Bank of Japan Disappoints The Market

The Market Gage - Dillon Gage's Precious Metals Newsletter

Bank of Japan disappoints the market this morning after announcing it has eased its monetary policy by increasing its purchases of exchange traded funds, but left interest rates unchanged. This news turned out to be a non-event mover for the price of gold. As I start to write this report this morning, we see the price of gold virtually unchanged, at the so called technical tight rope at the $1,332 level.

Continue reading “Bank of Japan Disappoints The Market” »


American Eagles Sales as of July 29, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 28th. Changes below reflect the sales since our last report on July 22th.

Gold
Coin Sales in oz. /#coins + from 7/21/2016
One oz.
434,500
434,500
6,000
6,000
Half oz.
24,000
48,000
000
000
Quarter oz.
24,000
96,000
500
2,000
Tenth oz.
55,500
555,000
2,500
25,000
Total
538,000
1,133,500
9,000
33,000
Silver
Coin Sales in oz. /#coins + from 7/21/2016
One oz.
27,620,500
27,620,500
175,000
175,000

Precious Metals Quiet This Morning Ahead of Fed Decision

The Market Gage - Dillon Gage's Precious Metals Newsletter

Metal markets are quiet this morning ahead of the Fed decision at 2pm EDT today. With little chance of a rate hike this afternoon, the market awaits to hear the comments from the Fed committee. With all the encouraging economic data of late, we expect the committee to express a hawkish tone which would increase the chance of a rate hike in September. I still believe that even with some encouraging economic data, the Fed will be hard pressed to raise rates anytime this year with the rest of the world’s economies struggling at best.

Continue reading “Precious Metals Quiet This Morning Ahead of Fed Decision” »


Gold Declines for the Second Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold net long spec positions declined for the second week in a row as more nervous longs head for the exit. On the positive side of the ledger, in the last two weeks ETF’s inflow continue in gold, but at a slower pace. Nonetheless gold trades at a 4-week low this morning as some Wall Street Traders are calling the gold market to test the $1,300 dollar level ahead of the Fed meeting later this week.

Continue reading “Gold Declines for the Second Week” »


Consolidation, Sideway Trading…Boring?

The Market Gage - Dillon Gage's Precious Metals Newsletter

Depending on who you are, whether a trader or investor in this market, we all use different terms to describe this type of price movement in gold. Technical traders call it consolidation, fund managers call it sideway trading and financial advisors call it boring.

Whatever term you prefer to use, the bottom line is the market is just sitting here looking for a direction. So the question remains, what bit of news would propel the market in one direction or the other?

Continue reading “Consolidation, Sideway Trading…Boring?” »


American Eagles Sales as of July 21, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 21st. Changes below reflect the sales since our last report on July 15th.

Gold
Coin Sales in oz. /#coins + from 7/14/2016
One oz.
428,500
428,500
7,000
7,000
Half oz.
24,000
48,000
1,000
2,000
Quarter oz.
23,500
94,000
1,000
4,000
Tenth oz.
53,000
530,000
1,500
15,000
Total
529,000
1,100,500
9,500
26,000
Silver
Coin Sales in oz. /#coins + from 7/14/2016
One oz.
27,445,500
26,445,500
500,000
500,000

Everything You Need to Know about Rio’s Olympic Medals

Olympic2016
Dillon Gage Metals Talks Size, Composition and Value

ADDISON, TEXAS (July 21, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is ready to educate the public on everything they need to know about the Olympic medals slated to be awarded at the 2016 Summer Games in Rio. And some of the facts may surprise you.

For openers, there’s the composition breakdown on the precious metals in each medal. The gold medals awarded to the best of the best are pretty much gold in name only. In reality, 92.5 percent of their composition is actually silver. Only one percent is actual gold (plated) with the remainder made of bronze. Silver medals are 96 percent silver and the bronze medals are approximately 97 percent copper.

Continue reading “Everything You Need to Know about Rio’s Olympic Medals” »


Stronger Dollar Pressures Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold under pressure this morning due to a stronger dollar. The dollar index hitting 97.32 this morning, the highest level since March. A continued rally in the equity markets also pressuring the price of gold.

Recent strong job numbers and June housing data (reported up 4.8 percent) gives the Fed a strong case for raising rates at the next Fed meeting.

Scheduled European Central Bank meeting tomorrow and the expectation is that they will leave their policy unchanged.

Some Wall Street Gold traders this morning indicated that they expect gold to test the $ 1,300 dollar level. One trader also shared, in his opinion, that in the event the Fed comes in and raises rates at the next Fed meeting, the bull market will cease to exist and the $1,300 dollar level will become a distant memory.

I can’t disagree. A rate hike is the last thing people holding a long position in gold want to see. Nonetheless, we still see inflows in the ETFs. Overnight, all four metals increased their positions. This is becoming a very interesting market. If the economic data continues to be upbeat, the longs will have a tough time holding on to their positions and I expect a strong
move to the downside in the price of gold will be in order.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagles Sales as of 7/14/2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 14th. Changes below reflect the sales since our last report on July 8th.

