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 29, 2013
In the precious metals markets this week . . .
Monex spot gold prices opened the week at $1,228 . . . traded as high as $1,255 on Friday and as low as $1,228 on Monday . . . and the Monex AM settlement price on Friday was $1,252, up $24 for the week. Gold support is now anticipated at $1,244, then $1,225, and then $1,182 . . . with resistance anticipated at $1,257, then $1,275, and then $1,321.
Monex spot silver prices opened the week at $19.67 . . . traded as high as $20.07 on Friday and as low as $19.63 on Wednesday . . . and the Monex AM settlement price on Friday was $19.97, up $.30 for the week. Silver support is now anticipated at $19.85, then $19.57, and then $19.14 . . . and resistance anticipated at $20.08, then $20.68, and then $21.56.
Monex spot platinum prices opened the week at $1,383 . . . traded as high as $1,386 on Monday and as low as $1,354 on Wednesday . . . and the Monex AM settlement price on Friday was $1,366, down $17 for the week. Platinum support is now anticipated at $1,361, then $1,328, and then $1,309 . . . and resistance anticipated at $1,372, then $1,398, and then $1,447.
Monex spot palladium prices opened the week at $713 . . . traded as high as $723 on Friday and as low as $712 on Tuesday . . . and the Monex AM settlement price on Friday was $718, up $5 for the week. Palladium support is now anticipated at $714, then $698, and then $683 . . . and resistance anticipated at $725, then $737, and then $745.
QUOTES OF THE WEEK:
From Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on November 25th:
''A few thoughts about gold. Never buy gold for a profit, gold is a measure of wealth. Count your gold holdings in the number of ounces, not the current worth in dollars. You don't price the home you live in every day, or with each passing week. Nor should you price your gold holdings in dollars with each passing day. Gold is a timeless wealth asset; an asset that will have a value with the passing of time. Remember this: Of the original issues that made up the Industrial Average, only one remains. And that stock is General Electric. And what happened to all the rest? In investing, nothing is permanent except gold. But remember, do not buy gold with the idea of making a profit. Buy gold because it is pure wealth, and may be the last man standing.''
. . . and from Steve Forbes, Editor-in-Chief at Forbes, in his ''Fact & Comment'' column in the December 2nd issue of Forbes magazine:
''Money is a measure of value, just as inches and minutes are measures of length and time. Money facilitates transactions -- buying and selling -- between willing parties. It's a claim on products and services, and it's infinitely less cumbersome than barter. Changing the intrinsic value of money no more leads to sustainable growth than would changing the number of minutes in an hour or how many inches constitute a foot.
John Maynard Keynes rightly labeled inflation as a form of taxation, and a particularly invidious one. It arbitrarily produces winners and losers, with no concern for effort and reward or for meeting the needs and wants of customers. It rewards speculation rather than such traditional ways of getting ahead as hard work, saving and innovating, thereby undermining social trust and demoralizing a society.
Nevertheless, central bankers like Ben Bernanke and his putative successor, Janet Yellen, claim we need more inflation, preferably an annual rate of 2% to 2.5%. That level would cost a family making $40,000 annually an extra $800 to $1,000 a year in higher prices. If you ever run across a central banker or an economist who shares this weird view, ask that person which elected body gave the Fed -- or any other central bank -- the authority to impose such a tax.''
. . . and from former Congressman Dr. Ron Paul, in commentary posted in The Daily Reckoning newsletter, published by Agora Financial, LLC, on November 27th:
''Crises and panics can occur for political as well as financial reason; and interest rates can be pushed higher than monetarist theory says they 'should be.' In the early stage of inflation, rates may be lower than they 'should be,' and in the latter stages frequently are higher than they 'should be,' if by 'should be' one means commensurate with money supply growth. Nevertheless, wrong ideas die slowly. 'Easy' money, that is, inflation of the paper money supply, is still thought of as an absolute method by which the monetary authorities can achieve low interest rates.
This is not to say the Federal Reserve is helpless in manipulating interest rates. If it alters the discount rate and injects new money into the market, the immediate reaction can be that of lowering rates. But a gold-backed dollar, even if only partially backed, is a different sort, and at the time of the '30's and the '40's rates were at historic lows.
If the demand for lower interest rates is great enough and not accompanied by a call for sound currency -- gold -- the politicians will be 'forced' to accommodate the demand by means of massive inflation of the money supply with strict credit controls and credit allocation. This would solve nothing, would serve to worsen economic conditions, and real interest rates in the markets would eventually soar. There is no substitute for sound money, and the sooner we realize this, the better.
'Easy' money causes hard times.''
. . . and from Bob Wiedemer, investment advisor and author of America's Bubble Economy, Aftershock and The Aftershock Investor, in his ''Aftershock Monthly Investment Outlook for December 2013,'' received on November 27th:
''As in November, there are no obvious roadblocks for the economy in December -- that is, except for those pesky fundamentals. Consumer confidence has continued to fall after its steep decline in October, job growth remains slow, and the world economy -- most notably in Japan and Europe -- continues to slow.
As we noted last month, there are signs of increasing worry in the financial community over potential asset bubbles, especially in the stock market. In fact, a recent article in the Globe and Mail indicated that Google searches for 'stock market bubble' are at their highest level in six years.
In our most recent newsletter, we pointed out a number of yellow flags that may indicate a broad turn in market psychology. That being said, like an ocean wave that rises before it breaks, there still may be some positives in the economy going forward.''
>>> SPECIAL OFFER: If you would like a free copy of Bob Wiedemer's best-selling book, The Aftershock Investor, call a Monex Account Representative at 1-800-444-8317 to rush you out your free copy with our compliments.
Last update: Nov 29, 2013 11:02:02 AM
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