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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 - OCTOBER 24, 2014

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,247 . . . traded as high as $1,254 on Tuesday and as low as $1,227 on Thursday . . . and the Monex AM settlement price on Friday was $1,231, down $16 for the week.  Gold support is now anticipated at $1,224, then $1,207, and then $1,180 . . . with resistance anticipated at $1,238, then $1,252, and then $1,265.

SILVER:
Monex spot silver prices opened the week at $17.45 . . . traded as high as $17.63 on Tuesday and as low as $17.11 on Thursday . . . and the Monex AM settlement price on Friday was $17.19, down $.26 for the week.  Silver support is now anticipated at $17.14, then $16.97, and then $16.65 . . . and resistance anticipated at $17.27, then $17.58, and then $17.82.

PLATINUM:
Monex spot platinum prices opened the week at $1,272 . . . traded as high as $1,285 on Tuesday and as low as $1,247 on Thursday . . . and the Monex AM settlement price on Friday was $1,251, down $21 for the week.  Platinum support is now anticipated at $1,249, then $1,239, and then $1,225 . . . and resistance anticipated at $1,261, then $1,278, and then $1,311.

PALLADIUM:
Monex spot palladium prices opened the week at $761 . . . traded as high as $786 on Friday and as low as $756 on Monday . . . and the Monex AM settlement price on Friday was $781, up $20 for the week.  Palladium support is now anticipated at $768, then $734, and then $697 . . . and resistance anticipated at $785, then $798, and then $821.

QUOTES OF THE WEEK:

From Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on October 20th:

''As I see it, the moment of truth is here.  What do we know for certain?  The entire civilized world is beset with the forces of deleveraging and deflation.  The Federal Reserve will not tolerate deflation.  Germany, Europe's leader, will not tolerate inflation.  John Williams, of Shadow Statistics, claims that the Great Recession never ended and that it is still in progress.  I happen to agree with Williams and I believe the recession is continuing.  This leaves only the Fed to battle the forces of contraction and deflation.  On this basis John Williams claims that we are entering a hyperinflationary depression.

As I write, gold continues to advance.  Technically, gold is on the handle of a cup and handle pattern.  Gold is trading at 1244, with 1253 the point for an upside breakout.

It's strange that with all the rumors about the Fed continuing QE, I see no mention of gold.  Those investors who have rushed into dollars and dollar denominated items might have second thoughts as the Fed creates billions and possibly trillions of additional dollars.  I note that with the collapsing oil price and sinking commodities (including copper), gold has been rising.  Before the year is out, I expect to see gold in a bull market of its own.''

. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on October 21st:

''Janet Yellen on Friday gave a speech that confirmed critics' worst fears about her economic philosophy and leftward leanings.

The Fed chief said the trend that 'greatly concerns' her is not slow growth or global recession or record low labor-force participation or $3 trillion to $4 trillion of inflation-stoking easy money or a $18 trillion national debt.

No, her biggest problem is 'the continuing increase in inequality in the United States.' ''

''The central economic problem today isn't the income or wealth gap.  It is seven years of miserably slow growth.  Yellen never mentioned that our economy would be $1.5 trillion bigger with faster growth out of the recession, as we had under Reagan's recovery and then into the 1990s.  The poor would be a whole lot better off if that had happened.''

''From 1982 to 2005, real middle-class incomes rose by almost a third.  A rising tide of bullish growth really lifted almost all boats.  This was an era of lower tax rates, deregulation, caps on government spending and sound money -- the age of Milton Friedman.  We need more of that.

What we also desperately need is a voice for growth at the Fed.  But Yellen is a redistributionist, believing that reducing inequality causes growth.  She has it exactly backward.

The big worry is that the Fed will now start advocating destructive policies like raising the minimum wage, increasing welfare spending, capping executive salaries and giving more political power to unions.''

''Yellen's primary job, of course, is to keep inflation at bay and the dollar stable -- no small task, given the ballooning of the Fed balance sheet in recent years.  It would be nice if she championed the free-market policies that really do help the poor.''

. . . and from a press release from The Silver Institute announcing the publication of a new report on the silver market produced by the CPM Group, on October 22nd:

''Investors are likely to increase their net silver purchases in the years ahead, largely due to an ongoing weak global economy, for capital preservation and silver's pedigree as a leading industrial metal, according to a report released today by the Silver Institute.  The report, entitled 'Silver Investment Demand,' suggests that investors may accumulate as much as one billion additional ounces of silver in various investment instruments over the next decade.  This is on top of the more than 860 million ounces of silver purchased as an investment since 2006.''

* * * For a complimentary copy of The Silver Institute's ''Silver Investment Demand'' report produced by the CPM Group, please call a Monex Account Representative at 1-800-444-8317. * * *

. . . and from an editorial on the ''Opinion'' page of The Wall Street Journal on October 22nd:

''Federal Housing Finance Agency Director Mel Watt has one heck of a sense of humor.  How else to explain his choice of a Las Vegas casino as the venue for his Monday announcement that he's revving up Fannie Mae and Freddie Mac to enable more risky mortgage loans?  History says the joke will be on taxpayers when this federal gamble ends the same way previous ones did.''

''We almost can't believe we have to return to Mortgage 101 lessons so soon after the [last mortgage] crisis.''

''Fan and Fred executives helped create the last mortgage crisis by loosening underwriting standards and gobbling up subprime paper from the likes of Countrywide Financial in a quest for ever larger bonuses.  And though even the Democratic majority on the Financial Crisis Inquiry Commission called Fan and Fred the 'kings of leverage' and documented their reckless pursuit of profit, the government has been extracting billions of dollars of settlements from banks that did business with them.  As if the two largest players in the mortgage market were unsophisticated victims who had no idea what they were buying.

Come the next crisis, count on regulators to blame everyone outside of government.''

''No doubt everyone who enjoyed the last housing boom in the early- to mid-2000s thought it was normal and appropriate for Washington to enable easy credit for home borrowers with little down payment.  Then the defaults started rolling in.''

Last update: Oct 24, 2014 11:58:09 AM

This is not a recommendation to buy or sell.