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 - SEPTEMBER 3, 2010
In the precious metals markets this week . . .
GOLD:
Monex spot gold prices opened the week at $1,237 . . . traded as high
as $1,255 on Wednesday and as low as $1,234 on Monday . . . and the
Monex AM settlement price on Friday was $1,249, up $12 for the
week. Gold support is now anticipated at $1,245, then $1,234, and
then $1,207 . . . with resistance anticipated at $1,256, then $1,265,
and then $1,300.
SILVER:
Monex spot silver prices opened the week at $19.18 . . . traded as high
as $19.92 on Friday and as low as $18.97 on Tuesday . . . and the Monex
AM settlement price on Friday was $19.88, up $.70 for the week.
Silver support is now anticipated at $19.52, then $19.38, and then
$18.97 . . . and resistance anticipated at $20.19, then $20.85, and
then $21.20.
PLATINUM:
Monex spot platinum prices opened the week at $1,534 . . . traded as
high as $1,564 on Friday and as low
as $1,514 on Tuesday . . . and the Monex AM settlement price on Friday
was $1,558, up $24 for the week. Platinum support is now
anticipated at $1,550, then $1,524, and then $1,475 . . . and
resistance anticipated at $1,565, then $1,579, and then $1,604.
PALLADIUM:
Monex spot palladium prices opened the week at $504 . . . traded as
high as $531 on Friday and as low as $491 on Tuesday . . . and the
Monex AM settlement price on Friday was $529, up $25 for the
week. Palladium support is now anticipated at $517, then $500,
and then $484 . . . and resistance anticipated at $535, then $561, and
then $570.
QUOTES OF
THE WEEK:
From a new website recently launched
by The Independent Institute which features the Government Cost Calculator, a way
to examine U.S. government expenditures and determine how much YOU
could pay for various federal programs now and over the course of your
lifetime (Link to the site: http://www.MyGovCost.org ):
''Left unchecked, the growth of federal government spending will lead
the U.S. national debt, as a percentage share of GDP, to grow
exponentially. Since GDP itself grows exponentially over time,
this means that the U.S.' national debt will be likely to grow faster
than that exponential rate. In practical terms, that kind of
imbalance describes an unsustainable economic bubble driven entirely by
excessive government spending.
Compared to the fallout from the stock market bubble bursting in 2000
and the housing bubble in 2006, the consequences of that economic
bubble bursting will be especially severe, with an exceptionally
negative impact upon the potential of the people of the United States
to realize genuine prosperity during their lifetimes.''
. . . and from Paul B. Farrell, in
commentary posted on the MarketWatch website on August 31st:
''Summer of recovery? Dead. How dead? Remember
Genesis? The Seven Lean Years? Add seven years to the
handoff from Bush to Obama in early 2009 and you get no recovery till
2016. Get it? No recovery till the end of Obama's second
term, assuming he's reelected -- a big if.
'The idea behind 'seven lean years' is that it is unrealistic to expect
to overcome the several problems facing most developed countries,
including the U.S., in fewer than several years.' That's Jeremy
Grantham talking; he's responsible for investing $100 billion in the
next seven lean years. And like the biblical Joseph, whose life
was on the line while interpreting dreams for the Egyptian pharaoh,
Grantham can't afford mistakes.
In his recent newsletter, 'Seven Lean Years Revisited,' Grantham tells
us why expecting a summer of recovery was unrealistic, why America must
prepare for a long recovery. Grantham details 10 reasons: 'The
negatives that are likely to hamper the global developed
economy.' Sorry, but this recovery will take till 2016.
But should you believe Grantham? Yes. First: Like Joseph,
Grantham's earlier forecasts were dead on. About two years before Wall
Street's 2008 meltdown Grantham saw: 'The First Truly Global Bubble:
From Indian antiquities to modern Chinese art; from land in Panama to
Mayfair; from forestry, infrastructure, and the junkiest bonds to
mundane blue chips; it's bubble time. . . . The bursting of the bubble
will be across all countries and all assets . . . no similar
global event has occurred before.'
Second: The Motley Fools' Matt Argersinger went back to the dot-com
crash of 2000: Grantham 'looked out 10 years and predicted the Dow
Jones Industrial Average would underperform cash.' Bull's-eye:
The Dow peaked near 14,000 in late 2007; it's now around 10,000.
Factor in inflation: Wall Street's lost 20% of your retirement since
2000. Yes, Wall Street's a big loser.
Third: What's ahead for the seven lean years? Wall Street will
keep losing. Argersinger: 'Grantham predicts below-average economic
growth, anemic corporate-profit margins, and other severe obstacles for
the stock market. Over the next seven years . . . U.S. stocks as a
group will deliver annualized real returns between 1.1% and 2.9%.
That's less than you might get putting your money in a CD.'
Warning: You'd be a fool to trust your money with Wall Street during
the seven lean years till 2016. Another 20% will vanish.
Fourth: Why will Wall Street kill the recovery, keep driving us deeper
into a ditch till 2016? Last year Grantham asked: 'Why is it that
several dozen people saw this crisis coming for years? It seemed
so inevitable and so merciless, and yet the bosses of Merrill Lynch and
Citi, even Treasury Secretary [Henry] Paulson and Fed Chairman [Ben]
Bernanke, none of them seemed to see it coming.' The Pharaoh
listened to Joseph. Our leaders are deaf.''
. . . and from Mary Anne and Pamela
Aden, co-editors of The Aden Forecast,
in a weekly update to their newsletter, posted on their website on
September 1st:
''The gold price reached another nine week high yesterday as silver,
palladium and copper jumped up to their April-May highs. Gold has
bounced up almost 8% in five weeks as nervous investors run to safety.
Uncertainty about government policies, the fragile economy and the
possibility of an upcoming double dip recession is keeping gold firm as
it approaches its record high . . . If gold closes clearly above
$1262.40 basis December its then ready to soar. Demand will
continue to grow as it did in Q2 when it went up by 36%. The
second phase of the bull market is alive and well! Meanwhile gold
is very strong above $1220.
Silver jumped up, getting an extra boost from copper. If it
closes above its May high at $19.66 it could rise to its March 2008
high near $20.80. Above this level, it could soar with gold and
copper rising, we could see silver really take off. Silver is
strong above $18.40.''
Last update: Sep 03, 2010 11:05:07 AM
This is not a recommendation to buy or sell.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317