The goal of the new global new physical-commodity backed reserve currency is to restrict the money supply (similar to the old gold standard) and put an end to the quantitative easing and money printing monetary policies that global central banks have embraced in the post 2008-global financial crisis era.
The new International Monetary Fund demands that U.S. Treasury debt held by foreign investors must be redeemed in bancors. Of course, the American government doesn’t have enough gold or commodities to back its trillions of dollars in national debt.
The U.S. President finds an easy way out. Just like individuals can declare bankruptcy and have a fresh start –he decides the U.S. government can do that too. He notes, he didn’t run up all this debt, it was a legacy of former presidents. In a national address, the President declares its debt null and void. The Treasury and the Fed declare a “reset.”
What happens to the price of Gold in this fictional page turner? It skyrockets to new all-time highs and investors around the world clamor for what has served as a recognized store of value for 5000 years.
This is a fictional tale, with a disconcertingly plausible economic story line. How does it end? You’ll have to read it to find out.
Gold Prices Skyrocket To 4-Week High
Posted onThe price of gold soared last week, hitting a new four-week high on Friday. Investors poured money into gold investments amid heightened uncertainty over both U.S. and global economic and political stability. Gold has posted a strong rally throughout the first five months of 2017 as investors around the globe turn to the metal as a safe-haven investment.
The China Downgrade
Investors were rattled by a number of events recently including last week’s downgrade of China’s sovereign credit rating. Last week’s Moody’s Investors Service slashed China’s credit rating for the first time in nearly 30 years. Moody’s blamed the downgrade on expectations that China’s financial strength will deteriorate in the years ahead amid rising debt levels and weaker economic conditions. China is the world’s second largest economy behind the United States.
A sovereign credit rating is in a sense a “grade” that the global investment community gives to the level of economic and political risks associated with investing in a certain country.
U.S. Knocked Off the Pedestal
It was back in 2011, when Standard & Poor’s dealt a symbolic blow to the United States creditworthiness with a credit downgrade to one notch below AAA. Prior to that, the U.S. had a AAA rating for 70 years. The downgrade, over time, is expected to cost U.S. taxpayers tens of billions of dollars a year in higher borrowing costs.
Gold prices soared to their all-time highs above $1,900 an ounce shortly after that event.
Unwillingness to Address Long-Term Debt
At the time, Standard & Poor’s pointed to the political brinkmanship over the debt ceiling debacle. The firm also criticized U.S. policy leaders on the budget and deficit. Not much has changed and the U.S. debt has continued to rise, totaling near a record $20 trillion currently. The U.S. debt is the total of all outstanding debt owed by the federal government, including buyers of U.S. Treasury bonds, notes and bills.
Why Interest Rates Matter
Currently, the U.S. enjoys ultra-low interest rates and is able to borrow money for 10-years at 2.25% (10-year Treasury note rate).
If market forces change and the U.S. is forced to pay more historically normal levels, Americans would be hurt across the board with higher interest rates on everything from mortgages to car loans to credit card interest rates.
For perspective:
- In 2007, the 10-year Treasury yielded 5.31%.
- In 2000, the 10-year Treasury yielded 6.8%.
- In 1994, the 10-year Treasury yielded 8.16%.
Those higher Treasury yields reflect higher market interest rates, which impacted all consumers as well.
Rates Remain Abnormally and Historically Low
Make no mistake 10-year yields below 3.00% are a historical anomaly that are left-over from the 2008 global financial crisis.
Global investors are pouring money into gold as a safe-haven amid the uncertainties that lie ahead on the political and economic front. China’s credit downgrade last week was just another canary singing in the coal mine that there are cracks below the surface in the health of the global economy.
Gold Price Levels
Gold closed out last week’s trading around $1,268.00 an ounce. The price of gold has climbed from its recent low at $1,130 an ounce in December 2016. The trend points higher.
Some Wall Street banks are forecasting for gold prices to climb above $1,400 an ounce before the year is over. Current price levels continue to offer an excellent buying opportunity for long-term investors.
The price of a one ounce American Gold Eagle fluctuates daily – see current pricing here. Or, call Blanchard at 1-800-880-4653 for up to date market information.
A New Future For Gold in Virtual Reality
Posted onGold is as old as the Earth itself, but we’re still finding new ways to put it to use. Early communications technology relied on the conductivity of gold. Today, technological advances in virtual reality (VR) are also putting the commodity to use.
Virtual reality has made leaps in progress in recent years. Sony, Facebook, and Microsoft have all made significant capital investments. These major players can appreciate the potential of VR as the industry builds to profitability. Meanwhile, ordinary investors are exploring ways to get in the game when it counts: early.