Gold
Coin Sales in oz. /#coins + from 7/7/2016
One oz.
421,500
421,500
10,000
10,000
Half oz.
23,000
46,000
000
000
Quarter oz.
22,500
90,000
500
2,000
Tenth oz.
51,500
515,000
500
5,000
Total
519,500
1,074,500
12,000
19,000
Silver
Coin Sales in oz. /#coins + from 7/7/2016
One oz.
26,945,500
26,945,500
445,000
445,000

Equity Market Uptick Pressures Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold under pressure yesterday as money from overseas investors poured into the equity markets. New record highs in the Dow and SNP quickly caused a selloff in the yellow metal as investors joined the momentum in equities looking for better returns.

Today our markets seemed to have settled down a bit as we see good buying in Gold emerge at the $1,330.00 level.

Financial advisors are flooded with equity orders and now we are witnessing outflows in the Gold ETFs, temporarily changing the direction of the funds. The Silver ETF investor seems to be ignoring the interest in equities, so yesterday the Silver ETF holdings reached a new high for 2016.

Gold, as I indicated in my Monday blog, technically has to hold the $1,332 level or a further sell off is expected. Silver seems to have less pressure on the price, but if gold settles below the $1,332 support level I believe
the silver market will head lower also and I expect it will test the $19.96 support level again as it did last night. Kudos to my technical friends as they called the silver support level right on the mark in overnight trading.

Some Wall Street traders are indicating that they still continue to buy on any pull back in the price of Gold. It’s nice to hear that there are traders still confident that Gold can rebound even with the equity markets making new all-time highs every day.

Only time will tell if the equity market can maintain this momentum. Some financial advisors tell me there is a lot of cash on the sidelines, but the majority of the cash seems to be here in the States. If overseas money dries up or if poor equity earnings hit the headlines, a Gold rally will quickly be back on the table.

UK physical buying is slowing down as Theresa May gets set to become Prime Minister today. Her election has brought some calm to the UK as her conservative style sits well with most Brits.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Still Bullish On ETF Support

The Market Gage - Dillon Gage's Precious Metals Newsletter

The strong job report on Friday didn’t change the continued bullish sentiment of the ETF gold investor. This morning we see a new high for 2016 in the Gold ETFs. A few Wall Street Financial advisors indicated today that they expect the strong job number will take some wind out of the sails of the ETF investor. I couldn’t agree more. What I’m looking for is the next catalyst that will bring the Gold market to new highs, but I am have trouble finding one.

I expect for the next week or two the Gold market needs to consolidate a bit at these levels before it can set a new high for 2016. Strong physical demand is still seen in the UK, but I expect that will fizzle out very soon. Far East investors are nowhere to be found according to traders there.

Dialing up my charting friends this morning to give us some levels to watch, (which by the way they also agree some consolidation in price is expected at these levels), tell me that their first level of support in gold is $1,348
and then $1,332. They indicated that the $1,332 level is a must hold otherwise a test of the $1,300 dollar level is back on the table. They do believe there is a sell bias in the market at this time and they expect the market will
test the first level to see if the market can hold there. They expect it will.

Silver needs the help of Gold to maintain her rally and here too there are technical levels to watch. The $19.96 level is the first level of support then $19.68, which is a must-hold level otherwise the market sentiment could change.

I for one believe a SLIGHT pull back is healthy for any bull market and this one is no different. Overall, after seeing a strong recovery on Friday an hour after the job report was issued, higher prices are still in the cards.

On another note: There are over 13 trillion dollars worldwide in government bonds now experiencing negative rates. Strong international investment into the U.S. is driving equity prices higher. With all the bad news out of Europe, investors turn to the U.S. to invest, even with our low yields on government bonds. International investor inflows of cash gives the equity market a false sense of utopia.

Second quarter earnings for the SNP 500 in 2016 begin this week and a decline of -5.6 percent is estimated. If this number comes to fruition, it will be the first time the index has recorded five consecutive quarters of year-over-year declines in earnings since Q3 2008 through Q3 2009.

So with all the uncertainties around the world, physical Gold is an important ingredient in any well balanced portfolio.

What’s in your safe deposit vault or precious metals depository?

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Jobs Report Crushes Gold and Silver

The Market Gage - Dillon Gage's Precious Metals Newsletter

A huge rebound in the June Job numbers over the dismal report in May immediately crushes the price of Gold and Silver. 287,000 jobs created in June gives the Fed ammunition to bring rate hikes back to the table. This one bit of data is very important to the FED as the chairlady indicated May’s number was just an aberration. This one number doesn’t change the bullish sentiment of the market and in my opinion, as well as some of my Wall street gold trader friends, it has created a buying opportunity to participate in buying the yellow metal at more attractive levels.

I believe the gold and silver market overreacted to this one piece of data. I can’t deny the fact that the number was very impressive, but one piece of data should not have created such a selloff. As I was watching the activity in the futures market right after the number was released, it appeared to me that the nervous longs had stops in place to protect their profits.

This one number doesn’t change the fact the UK and all of the EU community continues to see a strong demand for the physical metal
and as more and more news comes out of the Brexit referendum, more and more individuals will see the need to have gold and silver in a balanced portfolio.

Still we can’t forget that the European Central Bank and the Bank of Japan have ventured into negative interest rate territory this year in hopes of stimulating their economies. Obviously it isn’t working as we see negative interest rates on sovereign bond exposure increase day after day. On a “what does it matter comment,” we see a huge increase in purchases of safes in Japan as more and more people lose faith in the banking system.

What does this all mean? It means that as good as this jobs number was today the FED cannot ignore what is happening around the world and would be hard pressed in my opinion to raise rates anytime soon. I expect after the hard selloff, a recovery in the gold price will be in order.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of July 7, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 7th. Changes below reflect the sales since our last report on July 1st.

Gold
Coin Sales in oz. /#coins + from 6/30/2016
One oz.
411,500
411,500
5,500
5,500
Half oz.
23,000
46,000
000
000
Quarter oz.
22,000
88,000
500
2,000
Tenth oz.
51,000
510,000
500
5,000
Total
507,500
1,055,500
6,500
12,500
Silver
Coin Sales in oz. /#coins + from 6/30/2016
One oz.
26,500,500
26,500,500
250,000
250,000

FLASH GAGE – Pay Attention at 2 pm EDT

Dillon Gage - Flash Market Update

Open interest Gold futures reported at an all-time high today at 662,840 contracts.

Meanwhile, Wall Street gold traders indicate that the market is overbought and are waiting to hear the minutes from the previous FED meeting. Some have indicated that a strong sell off is expected if any news out of the Fed meeting gives any indication a rate hike is back on the table.

I would recommend being close to the news services at 2 pm EDT when the Fed minutes will be released, as the market can react abruptly.

Let the trader beware. Better to be safe than sorry.

Regards

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold and Silver Rally Continues Driven By ETF Demand

The Market Gage - Dillon Gage's Precious Metals Newsletter

The rally continues driven by a number of factors. First and foremost is the daily increase in the ETF funds.
Gold ETFs today posting a new high for 2016, holding almost 67 million ounces. Silver ETF holdings are at 641 million ounces, just shy of the high in early June when it reached 643 million ounces.

What I find significant and interesting is the reported physical demand for gold out of the UK. Gold is up 40 percent in Pound Sterling terms and prior to the Brexit vote, UK firms have reported strong physical demand. What is unusual, and I hope becomes a pattern here in the States, is who is jumping into the physical gold market. Historically the average investor has been a male over 50 years of age. Recently In the United Kingdom, the major investors have been young and a good number have been women.

Another significant factor in both the gold and silver markets is the reported all time high long spec positions. Some Wall Street gold traders have shared with me this morning their concerns that historically, with these reported positions, the markets are primed for a major selloff. However, every indication we see this morning is that the rally seems to be alive and well and continuing, even without Far East and India demand, as those markets for many reasons are not involved at all in the physical market at this time.

Federal Reserve minutes to be released this afternoon 2pm EDT. I expect we will hear how concerned the FED board was over the Brexit vote and what impact they expected it to have on the world markets. Chairwomen Ms. Yellen commented that the Brexit vote was a factor in leaving rates unchanged here in the States.

Just some other noteworthy points:

  • The World Gold Council reported Central Bank gold purchasing was almost 110 tonnes in the first quarter this year with the largest buyers being Russia and China.
  • A third of global government bonds are now trading at a negative yield giving gold a boost as investors see the yellow metal as a good investment and a must have as part of a balanced portfolio.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Precious Metals Wrap Up Strong Post-Brexit Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

What a week it has been for precious metals. Brexit, Brexit fallout, the possibility of a Brexit reversal, suppressed crude oil prices, and not a Fed interest rate hike in sight. What more could we ask for? Of course, market turmoil is never a thing to wish for, but it does once again prove the worth of the ultimate safe haven investment – precious metals.

As for gold spot prices, the yellow metal is still trading well above $1,300 per ounce, but it’s the pundits who are calling for a new ceiling of $1,400 per ounce that gets our attention. If Fed Chair Janet Yellen remains dovish on rate hikes, We’ll handily agree with this assessment.

The other precious metals have had a very healthy week as well. As we go to press, silver is OVER $19 ($19.29 to be exact). Silver hasn’t breached $19 since Sept. 2014. The platinum group is also on the upswing with platinum at $1,049 and Palladium is at $602. To put this all in perspective, last Thursday, prior to the results of the Brexit vote, silver was at $17.30 (a rise of $2), platinum was at $965.80 (A bump of $83) and palladium was at $565.75 (a boost of $47).

It’s been a wild and wooly week in the global markets and one thing seems certain. We haven’t seen the last of it.

Have a wonderful weekend!


American Eagle Sales as of 6/30/2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following charts include the year to date totals from the U.S. Mint for Gold and Silver Eagles as of 5pm on June 30th. Changes below reflect the sales since our last report on June 24th.

Gold
Coin Sales in oz. /#coins + from 6/23/2016
One oz.
406,000
406,000
16,500
16,500
Half oz.
23,000
46,000
500
1,000
Quarter oz.
21,500
86,000
000
000
Tenth oz.
50,500
505,000
8,000
80,000
Total
501,000
1,043,000
19,000
37,500
Silver
Coin Sales in oz. /#coins + from 6/23/2016
One oz.
26,250,500
26,250,500
998,500
998,500

Britain Cuts Out – Gold Takes Off!

The Market Gage - Dillon Gage's Precious Metals Newsletter

It’s official. In a stunning referendum vote, the U.K. decided to leave the European Union. It’s not what the pundits or poll watchers were expecting as the world woke up to the news on Friday. The effect on the global financial markets was both immediate and impactful.

Investors quickly moved, quite predictably, to the safe haven of precious metals. Gold smashed through the $1,300/oz. barrier—trading as high as $1,358.20/oz., its highest water mark in over two years. Some strategists are openly stating that the yellow metal will go even higher, perhaps over $1,400/oz.

