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 - MAY 11, 2012
In the
precious metals markets this week . . .
GOLD:
Monex spot gold prices opened the week at $1,638 . . . traded as high
as $1,641 on Monday and as low as $1,579 on Friday . . . and the Monex
AM settlement price on Friday was $1,584, down $54 for the week.
Gold support is now anticipated at $1,571, then $1,544, and then $1,528
. . . with resistance anticipated at $1,590, then $1,638, and then
$1,662.
SILVER:
Monex spot silver prices opened the week at $30.23 . . . traded as high
as $30.23 on Monday as low as $28.44 on Friday . . . and the Monex AM
settlement price on Friday was $28.90, down $1.33 for the week.
Silver support is now anticipated at $28.75, then $28.40, and then
$27.82 . . . and resistance anticipated at $29.13, then $29.65, and
then $30.48.
PLATINUM:
Monex spot platinum prices opened the week at $1,530 . . . traded as
high as $1,530 on Monday and as low as $1,464 on Friday . . . and
the Monex AM settlement price on Friday was $1,470, down $60 for the
week. Platinum support is now anticipated at $1,438, then $1,370
and then $1,332 . . . and resistance anticipated at $1,503, then
$1,549, and then $1,595.
PALLADIUM:
Monex spot palladium prices opened the week at $653 . . . traded as
high as $653 on Monday and as low as $602 on Friday . . . and the Monex
AM settlement price on Friday was $602, down $51 for the week.
Palladium support is now anticipated at $598, then $582, and then $565
. . . and resistance anticipated at $628, then $654, and then $669.
QUOTES OF
THE WEEK:
From Richard Russell, editor and
publisher of Dow Theory Letters,
in remarks posted on his website on May 7th:
''Despite what you hear, the fundamentals remain. The world is
creating too many goods. There's too much merchandise for
sale. The US and Europe can't absorb it all. Ultimately,
this means one thing. A lot of manufacturers will have to either
merge, consolidate or go out of business.
The Fed can't reverse the facts by printing more money. So it's
become a battle of the currencies -- or who can produce the cheapest
and most competitive currency. How do you cheapen a
currency? You print too much of it. This was impossible to
do when the gold standard was in existence. But without the
discipline of gold, there's nothing to stop a central bank from
creating any amount of currency.
This creating of ever-more fiat currency is leading inexorably to
rising inflation. Inflation won't be visible right away -- but
when it finally does hit it will appear with suddenness and it will be
violent. Once the consumer public gets wind of it, the winds of
inflation will blow like an unstoppable hurricane.''
. . . and from Bob Wiedemer, co-author
of the New York Times
bestselling book, AFTERSHOCK,
in a client email sent May 7th:
''Gold confiscation is unlikely to happen again. We are no longer on
the gold standard and the government prints all the money it wants,
whenever it wants. In fact, massive money printing is part of the
future problems we will face, along with falling asset bubbles and
tremendous debt. Massive money printing will cause significant
rising future inflation and rising future interest rates will help pop
the remaining bubbles and kick off the coming Aftershock, as described
in our books.
The odds of the US returning to the gold standard are near zero.
There isn't enough gold to cover the huge number of dollars they have
already printed and there will be more money printing ahead.
Going back to the gold standard is nearly impossible at this point, and
without that there is no motivation or justification for confiscating
gold.
Far more worrisome than gold confiscation is the real threat of the
buying power of our money going to Money Heaven. Instead of gold
confiscation, we will face 'confiscation by inflation.' In such
an inflationary and popping bubbles environment, we can expect to see
gold do very well.''
. . . and from Bloomberg News, in a story posted
on its website on May 8th:
''Mainland China's gold imports from Hong Kong surged more than sixfold
in the first quarter, adding to signs that the country may displace
India as the world's largest consumer of the precious metal on an
annual basis.
Imports from Hong Kong were 135,529 kilograms (135.53 metric tons)
between January and March, from 19,729 kilograms in the year-earlier
period, according to data from the Census and Statistics Department of
the Hong Kong government. Shipments in March rose 59 percent from
February, yesterday's data showed.
Demand has climbed in the world's second-largest economy as rising
incomes and curbs on property speculation boosted purchases.
China may become the biggest user annually this year, according to a
forecast from the producer-funded World Gold Council. Last year,
total Indian demand including for jewelry and investment was 933.4 tons
to China's 769.8 tons.
'We're looking at another solid year for Chinese demand based on these
early numbers,' said Nick Trevethan, senior commodities strategist at
Australia & New Zealand Banking Group Ltd. 'While it's
largely related to price, negative real interest rates should keep
demand strong.' ''
. . . and from Mary Anne and Pamela
Aden, co-editors of The Aden Forecast,
in the May issue of their newsletter, released on May 10th:
''Even though gold is the ultimate safe haven and it always has been,
that hasn't been the case lately. It wasn't last year either when
Greece was falling apart. Why? Because the world was scared
and investors froze, fearing another crisis and recession. As a
result, all commodities fell and gold declined with them.
As we've often said, in this super debt bloated world, we're literally
in uncharted waters and again, we have to be prepared for anything.
Sentiment will rule the day, at least temporarily, and that's what
we'll have to go with.
Eventually, the fundamentals will win out. And when they do,
regardless of what's happening, the U.S. dollar will fall, continuing
the path it's been on for over 40 years.
At the same time, gold will rise, eventually regaining its crown as the
true safe haven in times of financial crisis and/or uncertainty.
Whether this happens sooner or later, we can't be sure and we'll let
the markets tell us what's happening.''
Last update: May 11, 2012 11:41:47 AM
This is not a recommendation to buy or sell.
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