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 20, 2009
In the precious metals markets this week . . .
GOLD:
Monex spot gold prices opened the week at $1,125 . . . traded as high as $1,153 on Wednesday and as low as $1,1125 on Monday . . . and the Monex AM settlement price on Friday was $1,147, up $22 for the week. Gold support is now anticipated at $1,132, then $1,109, and then $1,100 . . . with resistance anticipated at $1,143, then $1,154, and then $1,177.
SILVER:
Monex spot silver prices opened the week at $17.77 . . . traded as high as $18.83 on Wednesday and as low as $17.77 on Monday . . . and the Monex AM settlement price on Friday was $18.47, up $.70 for the week. Silver support is now anticipated at $18.16, then $17.46, and then $16.97 . . . and resistance anticipated at $18.50, then $18.86, and then $19.57.
PLATINUM:
Monex spot platinum prices opened the week at $1,421. . . traded as high as $1,460 on Wednesday and as low as $1,421 on Monday . . . and the Monex AM settlement price on Friday was $1,441, up $20 for the week. Platinum support is now anticipated at $1,421, then $1,376, and then $1,278 . . . and resistance anticipated at $1,450, then $1,467, and then $1,512.
PALLADIUM:
Monex spot palladium prices opened the week at $364 . . . traded as high as $377 on Wednesday and as low as $357 on Friday . . . and the Monex AM settlement price on Friday was $364, unchanged for the week. Palladium support is now anticipated at $361, then $345, and then $295 . . . and resistance anticipated at $369, then $377, and then $392.
QUOTES OF THE WEEK:
From MaryAnne and Pamela Aden, editors of The Aden Forecast newsletter, in an update posted on their website on November 19th:
''Gold is soaring, hitting new record highs almost daily. This C rise is going strong. Our initial $1200 target level for this year's rise has nearly been reached, but gold could go higher.
Note that gold rose 56% and 58%, respectively, in the last two C rises. So far, gold has risen 32% in the current C rise. Plus, its leading indicator still has room to rise further before it reaches the 'too high' area. Since this rise is powerful, the gains this time around could be similar to those in 2006 and 2008. And if they are, gold could continue up to near the $1350 level before this C rise is over.
We'll be watching closely but for now, hold on to all of your metals related investments. Silver and gold shares are also surging, and so are most of the other metals. Silver is at a new 16 month high and it too is approaching our first target area. Gold and silver will both remain super strong above $1070 and $17.20.''
. . . and from Dr. Jeffrey Lewis, editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com, in a posting on the silverbearcafe.com website on November 19th:
''Since 1970, the ratio of the number of ounces of silver you could buy with one ounce of gold has run as high as 80:1 and as low as 20:1, with a mean of 54:1. Today's ratio is moderately higher than 54:1; in fact, the ratio is nearing 64:1, suggesting that there will be a correction in either the price of gold, or silver will advance to make up the deficit.
Since we know that inflation isn't just on the horizon (it's here today), the best bet is that silver will in fact rise, and gold will either continue or stay equally as valuable.
In relation to gold, silver tends to make much larger percentage movements more frequently than gold, which is most likely due to its inexpensiveness and the volatile industries that demand so much of the metal each year. In addition, silver has a tendency to enter into short but strong periods of price strength and decay very slowly. This can be confirmed with any silver chart; each uptick period is short but strong, while the dips tend to happen very slowly.
The mixture of silver's volatility and the shift in demand from gold to silver as an inflation hedge provide rationale for buying silver today, rather than waiting. As many have seen, when silver heads higher, it does so quickly and often without tell-tale signs of strength. Thus, to take advantage of any future climb in the value of silver, investors should be quick to buy now, rather than wait until after silver makes its next move. ''
. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on November 19th:
''It's come to the point where fiat money is starting to look ridiculous, and seasoned investors are beginning to swap fiat junk money for items of intrinsic value -- gems, rare earths, platinum, special real estate, collectibles and maybe above all, gold.
Why do I say 'gold?' I'm not guessing when I say gold, just look at the daily chart of gold . . . Doesn't this suggest that somebody is buying the yellow metal? You don't have to be an experienced chart-reader to understand what this chart is telling us -- all you have to know is up from down.
It really is amazing. In the face of the great gold performance, the US public is still shying away from the metal. A year ago, 'gold was going nowhere.' Now 'gold is too expensive.' Sooner or later the public will move in. They never can resist a steadily rising item.''
. . . and from U.S. Congressmen Jeb Hensarling and Paul Ryan, in an editorial on the ''Opinion'' page in The Wall Street Journal on November 20th:
''Given the magnitude of federal borrowing, there is good reason to expect higher interest rates and strong inflationary pressures in the future.
It is hardly surprising that many investors are reaching the conclusion that this administration and Congress favor policies that virtually guarantee the economy will not return to the climate of low interest rates, benign inflation and strong growth that we knew from 1982-2007. These investors understand a simple truth that current Washington policy makers fail to grasp: When you repeal the Reagan economic program, you repeal its results.''
Last update: Nov 20, 2009 11:38:54 AM
This is not a recommendation to buy or sell.
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