Gold Slows But Gold ETFs Still Growing

Let’s chat about where I stand

There is nothing I enjoy more than a healthy debate on the future of the markets. Recently I’ve been told by some, that an investment in precious metals is a bad decision. But let’s look at the numbers. Up until Wednesday of this week, the price of Gold outperformed the Dow in 2017, 14 percent to 13 percent. I consider that a home run for the long term Gold investor.
Continue reading “Gold Slows But Gold ETFs Still Growing” »


American Eagle Sales as of 9/21/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on September 21st. The chart also shows the change in sales from 9/14/2017 which we reported on September 15th.

Gold
Coin Sales in oz. /#coins + from 9/14/2017
One oz.
168,000
168,000
2,000
2,000
Half oz.
14,500
29,000
000
000
Quarter oz.
14,000
56,000
500
2,000
Tenth oz.
32,500
325,000
500
5,000
Total
229,000
578,000
3,000
9,000
Silver
Coin Sales in oz. /#coins + from 9/14/2017
One oz.
15,703,500
15,703,500
50,000
50,000

Dollar Weakens – Gold On Solid Footing

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on the Federal Reserve today ahead of the conclusion of its two day meeting. A decision on interest rates and Balance sheet reduction to be released today at 2 pm eastern time.

The Chairwoman will be speaking right after the news is released. We don’t expect any increase in interest rates at this meeting, but we do expect some clarity in their steps to reduce the balance sheet.
Continue reading “Dollar Weakens – Gold On Solid Footing” »


N. Korean Missile Sparks Brief Gold Spike

The Market Gage - Dillon Gage's Precious Metals Newsletter

Yesterday, North Korea launched its second missile in less than a month and created panic buying in Gold from the Far East. Air raid sirens could be heard all over Japan as a North Korean ballistic missile flew over head and landed in the Pacific ocean.

Within six minutes of North Korea launching their missile, South Korea responded with a launch of their own sending Kim Jung Un the message, “we can play the same game.”
Continue reading “N. Korean Missile Sparks Brief Gold Spike” »


American Eagle Sales as of 9/14/2017

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on September 14th. The chart also shows the change in sales from 9/7/2017 which we reported on September 8th.

Gold
Coin Sales in oz. /#coins + from 9/7/2017
One oz.
166,000
166,000
2,000
2,000
Half oz.
14,500
29,000
000
000
Quarter oz.
13,500
54,000
000
000
Tenth oz.
32,000
320,000
1,500
15,000
Total
226,000
569,000
3,500
17,000
Silver
Coin Sales in oz. /#coins + from 9/7/2017
One oz.
15,653,500
15,653,500
50,000
50,000

Equities Rally – Gold Dips

The Market Gage - Dillon Gage's Precious Metals Newsletter

Walter Pehowich will be back with Friday’s commentary, today’s comments come from a senior Dillon Gage Staffer.

After gold reached a one-year high last Friday, profit-taking opportunities have followed, leading the yellow metal into downward technical correction territory late Tuesday. As of this morning, gold prices dropped about $10 more and are hovering at $1,321. Meanwhile, the Dow Jones Industrial Average jumped up over 60 points, leading a rally in the equities market.
Continue reading “Equities Rally – Gold Dips” »


One-Year High Hit By Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold hits a one-year high after U.S. Ten-year Treasury yields approach the 2 percent level. The dollar also heading in the same direction trading as low as 91.01 overnight.

After hitting these lows, both products have recovered a bit, bringing the price of Gold off the highs of $1,362.40 in the December CME futures contract.
Continue reading “One-Year High Hit By Gold” »


American Eagle Sales as of 9/7/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on September 7th. The chart also shows the change in sales from 8/31/2017 which we reported on September 1st.

Gold
Coin Sales in oz. /#coins + from 8/31/2017
One oz.
164,000
164,000
2,000
2,000
Half oz.
14,500
29,000
000
000
Quarter oz.
13,500
54,000
000
000
Tenth oz.
30,500
305,000
000
000
Total
222,500
552,000
2,000
2,000
Silver
Coin Sales in oz. /#coins + from 8/31/2017
One oz.
15,603,500
15,603,500
25,000
25,000

Gold Rises As Dollar Falls

The U.S. Dollar at a 32 month low this morning boosting the price of Gold.

