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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 - JANUARY 30, 2015

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,286 . . . traded as high as $1,297 on Tuesday and as low as $1,252 on Thursday . . . and the Monex AM settlement price on Friday was $1,278, down $8 for the week.  Gold support is now anticipated at $1,252, then $1,213, and then $1,179 . . . with resistance anticipated at $1,307, then $1,338, and then $1,379.

SILVER:
Monex spot silver prices opened the week at $18.16 . . . traded as high as $18.20 on Tuesday and as low as $16.78 on Thursday . . . and the Monex AM settlement price on Friday was $17.19, down $.97 for the week.  Silver support is now anticipated at $17.02, then $16.65, and then $15.78 . . . and resistance anticipated at $17.35, then $18.42, and then $19.58.

PLATINUM:
Monex spot platinum prices opened the week at $1,261 . . . traded as high as $1,271 on Tuesday and as low as $1,215 on Thursday . . . and the Monex AM settlement price on Friday was $1,240, down $21 for the week.  Platinum support is now anticipated at $1,219, then $1,203, and then $1,187 . . . and resistance anticipated at $1,272, then $1,308, and then $1,350.

PALLADIUM:
Monex spot palladium prices opened the week at $773 . . . traded as high as $797 on Wednesday and as low as $769 on Monday . . . and the Monex AM settlement price on Friday was $771, down $2 for the week.  Palladium support is now anticipated at $754, then $728, and then $703 . . . and resistance anticipated at $784, then $818, and then $843.

* * * ANNOUNCEMENT * * *

All-new for 2015 from the Royal Canadian Mint . . . the new ''Growling Cougar'' -- a one troy ounce, pure .99999 (''five-nines'') fine gold bullion coin, the second coin in the Mint's very popular ''Call of the Wild'' gold bullion coin series.  It is among the purest one-ounce gold coins available, and at Monex, is now available at a per-ounce price that is very competitive with less-pure Gold American Eagle and American Buffalo gold coins.  Click here for more details on the new 2015 Growling Cougar gold bullion coin > > > Link

QUOTES OF THE WEEK:

From Felix Zulauf, in the ''Roundtable Special Report'' section in the January 26th edition of Barron's magazine:

''Gold is a protection against extreme deflation, as well as inflation.  It is protection against systemic risk.''

''Gold has been a fantastic currency.  Last year, it was the second-strongest currency, after the U.S. dollar.  It has risen against all other currencies and has fulfilled its function to protect against currency debasement.''

''Historically, falling interest rates have been a plus for gold, but that has always been in times of inflation.  Now the risk is toward deflation.  Gold doesn't pay any interest, and there is a minimal cost to hold it.  It is more attractive to hold gold in a world of zero interest rates than when rates were 4% or 5%.  Gold could run to the mid-$1,300s from today's $1,223.''

. . . and from David Stockman, in a posting on ''David Stockman's Contra Corner'' website, posted on January 27th:

''The global financial system is literally booby-trapped with accidents waiting to happen owing to six consecutive years of massive money printing by nearly every central bank in the world.

Over that span, the collective balance sheet of the major central banks has soared by nearly $11 trillion, meaning that honest price discovery has been virtually destroyed.  This massive 'bid' for existing financial assets based on credit confected from thin air drove long-term bond yields to rock bottom levels not seen in 600 years since the Black Plague; and pinned money market costs at zero -- for 73 months running.

What is the consequence of this drastic financial repression along the entire yield curve?  The answer is bond prices which keep rising regardless of credit risk, inflation or taxes; and rampant carry trade speculation that can't get out of its own way because central banks have made the financial gamblers' cost of goods -- the 'funding' cost of their trades -- essentially zero.''

''Just last week . . . after the Swiss National Bank's surprise abandonment of the 120 peg, the CHF soared by 40%.  Literally within minutes they were carrying currency traders off the field on their shields because they had been leveraged 50:1.

It might be asked who in their right mind would fund currency cowboys on 2% margin?  The answer, of course, is nearly every major dealer in the casino!  But that's just the herd at work.''

'' . . . financial markets are no longer honest, rational, stable or independent; they are merely gambling hall subsidiaries of the central banks where most of the punters still believe that the latter will not permit risk asset prices to fall for more than a day or two or funding costs to rise unexpectedly.

The reason that the casino has become so stupendously dangerous, therefore, is that the whole financial house of cards -- including vastly over-valued asset prices of every kind and insanely extended leverage like the CHF currency speculations -- all depend on maintenance of confidence in central bank competence and omnipotence.

But it's not so -- not by a long shot.  Last week's CHF episode rang the bell.  And as the cascades of collateral damage begin to flow in, it will become harder and harder to hide the truth -- even from the heedless gamblers in the casino.''

. . . and from Dr. Ron Paul, in a Special Report posted on his Ron Paul Institute website on January 28th:

''Since 2008 real economic growth has not returned.  From the viewpoint of the central economic planners, wages aren't going up fast enough, which is like saying the currency is not being debased rapidly enough.  That's the same explanation they give for prices not rising fast enough as measured by the government-rigged Consumer Price Index.  In essence it seems like they believe that making the cost of living go up for average people is a solution to the economic crisis.  Rather bizarre!

The obsession now is to get price inflation up to at least a 2% level per year.  The assumption is that if the Fed can get prices to rise, the economy will rebound.  This too is monetary policy nonsense.

If the result of a congressional mandate placed on the Fed for moderate and stable interest rates results in interest rates ranging from 0% to 21%, then believing the Fed can achieve a healthy economy by getting consumer prices to increase by 2% per year is a pie-in-the-sky dream.  Money managers CAN'T do it and if they could it would achieve nothing except compounding the errors that have been driving monetary policy for a hundred years.''

''Fed policy is a hodgepodge of monetary mismanagement and economic interference in the marketplace.  Sadly, little effort is being made to seriously consider real monetary reform, which is what we need.  That will only come after a major currency crisis.

I have quite frequently made the point about the error of central banks assuming that they know exactly what interest rates best serve the economy and at what rate price inflation should be.  Currently the obsession with a 2% increase in the CPI per year and a zero rate of interest is rather silly.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on January 28th:

'' 'Wealth trumps income.'  If you possess wealth in the form of silver and gold, you're in good shape for what comes up.  There is nothing wrong with standing still and holding on to a lamp post in the face of a hurricane.  That's where you are if you are sitting with silver and gold at this time.  Don't believe the rumors about the fall of America.  Our best years lie ahead.''

Last update: Jan 30, 2015 12:20:05 PM

This is not a recommendation to buy or sell.