-- Published: Sunday, 18 January 2015 | Print | Disqus
Developments in China need to be closely watched after China suspended three of the nation’s biggest brokerages, including Citic Securities Co. and Haitong Securities Co., from adding margin-finance and securities lending accounts following rule violations. China is trying to clean up its corrupt state system and overhaul its financial markets so that the next phase of higher growth will be sustained. Chinese demand for gold and silver should rise this year and over the next few years irrespective of how the Chinese economy performs as people there know the long term positives of having gold as a part of their investment portfolio.
I also see a big increase in per capita gold demand in the whole of Europe (UK, Eurozone, NATO allies, Russia, etc) as lawlessness caused due to increased tensions between hardline Islamists and other religions force people to buy more physical gold. European per capita gold demand should double in the next five years as per my estimate.
Asian demand for gold and silver will not fall by much. If Europe starts to follow Asia on the demand growth pattern, then gold prices will move into the stratosphere. However for now I am still cautiously optimistic on gold and silver. If gold and silver continue to rise after the US January nonfarm payrolls on 6th February, then gold should rise to $1530 by early march. The next three weeks are very crucial for the continuity of the rise of gold and silver from a technical perspective as well as investment demand perspective.
The effects of the Swiss central bank will stabilize after the European central bank meeting.
I have been bullish on gold and silver for the long term. I still maintain the stance. I had told our clients that in 2015, the direction of global financial markets can change every seven weeks. As the year progresses global financial markets can make a U turn every seven weeks due to news flows, changing long term perspective of energies, more big economic decisions like the previous week swiss central bank move and others. 2015 will be a day traders or jobbers paradise but could be a nightmare for short term investment. Medium term to long term investors need not worry if investment is made using fundamentals instead of momentum.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.
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NOTES TO THE ABOVE REPORT
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UK session starts around 1:30 pm Indian Standard Time (+5:30 GMT) -- after the release of LME daily inventories
US session starts at 6pm pm Indian Standard Time (+5:30 GMT)
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
APPROPRIATE STOP LOSSES PER LOT IN US DOLLARS ON THE TRADING CALLS GIVEN IN THIS REPORT
COMEX GOLD – $15-$17
COMEX SILVER: $25-$30
COMEX COPPER: $3
NYMEX CRUDE OIL: $0.60
SPOT SILVER: $0.25
SPOT GOLD: $15-$17
THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT
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-- Published: Sunday, 18 January 2015 | E-Mail | Print | Source: GoldSeek.com