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.

Trying to find real signs in this market is very difficult.

Trying to find real signs in this market is very difficult. It’s as if trying to find one whistling bird hidden among the trees and bushes. You really have to work hard to isolate the one whistle from the noises surrounding you. The media’s constant prattle does little to give true direction and causes more obfuscation than warranted in most cases. Yet the precious metals on lack of news continues to follow the trend developed since last week’s Fed announcement. Momentum has completely shifted and is targeting the downside. This is the second day in the row the group is in the red and not looking like there is no major support coming out yet. Today’s Factory Orders report was weaker than expected but did little to help the metals. Platinum is likely the one metal that will hold its next support level at 955 and most likely should turn around. For now get your binoculars out to look for any news that may be useful in validating a position, it seems as if it is harder than usual.

The truth will set you free is an axiom that speaks volumes.

The truth will set you free is an axiom that speaks volumes. But this morning the truth that seems to be coming out has done little to set gold free of its negative shackles. Today’s Durable Goods Report was significantly lower than expected. Consumer Confidence was also lower and it has been said that Goldman Sachs announced lower expectations on this week’s GDP report due on Thursday. The logic seems to be a global slowdown will mean lower commodity prices instead of weaker US dollar. The market seems to be wishing for lower gold prices though the US dollar is losing some ground. It seems we are in a perplexing situation as the major funds are not convinced they should back the yellow metal yet. All indications are that tomorrow’s Fed Rate decision will be a non-event as they will most likely hold off due to the recent economic reports. Precious metals in general should benefit overall to the upside. However truth in our society does not always come out as perception promulgated by media may have a greater influence in the short term.

A beautiful spring like day seems to be bringing in a spring like atmosphere

A beautiful spring like day seems to be bringing in a spring like atmosphere in the precious metals market. But this is not so for the global and US economy. Overnight news on China reported that passenger vehicle sales are the lowest they have been since 2012 for the year. This was followed up in the USA this morning by a deflationary Producer Price Index at -5 % and a weaker than expected Retail Sales of -.3%. Additionally the Business Inventories report shows signs of a stagnant economy at best. In this kind of environment the Fed Interest Rate Hike seems to lose its position as people are beginning to wonder if there is real growth in the US at all. Thought the demand for dollars and equities stays firm interest in hard assets are driving some funds into gold and platinum. The steam however seems to be running out this morning at current levels and it will take some Miracle-Gro to get it going any higher today.

Precious metals are red across the board on little news.

Precious metals are red across the board on little news. It seems that the continuing collapse of the copper prices on the profit decline of Chinese companies is spilling over into these markets. But the real loser in the group continues to be platinum which is baffling this me. The downward pressure on commodities might also be an effect of the snowballing price action is causing Glencore one of the largest base metal trading houses to be succumbing to the negative prices and putting them at significant financial risk. Yet no rate hike yet in sight maintains the gold price well above the $1100 dollar mark for now. With the Pope’s departure from the USA, precious metals markets are praying on getting some of that love he spoke so well about. In the end markets have no care and the money flows to where it sees profit potential. Where that is, is certainly not clear at the moment, as the Stock market is also is losing ground this morning.

Gold is holding firm over the 1100 which indicates strength

Gold is holding firm over the 1100 which indicates strength. Additionally today’s Retail Sales report were weaker than expected and though not as material the NY Empire State Manufacturing Index was way off the mark down -14.67.  These reports are continued indicator of less than lackluster performance of the US economy. With the Federal Reserve Interest Rate decision around the corner this Thursday we can expect to be very much locked into current levels with expectation to hold yesterday’s lows. Also this morning we had Industrial Production and Capacity Utilization both which missed expectations. Tomorrow’s Consumer Price Index should give a little more color as to whether we are truly in a deflationary environment. To most people wh live here it doesn’t seem that way. The world remains in turmoil with political conflict in the Mideast and most tragic Syria, China’s economic woes affecting outside customers and the US barely able to lift the rest of the weight. It continues to look unlikely that the current financial situation will change and we will remain status quo. The Federal Reserve is in  a precarious situation which is a problem for everyone. If they do not raise rates then money still waits on the sideline not certain when change will come. If they do it they may hurt the general economy. No one, including everyone at the FED is sure what will happen if they move. But one thing for sure is that the general populace suffers either way.

Westminster Mint is active in all sectors of the collectible Bank Note market

Bank Notes

Westminster Mint is active in all sectors of the collectible Bank note market including United States Banknotes, World Banknotes, Large & Small Size Currency, Fractional, Obsolete Banknotes, Colonial Currency, silver certificates, gold notes and Errors. Listed here is just a small selection of special offers and promotions.

2015 $125 ½ kilo Whooping Crane NGC PR70 - FDI

2015 $125 ½ kilo Whooping Crane NGC PR70 - FDI

2015 $125 ½ kilo Whooping Crane NGC PR70 - FDI
 
Only 500 of these stunning pure silver ½ kilo coin have been minted

This Whooping crane is depicted on the first coin released in a new 3- coin series by the Royal Canadian Mint highlighting Canada’s rich biodiversity and natural heritage. The large surface of the coin that measures 85 mm in diameter allows you to see all of the fine detail in the design. We are offering the coin in perfect PR70 condition certified by NGC. These coins also have the special First Day of Issue label.

Specifications

Date: 2015
Denomination: $125
Metal: Silver
Weight: Half – kilo – 16.075 oz.
Purity: .9999
Mintage: 500
Condition: PR70
Service: NGC First day of Issue

This morning in the New York precious metals market we saw inordinate price moves

This morning in the New York precious metals market we saw inordinate price moves. At the time of the Unemployment data which was not great and only close to expectations there was a sell off on the gold market. Most likely big funds seeing the weakness in the thin summer markets took the opportunity to test downward. There was a quick flush out that lasted for about 30 minutes. Without any more success to the downside it was obvious we saw position covering and the market went back to where we started. It seems like maybe they also took the time to read the actual report by the Bureau of Labor and Statistics. The report tells us that the unemployment rate for teenagers was down 16.2% while that of adults declined only 4.8%. Sure kids need jobs but it seems like adults with families probably could use the income more. Hopefully these teenagers are helping at home. Average hours worked remain at 34.60 hours and Labor Force Participation at 62.6% both which are not positive signals for a strong economy. Silver is trying to go back above $15 this morning on what may be the sense that many have gotten that fundamental demand, which is high, does matter and it should disconnect from the more prominent gold price. But for the rest of the complex you can expect the markets to stay near current prices as the traders in the USA prepare for a summer weekend.

Holy Cimoli! The market is so dead that HBO might start a new show to compete against AMC

Holy Cimoli! The market is so dead that HBO might start a new show to compete against AMC’s The Walking Dead except it will be base around people working in the precious metals market. That being said there was some news this morning which par for the course had little to no effect. The ISM Manufacturing Index came out lower than expected and Construction Spending was also weaker. But what does this have to do with precious metals? It seems very little. With what looks like deflationary signals such as the ISM Prices Paid which came in lower as well, precious metal no longer look like an interesting vehicle for dollar denominated investors. In this lazy summer atmosphere look for less than stellar volumes and dampened volatility.