Weakening dollar causing the price of Gold to break thru a solid of support at the $ 1348 level in December. The question remains looking at how far the dollar has declined can we get a sustained rally in the price of Gold?
Continue reading “Gold Rises As Dollar Falls” »


Gold Virtually Unchanged On Static Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

No surprise that the price of gold is virtually unchanged this morning after seeing the dollar and Treasuries unchanged.

Overnight the Ten Yield Treasury yield got down to 2.054 percent and the price of Gold didn’t budge. Not a good sign for the longs, as at that level the price of gold should be trading much higher according to a prominent Wall Street Gold Trader.

“A rebound in equities and a steady dollar valuation should put the price of gold under some pressure today,” he said.

My technical friends who shared their market strategies this morning gave me this opinion, “There is strong resistance in the price of Gold at $1348 level in December.” Spot basis $1,343. They point out that since last September between the levels of $ 1,340 and $ 1,344 spot Gold failed to advance at those levels five times. So with the EFP at approximately five dollars, their trading strategy today will be to sell into any rally at the $ 1,348 level in the CME December futures contract. Obviously, if any significant news hits the wires a reevaluation of their trading strategy will be in order.

CBOE Volatility Index is heading south this morning as the street sees a glimmer of hope that some
form of tax reform is a possibility since the President said he will reach out to the Democrats to advance his agenda if the Republicans can’t get it done on their own.

China Creates Bump in the Road for Bitcoin Investors

Bitcoin sold off Monday after the news was released that China’s Central Bank said initial coin offerings were illegal. China’s Central Bank issued a strong regulatory message to stop all fundraising activity
in ICO’s. China is concerned that these transactions can “seriously disrupt the economic and financial order.”

ICO’s raise funds which in turn creates and sells new crypto tokens to investors.

China regulators said these ICO’s are “vulnerable to money laundering and terrorist financing risks due to the anonymous nature of the transactions.”

At this point I think an explanation is in order to explain the difference between an IPO and ICO. An IPO (initial purchase offering)is an regulated transaction as offering shares of stock to investors in a company. On the other hand, a ICO ( initial coin offering ) is an unregulated transaction by where a company attracts investors by issuing a cryptocurrencies to raise money for their projects. ICO participants are usually motivated by a profit potential if the project takes off and the tokens are worth more than the ICO price.

Tuesday, the Bank of Russia also issued a statement on cryptocurrencies. They said, “Operations with cryptocurrencies carry a high risks both during exchange operations, including due to sharp exchange rate fluctuations, and in the case of raising funds through the ICO (initial coin offering) a form of attracting citizens’ investments in the form of issuing and selling new cryptocurrency to investors (tokens).

Even with the warnings, these types of transactions continue to attract many investors looking to hit a home run in a short period of time. As more cryptocurrencies are offered, many expect that U.S. government intervention is right around the corner, BUT think again. With congress having a full plate of more important issues facing our nation, cryptocurrencies are a project to be dealt with at a later date.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Lower Than Expected Jobs Number Boosts Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

A less than expected August jobs report released this morning rallied spot gold nine dollars. Revisions to the June and July unemployment numbers (now down 40,000 jobs) also had an effect.

Yesterday, ADP released their Private Sector jobs report for August and the private payrolls increased by 237,000. Good news for the Equity market as they were only expecting an increase of 185,000.
Continue reading “Lower Than Expected Jobs Number Boosts Gold” »


American Eagles Sales as of 8/31/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on August 31st. The chart also shows the change in sales from 8/24/2017 which we reported on August 25th.

Gold
Coin Sales in oz. /#coins + from 8/24/2017
One oz.
162,000
162,000
500
500
Half oz.
14,500
29,000
000
000
Quarter oz.
13,500
54,000
000
000
Tenth oz.
30,500
305,000
000
000
Total
220,500
550,000
500
500
Silver
Coin Sales in oz. /#coins + from 8/24/2017
One oz.
15,578,500
15,578,500
600,000
600,000

North Korean Fears Cool – Gold Eases Lower

The Market Gage - Dillon Gage's Precious Metals Newsletter

One can only imagine how much panic buying in gold came out of the Far East Monday night after North Korea shot a missile over Japan. Even our equity markets sold off into triple digits on the news.

