Asian Metals Market Update: Physical Gold And Silver Remain Long-Term Safe Havens

December 22, 2021

Merry Christmas to Everyone. Young retail traders do not want to trade and invest in gold and silver. They prefer investments which give monthly returns of over ten percent. They have an equally high risk taking ability. Young traders or people less than thirty years’ old or millennials prefer crypto currencies and stocks. This generation are highly short term mobile traders and investors. They are not the buy and forget type of investors. The portfolio churning rate is very high among the “Gen Z” traders and investors. I have my close cousins in this age and every day I learn from them their ways of trading and investment. Traders like myself who are in the mid-forties never thought of taking such high risk. We preferred fundamentally strong long term investment. We all need to adapt to the way “Gen Z” trades and invests. In the long term physical gold as a safe haven will never go away.

Crypto currencies cannot rise endlessly. They will also be in a medium term bearish zone. I see crypto currencies trading with a falling bias in 2023 and not in 2022. Next year will once again be the year of crypto currencies. Once central banks launch their own digital currencies the crypto craze will reduce (not vanish.)

Ex Twitter CEO has said that bitcoins and crypto currencies are going to replace the US dollar. He is partially correct. China and Russian stance on crypto currencies will the key if they are to replace the US dollar in future. China has banned crypto currencies. Russia has stated its intention to ban crypto currencies. Most nations will use crypto currencies as way to get away with US imposed trade sanctions. Some nations like Latin American nations are adding bitcoin and crypto currencies in their forex reserves. Central banks will start diversifying their forex reserves into crypto currencies and NFT but the amount will be very minute and intangible. Central banks will continue to increase their physical gold reserves next year as well.

In 2022 and further years one needs to have to balanced investment portfolio of stocks, crypto currencies, soft commodities, base metals, precious metals and energies. All have to be there in your medium term to long term investment portfolio.

TODAY

US third quarter GDP number and real consumer spending are the US economic data releases today. There will be very sharp two-way price moves in gold and silver today and tomorrow. Day traders and jobbers need to trade very carefully.

Globally leaders are not imposing any lockdown this Christmas despite rise of omicron virus in their nations. They all want people to celebrate Christmas and New Year. This has boosted stocks. Higher risk appetite has returned to the markets.

Spot Silver:

  • Fifty day moving average: $23.49
  • One hundred day moving average: $23.40
  • Two hundred day moving average: $24.83
  • One hundred week moving average: $22.99.
  • Silver is caught between short term bearish trend and long term investors.
  • In the short term silver is case of sell on rise till $22.99-$23.40 is not broken.
  • However long term support is between $20.80-$21.20 zone. There will be sharp pullback rallies in silver till $22.80-$21.20 zone is not broken.

COMEX GOLD FEBRUARY 2022 – current price $1789.05

  • Gold has to trade over $1789.70 to rise to $1803.90 and $1808.80.
  • Gold will crash if it trades below $1789.70 after London opens to $1777.20 and $1768.70.

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