Messages posted by: PrachiRajput007 (IV06123201)

Silver is a particular kind of precious metal. Not like gold, just about 60 percent of silver demand comes from industry. That's because silver has great physical properties despite the fact that being much cheaper per ounce than gold. Silver is essential to the electronics and solar industry, and new applications are being revealed on a just about daily basis. Persistent innovation is leading to new uses for silver such as water purification and anti-bacterial application.

Even though the jewelry and industrial segments have been more predictable, it's the demand for silver from the investment zone, in the form of bars and coins, that's the wild card. We think 2019 could be a stellar year for silver prices as a confluence of catalysts come together. That could ignite a strong rally as the silver price relics very cheap on both an insignificant and relative basis.

On the other hand, despite the precious metals lackluster performance this previous year, there is still some optimism in the market that silver could see a reversal of fortunes and leave behind next year, specifically if gold prices turn around. A potential turn around comes after silver dramatically underperformed gold prices, with the gold-silver ratio holding near a 25-year high. The ratio currently trading at 84.74 points and the historical average for the ratio is around 50.

The renewed optimism for silver comes as prices look to end the year down more than 13 percent. According to commodity analysts, the precious metal, which has significant industrial usage, was dragged down by weak base metals, in particular, copper which fell dramatically from a nearly four-year high in early June.

Source: https://ftsejsetop40futures.org/comex-silver-futures-si-price-today/

Gold market could be one of the few commodities to survive an impending global economic slowdown in the next few years. Although analysts at Capital Economics have little hope for gold prices this year, as the yellow metal continues to fight against rising U.S. interest rates, the firm reiterated its long-term forecast as it sees prices pushing to $1,400 an ounce by the end of 2020.

The macro-economic forecasts are not painting a rosy picture for commodities in 2019. They expect softer growth in China, a slowdown in the US economy and minimal growth in emerging markets. Their prediction of a sharp fall in US equities next year could spur an exodus from risky assets, including commodities. The exception to this is gold, which could benefit from a move into safe havens.

The gold US economy in 2019 and 2020 will eventually force the Federal Reserve to reverse course on monetary policy, ending the current tightening cycle. This should give gold prices a further fillip as it will encourage more safe-haven demand and portfolio diversification.
The clarifications come as gold prices have seen improved momentum as equities suffer their worst monthly decline in years. While down from its recent three-month high, the yellow metal is still holding on to strong gains. December gold futures last traded at $1,232.60 an ounce, up 0.12% on the day.
They think that prices will continue to rise after 2019, underpinned by the deepening downturn in the U.S. economy in 2020 and looser U.S. monetary policy. Their prediction is for gold prices to reach $1,400 per ounce by end-2020. So far this month, gold prices are up 3%, while the Dow Jones Industrial Average is down almost 6% and the S&P 500 is down more than 7%.

However, in the near-term Capital Economics said that it is expecting gold's new rally to fizzle out as the Federal Reserve's December monetary policy meeting quickly approaches.

Source: http://www.stockmaster.in/gold.html

Analysts expect 2019 to usher in a period of prosperity for the JSE after investors suffered negative returns this year, with the all share index has plunged by more than 10 %.

In 2017 the JSE all share index had delivered a healthy 20% return on investments. The newest Schroders Global Investor Study found that South African (SA) investors expect their portfolios to return nearly 13 % annually in the next 5 years. This would be 8.4 % higher than their actual returns over the past five years.
Despite actual Morgan Stanley Capital International (MSCI) index 5-year average annual returns over the period 2013 to 2018 (based in rands) being relatively low at 4.4 %, South African investors expect yearly returns to rise by 8.4 % to 12.8 % over the next 5 years.

According to the study, the average South African investor holds 31 % in equities, 17 % in bonds, 21 % in cash, 15 % in property funds and 15 % in alternative investments. JSE giants such as MTN, Aspen and Tiger Brands declined by more than 35 % during the year, while a few other well-regarded names fell more than 30 %.

South Africa’s stock market was set to close the year below the 53000-point mark after plummeting from January’s record high of 61684 points as a Ramaphoria wave swept through the markets.

In a global context, SA bonds look mostly attractive, and a small change in sentiment could increase returns. Consequently, now is not the time for SA investors to go offshore and they have actually been increasing their portfolio weights in South Africa. The markets will be fixated on the run-up to and the outcome of the 2019 election. They would only revise growth estimates at each incremental change. Essentially, given the deep declines in some of the mainstay stocks together with a slightly better mood in the country than previous years, they would support positioning for a regaining in returns when considering the risk asset classes.

Source : https://ftsejsetop40futures.org/