Yesterday the yield on U.S. Treasuries got down to 2.0854 and is now back above the 2.14 level. Even the U.S. Dollar was looking for a flotation device after trading as low as 91.62 and is at 92.72 at the time of this report.
Continue reading “North Korean Fears Cool – Gold Eases Lower” »


FLASH GAGE – Gold At Over 9 Month High

Strong buying out of the Far East overnight brought the price of Gold to a 9 month high.

Both the dollar and treasury yields heading south in a big way, fueling the price of gold this morning.

What started the rally overnight in the Far East was the firing of a missile by North Korea over Japan airspace. As the missile headed towards Japan the Japanese new agencies broke into every TV channel
telling everyone to take cover. Where will these types of provocations take the price of gold is anyone’s guess.

Equities down triple digits before the opening also giving gold a boost.

Strong inflows overnight in the gold ETF arena.

Overall the price of Gold seems to be operating on all cylinders.

Next level of resistance in the price of gold is $1,332.

Have a wonderful Tuesday.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Dillon Gage Metals Enters Agreement With China Great Wall

Wholesaler Now Authorized to Distribute Bullion Coins

SINGAPORE, (Aug. 29, 2017) – Dillon Gage Asia, a subsidiary of Dillon Gage Metals, one of the world’s largest precious metals wholesale firms, has entered into an agreement with China Great Wall Coins Investment Ltd. to distribute bullion coins from the official sovereign mint of China. China Great Wall is a subsidiary of the People’s Bank of China, based in Hong Kong.
Continue reading “Dillon Gage Metals Enters Agreement With China Great Wall” »


Gold Bubbling Just Under $1,300

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold getting a slight boost this morning from a weaker dollar, but still unable to get over the $1,300 dollar level. Higher equities prices keeping investors interested in that market.

Many Wall Street traders are still looking for the price of spot gold to settle over the $1,300 dollar level before taking on a long position.
Continue reading “Gold Bubbling Just Under $1,300” »


American Eagle Sales as of 8/24/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on August 24th. The chart also shows the change in sales from 8/17/2017 which we reported on August 18th.

Gold
Coin Sales in oz. /#coins + from 8/17/2017
One oz.
161,500
161,500
1,500
1,500
Half oz.
14,500
29,000
500
1,000
Quarter oz.
13,500
54,000
500
2,000
Tenth oz.
30,500
305,000
1,500
15,000
Total
220,000
549,500
4,000
19,500
Silver
Coin Sales in oz. /#coins + from 8/17/2017
One oz.
14,978,500
14,978,500
190,000
190,000

Weaker Dollar Can’t Boost Gold Out of Trading Range

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold still stuck in the mud looking for some bit of news that can get the wheels spinning again.

Helping a little, is a weaker dollar and softer Treasury yields. As we speak, the price of gold is still locked in a trading range between $1,270 and $1,300 and needs a little help, I believe, from the equity market. With all the chaos in Washington, eventually the equity investors must realize that there is little chance anything can get done on any of the President’s proposals. So in short order, it might be time to reevaluate their holdings…

Continue reading “Weaker Dollar Can’t Boost Gold Out of Trading Range” »


Weaker Dollar Makes for Firmer Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

As we start a new week, the price of gold is seen a little firmer due to a slightly weaker dollar and softer treasury yields. But overall, our market is looking for a direction, whether it will come from a declining equity market or a declining dollar we will just have to wait and see.

As I indicated in Friday’s comment, gold investors were hoping for the spot price of gold to settle above the $1,300 dollar level as an indication that there was more room to the up side, but strong selling emerged and stalled the rally.
Continue reading “Weaker Dollar Makes for Firmer Gold” »


Gold Approaching $1,300

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold picking up steam this morning, approaching the $1,300 dollar level.

