HTML5 Incompatible Browser

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.

pmrmaster

PRECIOUS METALS REVIEW - SEPTEMBER 26, 2014

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,216 . . . traded as high as $1,229 on Tuesday and as low as $1,209 on Thursday . . . and the Monex AM settlement price on Friday was $1,215, down $1 for the week.  Gold support is now anticipated at $1,210, then $1,191, and then $1,158 . . . with resistance anticipated at $1,218, then $1,230, and then $1,284.

SILVER:
Monex spot silver prices opened the week at $17.76 . . . traded as high as $17.83 on Monday and as low as $17.35 on Thursday . . . and the Monex AM settlement price on Friday was $17.54, down $.22 for the week.  Silver support is now anticipated at $17.24, then $16.90, and then $16.63 . . . and resistance anticipated at $17.60, then $17.87, and then $18.30.

PLATINUM:
Monex spot platinum prices opened the week at $1,335 . . . traded as high as $1,339 on Tuesday and as low as $1,302 on Friday . . . and the Monex AM settlement price on Friday was $1,303, down $32 for the week.  Platinum support is now anticipated at $1,295, then $1,286, and then $1,267 . . . and resistance anticipated at $1,318, then $1,337, and then $1,353.

PALLADIUM:
Monex spot palladium prices opened the week at $808 . . . traded as high as $823 on Wednesday and as low as $784 on Friday . . . and the Monex AM settlement price on Friday was $784, down $24 for the week.  Palladium support is now anticipated at $780, then $768, and then $737 . . . and resistance anticipated at $805, then $819, and then $852.

QUOTES OF THE WEEK:

From Lawrence Williams, in a posting on the Mineweb website on September 22nd:

''Russian gold reserves now stand at 1,113.5 tonnes, the world's fifth largest national holding, thus climbing even further above China's 'official' 1,054 tonnes.  However few out there seem to believe that China doesn't have more gold than it announces to the IMF, but is holding considerable amounts in some other government controlled accounts.  Overall Russia has just about doubled its gold reserves since the 2007/2008 financial crisis and its central bank has been a net buyer almost every month since.  The figures suggest that that the monthly increases have primarily come from the central bank taking in a significant proportion of the country's domestic gold output which averaged around 20 tonnes a month in 2013; last year Russia was the world's third largest producer of gold and this year could surpass Australia and move into the No. 2 position behind China.''

''Russia, like China, perhaps somewhat belatedly, has come to see its gold holdings as a significant positive in any new world financial order that may develop over the next decade.  American financial policy has dominated world trade for almost a century but there are powerful economic forces out there    -- notably involving various countries, including China and Russia, building trade ties in their own domestic currencies and thus starting to bypass the dollar.  Energy trade is particularly significant in this respect as the U.S. dominance in setting the terms of world trade has been very much down to the virtually total dominance of the dollar in global oil and gas transactions.

Historically the country with the most gold has been able to dominate global trade -- barbarous relic or no -- and while the West may see this coming to an end there is an enormous, and ever wealthier, part of the world's population which still believes in gold as the key global monetary asset.  China and Russia are both strong believers in gold and the potential negotiating position it enables.  At some stage soon the validity of their belief is going to be put to the test.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on September 25th:

''On yesterday's site, I described the technical and fundamental mish-mash that now confronts us.  I note that I'm still receiving advisories with long lists of stocks to buy.  It's not easy to make money when the trend is obscure.  Along these lines, I note the thousands of hedge funds have thrown in the towel.  CalPERS, an enormous California pension fund, has eliminated all the hedge funds from its portfolio.

One trouble with this business is that people won't stop talking and advising even when they don't have the slightest idea of what they're talking about.  It's no mark of shame to admit that you are clueless, which is about where the investment industry finds itself today.

I note that there are five distribution days on the Nasdaq and three on the S&P.  This is subtle evidence that institutions are quietly exiting this market.

The dividend yield on the widely followed S&P Composite is now at an historic low of 2.1%.  This alone provides fuel for caution.  For those wishing to avoid white knuckles and sleepless nights, I continue to suggest holding real constitutional money, better known as silver and gold.  I thought of the Forty-Niners, who staked their futures on the hope of finding gold in the West.  I thought of the prospectors who withstood freezing winters in their quest for gold in Alaska.  Yet the wonder is that in a single generation, the Federal reserve has turned gold into an item of loathing.  If you repeat a lie often enough, people will believe it.  With the help of paper gold manipulation, the Fed has turned the public against constitutional money.

Gold is built into the DNA of mankind.  My own conviction is that the Fed has committed one of the greatest crimes in economic history.  Despite the anti-gold propaganda, gold will be the last currency standing.  Buy gold while you can.''

. . . and from Mary Anne and Pamela Aden, editors of The Aden Forecast, in a weekly update posted on their website on September 25th:

''The markets are volatile and uncertainty is taking over.  The stock market fell sharply from the highs while the US dollar jumped up to a 4 year high.  Bonds and gold rose as havens, while copper fell with stocks.

The stock market was hit hard today.  This is strange, coming on the heels of last week's Dow Theory bull market confirmation.  But the stock market is jittery and it's reacting to the escalation of the war in the Middle East.  Bad news out of Apple and a steep drop in durable goods added fuel to the fire.''

''The U.S. dollar index rose to a 4 year high today as investors run to the dollar for safety . . . The dollar index is very strong above 84, but it's also clearly overbought and a decline could be upcoming.  The British pound is holding up the best as the Scottish no vote added support.  The pound is stabilizing above 1.62 and it may be leading the others.  The euro, for example, must rise back above 1.2950 to see a breather rise start.''

''Gold fell to a low last Friday and it's been holding above that low this week . . . Silver is the worst, closing at another low today.  Silver has been hit by both a weak gold price and a weak copper price . . . The metals sector remains under pressure and we could see more weakness coming up.  Gold could fall to its December lows, but for now it's unlikely to break below it.  Silver will remain very weak below $18.50 . . . Palladium is vulnerable below $860 and it has strong support at $775.

For now, we're keeping our positions because the market is clearly oversold and the downside is limited.''

Last update: Sep 26, 2014 11:16:25 AM

This is not a recommendation to buy or sell.