Continue reading “Britain Cuts Out – Gold Takes Off!” »


Britain Exits – Gold Rush Enters

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold’s standing as a safe haven investment was strengthened overnight as the fallout from the Brexit vote swept the financial landscape. The final vote to leave came as a surprise to many as yesterday’s polls indicated a narrow victory for the “stay” vote.

Gold prices spiked above $1350 overnight, the highest level since March 2014. This sharp rise is no surprise when you read the following Brexit Vote financial highlights (or lowlights depending on your point of view):

  • The pound hit its lowest level since 1985, tumbling 11 percent before a slight recovery to trade 8 percent lower at $1.3704.
  • Britain’s FTSE 100 dove about 8 percent but recovered slightly for a 5 percent loss
  • Oil prices tanked, with the U.S. benchmark $2.24 lower at $47.87 a barrel
  • The German index down 7 percent
  • France’s index fell about 9 percent.
  • The Nikkei 225 closed down 8 percent, its biggest dive since the global financial crisis in 2008.
  • Five minutes after US markets opened, the S&P 500 had lost 1.6pc, Dow Jones traded 2.87pc lower and 3.25pc was wiped off Nasdaq – its worst drop since November 2011.

Needless to say, we are in the early stages of the aftermath of this momentous breakup. With the British PM David Cameron stepping down and Scotland eyeing ways to declare independence, it’s obvious this political upheaval will not calm down any time soon.

We will be back on Monday with more insights and data as we take a deep breath and watch for ANY of the dust to settle over the weekend.

Disclaimer: This editorial has been prepared by the staff of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagles Sales as of June 23, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 23rd. Changes below reflect the sales since our last report on June 17th.

Gold
Coin Sales in oz. /#coins + from 6/17/2016
One oz.
389,500
389,500
11,000
11,000
Half oz.
22,500
45,000
1,000
2,000
Quarter oz.
21,500
86,000
1,500
6,000
Tenth oz.
42,500
485,000
2,000
20,000
Total
482,000
1,005,500
15,500
39,000
Silver
Coin Sales in oz. /#coins + from 6/17/2016
One oz.
25,252,000
25,252,000
1,006,000
1,006,000

Mid-Year Check of Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

We’re six months into 2016 and it’s been quite a ride so far. Beginning in early February, gold prices took off and produced the biggest quarterly rally in the last three decades. Now having crested over $1,300 an ounce, we’re far above last December when gold’s spot price lagged at $1,057 per ounce (a five-year low).

Let’s take a look at spot price differentials for all four precious metals to gauge the 2016 year so far:

Metal Jan. 2016 Jun. 2016 Change
Gold
$1,061.90 $1,268.30 + 26%
Silver
$13.86 $17.31 + 20%
Platinum
$892.65 $986.40 + 10%
Palladium
$564.15 $560.70 – 1%

Another positive? These figures don’t take into account the level of increased interest in gold and silver-backed exchange traded funds (ETFs).

This week should see significant interest in precious metals on the global stage, with everyone awaiting the outcome of England’s Brexit referendum vote. Will they vote to stay in the European Union (EU) or vote to leave it? Surprisingly, there’s still no clear picture of which way voters will swing on this precarious issue.

With unease and instability, comes renewed interest in safe haven investments such as precious metals. Buckle your seatbelts. This ride could get exciting…

Disclaimer: This editorial has been prepared by the staff of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Two Headlines Could Impact Gold This Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

Two headline stories on tap for this week that could have an impact on the gold price.

Tuesday and Wednesday, the Fed chairwoman, Janet Yellen testifies before congress to deliver her semi-annual testimony. On Tuesday she will testify before the Senate Banking Committee and on Wednesday she speaks in front of the House Financial Services Committee.

Everyone expects Chairwoman Yellen to repeat her message from last week that the Fed wil take a cautious approach to raising rates, as the U.S. economic data is still reported as “weak”.

Continue reading “Two Headlines Could Impact Gold This Week” »


No Fed Rate Hike As Brexit Looms

The Market Gage - Dillon Gage's Precious Metals Newsletter

As expected, the Fed left interest rates alone during their scheduled meeting this week.

Citing an unexpectedly weak May jobs report and the looming Brexit referendum vote for England, Fed Chair Janet Yellen stated, “It is a decision that could have consequences for economic and financial conditions in global financial markets. If it does so, it could have consequences in turn for the U.S. economic outlook that would be a factor in deciding on the appropriate path of policy.”

Continue reading “No Fed Rate Hike As Brexit Looms” »


American Eagles Sales as of June, 16, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 16th. Changes below reflect the sales since our last report on June 10th.

Gold
Coin Sales in oz. /#coins + from 6/10/2016
One oz.
378,500
378,500
25,500
25,500
Half oz.
21,500
43,000
000
000
Quarter oz.
20,000
80,000
500
2,000
Tenth oz.
46,500
465,000
1,500
15,000
Total
466,500
966,500
20,000
35,000
Silver
Coin Sales in oz. /#coins + from 6/19/2016
One oz.
24,246,500
24,246,500
311,000
311,000

Precious Metals Modestly Lower This AM

The Market Gage - Dillon Gage's Precious Metals Newsletter

FED Watch.

Precious metal prices are modestly lower this morning as we await the decision from the FOMC meeting today at 2pm Eastern time.

We expect them to provide further guidance on when they expect to raise rates. Still the odds are very low that a rate hike will happen today or in July and a 30 percent chance in September. I expect the odds might change a bit after hearing what they have to say today.