One simple way to invest in the burgeoning VR industry is through the raw materials used in the technology. Microprocessors which include gold plated microscopic transistor pins are the hub of robust computing power needed in VR hardware. Microprocessors are becoming increasingly important as VR programs push the limits of processing power. However, at this early stage, it’s unclear which manufacturing companies will emerge as the leader in VR processing technology.
While many firms are vying for position in the industry, they all share a common need for gold. This demand is evidenced by a 4% growth year-over-year in Q1 of 2017 for gold used in electronics as reported by The World Gold Council.
This growth is a glimmer into the future of popular technologies like VR. Often the earliest indicators of growth are seen in these base materials which form the building blocks of the hardware.
The relationship between gold demand and technological innovation extends beyond VR. Bonding wire, memory chips, LEDs and developments in wireless charging all require gold in the manufacturing phase. Moreover, recent research has revealed that gold can “preserve all the positive characteristics of silicon.” This development has broad implications for the growing sector of wearable technology.
As recently as 2016 gold for use in technology accounted for a demand of 254 metric tons representing nearly 10% of total demand. As innovations in this sector develop this demand is likely to increase. Meanwhile, as we discussed in a previous article, industries are developing around the harvesting of gold in discarded electronics. “The potential revenue from the recycling of e-waste is 2.15 billion Euros, and it’s projected to grow significantly,” remarked Professor Lenny Koh at the Advanced Resource Efficiency Centre at The University of Sheffield. He continues, “By 2020, the market for recycling of e-waste will grow to 3.67 billion Euros.”
These early steps into the world of VR are presenting opportunities for gold investors. However, rising demand is only half of the picture. Sourcing profitable reserves is a time-consuming exploit. The speed of technological innovation will almost certainly outpace resources. Consider that “Only 10 percent of early exploration efforts actually lead to a minable deposit.” The timeline for bringing these rare finds to market is equally burdensome. Often 10 to 15 years will pass before the discovery of a deposit can yield usable inventory.
The titans of Silicon Valley are poised to make VR a technology of the future. The time for investors is now.
Market Update
Posted onUS equities were slightly mixed during trading on Friday capping an end to an epic week of more all-time market highs. This marks the 19th time this year that the S&P 500 has made a new record high. All three indices finished noticeably higher for the week, with the Nasdaq 100 leading the pack with an impressive 2.36% weekly gain.
With one of the worst market sell-offs of 2017 occurring only two weeks ago, much of the political fear and investor trepidation that sparked the sell-off has evidently subsided. The 6-day-long market recovery suggest investors took advantage of the discounted prices and capitalized on a buying opportunity.
Shares of major tech companies were some of the best performers of the week. So far this year, tech shares are up around 20% with the big name giants, Amazon, Google, and Facebook outperforming the broader market by a mile.
On the other hand, shares of energy companies did not fare so well last week as the price of crude oil plummeted. Although members of OPEC agreed to extend production cuts into March of 2018, oil prices starkly declined when the news broke that a production cut agreement has been reached. Because reducing the supply of oil is supposed to boost prices, declining prices confused analysts and investors alike.
“The market seems to have lost faith in OPEC’s ability to do whatever is necessary to reduce the massive oversupply and to bring inventories back to the five-year average” by the first quarter of next year, said Thina Saltvedt, an analyst at Nordea Bank AB, when trying to explain the strange reaction in the market.
The price of oil matters not only because it correlates to the price people will pay at the pump, but it also matters because oil and the energy industry as a whole resemble a significant percentage of what most people refer to as “the stock market”.
The energy sector represents 6.3% of the companies in the S&P 500, and the sector is currently down 12.13% year-to-date. Although oil rebounded on Friday, prices still closed in the red for the week, thereby stumping gains in the entire S&P 500 index.
However, not everyone takes such a pessimistic outlook on the energy sector and oil. An oil analyst from BNP Paribas, Harry Tchilinguirian, views the OPEC meeting as a success. He noted that “if agreements had fallen down this would have been a return to the dark days of 2014 and 2015, when it was every producer for themselves.”
Regardless if oil goes back to $100 a barrel or $30 a barrel, the effects will definitely be felt in the equity markets.
In terms of other commodities, gold and silver continued a three-week-long winning streak with the precious metals advancing 1.17% and 3.27% for the week, respectively. Gold is now above $1,270 an ounce and well within striking distance of forming a new YTD high above $1,297.40. Recent terror attacks in Manchester have seemingly increased the desire to move additional cash over to safe-haven precious metals and shy away from riskier assets.
How the Bull Became the Dragon
Posted onAs children, we hear stories explaining how the zebra got its stripes or how the elephant got its trunk. However, in the future, it might be more fitting to imagine how the bull became the dragon.
China is becoming a dominant force in our increasingly global economy. Gold investors in the U.S. are looking for economic indicators within our borders. However, they should be looking abroad to China. Consumer spending is primed as the ethos of the “new economy” in the country takes hold. This change has significant ramifications for gold purchasers.
