HTML5 Incompatible Browser

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.

pmrmaster

PRECIOUS METALS REVIEW - AUGUST 22, 2014

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,298 . . . traded as high as $1,301 on Tuesday and as low as $1,274 on Thursday . . . and the Monex AM settlement price on Friday was $1,279, down $19 for the week.  Gold support is now anticipated at $1,264, then $1,240, and then $1,214 . . . with resistance anticipated at $1,296, then $1,315, and then $1,338.

SILVER:
Monex spot silver prices opened the week at $19.54 . . . traded as high as $19.67 on Tuesday and as low as $19.32 on Friday . . . and the Monex AM settlement price on Friday was $19.39, down $.15 for the week.  Silver support is now anticipated at $19.27, then $18.95, and then $18.60 . . . and resistance anticipated at $19.74, then $20.10, and then $20.45.

PLATINUM:
Monex spot platinum prices opened the week at $1,452 . . . traded as high as $1,452 on Monday and as low as $1,417 on Friday . . . and the Monex AM settlement price on Friday was $1,419, down $33 for the week.  Platinum support is now anticipated at $1,417, then $1,392, and then $1,373 . . . and resistance anticipated at $1,442, then $1,461, and then $1,488.

PALLADIUM:
Monex spot palladium prices opened the week at $898 . . . traded as high as $899 on Monday and as low as $866 on Wednesday . . . and the Monex AM settlement price on Friday was $888, down $10 for the week.  Palladium support is now anticipated at $873, then $855, and then $838 . . . and resistance anticipated at $894, then $903, and then $925.

QUOTES OF THE WEEK:

From Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on August 18th:

''In the good ol' days from the 1800s into the 1930s every country was on the gold standard.  This meant that you could take your paper money to a bank, turn it in to a teller and receive gold coins.  Each nation had its own gold coins and it is notable that when the nation went off the gold standard and you could no longer collect gold for your paper money, in due time that paper money lost purchasing power, until ultimately it became worthless.  This also occurred to the US dollar, which since it went off the gold standard in 1933 has lost 95% of its purchasing power.''

''Today it finally happened: I received an advertisement from a firm featuring a scare I've been waiting for.  There are two ways for the government to handle its outrageous debts.  The first is reneging, as per Argentina, but this is unthinkable.  The second way is via inflation -- inflate enough and your debts appear to shrink.  Ah, but there's a third way, and it's confiscation of wealth.  Don't think this is impossible, because governments will do whatever they have to to remain in power.  How about confiscating all individual wealth above $200,000, for which the government will give you stubs which will say IOU.  This will be a switch on the 1933 confiscation of gold.  This time it may be confiscation of cash.  Finally, something new to worry about.'' 

. . . and from the Laissez Faire Today newsletter, published by Laissez Faire Books, LLC, on August 19th:

''Real value doesn't come from government greenbacks.  It comes from real goods and services produced by hardworking people and businesses.  Printing money from nothing only benefits the people who control this new money, as well as their close friends.''

''You see, state governments see what's going on in D.C.  The reckless spending and costly wars that never seem to end.  On top of that, they see the power the Fed has over the dollar as well as the economy.

And they don't want to have anything to do with it.

So they're doing the only thing they can do.  They're finding a way out of the U.S. dollar racket.

Don't worry, they're not getting ready to abandon it completely.  But they are making it easier for the citizens of their states to find better ways to protect their money.

In other words, they're making it easier for them to buy other forms of money.

For example, the state of Oklahoma just passed a law recognizing both gold and silver as real money.  Actually, you just don't have to pay sales tax when you purchase these precious metals.  In the same sense you don't have to pay sales tax when you exchange five $1 bills for a $5 bill.

It's all money in the eyes of the Sooner State.

They're not the only states distancing themselves from the dollar.  You don't have to worry about paying capital gains taxes on monetary metals in the state of Utah.  And Jerry O'Neill, a Montana state representative, asked for his salary to be paid in gold.  He echoed the concerns of his constituents when he wrote that 'only so many dollars can be printed before they have no value.'

In the U.S., we're quickly approaching that point.  It's up to you to protect yourself, your family, your wealth, and your retirement.  Keeping your money away from the dollar is a good start.''

. . . and from Michael A. Gayed, in a ''Trading Desk'' column on the MarketWatch website on August 20th:

''I think the Fed may never do quantitative easing again.  Why?  Because if they do, then Yellen would be admitting that the Fed has turned Japanese, and the last thing the Fed wants is to lose credibility by being perceived as a different shade of the Bank of Japan that can never leave the marketplace.

Deflation is a real problem, and is decades in the making for developed economies.  Remember -- the problem for all central banks has never been the amount of money in the system.  It was, is, and continues to be the usage of money throughout the system.  The velocity of money simply isn't turning in a way that suggests reflation is coming.  If anything, the velocity of money has completely crashed despite all kinds of stimulus.''

. . . and from Jeff Opdyke, executive editor of The Sovereign Society, in a posting on the Seeking Alpha website on August 22nd:

''Though rates will soon begin moving up for the first time in nearly a decade, the Fed will - and must - continue strong-arming the market to keep rates unnaturally low.  My guess: the Fed-funds rate, the Federal Reserve's key interest-rate lever, will not go higher than 2% and, more important, getting there will take years, not months.  The Fed will not raise rates in rote 0.25% step-ups over a few meetings.  It might move in 0.1% increments, and it could go several months or maybe even a year between rate hikes.

In short, we've been stuck at near-0% interest rates for more than five years . . . and it very well could take the Fed another five years or more to get us back toward 2%, simply because it knows that Congress has worked itself into an impossible financial situation.''

''But while rates will begin to rise, money in the bank or in Treasury paper will still offer no real yield in the future, given that inflation has begun to move up as wages now rise (a little jab to the gut from all those efforts to push minimum wages higher).   That means inflation will equal or outpace the interest rates you'll be able to earn in savings accounts, CDs and government bonds.

And that is the environment that is brightest for gold.

When you're losing purchasing power just by letting your money sit in savings, CDs and bonds, gold is a godsend. Its price tends to rise in such an environment.

So, do yourself a favor.  Do not look at the coming Fed rate-hike cycle as an opportunity, finally, to move some cash back into CDs and savings account.  Look at it for what it really is: An opportunity to grab gold now, at a fair price, knowing that the Fed has no other option but to keep interest rates exceedingly low for a long, long - long - time.''

Last update: Aug 22, 2014 11:51:30 AM

This is not a recommendation to buy or sell.