Gold & Silver Bullion

Is Gold the Next Bubble?
The Wall Street Journal
It’s been the amazing, runaway boom of the past decade. If you’d put your money into gold at the lows about 10 years ago, you’d have made a nearly 400% return. That’s left pretty much everything else—stocks, China, let alone housing—in the dust. But with gold now trading near record highs, the big $1,200-an-ounce question is obvious. Is the gold rush over? Some smart people wonder. “The time to buy gold was in 1999, not 2010,” Harvard professor Niall Ferguson tells The Wall Street Journal—though he added that momentum might still drive it higher. Others will tell you that “the smart money got out of gold months ago.” But then people have been saying that for years. They could be right, of course: The future by definition is unknowable.
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Rhodium Trading Thoughts
Kitco
Continuing with our view that two heads are better than one, we are using two methods to attempt to identify under valued prices for Rhodium. In the top chart is the price of $Rhodium along with a traditional stochastic oscillator. $Rhodium is over sold when that measure is below 20%. Such is the case at the present time as most interest in the metals is in Gold. In the second chart is the ratio of the price of $Rhodium(Rh) to that of $Gold(Au). The two lines are the mean of that ratio plus or minus one standard deviation. For example,  probability of  ratio being below the bottom line is 1 out of 6. In short, the ratio should rarely be below that line. The same is true for the ratio being below the bottom line. Given the highly speculative nature of $Gold trading at the present time, Rh is under priced relative to $Gold.
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Gold Bullish and Well Supported
Gold Seek
Both the gold price in Sterling and in Euros dropped 1.7% from 1-week highs hit overnight. Silver investment bars held unchanged from the start of May near $18.40 an ounce. “There are increased signs of risk easing,” notes Walter de Wet at Standard Bank, albeit “from very high levels. “Emerging-market currencies are bouncing back, the US 10-year bond yield is off it lows – up from 3.10% to 3.25% this morning – and stock market volatility in Europe and the US is down. “Despite the risk easing, gold remains well supported above $1200. Investor interest remains high.” The US Mint confirmed Wednesday that May has seen the strongest sales of its gold coins since Dec. 2008. New York’s SPDR Gold Trust added little to Tuesday’s 30-tonne addition of bullion yesterday, holding May’s inflows at a 14-month record above 120 tonnes of gold bullion – some 9.3% growth.
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Silver May Outperform Gold
Bloomberg Business Week
The ratio of silver prices to gold may drop by as much as a third within three years because of improving industrial demand, according to broker GoldCore Ltd. An ounce of gold bought about 66.4 ounces of silver in London yesterday. The attached chart shows the ratio has been declining since 1991, and may fall toward 45, the average over the past century, according to GoldCore. The second attached chart shows silver’s rising trend since October 2008. Silver “is both a precious metal like gold, and a huge amount of silver gets used in industrial applications,” Mark O’Byrne, executive director of GoldCore in Dublin, said in an interview. “It’s almost inevitable that over time the ratio will revert to lower levels.”
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Gold’s Rise Indicates Currency Distrust
Mine Web
What we’re seeing in the world is really quite dramatic, isn’t it? I think people are beginning to recognize that there’s a lot of uncertainty in the future for financial markets. The attraction that gold presents is that it is a hard asset. It’s valued on the minute and on the second. There’s been a lot of distrust in the marketplace regarding the paper that’s been issued, whether that’s equity paper or bonds or currency. I think investors are looking to something that really sustains and exhibits value on a moment-to-moment basis. From day to day, there is a lot of uncertainty as to what’s going on with Greece and in Europe. We’re seeing the euro correct. We’re seeing the dollar strengthen, but I think what’s really noteworthy is that gold is holding its own. In prior markets, you would typically see that when the dollar strengthens gold comes off. Now we’re seeing gold actually rise in all currencies.
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China and India Battle for Gold Market Supremacy
Commodity Online
Is gold demand in China slowing down compared to India? India and China are the world’s two largest gold consuming nations. China’s growing gold market has remained the most-talked about commodity news in recent times as several analysts and Chinese officials have been talking big about the dragon country’s plans to step up gold reserves. The Chinese bullion market has been, of course, growing exponentially well, as the country was projected to overtake India in gold consumption. But can China easily overtake India in gold demand and consumption. It looks, despite the hype, it is not going to be easy for China to outshine India’s vibrant, ever-growing and rich gold market. Proof of it is the latest Gold Demand Trends report from the apex global gold body–World Gold Council–that has been published this week.
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