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.
PRECIOUS METALS REVIEW - NOVEMBER 27, 2015
In the precious metals markets this week . . .
Monex spot gold prices opened the week at $1,069 . . . traded as high as $1,081 on Tuesday and as low as $1,053 on Friday . . . and the Monex AM settlement price on Friday was $1,059, down $10 for the week. Gold support is now anticipated at $1,050, then $1,040, and then $1,005 . . . with resistance anticipated at $1,075, then $1,100, and then $1,175.
Monex spot silver prices opened the week at $13.92 . . . traded as high as $14.28 on Tuesday and Thursday and as low as $13.90 on Monday . . . and the Monex AM settlement price on Friday was $14.08, up $.16 for the week. Silver support is now anticipated at $13.90, then $13.40, and then $13.05 . . . and resistance anticipated at $14.25, then $14.40, and then $14.80.
Monex spot platinum prices opened the week at $848 . . . traded as high as $855 on Thursday and as low as $833 on Wednesday . . . and the Monex AM settlement price on Friday was $837, down $11 for the week. Platinum support is now anticipated at $830, then $780, and then $707 . . . and resistance anticipated at $860, then $888, and then $919.
Monex spot palladium prices opened the week at $551 . . . traded as high as $562 on Wednesday and Thursday and as low as $529 on Wednesday . . . and the Monex AM settlement price on Friday was $552, up $1 for the week. Palladium support is now anticipated at $550, then $535, and then $515 . . . and resistance anticipated at $560, then $590, and then $625.
QUOTES OF THE WEEK:
From Manuela Badaway, in the ''Commodities Corner'' column in the November 23rd edition of Barron's magazine:
''The buck has risen 17% against the euro in the past year, and has hit record highs against the currencies of some commodity-producing emerging economies.
In addition, low inflation has prompted the central banks of Japan, the European Union, India, and China, as well as of some smaller nations, to stimulate their economies, to minimize the risk of deflation.
Still, gold demand rose 8% in the third quarter, according to the World Gold Council, as retail investors in key regions scooped up the metal after it fell in price. Jewelry sales, which account for more than 60% of total demand, climbed 6% in the period -- the highest level for that quarter since 2008. In addition, after the first U.S. rate hike occurs, reduced spending and exploration 'will eventually begin to influence the supply/demand fundamentals and inherently the price of gold,' Natasha Kaneva, commodities research analyst at JPMorgan argues in a note.
But for now, Barclays' [Kevin] Norrish says, a key ingredient for gold's revival is missing: a significant global economic recovery that would boost demand.''
. . . and from Simon Black, founder of the Sovereign Man website, in an email sent out on November 23rd:
''Terrorism abounds. Risk abounds. But so does opportunity.
That's our world. It is simultaneously full of risk AND reward. The important thing is to look with BOTH eyes.
Know the risks. Be guided by objective data to understand them, and take action to minimize them.
But don't be overwhelmed by negativity. Don't panic. Instead, take simple, sensible steps to ensure your livelihood doesn't become a victim to someone else's stupidity.
Only then, with both eyes open, will you be able to see all the incredible opportunity that awaits, and be able to seize it from a position of strength.''
. . . and from market analyst CPM Group, in a ''Market Alert'' email sent out on November 23rd:
''Precious metals prices may see some volatile price movements this week and early next week. The moves would be related to the rolling forward of long and short positions in the CME Group December futures contracts for gold, silver, and palladium. December is an actively traded month for all three metals; January is the nearby active platinum contract month, but platinum might tag along on any ride.''
''Prices might rise and fall sharply as the bulk of the remaining December contracts are rolled into February gold, and March silver and palladium contracts. Such moves might last only a few days, and then subside. ''
''It is not uncommon for prices to rise or fall as the first delivery date approaches in all commodities futures contracts. There are a number of reasons why this pattern is common. It reflects many nuances in the commodities markets, including the fact that the vast majority of commodities futures trades are placed by companies and investors that are not using the futures markets for physical delivery of commodities, but as a means of gaining exposure to the prices of the underlying commodities, either for purposes of hedging or investing.''
''[Some] Gold marketeers have been touting that the amount of gold in registered inventories has fallen very low relative to the very high open interest in the Comex gold contract. It is true that an enormous amount of gold has been deregistered, but they have chosen to ignore the fact that eligible gold holdings remain very high, and they probably are unaware of the large amounts of gold that have been moved from registered Comex depositories in the New York vicinity to unreported holdings at other depositories near the city that offer lower storage prices, and more convenient and flexible services than are available at some Comex registered depositories. There is a lot of gold around to meet any call for delivery by the longs.
Additionally, these commentators choose to ignore or dismiss the fact that month after month for decades most of the open interest in gold is rolled forward as actively traded months approach their first delivery dates, as explained above.''
. . . and from Peter Coyne, writing in The Daily Reckoning newsletter, published by Agora Financial, Inc., in its November 24th edition:
''Richard Russell, publisher of Dow Theory Letters and dean of the newsletter industry, died Saturday evening. May he rest in peace.
The Russell family released the following statement . . .
'Richard wrote for Dow Theory Letters almost every day of his adult life, mailing the letter out faithfully every 10 days to three weeks beginning in 1958. In 1991, Dow Theory Letters began publishing online, which allowed Richard to write daily. This he did until about a week before his passing. Dow Theory Letters was the longest investment letter in the industry continuously written by the same person.' ''
''We're too young to have proper perspective on the scope and impact of Richard's work. But from what we have seen of his work and heard from others, he was a giant among men.''
. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on November 27th:
''By any gauge, the regulatory state today is immense.
In its recently released 2015 report on regulation, the Competitive Enterprise Institute estimated that government rules impose a cost of roughly $1.88 trillion a year on the U.S. -- or about $5,875 a year per person.
It not only hurts our economy by adding costs without offsetting benefits but also robs us of our basic liberties.
Charles Murray recently nailed it when he wrote, 'Congress passes laws with grandiose goals, loosely defined, and delegates responsibility for interpreting those goals exclusively to regulatory agencies that have no accountability to the citizenry and only limited accountability to the president of the United States.'
So, by all means, in the spirit of the season, let's give thanks for all the things that make this the greatest country on Earth. But runaway regulation isn't one them.''
Last update: Nov 27, 2015 11:03:20 AM
This is not a recommendation to buy or sell.