Monday, December 8, 2014
Friday’s very positive US Non-Farm Payrolls up a strong 321,000- surprised the market and rove gold down below $1200 dollars to a low of about 1186 in the spot market. Bears however did not come out to party as may have been expected. With the positive to news driving the US dollar Index to its highest level since 2009 expectations may have been to see gold falter. However, with Central bank’s such as ECB, BOJ and even possibly the PBOC instituting their own quantitative easing in the near future shorts are hard to find. In fact December 2nd CFTC report shows that gold short have declined 28%. Additionally, many traders will be waiting to see the news out of the Euro Zone this Thursday about the use of the ECB’s Long Term Refinancing Operations (LTRO). The data will give a strong indication of when the ECB will be instituting their QE program. A lower than expected number will indicate a need to do so sooner. The PGM’s have been holding their ground in price but rhodium after having lost 6,000 ounces of holdings in the ETF is trading down to 1165. In the USA the only economic number of major importance to watch this week is Retail Sales to be released on Friday.
Monday, November 24, 2014
Nothing has happened over the weekend. The world is expecting easing out of Europe and Japan with lower interest rates in China the investment money looks for better returns. At this juncture those returns are found in US dollar based investments. This keeps the US dollar in a strong position and maintains downward pressure on gold and silver in the face of bullish indicators. Platinum and palladium are also under the same pressure and technically they look oversold. Yet for the bulls to see an upward momentum to push these markets out of the doldrums it will take a significantly powerful catalyst. No US data today of real import, GDP tomorrow and Durable Goods report on Wednesday. Expect this week to be very quiet ahead of Thanksgiving day holiday in the USA.
Tuesday, November 18, 2014
Gold took off this morning booming over 1200 on the news of the dissolution Japan’s lower house of Parliament
Gold took off this morning booming over 1200 on the news of the dissolution Japan’s lower house of Parliament by Prime Minister Shinzo Abe. The shock of yesterday’s slip into recession by one of the largest economies in the world shocked the Prime Minister as much a s the world. His actions indicate that he is gathering support to continue the country’s easing policies which was the wind behind the sale of the precious metals markets this morning. Unfortunately for gold longs, the yellow metal was not able to hold above the 1200, after a positive Economic Sentiment report in Europe was much higher than expected, which does not bode well for higher prices. The metals though holding ground of late does not seem to have enough strength to enter its former charge to the upside any time soon. Bank of Japan’s rate decision is not expected to surprise overnight. Tomorrow’s FOMC report is the next news to watch.
Thursday, November 13, 2014
The precious metals market continues to be very quiet. Even with the Russian/Ukraine conflict news making headlines again it appears unlikely that the market will be stirred out of its doldrums. The Chinese Industrial production number came out less than expected indicating a bit of a slowdown but this number is not enough to directly affect the precious metals markets. Today’s US jobs data were close to expectations making no waves. Tomorrow’s EU Gross Domestic Product and the US Retail Sales numbers should give better direction.
Thursday, November 6, 2014
U.S. Mint Sells out of 2014 Silver Eagles
The United States Mint has announced that due to the tremendous demand they have temporarily sold out of American Eagle Silver Bullion Coins. “We continue to produce 2014-dated coins and will advise you when additional inventory will be available for sale." Said Michael White. The Royal Canadian Mint made a similar statement last week regarding their one ounce Maple Leaf coins. The current shortage in the market will most likely lead to higher premiums. Higher premiums and product shipment delays often leads to a pick up in the sale of Silver Bullion Rounds, which have lower premiums and faster delivery.
Privately minted silver coins are commonly called "silver rounds" or "generic silver rounds". These coins usually have a set weight of 1 troy ounce of silver (31.103 grams of 99.9% silver). These carry all sorts of designs, from assayer/mine backed bullion to engravable gifts, automobiles, firearms, armed forces commemorative, holidays, etc.
Some hard money enthusiasts use .999 fine silver rounds as a store of value. A cross between bars and coins, silver rounds are produced by a huge array of mints, generally contain a troy ounce of silver in the shape of a coin, but have no status as legal tender. Rounds can be ordered with a custom design stamped on the faces or in assorted batches.
Tuesday, November 4, 2014
American Silver Eagle Bullion Sales Surge on Lower Metal Prices
2014 Silver Eagle Sales Surge 87.6% Compared to Year Ago Period!
With silver trading at its lowest price in four years, buyers are snapping up large quantities of the 2014 Silver Eagles. Sales were up 87.6% over the same period last year. In October the U.S. Mint sold 5,790,000, their highest monthly total for almost two years. Total sales for the year now stand at 38,041,000.
Friday, October 24, 2014
This massive 10-Kilo silver coin has been issued for the Chinese Year of the Horse. Its massive and a real conversation piece. You get 321.50 ounces of silver! Only 200 were made, we will accept offers starting at $10,000. Please send an email with offers.
Tuesday, October 7, 2014
Platinum yesterday hit its lowest level in 3 years at $1188 per ounce. The rest of the precious metals group were also discounted to a level where it attracted healthy short covering, profit taking and industrial consumer demand. But the US Dollar party is not over yet and downward pressure remains even after yesterday’s rally. Recent data out of Germany, the factory orders and industrial production, were both much lower than expected creating concern that maybe the ECB may have to do more to bolster the European economy. With that said money fleeing the European equities market will continue to bolster the US dollar but the question remains whether this will add pressure on the precious metals group or is this oversold market ready for a reversal? Could tomorrow’s FOMC minutes report be enough to shock the precious metals market to life or will we the continual drift lower continue? These are the concerns in the precious metals market arena now. Yet a good sign amongst what has been a perpetual gloom was that yesterday’s rally showed that there are bargain hunters waiting on the sidelines for the right opportunity to come in.
Tuesday, September 23, 2014
An air attack on ISIS in Syria by allied forces caused gold to spike on safe haven demand. Yet it was short lived as the world is now used to this constant geopolitical angst and is more concerned with economic news. Fed Governor Kocherlakota intimated that inflation will remain low and that they will be cautious about raising rates. This tone is not really a strong signal in either direction and will still keep gold bugs at bay. Positive news out of China as their Manufacturing Index beat estimates at 50.50 gives an overall positive signal for the continued improvement of the world economies. The recent upward move has not changed overall trajectory as yet and only the PGMs will find some support on recent news, due to their demand for catalyst in the exhaust systems, from the automotive sector which is doing well in all markets.
Thursday, September 18, 2014
Yesterday’s Federal Reserve statement was no surprise but staying on the same path still means lower for precious metals.
Yesterday’s Federal Reserve statement was no surprise but staying on the same path still means lower for precious metals. The metal leading the way on this downward direction is still the gold which is under the financial pressure of the strengthening US dollar. Technical indicators though are signaling an oversold condition in silver and gold will soon be there. This may cause a turn in the current downward trend. Additionally a NO vote on the Scottish referendum may have a positive effect on the British pound maybe taking some wind out of the US dollar sails. Housing Starts report this morning was weaker than expected but not weak enough to change the view on the economy.