Wednesday, April 20, 2016
As the market is learning the global economy is nothing to brag about and this has continued to bolster the precious metals complex.
As the market is learning the global economy is nothing to brag about and this has continued to bolster the precious metals complex. Silver is trading at the highs of May of 2015 and platinum is at the highs of October 2015. Gold which is typically the leader has not even gotten to recent highs of this January. Technically speaking gold should be heading up to the 1308 level. So look out ahead, this complex has gotten very bullish and is poised to at the least hold recent gains and most likely to try higher. Mario Draghi will be speaking today about the ECB’s next moves and this should be the biggest influencer of today’s pricing. Existing Home Sales reports were slightly better than expected but this report is not a major indicator. The e days ahead should be interesting as more and more investors seem to be looking at jumping back in the hard assets band wagon.
Tuesday, April 19, 2016
It seems the continued barrage of tepid financial news with what looks like no possibility of further rate hikes form the Federal Reserve anytime soon has given the hard assets a boost. Both Building Permits and Housing Start were dismal indicators with the previous months being revised downward as well. Gold is certainly a leader but silver has made the largest move to the upside and is currently trading around 17. Platinum also has taken a jump as if on a trampoline and is well above the psychological 1000 mark. I would not be surprised to see attempts to test to the downside but it sure appears that a firm bull market has developed and barring any unforeseen positive economic news we should hold these levels and try higher this week.
Monday, March 21, 2016
The world is constantly changing. Some changes are good some not so good. But the goal should always be to become better people. To discard selfish ways and bring peace into the world. It is avarice for power, wealth and pleasure that is the true destroyer of all that is good and constantly keeps this world in fits of pain and suffering. It is possible to bring pace but until all peoples see each other as a precious gift to the world that should be cared for conflict will always exist. No government can legislate peace, all that have made claim to that power have always oppressed their people with violence, punishment and poverty. It is the hearts of mankind that must change and in our current society that is no easy task but it is not impossible. For gold, its upward trajectory seems to have lost steam and a shout to the upside is looking almost impossible this week, well at least improbable unless some supportive news were to come out. US Stock market strength is keeping any upward moves depressed for gold. The white precious metals are holding much better but still are looking more like they are consolidating and some hoping before the next upward move. For the PGMs the news that China’s car sales were lower than expected is also keeping them from any major spike. This week we should see a lot of choppy trading during the Christian celebration of Holy Week and on Good Friday many markets and countries are closed for the holiday.
Wednesday, March 2, 2016
Yesterday’s ISM Manufacturing PMI and Construction Spending sure looked like positive figures and along with what was considered surprisingly good auto sales gave a boost to the much maligned palladium price. But something is still amiss as the New York ISM reported down and fresh buying continues to flow into the GLD. It appears though that this may be more about Euro Zone weakness than just gold strength as the US Dollar strengthens as well. Technically it’s going to take a jump over 1250 before gold will trend to higher prices and silver will of course follow on that event as well. Palladium today is struggling to hold on and again has come under pressure. The world is always in turmoil and prices will gyrate around the news. Imagine if the news is that more people discarded the Gollum in their hearts. I am sure the economies around the globe would grow much better as liquidity of cash would flow and growth would come back since it is stymied by greed and self-concern of those that restrict capital flows.
Tuesday, February 23, 2016
Yesterday in Japan a famed Japanese Banker Takeshi Fuiimaki said that current policies will lead to hyperinflation.
Yesterday in Japan a famed Japanese Banker Takeshi Fuiimaki said that current policies will lead to hyperinflation. This certainly has been supporting gold overnight. Meanwhile in the background and apparently starting to get some traction is the Fed’s Kaskari speaking about splitting up the banks to avoid too big to fail, which makes investors wonder about the future. More importantly today was the big decline in Consumer Confidence at 92.2 which is significantly lower than expectations. After the string of poor manufacturing numbers yesterday and the follow through today with a weak Richmond Fed Manufacturing Index the combined news looks supportive of the bull environment we find the market in. Gold may continue to try higher as many are hoping for it to take us out of the doldrums of the current range and break the 1230 but don’t hold your breath. I suggest to keep your eyes open, you never know what may happen next to change the landscape of the current environment.