Many issues in the marketplace are supporting the price at these levels. One major factor that can affect the value of the equity markets and in turn the price of gold is whether President Trump’s aide Gary Cohn stays on. The market views Mr. Cohn as the key person who could help the President push thru his tax reform plan. In the event he resigns, many believe that tax reform will be dead and a selloff in equities will occur.
Continue reading “Gold Approaching $1,300” »


American Eagle Sales as of 8/17/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on August 17th. The chart also shows the change in sales from 8/10/2017 which we reported on August 11th.

Gold
Coin Sales in oz. /#coins + from 8/10/2017
One oz.
160,000
160,000
4,000
4,000
Half oz.
14,000
28,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
216,000
530,000
4,000
4,000
Silver
Coin Sales in oz. /#coins + from 8/10/2017
One oz.
14,788,500
14,788,500
125,000
125,000

FLASH GAGE – White House Advisor Unrest

News that is impacting the markets….

A story worth mentioning, is the status of the White Houses’ top economic advisor and former chief operating officer of Goldman Sachs, Gary Cohn. News reports coming out that Mr. Cohn is extremely upset with the President’s comments regarding Charlottesville. Some news agencies are reporting he is considering stepping down. If he does this would be a huge blow to the President’s agenda and seems to be having a negative effect on equities today along with the terrorist attack in Barcelona, Spain. I believe if Mr. Cohn does step down this will totally derail President Trump’s plan for tax reform.

All this news along with the Fed comments yesterday is bullish for our Gold market.

Enjoy the rest of your day.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Special Edition: Stronger Dollar Fails to Dent Gold

Despite a stronger dollar and higher US Treasury Yields the price of gold marches forward. The release yesterday of the July Fed minutes seemed to convince many gold investors that the Fed does not have the ammunition to raise rates any time soon.

I found the Chairwoman’s comments interesting in how she described the low rate of inflation. She said, “I attribute the recent slowdown to idiosyncratic or peculiar factors like cheaper wireless service.” Really? Cheaper wireless service is one of the main factors inflation is low? I think she can do better than that.
Continue reading “Special Edition: Stronger Dollar Fails to Dent Gold” »


FLASH GAGE – Gold rallies on details of Fed minutes

Most Fed members in July voted to moving closer to unwinding the Fed’s $ 4.5 trillion dollar balance sheet.

But what caught the attention of many Gold investors was the members indicating it will take a couple of years for inflation to reach 2 percent and that’s what gave the price of Gold
a boost this afternoon.

As expected that news puts a damper on any rate hikes in the near future.

Enjoy the rest of your day.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold’s Rally Mode Flirting with $1,300

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold overnight knocking on the door at the address $1300.00.

With the price of Gold in rally mode, because of the tensions with North Korea, some of the dealers are starting to rearrange their inventory holdings to put themselves in position to meet the demand for product in the event the market really starts to heat up.

Recently, when the market has rallied, many dealers have been seeing quite a bit of buybacks hitting their doors. But we all have seen that in the event of a strong bull market finding inventory to meet the demand can be become an issue.

Rearranging inventory and planning ahead sounds like prudent advice as most of us remember not too long ago, there were significant delays on some popular items. With the demand for physical being on the quiet side this year, one must expect the U.S. Mint and some refiners to be caught off guard in the event the market heats up.

Dealers are not the only ones planning for a gold rally. Yesterday, after hearing the next warning sent out from North Korea, a number of Wall Street gold traders took on long positions figuring that at this point there isn’t any downside risk to the price of gold.

Not only has the Gold market gotten the attention of the investor looking for a safe haven, U.S. Treasuries have received very strong investor interest of late as seen by the drop in yields down to 2.1860 percent.

If we break the $1,300 dollar level, many traders expect to see stops right above that level which should help accelerate the rally to new levels.

The price of Silver needs to play catch up and break thru the simple 200-day moving average at $17.23 before trending higher.

With equities to open higher today, I expect to see some profit taking in Gold, stalling the rally temporarily.

North Korea vs. the United States

The Washington Post reported Tuesday that North Korea now has the capability of putting a nuclear device on the head of a missile.

For those who aren’t old enough to remember the first Korean War, it took the lives of over 2.5 million people. With a madman at the controls of a potential nuclear device aimed at the U.S. that number could be just a fraction of the amount of people that could be lost if he decides to act.

