Gold and Silver Futures Turn Bearish as International Demand Weakens

JP Buntinx
April 8, 2020

As the week trucks along, any hopes of seeing surprising bullish momentum for both silver and gold have been squashed. Futures for both precious metals have begun to slip, primarily due to lesser demand in overseas markets. 

Gold and Silver Futures Begin to Slip

It was seemingly a matter of time until short-term volatility would affect gold and silver prices once again. When it comes to precious metals futures, the current momentum doesn’t look all that promising. Even in India, the futures for gold and silver are slipping, despite noting higher demand for either commodity compared to the rest of the world.

Silver contracts for May 2020 are down by 1.2%, which is not entirely surprising. This is perfectly in line with what is happening on the international markets. Global silver prices are dropping lower, although the deficit is not all that large as one may think. 

For gold futures, a similar scenario has begun playing out. The gold futures are down by 0.49%, which isn’t necessarily something to be concerned about just yet. However, deliveries for June and August 2020 are also declining, indicating that this negative trend may continue.

It is worth noting that global gold prices are not following this bearish sentiment as of yet. In fact, the gold price has recently gone through a 2.5% increase, as it is now approaching the $1,700 mark once again. Some analysts expect a new all-time high for gold later this year, although there will be some volatility to contend with before that happens. 

Weak International Demand is a Problem

Looking at the overall market sentiment, it is not difficult to determine why the futures for gold and silver are falling. There is a lack of international demand for physical precious metals due to the coronavirus pandemic. That was entirely to be expected, yet it remains to be seen how this situation evolves exactly.

Combined with the lower production of both precious metals, the short-term future remains rather uncertain. That is not necessarily a validation of the bearish trend, as uncertainty can easily trigger upward market momentum. For now, the futures seem to dictate the short-term momentum, but that doesn’t mean the situation can’t turn around. 

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

CME Increases Margin for Silver Futures Contracts due to Expected “Larger-than-Normal Price Swings”

The recent margin changes by CME paint an interesting short-term future for silver. Raising the margin requirements seems to be a sign for shorters to not go against the grain right now.

Gold Bug Profile: Shayne McGuire

Back in 2008, Shayne McGuire was already expecting big things for gold. This statement came on the heels of the publication of his “Buy Gold Now” book, which hinted at an imminent collapse of traditional finance.

Silver Bug Profile: Juerg Kiener

These days, Kiener is primarily involved in management resources mandates for SAC, with a strong focus on institutional clients and wealthy individuals.

The World’s Largest Silver Producer is Closing Domestic Mines for a Full Month

In Mexico, there will be a major change for most silver mines. Multiple locations will have to shut down their operations for at least one full month.

Gold Bug Profile: Ned Naylor-Leyland

During an interview with Morningstar, Ned confirmed that he remains very bullish on gold for the foreseeable future. He even claimed that there is a good chance to see the gold price move higher, although Ned doesn’t offer potential price targets.

Is Silver Really Scarce?

More importantly, the mining of silver keeps ramping up. Breakthroughs in technology have allowed for far more efficient and streamlined mining operations. This further reduces the cost of extracting the ore.

Gold Bug Profile: Ewan Downie

Since leading Premier Gold Mines Limited since 2006, the company has gone through major growth. Its stock is also trading publicly, further validating its approach to gold and silver.

Silver Bug Profile: Nathan Eric Fier

Many individuals have shown their love for gold, silver, and other precious metals over the years. Nathan Eric Fier is certainly a silver bug, although he pays close attention to gold as well. Who is Nathan Eric Fier? People with a link to the financial industry will...

Silver Bug Profile: Alisdair Macleod

In the modern era, Macleod is best known for educating the masses on how governments handle money and the potential consequences.

Gold Bug Profile: Alan Greenspan

There are many pathways in life which can influence the future of one’s existence. For Alan Greenspan, one pathway of particular influence is called Objectivism.

Unveiling the System Behind the IMF Lending $50 Billion to Member States Fighting the Coronavirus

Currently, it has yet to be determined which options will be explored by the different member states. There is no such thing as free money, not even during a coronavirus outbreak.

Gold Bug Profile: Thomas Fischer

Over the years, Fischer began paying closer attention to the precious metals markets. This has been apparent through the press picking up some of his publications.

Gold Bug Profile: John Paulson

It is also worth noting that the gold sector has treated Paulson rather well in his career. Back in 2010, he set a hedge fund record by making almost $5 billion in just twelve months.

How do Silver Ions Kill Bacteria?

Silver has been used in wound care for decades. It is primarily used in wound dressings, as it helps clean out the wound and allow for it to recover bacteria-free.

Gold Bug Profile: Eric Sprott

It is also worth noting that Eric Sprott sold his first company – known as Sprott Securities – back in 2011. Interestingly enough, the company was purchased by other staff members.

Physical Gold Demand and Price Premiums Spike in Singapore

While the physical demand for bullion rises, the modern age warrants looking at digital solutions. Opening a portfolio for digital gold and silver on Bar9 is a great way to be exposed to different markets.

Gold Bug Profile: Ben Davies

Ben Davies is the co-founder and CEO of Hinde Capital. Founding this company came after building up over a dozen years of experience in financial and commodity markets.

Gold bug Profile: Egon von Greyerz

In fact, von Greyerz was confident that allocating up to 50% of one’s portfolio to gold and silver could pay off handsomely. He certainly got that sentiment right

Silver Bug Profile: Adam Hamilton

Most mining operations have very mixed – and primarily disappointing – results in Q1. That has not affected the price of silver in a negative manner.

Why 2020 may be the Year of Silver Instead of Gold

Another contributing factor to the sudden popularity of silver is the gold-silver ratio. Despite this correlation hitting a high in favor of gold earlier this year, the current momentum looks very different.

Translate Blog Post

Article Categories

Blog Stats

  • 106,340 hits

Follow the CEO on Twitter

%d bloggers like this: