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.

Stock market and currency turmoil continues to drive safe haven investment

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.

 

Silver Maple Leaf Reverse Proof coins w/Yin Yang Privy Mark available for Bullion coin markup

2016 Silver Maple Leaf w/Yin Yang Privy Mark – Reverse Proof Bullion Coin

The Royal Canadian Mint has just released a high quality pure silver Reverse Proof coin that is available for a bullion coin premium. This coin  has one of the lowest mintages of any coin in the Maple Leaf series.

 

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. 

I know it is in fashion to trash the financial markets.

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.

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.

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.