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.



In the precious metals markets this week . . . 

Monex spot gold prices opened the week at $1,314 . . . traded as high as $1,324 on Thursday and as low as $1,294 on Tuesday . . . and the Monex AM settlement price on Friday was $1,310, down $4 for the week.  Gold support is now anticipated at $1,300, then $1,277, and then $1,250 . . . with resistance anticipated at $1,325, then $1,340, and then $1,410.

Monex spot silver prices opened the week at $21.04 . . . traded as high as $21.24 on Thursday and as low as $20.70 on Wednesday . . . and the Monex AM settlement price on Friday was $20.86, down $.18 for the week.  Silver support is now anticipated at $20.70, then $20.20, and then $19.78 . . . and resistance anticipated at $21.30, then $21.50, and then $22.25.

Monex spot platinum prices opened the week at $1,497 . . . traded as high as $1,507 on Thursday and as low as $1,483 on Wednesday . . . and the Monex AM settlement price on Friday was $1,490, down $7 for the week.  Platinum support is now anticipated at $1,450, then $1,425, and then $1,380 . . . and resistance anticipated at $1,520, then $1,555, and then $1,625.

Monex spot palladium prices opened the week at $870 . . . traded as high as $890 on Thursday and as low as $863 on Tuessday . . . and the Monex AM settlement price on Friday was $881, up $11 for the week.  Palladium support is now anticipated at $870, then $830, and then $770 . . . and resistance anticipated at $890, then $920, and then $985.

* * * * * * * * * *
Is yet another ''Perfect Storm'' now on the horizon?

Monex VP Mike Maroney, in a new ''Metals Market Update'' video posted this week on the Monex website, explores the potential impact of escalating geopolitical tensions, new challenges to the U.S. Dollar's historic primacy, escalating U.S. debt and deficits and more -- all coming together to endanger your wealth -- and suggests ways you may be able to protect yourself now.

>>> Watch the new Mike Maroney video here:  (Link to Video)

* * * * * * * * * *


From John Hathaway, co-manager of the Tocqueville Gold Fund, in an interview with Lawrence C. Strauss in the July 14th issue of Barron's magazine:

''A lot of the physical gold that's above ground has migrated to Asia.  Imports into China have been at record levels, and India is a big buyer of gold, as well.  There is less gold in Western vaults than there was a couple of years ago.  But because Asian investors tend to hold their gold -- they don't view it so much as a trading vehicle -- it may not be available, should there be a rise in investment demand in the West.

If, for whatever reason, people who hold financial assets want to go into gold, the supply of it doesn't expand rapidly.  In fact, it might not expand at all during a period of high financial-market demand, and that's why you get these extreme moves in the price.  If we're at a stage where, for whatever reason, Western demand for gold awakes from a 2-1/2-year nap, there is probably going to be less of it to go around, and we could get dynamic moves on the upside.  That would probably surprise just about everyone, as was the case when gold moved up from 2008 to 2011.''

. . . and from Mortimer Zuckerman, editor in chief of U.S. News & World Report, in an editorial on the ''Opinion'' page of The Wall Street Journal on July 14th:

''Full-time jobs last month plunged by 523,000, according to the Bureau of Labor Statistics.  What has increased are part-time jobs.  They soared by about 800,000 to more than 28 million.  Just think of all those Americans working part-time, no doubt glad to have the work but also contending with lower pay, diminished benefits and little job security.''

''The great American job machine is sputtering.  We are going through the weakest post-recession recovery the U.S. has ever experienced, with growth half of what it was after four previous recessions.  And that's despite the most expansive monetary policy in history and the largest fiscal stimulus since World War II.

That is why the June numbers are so distressing.  Five years after the Great Recession, more than 24 million working-age Americans remain jobless, working part-time involuntarily or having left the workforce.  We are not in the middle of a recovery.  We are in the middle of a muddle-through, and there's no point in pretending that the sky is blue when so many millions can can attest to dark clouds.''

. . . and from an economic report posted by Robert Schroeder on the MarketWatch website on July 15th:

''The U.S. risks a fiscal crisis if it doesn't get large and continuously growing federal debt under control, the Congressional Budget Office said Tuesday.

In its new long-term budget outlook, the nonpartisan CBO said federal debt held by the public is now 74% of the economy and will rise to 106% of gross domestic product by 2039 if current laws remain unchanged.

In its last long-term budget outlook in September 2013, CBO said debt held by the public was 73% of GDP and projected debt would be 102% of GDP in 2039.

The stark warning from the CBO comes as deficits have recently been falling.  For the current fiscal year, for example, the CBO is projecting a deficit of $492 billion, which would be 2.8% of gross domestic product.

The deficit in fiscal 2013 was $680 billion, the first shortfall below $1 trillion of Barack Obama's presidency.  The deficit hit a record of $1.4 trillion in 2009.

But the agency expects deficits to rise in coming years as costs related to Social Security, Medicare and interest payments swell.

And if federal debt grows faster than GDP, that path is ultimately 'unsustainable' for the economy and risks a crisis where investors would begin to doubt the government's willingness or ability to pay its debt obligations, CBO said.''

. . . and from Mike DiRienzo of the Silver Institute, in a press release sent out on July 15th:

''Investor and industrial consumption of silver has advanced at a healthy pace in 2014, reflected in the silver price increasing 5 percent as of July 15 from the beginning of the year.

Building on an impressive 2013, investors continued to boost silver holdings in the first half of 2014.  Silver exchange traded funds (ETF) backed by physical silver added 7.0 million ounces (Moz) of silver bullion through June; in contrast, gold ETF holdings dipped by 1.4 Moz ounces over the same time period.  Globally, silver bullion coin sales are up 4.5 percent through the 1st quarter of 2014, according to precious metals consultancy Thomson Reuters GFMS.  U.S. Mint sales of American Eagle Silver Bullion coins maintained near record level sales, totaling 24.1 Moz for the first six months of 2014, just shy of the 25.0 Moz sold in the first half of 2013, threatening to overtake the record sales of 42.7 million American Eagle coins acquired by investors last year.''

. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on July 17th:

''As if there weren't enough world problems in Ukraine, Israel and China, now we suddenly have a minor 'black swan' event, which I will call a 'gray swan.'  Suddenly a passenger plane with 295 people aboard is shot down over Ukrainian skies. 'Who did it?  Why did they do it?  And who's responsible?'  Questions and more questions, and so far no definite answers.''

''The Dow had all day to absorb the frightening news, but I thought the close was rather on the calm side.  With the Dow down 161 to 16,976 and the Transports down 118 to 8,279, the tech heavy NASDAQ closed down 62, while the dollar closed down 0.06 to 80.57, still well above the critical 80 level.  Gold is up 17 to 1,317 and silver is up 0.36 to 21.13.  Judging by world events, I'd have to say that the market gave a good account of itself.  Precious metals acted well, and I'm just as happy to be in silver and gold items.  There are times when preservation of capital is more important than capital appreciation.''

Last update: Jul 18, 2014 11:35:14 AM

This is not a recommendation to buy or sell.