Continue reading “Precious Metals Modestly Lower This AM” »


Minnesota Amends Law Aimed At Coin Dealers

The Minnesota SF 3175: Bullion Product Dealers Regulation Authorization was recently signed by Minnesota Gov. Mark Dayton. This major legislative effort, led by the Industry Council for Tangible Assets (ICTA), reforms the most troublesome law for coin dealers in modern memory.

The state’s “Bullion Coin Dealer Law,” which was passed in 2013, applied to dealers at all levels of the industry and throughout the country, and imposed onerous regulations that were impossible to comply according to ICTA’s Chairman, Harry Miller, “Most coin dealers in the U.S. probably had no idea they were subject to this Minnesota law. But many were affected, even those who thought they had never done business in the state, because of the broad way in which the law was written.”

Continue reading “Minnesota Amends Law Aimed At Coin Dealers” »


England’s Brexit Vote May Cause Gold Rush

Dillon Gage Metals Founder Weighs in on Possible Outcomes

ADDISON, TEXAS (June 14, 2016) – Dillon Gage Metals is investigating what potential effect the upcoming Brexit vote may have on the global precious metals market.

On June 23, British voters will cast ballots to determine whether or not the U.K. will remain in the European Union. According to Dillon Gage Metals Chairman Stephen W. Miller, if the Brexit measure passes, the effects may positively impact long-term value in the precious metals market.

Continue reading “England’s Brexit Vote May Cause Gold Rush” »


Overnight Buying From Japan Boosts Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Good morning from the IPMI conference in Phoenix, Arizona, where hundreds of traders and dealers from around the world exchange ideas in the Precious Metals markets. You can see the hotel lobby fill up with it all the traders and dealers every hour on the hour for meetings. Companies are here trying to establish new relationships, rekindle old ones and exchange ideas in technology.

Dillon Gage’s cutting edge technology continues to evolve and stands out as the leader in physical electronic trading platforms. Matter of fact, I didn’t see or hear of any other firm offering a comparable trading platform like “FIZ” trade. For any precious metals business, a precious metals platform is a must in order to compete with the worldwide electronic algorithms that move the price of metals in a heartbeat.

Continue reading “Overnight Buying From Japan Boosts Gold” »


Gold Continues Up on Last Week’s Jobs Report

The Market Gage - Dillon Gage's Precious Metals Newsletter

We’ve witnessed gold up almost 5 percent this week after the disappointing jobs number last Friday.

Hitting the news wires yesterday was a story about billionaire George Soros getting back in the gold market. Soros Fund Management, which manages $30 billion for Mr. Soros and his family, sold equities and bought gold and mining shares. Mr. Soros indicates that he sees a bleak outlook for the global economy, and has directed some of his companies’ investments into the metals arena due to his concerns about political issues in China and Europe.

Continue reading “Gold Continues Up on Last Week’s Jobs Report” »


American Eagles Sales as of 6/9/2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 9th. Changes below reflect the sales since our last report on June 3rd.

Gold
Coin Sales in oz. /#coins + from 6/2/2016
One oz.
353,000
353,000
7,500
7,500
Half oz.
21,500
43,000
000
000
Quarter oz.
19,500
78,000
500
2,000
Tenth oz.
45,000
450,000
1,500
15,000
Total
446,500
931,500
9,500
24,500
Silver
Coin Sales in oz. /#coins + from 6/2/2016
One oz.
24,246,500
24,246,500
762,500
762,500

World Bank’s Global Growth Forecast Lifts Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

The World Bank cut its 2016 global growth forecast today to 2.4 percent, down from the 2.9 percent estimated in January. The move is due to sluggish growth in advanced economies, low commodity prices, weak global trade and diminishing capital flows.

Gold, liking that kind of news, is trading up $ 13.00 on the day, at the time of this report. Silver, the so-called “poor man’s gold,” is trading either side of $17.00 this morning (consider just a week ago the worry was, are we going to hold the $16.00 dollar level?).

Continue reading “World Bank’s Global Growth Forecast Lifts Gold” »


FLASH GAGE- Fed Chair Yellen’s Key Words

Dillon Gage - Flash Market Update

I just finished listening to Chairwomen Yellen’s 30-minute speech regarding the possibility of future rate hikes.

Here are the KEY words I heard her share and WHY I still believe there will be no rate hikes this year:

  • Probably
  • Unclear
  • If
  • Cautiously optimistic
  • Uncertainties
  • Could
  • Close watching

And also the salient point she made:
“And the UK Brexit vote could have significant economic consequences if they vote to leave the EU.” (The vote is June 23rd)

The craft she used to construct the speech is pretty interesting. It’s my belief that the only reason the majority of the Fed governors want a rate hike is to give them some room to cut rates in the future when the inevitable occurs.

I’ll leave it up to you to determine what the word “inevitable” means.

After all, if the chairwoman can have fun with words, why can’t I?

Regards

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Markets Awaiting Fed Chairwoman Talk Today

The Market Gage - Dillon Gage's Precious Metals Newsletter

After the poor jobs number on Friday, the market now awaits comments from Fed Chairwoman Janet Yellen. Ms. Yellen scheduled to speak today at 12:30 eastern time in Philadelphia.