In previous years China’s economic growth came from government spending. This “old economy” gave rise to infrastructure development sustained with inexpensive labor. This system didn’t work. Today, the country is modernizing with initiatives designed to empower the people. The result is a thriving consumer class. Throughout the first three-quarters of 2016 consumption alone contributed to 71% of the country’s GDP growth. This surge has left some asking what the consumers are buying.
Luxury goods are becoming a major draw amid consumers. Today, the Chinese represent about one-third of the global sales in this category. Their appetite for name brands like Cartier and Louis Vuitton is so high that they’re traveling abroad for purchases. One Consumer Affairs Correspondent writing for The Times reports, “The average Chinese tourist spends almost £3,000 on a visit to Britain, with the wealthiest spending £50,000.” This annual trend has earned the name “Golden Week,” both a national holiday and shopping spree. Consumers in China are moving away from mass produced products to more premium goods according to market researcher McKinsey.
These luxury purchases, which often contain gold, are influencing commodity prices. In 2016 China was the largest gold consumer for the fourth consecutive year. Moreover, in recent years 57% of gold demand came from jewelry purchases, and 60% of this spending comes from India and China. Compounding these figures is increased expenditures in gold bullion.
These two styles of purchase can move in similar patterns because “82 percent of Chinese agree that ‘gold jewelry is as much an investment as a fashion statement,’” According to the World Gold Council. Interestingly, gold sits at the intersection of modernity and tradition. The younger demographic characterized by increased consumer activity wants to be associated with the look of gold. Meanwhile, the older generation is still rooted in the idea that gold “is culturally accepted as a place to put your money,” according to the chief investment officer at Merk Investments LLC. Amid changing times, gold still proves its enduring value among all groups.
Investors today need to consider how international developments like those in China will influence their holdings. Too often we narrow our focus to U.S. headlines. Instead, we should take a more holistic approach and look beyond just bulls and bears. This wider perspective is of particular importance among commodities like gold that are accepted and valued across all countries. Chinese consumers have cast their vote and gold is a clear winner.
Silver Production Fell In 2016 – First Time in 14 Years
Posted onRemember back to college economics? Good old supply and demand? Well, the numbers are tilting favorably for silver. Simply put – the silver equation shows more demand than supply and that is bullish for prices ahead.
Global silver mine production fell in 2016, for the first time since 2002, according to the newly released World Silver Survey 2017 (Silver Institute and GFMS Team at Thomson Reuters.).
Here’s the numbers:
2016 Supply 1007.1 million ounces
2016 Demand 1027.8 million ounces
Doing the math, that leaves a silver deficit of -20.7 million ounces and ultimately puts upward pressure on prices.
Where Does The World’s Silver Come From?
On the supply side, Mexico was the largest silver producer in 2016, followed by Peru, China, Chile and Russia, the report said.
Who Uses Silver?
Silver is both an industrial and precious metal. Investors who purchase silver see a dual demand base for this commodity currency.
On the demand side, industrial fabrication made up the largest component in 2016 totaling 561.9 million ounces. Jewelry stands in second place at 207 million ounces and coins and bars are in a close third at 206.8. Silverware comprised 52.1 million ounces of total demand in 2016.
It is well known that physical ownership of silver offers investors many of the same diversification properties as gold, but at a much lower entry cost. Gold trades at about $1,257.00 an ounce right now, while you could purchase an ounce of silver for about $17.00 an ounce.
New applications for silver are exploding in industry and manufacturing, which will keep upward pressure on prices. Demand is growing, while supply is shrinking due to reduced mining.
Here’s one example: in 2016, silver demand for photovoltaic applications skyrocketed by 34 percent rise to reach 76.6 million ounces. This growth was the strongest since 2010 and driven by a 49 percent increase in global solar panel installations, the Silver Institute said.
Learn More
Read about fascinating new applications for silver in this LinkedIn article authored by Blanchard CEO & President David Beahm.
Follow David on LinkedIn for weekly updates on precious metals investing.
Investing Strategies
Investors turn to physical precious metals as an important component of portfolio diversification. Many studies have shown that when stock prices go down, gold and silver prices tend to rise – often significantly. Owning physical gold and silver is appropriate for all investors and can improve your long-term investment prospects. The latest supply/demand figures for silver only underscore the positive long-term price outlook for silver.
Silver prices have already been climbing in 2017. Now is a good time to add physical silver exposure to your portfolio before prices climb even more.
A great option to add to your portfolio are silver bullion coins. The 2017 1 ounce American Silver Eagle can be purchased right now for around $19.37. Market prices change daily, call Blanchard for today’s price at 1-800-880-4653.
