aibek burabayev Archives - Page 55 of 59

Year Of Shocks: Which Of The Safe Havens Saved The Most?

Posted on July 8, 2015 by Aibek Burabayev

It's only the middle of the year, but we've already seen quite a lot, even for the seasoned investor.

The Swiss National Bank (SNB) kicked off the ball in January for what has proven to be a nightmare year thus far. It's caused a lot of tears and fears among investors, some of them went bankrupt in one day after it let the franc go.

Greece and it's possible leave of the single currency zone has been dubbed the "Grexit." It's added turmoil to the markets over the last month with currencies crosses opening with gaps on the last two consecutive Mondays. The single currency zone has never been so vulnerable from the day of its launch, as Greek precedent can find followers and bring Germany a lot of headaches furthermore.

The United Kingdom also played its role with the Queen's speech this May containing words of possible divorce with the European Union in 2017, which was named "Brexit" (Britain's exit) a la Grexit.

All of the cases mentioned above are episodes of the world currency war and the first prey of it is the European single currency that has been damaged a lot. Continue reading "Year Of Shocks: Which Of The Safe Havens Saved The Most?" →

Gold Update: Last Bear Attack Is Pending

Posted on June 30, 2015June 29, 2015 by Aibek Burabayev

Today I want to share with you fully renewed charts with Gold technicals.

Big Picture: Correction

FX:XAUUSD Gold/U.S. Dollar Monthly

Chart courtesy of Tradingview.com

The monthly chart shows a clear uptrend in the Gold market from $251.95 to $1920.80, which has now been retraced in a small correction. Small, because the Bears could hardly move through the first barrier of the 38.2% Fibonacci level that is below $1283. Continue reading "Gold Update: Last Bear Attack Is Pending" →

Platinum Demand Hit Decade High Amid Falling Price

Posted on June 29, 2015June 29, 2015 by Aibek Burabayev

Today I prepared Platinum macro data charts to show industry development for the last decade.

Supply And Demand

Platinum Supply and Demand
Chart: Aibek Burabayev; Data Source: Johnson Matthey, LBMA

In 2004 at the beginning of the review period, supply and demand were ideally balanced at the 7.2 million ounces (Moz) mark at $861/oz price. A year later, both Platinum supply and demand showed decent growth, 2005 outweighed 2004 for 0.7 Moz on the supply side and 0.8 Moz in demand; the price had a modest gain of one hundred dollars. Continue reading "Platinum Demand Hit Decade High Amid Falling Price" →

Silver Is In Fashion But Not For Investors

Posted on June 19, 2015June 19, 2015 by Aibek Burabayev

This week I have prepared a Silver macro data analysis with diagrams and added a technical outlook for "dessert".

Supply and Demand

Silver Supply and Demand

Chart: Aibek Burabayev; Data source: GFMS, Thomson Reuters / The Silver institute

Back in 2005, both supply and demand for Silver were below 1 billion ounces (Boz) and were well balanced with a small deficit of 7.3 million ounces (Moz). Since then they have risen with different speed and in 2014 both broke up that level. As seen on the chart above, the supply of Silver is quite stable with a narrow 889-1073 Moz range in past 10 years. 2010 (growth in mining and scrap supply) and 2014 (10 year record mining production) are the highest years of supply. Continue reading "Silver Is In Fashion But Not For Investors" →

Central Banks Keep Buying Gold When You Are Not

Posted on June 9, 2015June 9, 2015 by Aibek Burabayev

Gold is a unique asset class, despite being uninteresting from a volatility investing perspective. I mean, it's currently sideways amid a soaring equity and dollar value, but it is still interesting for selected market participants for its safe haven status and diversification purposes.

We all have different time frames that we use, common investors use daily, weekly and monthly charts and the quarter to year perspective when they summarize the profits or losses. And so do the public companies when filing their earnings reports every quarter. And for these type of investors, Gold's dynamics in recent years have been frustrating as it is has been totally unmoved month by month, making investment unpromising.

SPDR vs. Gold
Data courtesy of www.spdrgoldshares.com

On the above monthly chart, tailored especially for INO.com readers, I want you to see for yourselves the direct relationship between Gold prices and the demand for ETF holdings. For 2 years as depicted on the chart, Gold lost 17% of its total value. Meanwhile the SPDR Gold Trust holdings lost 22% of its total value, almost matching dynamics. The holdings fell even more than the Gold price did telling us about worsening investors' sentiment for Gold. Remember the old words that "the Fear has a large shadow". The holdings were falling, gradually neglecting upswings in the Gold price, and only this January did the holdings pick up from 709 to 763 tons amid Gold's price growth from $1172 up to $1273. But this outstanding move proved to be short-lived, and both indicators fell back to the lows.

On the contrary, the central banks are buying Gold despite the sideways market. Continue reading "Central Banks Keep Buying Gold When You Are Not" →

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