Who moves first is the question? Do we take him out or do we play defense and await his first move?

Now Kim Jung Un has released a specific warning that in the next few days he intends to launch 4 rockets over Japan with plans to land them in the ocean, 18 miles off the coast of Guam. If their missile guidance systems are off, anything landing within 12 miles of Guam will be considered an act of aggression and then we expect all hell to break loose.

It has become like the night before the fight where the two fighters weigh in and stare down each other. What will happen is anyone’s guess. President Trump has no military experience and is impulsive, while Kim Jung Un is very unpredictable, so everyone needs to take a deep breath and start a dialogue. (Wishful thinking on my part). In the meantime, the U.S. must be prepared for anything. Kim Jung Un must realize that if he tries to fire a missile he must expect to be totally wiped out.

According to former U.N. Ambassador Jon Bolton, North Korea is willing to sell its nuclear technology to Iran in exchange for hard currency. Intelligence sources have reported that representatives from Iran were present at the first three missile launches conducted by Kim Jung Un. And we all know that Iran’s intentions are to eliminate Israel.

It’s also important to remember ALL Kim Jung Un’s massive military potential. He has 5,000 tons of chemical weapons and the ability to send them anywhere in Asia. He has over 1 million military men, 4,300 tanks and plenty of artillery that could level Seoul with 25 million people in less than an hour.

We’ve heard that he will kill anyone who stands in his way, even his own family members. He has killed over 200,000 of his own people in death camps. With that kind of track record he seems capable of doing anything.

China said this morning that if North Korea strikes first they would take a neutral stand, but if the U.S. strikes first, China will stop any further U.S. aggression. I, for one don’t, want to speculate what that might entail.

In my opinion, China’s comment is a very important development in this story as it brings a new dimension to the strategy for both sides. Right after this statement from China hit the news wires, Equity Futures rallied and the price of Gold sold off $8 dollars.

With all that’s left on the table, I’ll spare my audience asking the question what happens to the price of Gold if Kim Jung Un acts on his promise. But for now, the statement from China seems to have calmed the waters.

In the end, let’s just hope level heads prevail and say a prayer nothing happens because we are at a historical crossroads that could be the end of the road for many people.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 8/10/2017

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on August 10th. The chart also shows the change in sales from 8/3/2017 which we reported on August 4th.

Gold
Coin Sales in oz. /#coins + from 8/3/2017
One oz.
156,000
156,000
1,500
1,500
Half oz.
14,000
28,000
500
1,000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
212,000
526,000
2,000
2,500
Silver
Coin Sales in oz. /#coins + from 8/3/2017
One oz.
14,663,500
14,663,500
160,000
160,000

North Korean Worries Lift Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Even with a stronger U.S. Dollar, geopolitical risks have taken over and given the price of Gold a boost. Speculation in the Gold and Silver futures markets, as reflected in the CME open interest figures, are up as some investors start to rotate their investments out of equities and into metals.

Strong words from our President towards North Korea have the world’s financial markets nervous.

For those who follow the CME Fed Watch tool, a real chance of a rate hike can’t been seen until December and that number isn’t overly impressive, just sitting at 42 percent.

No doubt North Korean issues will further stall the President’s agenda, as Congress must keep a close eye in the rear view mirror as Kim Jung Un continues his threats.

Some Wall Street gold traders indicate that for the gold rally to continue, the North Korea rhetoric must escalate and a selloff in equities must occur, otherwise we will head back to the $1,250 area where they say the price of gold has strong support.

Now Today’s Featured Topic: Is The World Bankrupt?

Let’s start across the pond:

The European debt clock is currently running at over 12.5 trillion Euro. That’s an average of 24,589 Euro per person in debt.

Italy leads the group with over 2.3 trillion Euro in debt with an average of 38,136 Euro for each individual. But that’s only the tip of the iceberg in Italy as their non performing bank loans has doubled in the past 6 years to over 350 billion Euros. So far this year, Investors have taken over 60 billion Euros off of Italy s bad performing loan books at an expected return of over 4 percent. Also the government had to pump in 25 billion Euros to bail out 3 banks that were at the brink of failure.