When I first started in this business almost 40 years ago, the news items that seemed to move the gold market the most, were news on inflation and supply and demand concerns. Now for the most part, the market holds its breath on every comment made by any Fed official regarding interest rates, watching the action in the dollar and unemployment / jobs news.

Continue reading “Markets Awaiting Fed Chairwoman Talk Today” »


May Jobs Report Dramatically Boosts Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

It will be very interesting to hear what the Fed presidents NOW have to say after this very weak May jobs report. Only 38,000 jobs were created in May, way below the 160,000 jobs number the street had expected. Also reported today, revisions to the March and April jobs number, adjusted down a combined 59,000 jobs. May’s job number was the lowest since September 2010.

As soon as this very unexpected number was released, gold exploded to the upside from $1,212.00 to $1,238.60 in the August contract. In my opinion, this not only takes a June rate hike off the table, but the number was SO bad, it handcuffs the Fed from even considering a rate hike in July.

As I’ve been indicating from the start of year, I don’t expect any rate hike in 2016 because I believe the data will not be there to support a rate hike as the U. S. economy slows down. Looking in the rearview mirror, let’s not forget that weak first quarter GDP report up .5 percent then adjusted later to .8 percent. And now this news, it would be a complete shocker to the markets and destroy any credibility the Fed has, and that’s not much these days, if they pull a surprise in either June or July. I can’t imagine how the markets would react. Scary.

Gold ETFs back in the news today as we witnessed a modest inflow yesterday.

Besides the big news in the Gold and Silver markets today, we are watching the Dollar Index getting hammered off this weak data, down 1.40.

All this news giving Gold and Silver the boost we all were hoping for.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Military Lending Act – How it Impacts Pawnbrokers

The Department of Defense expanded the Military Lending Act (MLA) regulation last year. It becomes effective for pawn transactions on October 3, 2016. Are you ready?

What is the MLA?
The regulation limits all interest and other charges for credit to a 36% Military Annual Percentage Rate (MAPR) for pawn transactions with active-duty members of the armed services, National Guard, Coast Guard, and Reserve members, AND their dependents.

Why are you affected?
Even if your store is not located near a military base, active duty military personnel or their dependents could still visit your store. Their “covered borrower” status must be verified by you when they ask for a loan. Therefore, this verification will have to be performed on ALL of your customers every time they step up to the counter for a loan!

How do you verify the status?
To determine the status of ALL customers, you must obtain their social security number and verify it with the Defense Manpower Data Center (DMDC).

What are the penalties?
The penalties for non-compliance are harsh.

  • Voided pawn ticket
  • Civil liability to covered borrowers for violations with actual damages not less than $500 per violation, punitive damages, costs of action and attorney’s fees
  • Fines and/or up to one year in prison

What can you do?
The National Pawnbrokers Association (NPA) has the latest information on MLA and is preparing guidelines to help members with compliance. For membership details, call (817) 337-8830 or visit NationalPawnbrokers.org/join.


American Eagles Sales as of June 2, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 2nd. Changes below reflect the sales since our last report on May 27th.

Gold
Coin Sales in oz. /#coins + from 5/26/2016
One oz.
353,000
353,000
27,000
27,000
Half oz.
21,500
43,000
1,500
3,000
Quarter oz.
19,000
75,000
500
1,000
Tenth oz.
43,500
435,000
1.500
15,000
Total
437,000
907,000
30,500
47,000
Silver
Coin Sales in oz. /#coins + from 5/26/2016
One oz.
23,484,000
23,484,000
680,500
680,500

Precious Metals Investors Waiting on the Sidelines

The Market Gage - Dillon Gage's Precious Metals Newsletter

Now that the minutes of the April FOMC meeting have been revealed and the market has absorbed the news, market participants now sit on the sidelines awaiting U.S. data to be released later in the week before considering entering the gold market again.

The hawkish sentiment expressed by a majority of FED governors has chased investors out of the gold market, dropping gold 5 percent days after the minutes were released.

A very quiet overnight trading session as we see gold slightly higher, mainly due to a weaker dollar, and off the lows earlier in the week when we saw gold test the $1,200 dollar level.

Weak fundamentals not helping the yellow metal as refiners as well as gold dealers report sluggish demand.

Silver trading either side of $16 dollars as investors are hoping for weak economic data in the coming weeks, weakening the FED’s hand to raise rates. Demand for silver products also on the quiet side as reported by the majority of dealers we spoke to.

CME reports a 23 percent chance of a rate hike in June and a 59 percent chance in July.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – Yellen Offers Insights Into Fed’s Intentions

Dillon Gage - Flash Market Update

Ok, she folded under the pressure. Being a compassionate person, feeling sorry for the poor Wall Street Bond trader delaying his weekend trip to the Hamptons, Fed Chair Yellen answered the question we were all waiting to hear during her interview today with Harvard professor Greg Mankiv.

Are you supportive of a rate hike in the coming months?

What did you hear and what key words did you take out of her response?Let me give you a little help and politely share my perspective on what she said.

The first thing I noticed was that the dollar rallied as she spoke and gold sold off. Not good for the yellow metal as we broke the key spot level of support at $1,215.40. Market now takes on a sell bias once again.

But even though she seemed to convey a HAWKISH tone, she was still not convincing.

She used words like “cautious” and “data dependent.” Yes, she did say the economy is improving. I can argue that point if I may be so bold, seeing corporate profits down and business investment also falling by the wayside. Did we all forget about bad state of the economy in Europe?

