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Newbridge Alliance gives investors the opportunity to purchase metals such as gold, silver, and platinum for immediate personal delivery, or for storage at an independent bank or depository. The Palm Beach physical precious metals broker/ dealer also specializes in the purchasing of palladium... More
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  • NEWBRIDGE ALLIANCE – Gold Stable Around $1,645/oz, Consolidates After Wednesday’s Drop

    London 15/03/2012 - Gold traded sideways on Thursday morning, propped up by investors looking to buy into the metal cheaply after yesterday's slump. "Gold struggled with $1,700 and on Wednesday, gold dropped even below $1,650, losing more than 1.5 percent," Credit Suisse said. The metal has now fallen around eight percent since the end of last month. Still, spot gold was last $1.45 higher at $1,644.90-1.645.20 per ounce, up from an intraday low of $1,635.80. Gold broke through multiple support levels yesterday, stopping just short of $1,630 at its lows, before bargain-hunting brought some stability back to the market.

    Market observers expect the metal to consolidate above $1,634 today, although it remains under pressure from a technical perspective.

    "We would expect prices to consolidate after recent losses," FastMarkets analyst William Adams said. "The charts have been damaged so there is a risk of further weakness but equally we would not be surprised if bargain-hunters start to provide support."

    Market sentiment weakened after the Federal Open Market Committee (FOMC) said it expects moderate economic growth in the coming months while it maintains exceptionally low interest rates.

    "This is negative for gold as interest rates are opportunity costs of holding gold. The coming days will be difficult for gold," Credit Suisse added.

    In wider markets, the euro was trading at 1.3048 against a strong dollar, which is still close to one-month highs. The euro had hit an intra-high of 1.3068 earlier.

    Today's economic agenda will offer plenty of food for thought - figures scheduled for release from the US include the Empire State and Philly Fed manufacturing indices, February PPI, January TIC long-term purchases and weekly unemployment claims. The ECB will also publish its monthly bulletin and employment report.

    In other news, India unveils its federal budget on Friday. The emerging economy is struggling with slowing growth rates, increased governmental debts and high inflation.

    Among other precious metals, silver was stable at $32.25-32.29, palladium dropped $7 to $690-707 and platinum gained $2 to $1,674-1,684. For more information please visit Newbridge Alliance.
    Mar 27 12:32 AM | Link | Comment!
  • Why Silver Could Hit $150.00 Sooner Rather Than Later!

    In a previous article, Newbridge Alliance wrote about the shift to measuring wealth in ounces instead of Dollars. In that same article, we expressed our opinion that we consider silver bullion (NYSEARCA:SLV to be one of the best current opportunities to increase one's gold ounces. Here, I would like to point out some interesting signals on the long-term chart for silver.

    Below, is a long-term chart for silver:

    Silver Chart

    On the chart, we have highlighted two fractals (or patterns), marked 1 to 4, which appear similar. What makes these two fractals so special is the similarity of the circumstances in which they exist.

    There was a significant peak in the Dow (1973 and 2007) between point 1 and 2 of both fractals. Both peaks in the Dow came about 7 years after the peak in the Dow/Gold ratio. After point 2, on both fractals, the oil price made a significant peak (1974 and 2008), about 8 years after the peak in the Dow/Gold ratio. Thanks to this similarity in events, as well as the similarity in sequence, I was able to identify the great possibility for significantly higher silver prices, back in October of 2010. This was a very clear signal that higher silver prices were coming, and that is exactly what we got, when silver moved to $49. However, this run is not over yet. The move from $17, when silver broke out of the triangle (at point 3 of the second fractal) to $49 was just the first part of the move. In my opinion, the biggest and best part of this move is still ahead. In various previous articles on silver, I have presented a lot of evidence to support my opinion for higher silver prices over the coming years.

    Based on the fractals on the chart, we could still have about two years before we could get a top like we had in 1980. That is 14 years after the Dow/Gold ratio top (beginning of 1966 to the beginning of1980 vs. the end of 1999 to the end 2013).

    From a price point of view, there is also an indication that this move is not over yet. If the two patterns indicated continue their similarity, it would be reasonable to expect the final top of the current pattern to higher than $150. Why? If you measure the price movement from point 1 to point 2, in the first pattern, and compare it to the price movement from point 4 to 5, in the first pattern, you will find that the movement from point 4 to 5 is at least 7.6 times larger.

    Currently, the movement from 4 to the $49 in April of 2011 is only about 1.65 times larger than the movement from point 1 to 2. If it follows the first pattern, and grows at least 7.6 times greater, it will comfortably pass $150.
    Mar 26 8:31 AM | Link | Comment!
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