Germany, France and the United Kingdom also have high levels of debt. France and German at over 2.2 trillion Euros in debt and the United Kingdom at 1.7 trillion Euro’s in debt.

And let us not forget Greece where all their debt problems seem to never go away, are currently holding 325 billion Euro’s in debt. Greece’s bad loans are currently siting at 110 billion Euro’s and there too, like Italy, are looking for investors for help. So far investors have taken over millions of bad performing loans at a fraction of their value as they try to renegotiate the terms of the bad loans and in some cases come in and seize their assets.

Common sense will tell us that these bad performing loans problems are miles away from an end. The question that comes to my mind is, why is anyone in Europe still underwriting these loans? What were Italy’s bank executives thinking when just their non-performing loans increased year over year for the last six years? It’s baffling to me that as they watched bank after bank need a government bailout that they wouldn’t tighten up their lending practices? And where were the government officials? Sloppy financial underwriting practices are “always” a recipe for disaster.

To our shores:

It’s not much better here in the States. Currently, our national debt is sitting at $20.4 trillion dollars. That’s $63,389 dollars of debt for each individual here in our country.

And we Americans are holding over a trillion dollars in credit card debt; that’s greater than the Gross
Domestic Product of all but 15 countries.

And now a report released on Monday this week by the Federal Reserve states that Americans now have the,
“HIGHEST CREDIT CARD DEBT IN U.S. HISTORY.” This level now exceeds the level reached during the financial crisis in 2008.

Are our bankers here having the same brain freeze issues that are facing the bankers in Europe? Or is it the 20 to 25 percent interest rates on credit cards that are so attractive to bank executives that they don’t care who they issue credit to.

This year, household debt, which includes housing, auto loans and student loans, also surpassed the numbers reached during the 2008 financial crisis. It has also been reported that grandparents have stepped up to help the younger ones with their loan burdens. This also could be a disaster for older Americans as the average American couple has only $5,000 dollars put away for retirement.

Also, only one third of working Americans participate in company sponsored deferred retirement accounts.

That Leads To The Topic Of Social Security:

Social Security payments for almost 40 percent of retirees represent 90 percent of all their yearly income.
You might want to read that line again. That number seems staggering to me.

When, or will we ever, address the entitlement programs here in our country? Healthcare for everyone? Not unless you are ready to allocate 60 percent of your tax dollars to cover the cost of universal health care.

It will only be when credit agencies tell us, “the world is bankrupt” that bankers and government officials “get it.”

As in long car rides when my children would say, “are we there yet?” In this case, my children, I’m sad to say, “yes we are!”

After reading this, for a secure future, doesn’t an investment in physical Gold make sense?

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Dollar Strengthens as Gold Hangs In There

The Market Gage - Dillon Gage's Precious Metals Newsletter

Labor Market Holds, Dollar Makes a Comeback and Somebody’s “Un” Trouble Overseas…

Are the rallies in the gold and silver market starting to lose enthusiasm? Many leading analysts are saying that on the heels of a better than expected July jobs report, the U.S. dollar is starting to strengthen, which is set to temper market interest. The dollar reached a 13-month low last week, but is expected to make some modest gains, as the jobs report is another strong factor for an economy still doing well, all things considered. The labor market appears to be holding up nicely.

As we start this trading week, gold is hanging on at just under $1,260, with silver doing the same at around $16.20.

One thing about this month in particular is the lack of economic news which could readily move the spot price needle. At the time of this writing, analysts are split 50-50 on another interest rate hike when the Fed meets again. Next item of any significance will be the July report on the Consumer Price Index, which we’ll see by the end of the week.

In geopolitical news, the U.N. Security Council body-slammed North Korea with a new set of sanctions on Saturday. In a unanimous vote, this new resolution targets North Korea’s primary trade exports, including coal, iron, lead, lead ore and seafood. They also target additional revenue streams, including banks and joint ventures with foreign investment. According to leading policy experts in the region, these sanctions should cut North Korea’s annual export revenue by up to $3 billion. As the old saying goes, “Hit ‘em in the pocketbook.” Pyongyang’s official new agency, KCNA replied this morning, “There is no bigger mistake than the United States believing that its land is safe across the ocean.” Precious metals have not yet reacted to this verbal escalation. This is a situation that bears close watching.

