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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 - AUGUST 28, 2015

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,161 . . . traded as high as $1,171 on Monday and as low as $1,118 on Wednesday . . . and the Monex AM settlement price on Friday was $1,135, down $26 for the week.  Gold support is now anticipated at $1,123, then $1,108, and then $1,089 . . . with resistance anticipated at $1,154, then $1,175, and then $1,207.

SILVER:
Monex spot silver prices opened the week at $14.89 . . . traded as high as $15.13 on Monday and as low as $13.96 on Wednesday . . . and the Monex AM settlement price on Friday was $14.56, down $.33 for the week.  Silver support is now anticipated at $14.33, then $13.95, and then $13.70 . . . and resistance anticipated at $14.68, then $15.07, and then $15.65.

PLATINUM:
Monex spot platinum prices opened the week at $990 . . . traded as high as $1,027 on Friday and as low as $972 on Wednesday . . . and the Monex AM settlement price on Friday was $1,021, up $31 for the week.  Platinum support is now anticipated at $1,001, then $985, and then $960 . . . and resistance anticipated at $1,036, then $1,065, and then $1,097.

PALLADIUM:
Monex spot palladium prices opened the week at $570 . . . traded as high as $593 on Friday and as low as $522 on Wednesday . . . and the Monex AM settlement price on Friday was $591, up $21 for the week.  Palladium support is now anticipated at $558, then $536, and then $498 . . . and resistance anticipated at $593, then $629, and then $648.

QUOTES OF THE WEEK:

From Bob Wiedemer, coauthor of the bestselling book, The Aftershock Investor, in an ''Aftershock Alert'' emailed early in the day on August 24th:

''It's not a currency war being waged in China.  The devaluation of the yuan is simply another signal that government manipulation is failing.  The Chinese government has already struggled to maintain the stock bubble and the real estate bubble in recent months.  Turning to currency manipulation is just a new act of desperation as the Chinese stock market -- and indeed, the entire Chinese economy -- continues to sputter.''

''The reality is that China is headed toward recession, and may already be in recession, and that the government is rapidly losing its return on investment when it comes to intervention.

The U.S. can still protect itself if China sinks.  As we've said before, a U.S. stock market decline of 10 to 20 percent is likely in the near future (we're nearly at a 13% correction as of this morning), but the Fed will still be able to pump it back up.  The problem, though, is that when government intervention fails in China, it's going to make government intervention everywhere more vulnerable.  China may be more blatant with its intervention, but Japan, Europe and the U.S. are all doing the exact same thing.  The only question is how long will it take for the public at large to catch on.

This is why we watch China so closely.  A collapse in China may not trigger the market cliff in the U.S. right away.  But it would be a major tremor preceding the big Aftershock.''

. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on August 25th:

''An estimated $2 trillion has been lost in the U.S. market alone in recent weeks.  Globally, the Economist estimates, $5 trillion has been lost.  That's a tremendous anti-wealth-effect -- a kind of anti-stimulus -- set to hit economies around the world at about the same time.

In the U.S., we have no inflation problem right now.  Commodities prices and oil are down sharply.  No major economy looks even close to robust.

As smart as they might be, Fed officials don't know what will happen next.  Why take needless risks, especially given the many economic unknowns right now?  Better to do nothing than to do something foolish that could once again take down the economy.''

. . . and from Greg Hunter, on his USAWatchdog website, in an interview with widely-followed precious metals market expert Jim Sinclair, on August 26th:

''Legendary gold expert Jim Sinclair says what is going on right now in the stock market is just the warm-up act.  Sinclair contends, 'This is a pre-crash, and we are not making it through September without the real thing.  Everybody is on credit.  Main Street is on credit.  This seems to be a bubble of historical proportion when it comes to the amount of money supporting the accepted lifestyles as being the new normal.  Raising interest rates is impossible today.  The market is so fragile.  Nothing can come out that causes people any concern or derivatives any change, nothing whatsoever.  We are going through a period of time where expecting nothing meaningful is a dream.  These are times never experienced in financial history . . . It is very possible that we are going to have a super civilization change.' ''

''On gold, Sinclair says, 'I didn't call the top in gold in 1980 because of any kind of a system.  I was told, I acted on what I was told.'

His sources are talking again, and Sinclair says he was told: 'Number one, the downside on gold is extraordinarily limited here.  Two, the rally we are facing that will come in gold is going to be stupendous.  Three, they tell me we may never call you back because this may be the rally you don't sell.  This may be the rally you don't sell because gold is moving from a currency form to a valuation form . . . . This may be the last time we call you means this is a rally that is not meant to be sold.  What is coming up in front of us is the Great Reset where currencies wear their gold like ladies wear a necklace, and the most beautiful necklace will be the strongest currency.  The ladies without the necklace won't be invited to the ball.  Huge changes are coming.  The dollar is always going to be with us, and the yuan and all of the currencies are still going to be there.  We are not going to one single currency.  The SDR (Special Drawing Rights) is nothing more than a glorified index of currencies.  It's a cure to nothing.  How can a package of junk cure the problem of junk?  It can't.  The two last men standing will be gold and gold on steroids -- silver.' ''

. . . and from Mary Anne and Pamela Aden, editors of The Aden Forecast, in an update posted on their website on August 27th:

''The stock market is rebounding, following its steep drop.  But don't get too excited . . .  Major damage has been done and the stock market clearly remains bearish below 17500 on the Dow Industrials . . .  Since the market decline was so extreme, however, stocks could rise further as they back and fill in the weeks ahead . . . But once this volatility is over, things could get a lot worse, especially if the bear market stays in force, and it looks like it will.  As long as that's the case, it's important to stay on the sidelines.  If you didn't sell your stocks last week, then keep them for the time being until we see signs of an end to this rebound rise.  That's when you'll want to sell.''

''Interest rates are rebounding along with stocks.  But the major trend remains down for interest rates and up for bond prices.  That is, bond prices are set to rise further . . . This means bonds will remain safe havens and the Fed will not be raising interest rates anytime soon, despite today's strong upward revision in second quarter GDP.''

''Gold's A rise reached a high last Friday.  It's since been coming down from the now calming market frenzy.  Gold is still firm in the A rise by staying above $1110 . . .  Gold shares, silver, platinum and palladium were hit by the drop in both the stock market and resources.  But they've all bounced up today on better economic news.''

. . . and from an editorial on the ''Opinion'' page of The Wall Street Journal on August 28th:

''There has often been a tension between the Fed's roles as regulator of the U.S. domestic economy and custodian of the world's reserve currency.  The QE era shows what happens when it ignores the latter responsibility.  Bond-buying allowed the U.S. to pump up asset values, even as it has failed to stimulate the real economy.

U.S. presidential candidates have been quick to jump on China's recent small devaluation as proof of currency manipulation aimed at stealing American jobs.  The irony is that the Federal Reserve has been guilty of the biggest currency whipsaw the world has ever seen.  And it has beggared its neighbors in the process.''

Last update: Aug 28, 2015 11:25:07 AM

This is not a recommendation to buy or sell.