Thursday, February 11, 2016
Stock market and currency turmoil continues to drive safe haven investment with a further 250 k oz of gold added to ETF holdings yesterday, bringing the global total to 50.5 mm oz. Silver and platinum are benefiting from gold’s stellar performance but the gold silver ratio has moved out to 79 and platinum continues to trade at a $272 discount to gold. Palladium remains the laggard with only a 1% rally from yesterday’s close.
Monday, January 25, 2016
Four features make this coin attractive to both bullion buyers and collectors: the low price, the high quality Reverse Proof strike, the tiny limited mintage of just 50,000 coins worldwide and the special yin and yang privy mark that appears on the reverse of the coin.
Yin and Yang are in Eastern thought the two opposite yet complimentary forces that make up all aspects of life. They represent perfect balance of Light versus, dark versus life, water versus fire etc. The privy mark replaces a mint mark on a coin but it is much larger and much more part of the overall design of the coin.
Tuesday, January 19, 2016
I know it is in fashion to trash the financial markets. Today I was hearing people talking about a show called Billions. It appears that traders are once again being portrayed as criminals in suits with a great desire for vice. I know that some of these types of characters do exist but the truth of the matter is it is a very small minority. Luckily this show is on the cable channel Showtime which everyone knows makes its name by pushing the limits of social acceptance. This gives me hope that viewers don’t swallow this hook line and sinker. Sadly no matter how many times they tell people the stories are fictional the fact that they are “based” on real events leads some to understand that this is the norm in the financial markets. The reality though is that fact is stranger than fiction but maybe does not make for good television. So perception is often mislead by misunderstanding. In just the same way the Chinese government stimulus is expected to support their markets after they came out with the slowest annual growth in 25 years. Their market prices started recovering and has led to the impression that things will get better. The US stock markets starting going higher believing that this means some kind of recovery for the US as well. Gold has lost only very little ground on that news because fact do not bare out that this will definitely translate as people want it to. The Platinum is up the most on the day but still not in a convincing manner. Until real growth becomes apparent we can expect gold to hold its own and the white precious metals to come under pressure for now.
Wednesday, December 16, 2015
It seems that what we have been witnessing is akin to packs of wolves attacking the weak of a herd of Buffalo.
It seems that what we have been witnessing is akin to packs of wolves attacking the weak of a herd of Buffalo. As time passed and the moves to the downside have cleared the way for the strong. Now with a new day dawning, with what is expected this day to be the first Federal Reserve rate hike, the wolves have backed off and the herd is getting stronger. In the pack palladium led the way yesterday on the news of strong European auto sales and platinum today is playing catch up as the market is beginning to realize that the Volkswagen fiasco is more brand focused and not industry wide. Today’s Housing Starts were strong though Capacity Utilization was weak. Mixed numbers that more than likely will not dissuade the Fed from today’s expected action. The herd we call the precious metals group seems to be getting ready to stampede as the wolves/shorts are getting out of the way. After today’s news if it is as expected, it would not surprise me if the herd finds greener pastures ahead.
Tuesday, November 10, 2015
Today’s precious metals complex continues to be under attack as the US dollar continues to strengthen on Fed rate expectations.
Today’s precious metals complex continues to be under attack as the US dollar continues to strengthen on Fed rate expectations. Where will the bottom be? Well, in certain markets this downward price decline is directly the cause of financial crisis. Lonmin one of the world’s largest platinum producers is barely keeping above water. A departure of this miner would cause a squeeze on supply and crisis in employment in South Africa. The belief is that Lonmin will not be allowed to go under but the South African government which are minority partners will feel the pain down the road. Is it really possible to keep kicking that can down the road and there be no repercussions? Not likely. Shorting platinum may look good in the short term environment to fund managers at the moment. In this small illiquid market it can turn on a dime. Often people equate platinum and gold together but in reality this market is tiny in comparison and hence the price moves are often less justified by the market environment than by big money playing the part of a gorilla in a glass house. It looks like we are nearing the end of the recent barrage of attacks and we can expect a bit of recovery before the close today.