Have a wonderful and productive week!

Disclaimer: This editorial has been prepared by a Dillon Gage Metals senior staffer. 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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Ticks Down On Positive Jobs Report

The Market Gage - Dillon Gage's Precious Metals Newsletter

Champagne on Wall Street and Jobs, Jobs, Jobs…

The Dow hit 22,000 this week, achieving a new record high, however precious metals have been holding their own despite the big party on Wall Street. Those loud popping noises you’ve been hearing are all the champagne bottle corks flying in every direction.

Gold is coming off a six-week high this week, however as we all know too well, the monthly U.S. employment report from our Labor Department is most certainly a key indicator of price swings at this same point every month. Out this morning, U.S. added 209,000 jobs in July with unemployment dropping from 4.4 to 4.3, that’s the lowest in about 16 years. Also on the positive side, wages are up slightly by .3%, that puts wages up 2.5% from last year at this time. Gold was immediately affected when this news hit, dropping about $7 from $1,268.80. Gold is hanging tough at $1,262.70 at the time of this writing.

Safe haven demand for gold is likely to remain active and high, given the spikes we see every time Kim Jong Un gets the inclination to test another of his intercontinental ballistic missiles. Does anyone else wonder about his surplus?

The U.S. Dollar Index hit a 13-month low on Wednesday of this week, boosting the precious metals trade in both gold and silver. One hopes this boost will continue to provide a hedge for metals traders.

Silver prices have been on the rise for the fourth straight week, but it was dinged by .18 when the Jobs report was announced this morning and is currently trading at $16.63.

It’s been a busy and productive week. So have a wonderful and safe weekend…

Disclaimer: This editorial has been prepared by a senior staff member from 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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagles Sales as of 8/3/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on August 3rd. The chart also shows the change in sales from 7/27/2017 which we reported on July 28th.

Gold
Coin Sales in oz. /#coins + from 7/27/2017
One oz.
154,500
154,500
1,000
1,000
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
210,000
523,500
1,000
1,000
Silver
Coin Sales in oz. /#coins + from 7/27/2017
One oz.
14,503,500
14,503,500
50,000
50,000

What Will It Take To Move Gold Past $1,300?

The Market Gage - Dillon Gage's Precious Metals Newsletter

For the price of Gold to trade higher, many of the Wall Street Gold traders were calling for a settlement in the Dollar index below the 93.50 area. And that’s exactly what they got and the price of Gold didn’t move. Matter of fact, the Dollar Index traded below the 93.00 level and still no movement in the price. It wasn’t until we had seen the U.S. 10-year Treasury Yield drop from 2.32 percent to 2.27 percent that Gold rallied 5 dollars.

At the moment, the dollar index is trading at 93 and the 10 year U.S. Treasuries are off the lows of 2.2541 percent and now close to 2.27 percent. So the question everyone is asking what will it take for the price of Gold to test the $1,300 dollar level again?

It looks like an uphill battle as we see the equity markets breaking records every day. It seems our market will need some bad economic news or something to happen with North Korea before the equity investor will be willing to take some profits off the table. It will be only then that we will see a rotation out of equities and back into metals.

As the saying goes “the trend is your friend” and until that trend is broken we expect the price of Gold and Silver to be just range bound.

Where have all the traders gone?

In the past I’ve mentioned the Word “algorithms” many times referencing the mechanism used that creates wild price movements in the price of Gold right after some unexpected news hits the wires.

Algorithms are defined as a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

Algorithms are used by many trade houses in order to get a jump on the average investor by being able to execute their trading strategies seconds before anyone else can react to any significant news.

The street is getting so high tech that JPMorgan has developed a first of its kind so called trading robot to execute its trades in its global equities business. Its function is to execute client orders with the maximum speed and efficiency eliminating the human element completely.

If you remember years ago when the business news channels gave you a glimpse of the New York Stock Exchange floor you can see a wall of people trying to conduct their business. Today that’s just not the case as there are just a few folks doing what it took it hundreds of people before to do before. And who if you been around the Gold market for a number of years you must remember the open outcry market on the Commodity Exchange.

