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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 - DECEMBER 19, 2014

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,210 . . . traded as high as $1,217 on Monday and as low as $1,190 on Tuesday . . . and the Monex AM settlement price on Friday was $1,196, down $14 for the week.  Gold support is now anticipated at $1,188, then $1,175, and then $1,150 . . . with resistance anticipated at $1,207, then $1,218, and then $1,240.

SILVER:
Monex spot silver prices opened the week at $16.86 . . . traded as high as $16.92 on Monday and as low as $15.55 on Tuesday . . . and the Monex AM settlement price on Friday was $16.04, down $.82 for the week.  Silver support is now anticipated at $15.83, then $15.44, and then $15.10 . . . and resistance anticipated at $16.11, then $16.66, and then $17.37.

PLATINUM:
Monex spot platinum prices opened the week at $1,214 . . . traded as high as $1,222 on Monday and as low as $1,195 on Thursday . . . and the Monex AM settlement price on Friday was $1,197, down $17 for the week.  Platinum support is now anticipated at $1,185, then $1,164, and then $1,128 . . . and resistance anticipated at $1,211, then $1,245, and then $1,276.

PALLADIUM:
Monex spot palladium prices opened the week at $809 . . . traded as high as $811 on Monday and as low as $775 on Wednesday . . . and the Monex AM settlement price on Friday was $805, down $4 for the week.  Palladium support is now anticipated at $796, then $779, and then $767 . . . and resistance anticipated at $812, then $821, and then $843.

QUOTES OF THE WEEK:

From Jon Strebler, in his ''Strebler's Perspective'' column on Richard Russell's Dow Theory Letters website on December 15th:

''Between now and early-January, market veterans know we're likely to face skittish markets moving in ways that are less likely to mean much of anything than during the rest of the year.
 
But still -- here we are with some rather significant price movements, potentially marking big trend changes.  Oil -- exhausting itself on the downside after a horrific second half of the year?  The US dollar and US stock market -- finally topping out after monster runs to the upside?  Gold and silver -- in the early stages of new bull markets?  Perhaps -- while keeping the above caveat in mind, along with the memory of so many false market turns throughout the year.''

''All of our metaphorical precious metals ducks are in a row, as it were, signaling a probable bottom of some degree or another.  The start of new major bull markets?  Well, the odds are against that but still -- there's a climate change of some sort in the metals.  Led, this time, by silver.''

''WRAPPING IT ALL UP, taking all the 'on the other hands' and hedged judgments into account, I think we are looking at a stock market top of sorts, and a precious metals bull market of sorts.  Short-term critters or more significant events?  That's the real question, of course, and there I'm going to chicken out.  But I own more silver now than a couple of weeks ago . . . and have also dipped a few more toes into the SDS waters, betting on lower stock prices.''

. . . and from Steve Forbes, in a posting on the Forbes website on December 16th:

''TO STEM THE FREE-FALLING RUBLE, which crashed yesterday on a scale not seen since its collapse in 1998, the Bank of Russia has raised a key interest rate from 10.5% to 17%.  So far this year the ruble has lost half of its value against the dollar.  This drastic move demonstrates that plunging oil prices are hammering Moscow far more than are the tepid, half-hearted sanctions imposed by the West after Putin's seizure of Crimea and his machinations to effectively make Ukraine a Russian satrap.

The bank's move also demonstrates that Russia, like almost every other country in the world today, is clueless about monetary policy.  Earlier this year its central bank shelled out $75 billion to shore up the shaky ruble on foreign exchange markets.  The interventions flopped.''

''Of course, the Russian economy has other major structural problems in addition to the imploding ruble.  But it's within Moscow's means to salvage its currency.  However, doing so would take knowledge, which this interest rate hike shows it lacks.''

. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on December 16th:

''Crony Capitalism: Sen. Elizabeth Warren delivered a stemwinder speech last Friday on the need for government to rein in Wall Street influence.  But it's big government that created the monster in the first place.''

''It's no surprise that Dodd-Frank -- which was supposed to rein in the excesses of big banks -- not only didn't get rid of the 'too big to fail' problem, it hampered community banks that used to compete with the big ones.

'It was not the intent of Congress when it passed Dodd-Frank to harm community banks, but that is the awful reality,' Dale Wilson of the First State Bank of San Diego told Congress this summer.

If Warren and her ilk really want to reduce the influence of Wall Street in Washington, they should start by calling for a drastic reduction in the size and scope of the federal government.''

. . . and from Mathew Lynn, in a posting on the MarketWatch website on December 17th:

''It can hardly be a coincidence that so many eurozone countries suddenly care a lot about where their gold is kept -- whereas in Britain, the U.S., or Japan, no one cares very much.  The reason is not hard to figure out.  People are feeling increasingly nervous about their money, and in those circumstances they start to renew their interest in precious metals.

There are not many circumstances in which holding a big stash of gold on your own territory matters very much.  But one of them is the sudden, chaotic reorganization of your currency.  If a country were to introduce a new currency overnight then if it could be backed by some gold right from the start that would give it some instant credibility in the markets.  Repatriating gold only makes sense as a way of preparing for that to happen.

Of course, it is a long way off.  None of the central banks are drawing up any secret plans to quit the single currency.  And yet, the more prepared you are, the more likely it is to happen.

The biggest medium-term threat to the euro is not economic.  It is political.  If people don't trust it, it won't survive -- and the movement to bring gold home is one more indicator of how that mistrust is growing all the time.''

Last update: Dec 19, 2014 11:04:08 AM

This is not a recommendation to buy or sell.