Today we seen a revised first quarter US GDP growth of .8 percent reported. I’m not impressed with the revision. I’ll continue to stand my ground and wait till I see “THE DATA” on where and how our economy is improving. In the meantime nothing has changed.

Just a heads up. I would advise monitoring the Gold CME opening Sunday night to see what reaction the rest of the world has to her comments as they resume trading.

Regards and wonderful weekend to all.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Will Fed Chair Indicate a June Rate Hike Today?

The Market Gage - Dillon Gage's Precious Metals Newsletter

Will she or won’t she?

After listening to some FED governors over the past week calling for a rate hike in June, the stage is now set for “The Boss” to share her opinion of what direction the Fed will take at the June meeting.

The Fed chairwoman today is scheduled to receive the Radcliffe Medal, an award given each year to people who have had a transformative impact on society. She will be interviewed at 1:15 pm today by Harvard professor Greg Mankiv, a onetime White House advisor to President George W. Bush.

But the question remains, will she savor the moment and accept the honor and also share her thoughts on the economy and give us a hint to what she is thinking?

If she passes on sharing anything of substance today at Harvard, which is what I expect, the next time we will hear from her will be June 6th in Philadelphia at the World Affairs Council luncheon.

Keeping a low profile might just be the best medicine for the market until she can accumulate more second quarter data and with that have the ammunition to make the right decision.

Ms. Yellen has always indicated the any rate hike will be data dependent. And let’s not forget the “Brexit” vote which will be decided on June 23rd. That’s six days AFTER the June FED meeting. Such an important vote to determine the future of the EU has to be on the Chairperson’s mind as she considers to raise rates in June.

Overnight we saw strong selling in gold from Far East participants, breaking through the 100-day moving average of $1,215.40 basis spot, (a key level of support). If we settle below that level today, I expect the market to experience more selling pressure in the weeks ahead before the next Fed meeting.

One must remember to be a successful trader or investor in the precious metals arena you need to be well informed on what’s being said about future rate hikes.
Because what is said and done with interest rates seems virtually, THE ONLY NEWS that can affect the prices of precious metals at this time.

God Bless our military and all who served and gave the ultimate sacrifice for each one of us.

Have a wonderful holiday weekend.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of May 26, 2016

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on May 26th. Changes below reflect the sales since our last report on May 20th.

Gold
Coin Sales in oz. /#coins + from 5/19/2016
One oz.
326,000
326,000
11,000
11,000
Half oz.
20,000
40,000
500
1,000
Quarter oz.
18,500
74,000
1,000
4,000
Tenth oz.
42,000
420,000
500
5,000
Total
406,500
860,000
13,000
41,000
Silver
Coin Sales in oz. /#coins + from 5/19/2016
One oz.
22,803,500
22,803,500
886,000
886,000

Silver the Sole Metal With Some Support

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold is trying to consolidate around the $1,220 level as the cloud of higher interest rates hovers above. Redemptions seen in the Gold ETFs overnight and open interest in the CME futures also seen declining in the past few days.

Silver is the only metal getting some support from the retail investor. Platinum traded briefly under the psychological $1,000 level overnight, lowest price since April 19th. Palladium trying to hold a key technical level at $ 530, a level not seen since March 3rd. I expect both these levels to be challenged today.

Some financial advisors report clients have been rotating out of metals and back into equities as the momentum shifts with better returns seen in the short term with dividend paying stocks.

As I indicated in my comment on Monday, with the threat of higher interest rates on the horizon, ( possibly June ) I expect to see a sell bias in the price of gold and unfortunately, I don’t see that changing anytime soon.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


San Fran FED Chair Comments Impact Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

It is inevitable that the precious metal markets will be influenced right after comments of any FED governor. This morning after a quiet Far East trading session overnight, we hear comments from San Francisco Fed governor Williams, who is calling for 2 to 3 rate hikes in 2016 and 3 to 4 rate hikes in 2017. So, if I can translate that language, that means by the end of 2017 we could see a Fed fund rate of 2 percent?

These comments give the gold market sell signals and chases any nervous long-term investors from holding on to their positions.

This Friday Janet Yellen will be honored at Harvard University with the Radcliffe Medal, presented annually to an individual who has had a transformative impact on society. Right after the ceremony Gregory Minkiw, the Robert M. Beren Professor of economics at Harvard University, will has a sit-down conversation with the FED Chairwomen to discuss her ground-breaking achievements. It is my hope that in that conversation she will bring some stability to these unsubstantiated comments made by her colleagues.

I guess no one at the FED is reading the newspapers or going online to see what’s going in Europe? The Germans and the French are closely watching the possibility of England leaving the EU. Many are screaming, as seen in the French media last week that France and Germany must find a way to strengthen the Euro, otherwise the future of the EU could be in jeopardy.

In my opinion this uncertainty will strengthen the U S dollar and will delay the FED’s ability to raise rates.

In the short term, as more and more comments of a rate hike are shared in the media by Fed governors, gold will have a continued sell bias to deal with.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Selloff An Overreaction to FED?

The Market Gage - Dillon Gage's Precious Metals Newsletter

It’s a little after 3 am on the east coast as I start my comment today, because I have to leave early this morning on business and will be driving, so I will be unable to share my thoughts unless I start them now.

Nonetheless, after speaking to a few gold traders yesterday, and listening to the collective opinions of them all, they indicate that the gold market selloff was an overreaction to the comments made by some Fed governors at the Fed meeting in April.

