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Precious Metals Review

Market information and news is critical for precious metal investing. However, many investors have limited time to sort through the massive amounts of market data and gold, silver and platinum news. The Monex Precious Metals Review consolidates the week's activities in a concise snapshot of the precious metal markets.

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PRECIOUS METALS REVIEW - JULY 24, 2015

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,114 . . . traded as high as $1,114 on Monday and as low as $1,079 on Friday . . . and the Monex AM settlement price on Friday was $1,087, down $27 for the week.  Gold support is now anticipated at $1,080, then $1,055, and then $1,009 . . . with resistance anticipated at $1,103, then $1,131, and then $1,155.

SILVER:
Monex spot silver prices opened the week at $14.78 . . . traded as high as $14.99 on Monday and as low as $14.37 on Friday . . . and the Monex AM settlement price on Friday was $14.54, down $.24 for the week.  Silver support is now anticipated at $14.38, then $14.15, and then $13.70 . . . and resistance anticipated at $14.65, then $14.98, and then $15.24.

PLATINUM:
Monex spot platinum prices opened the week at $991 . . . traded as high as $994 on Tuesday and as low as $968 on Wednesday . . . and the Monex AM settlement price on Friday was $983, down $8 for the week.  Platinum support is now anticipated at $960, then $941, and then $908 . . . and resistance anticipated at $998, then $1,032, and then $1,060.

PALLADIUM:
Monex spot palladium prices opened the week at $613 . . . traded as high as $634 on Thursday and as low as $608 on Monday . . . and the Monex AM settlement price on Friday was $623, up $10 for the week.  Palladium support is now anticipated at $612, then $585, and then $535 . . . and resistance anticipated at $628, then $645, and then $667.

QUOTES OF THE WEEK:

From Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on July 20th:

''The Fed continues to deny inflation.  Yet their denials are now almost a joke, with nearly every conceivable item in daily use rising in price.  Furthermore, with the minimum wage rising across the nation, inflation is now starting to accelerate.''

''Writes John Williams, 'inflation adjusted June retail sales declined by .6%, weakening annual growth signaled an intensified recession.'  The Fed cannot face the idea that they've pumped trillions in new money and the US economy is sinking into recession.  If the Fed finally concedes that we're in a recession, it will open the spigots wide, producing something which I think will be close to hyperinflation.

The dollar is rising to new highs.  If the recession story is true, the dollar should crash and gold should regain its bull market.''

. . . and from Seth Lipsky, in an editorial in The Wall Street Journal on July 22nd:

''July 23 marks the 50th anniversary of the Coinage Act of 1965, which stripped U.S. coins of silver and made legal tender out of base metal slugs.  It's an anniversary that comes at an apt time, as Congress considers monetary reform.''

''The anniversary of the 1965 Coinage Act is a reminder of why reform is needed.  Speaking from the White House Rose Garden, President Lyndon B. Johnson called the law he signed a 'very rare and historic occasion.'  It certainly was; it superseded the coinage act drafted by Alexander Hamilton and passed by Congress in 1792.

The original coinage act established the United States Mint and declared the dollar as the 'money of account' for the new republic.  It defined the dollar as 371-1/4 grains of silver or the equivalent in gold; the penalty for debasing coins struck under the law was death.

When LBJ signed the 1965 act, the value of a dollar was almost exactly the same as it had been in 1792 -- 0.77 ounces of silver.  Despite some downs and ups, on average it had been remarkably steady for the long span.''

''The value of the dollar started sinking after the 1965 coinage act, and by 1980 the dollar -- so long valued at 0.77 ounces of silver -- plunged to 0.02 ounces of silver.  Today it is valued at 0.06 ounces of silver.''

. . . and from David Stockman, in a posting on his David Stockman's ContraCorner website on July 23rd:

''[T]he Bloomberg Commodity index is a slow motion screen shot depicting the massive intrusion of worldwide central bankers into the global economic and financial system.  Their unprecedented money printing rampage took the aggregate balance sheet of the world's central banks from $3 trillion to $22 trillion over the last 15 years.

The consequence was a deep and systematic falsification of financial prices on a planet-wide scale.  This unprecedented monetary shock generated a double-pumped economic boom -- first in the form of an artificial debt-fueled consumption spree and then a sequel of massive malinvestment.

Now comes the deflationary aftermath.  Soon there will follow a plunge in corporate profits and collapsing prices among the vastly inflated risk asset classes which surfed on these phony booms.''

''Yes, the central bankers may try a while longer to stimulate GDP in a futile quest to enable the monumental debts they have fueled to be serviced and the massive excess capacity to be absorbed.  But they have only one tool -- namely, financial repression and the systematic falsification of financial market prices, especially the carry costs of debt.

But resort to the monetary hammer will drive home no more economic nails.  It will only feed the zombies, inflate the bubble in financial asset prices further and insure that when the day of reckoning finally comes the casino will be in for a rude awakening.''

. . . and from Stephen Moore, in an editorial on the ''Issues & Insights'' page of Investor's Business Daily on July 23rd:

''When private-sector debt burdens have flattened out and even fallen, the government debt has doubled to $16 trillion.  If there's a fundamental structural weakness in the economy that's holding back growth, this is it.

As the private sector has become lean and cost-conscious, government has become flabbier and more dependent than ever on debt.  The numbers are even worse for government when including trillions of dollars of unfunded liabilities in pension and health-care obligations.

(The statistics on borrowing also don't include the $4 trillion of assets now on the balance sheet of the Fed.)''

''It turns out the borrowing blitz led to fewer jobs and less output than the administration predicted we'd see if we hadn't spent $830 billion in 2008 on the 'stimulus' in the first place.  It was a fiscal drag, not a fiscal stimulus.

The end result of this $7 trillion avalanche of federal borrowing has been to divert more credit to the public sector and less to private businesses and households.  This has been the 'crowding out' effect of government spending and borrowing policies.

As we strive for higher growth rates of 4% or more, we'd like to see the opposite trend of the last seven years: The private sector should be borrowing more, but in a responsible way, to finance future growth, and the government should be tightening its belt and borrowing much, much less.

In other words, government austerity and private-sector expansion are the way to prevent America from becoming the next Greece.''

Last update: Jul 24, 2015 11:39:52 AM

This is not a recommendation to buy or sell.