The day before the minutes were released, the odds of a June rate hike were at 4 pct. probability. Yesterday it was around 24 pct. as reported by Bloomberg news.

As I indicated in my comment on Wednesday, with ANY hint of a rate hike, I expect a strong sell off in the yellow metal. And that’s exactly what happened. Perception became reality in a heartbeat. But looking back at that decline in the price of gold and silver, I must agree with the Wall Street traders that this was just a knee jerk reaction and there is no basis at this point to believe that a June rate hike is a sure thing.

Remember the GDP number a few weeks ago from the first quarter reported at 0.5 percent? A weak number at best.

What about all the retailers other than Walmart reporting weak financial results? A report came out earlier in the week that inflation picked up and was reported at 0.4 percent. Does this one number give the Feds the ammunition to raise rates in June?

Remember who running the show at the FED. The FED chairwoman has always said that any rate hike will always be DATA dependent.

So yes, we lost some momentum, but negative rates didn’t go away over in Europe and the Far East, and the migrant crisis in Europe has not improved, so what has changed? NOTHING. A very smart friend and trader, (who I happen to admire) said earlier in the week
that the gold market needs two things for the bull market to sustain itself, a settlement over $1,300 dollars and strong physical demand. Get those two things and we are off to the races.

I finally got the other eye opened. I hope you enjoyed the comment today.

Good night, or shall I say, have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagles Sales as of 5/19/16

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals from the U.S. Mint as of 5pm on May 19th. Changes below reflect the sales since our last report on May 13th.

Gold
Coin Sales in oz. /#coins + from 5/19/2016
One oz.
315,000
315,000
16,000
16,000
Half oz.
19,500
39,000
000
000
Quarter oz.
17,500
70,000
1,000
4,000
Tenth oz.
41,500
415,000
3,000
30,000
Total
393,500
839,000
20,000
50,000
Silver
Coin Sales in oz. /#coins + from 5/12/2016
One oz.
21,917,500
21,917,500
945,000
945,000

Gold Pressured by FED Comments

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold feeling pressure after comments from San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart. They both indicated that the Fed could raise rates two or three times this year.

The labor department reported inflation picked up in April at 0.4 percent, the largest gain since February 2013.

Higher oil prices fueling the inflation figures giving some at the Fed some ammo to consider a rate hike sooner than later.

Later today, the Fed will release the minutes from the last meeting as the street patiently awaits the news before taking on any positions.

A Stronger dollar ( 7 week high) and slow physical demand is keeping pressure on the price of gold and silver. Any indication from the Fed this afternoon at 2pm that rate hikes are a possibility at the next meeting or two, I expect to see a strong sell off in the yellow metal.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Middle East Traders Return to Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Metals start off the week in positive territory, with the dollar index in negative territory today. Stronger oil prices have some Middle East traders back in the gold market, indicating at these levels that gold looks like an attractive investment to them. My take is that the Middle East gold traders are feeling better now that the price of oil has been climbing at a steady pace. This group has been away from the gold market for quite some time now, and as things improve in the oil market, I expect to see them trading actively again. Action from this part of the globe always puts a charge in the volatility of the gold market.

The ETF gold funds continue to increase day after day and now stand at a 2016 year high of 60,303,873 ounces.

Some Wall Street traders I spoke with this morning have said that they expect gold to test the $1,300 dollar level sometime later this week.

One gold trader I spoke with today said, “I always get concerned when everyone’s on the same page. In my opinion, we need to see gold settle above the $1,300 level for the yellow metal to have any chance of going higher. Physical demand is still lagging in this rally and until I see it pick up, I’ll have a wait and see approach to joining the club, especially at these levels.”

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Will Britain leave the EU?

The Market Gage - Dillon Gage's Precious Metals Newsletter

Controversy abounds after the comments made yesterday by Bank of England’s Governor Mark Carney. Looking at the coming vote June 23rd, Carney said, “A vote to leave the EU could have material effects on the exchange rate, demand and supply potential.” The consequences “could possibly include a technical recession.”

Wide spread criticism of the governor’s comments have caused a debate among all of Britain’s political groups.

Lord Lamont, chancellor of the UK from 1990 and 1993 and well respected figure said, “The governor should be careful that he doesn’t cause a crisis. If his unwise words become self-fulfilling, the responsibly will be the Governor’s and the Governor’s alone. A prudent Governor would simply have said, we are prepared for all eventualities.”

Why am I writing about this? This referendum; if Britain decides to leave the EU, will have economic consequences for the rest of Europe. Countries in the union would face higher contributions towards the EU budget to compensate for the loss of the second largest economy in Europe. We cannot forget the costs of the migrant crisis and the state of the European economy as a whole. And remember in March the European Central Bank had to add more stimulus.

Another important factor is the negative interest rates for some countries in the EU. I expect negative rates will be around for a while and it is expected that others will be forced to join the club.

No wonder we are seeing the Gold ETF funds increasing almost every day and why gold is up 20 pct. off the lows from last year.

To paint a clearer picture of the years ahead, the possibility of Europe going into economic turmoil could become a reality. And where better to have at least a portion of your portfolio than in physical gold? A good number of Wall Street financial advisors have had clients join the club, but the majority of the equity investors choose the Gold ETF fund. It’s time to explain to investors the advantages of holding physical gold instead of paper as the smarter investment.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.