I can remember when I worked on Wall street trading Gold and Silver, from the moment I arrived in the office till the end of the trading day, I had a customer in one ear giving me orders to buy or sell Gold and in my other ear the floor broker executing the traders for me. I’m always asked why I speak so fast, I guess I’ve been “programed” (no pun intended) to execute orders on the behalf of my clients at what I hoped at the time was lightning speed. But not even close to the speed and accuracy now offered by electronic trading we have today.

Just think how attractive these new systems are to financial intuitions on Wall Street as these so called robots don’t require any benefits and don t ask for any trading bonuses.

In my 41 years in this business I’m truly amazed how far we have come. From my first trade ticket was that just hand written, timed stamped and at the end of the day confirmed by my trading assistant with the floor broker. To today, where the amount of business that’s executed, confirmed in a millisecond is just amazing.

And now with the Blockchain technology at our door step, even the amount of people needed as a support staff is dramatically reduced.

So we all must embrace this technology as its no doubt here to stay and have a true understanding how it could enhance our business model. Staying ahead of our competition is imperative for a successful future in this business.

Cryptocurrencies anyone?

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Retail Investors Likely to Focus On Equities This Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

Quite a few of the companies reporting earnings this week will keep the retail investor focused on equities. So far this quarter, 73 percent of companies that have reported earnings have beat the street estimates, giving investors the confidence that the equity market rally has more room to the upside even if Washington is not capable of getting anything done.

Since July 12th, the Gold ETFs have seen a steady decline in holdings as over 1.8 million ounces have been redeemed by investors. I, for one, would expect to see this in a declining market not one trading higher. So even with all these redemptions the price of the yellow metal has been absorbing the selling quite well.

At the time of this report, we see the Dollar Index trading just below the 93.50 level that everyone continues to watch. Predicting the direction of the price of Gold every day is as easy as watching the action in the dollar index. On Thursday last week, the Dollar index set a new low for 2017, reaching a low of 93.15.

For the Gold rally to continue, we must stay below the 93.50 level in the dollar index. Otherwise, I expect to see some profit taking by those who I call “nervous longs” exiting the market, creating an offer bias on the price for the short term.

It is no surprise we have seen buying interest of late in the gold market with the news out of North Korea and the newly imposed sanctions put on Russia.

Levels of resistance are now at $1,279 in the December Gold Futures contract and $17.02 in the September Silver Future’s contract.

Believe It Or Not

The Sun reports a box possibly carrying 4 tons of a “valuable metal” has been found by UK based Advanced Marine Services aboard a Nazi ship that sank off the coast of Iceland in 1939. The metal could be gold stolen from South American banks that may be worth 130 million dollars.

Or it could be a pile of rocks.

Still, many believe the S.S. Minden was in route to Germany when Hitler ordered the ship to be sunk on purpose. According to The Daily Mail, Advanced Marine Services has asked the Icelandic government for permission to cut a hole in the ship to remove the box. Ergo, finders keepers. However, Iceland is reportedly going to be making a statement on who owns the metal. This isn’t the first time Brits have made their way into Icelandic seas hoping to discover gold rumored to be stolen by Hitler. Rumors of Nazi gold have swirled for decades with some theories saying Hitler was stealing gold and art for the pensions of his top officials.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – North Korea Missile Launch Announcement Sparks Gold

CNBC is reporting that North Korea fired a missile that may have landed in Japan’s exclusive economic zone, per Japanese Prime Minister Shinzo Abe.

North Korea fired a projectile that appeared to be a missile shortly before midnight Japan time on Friday according to Japan’s public broadcaster NHK, citing government officials. Reuters is reporting that Abe is convening an emergency meeting of officials.

The Pentagon says it has detected what it assesses was a ballistic missile launch from North Korea. Japan’s chief cabinet secretary Yoshihide Suga is expected to brief media shortly.

Gold rallies off the news. Dollar index at its day’s low trading at 93.29 fueling the rally.

Enjoy the rest of your day.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


GDP Report Gives Gold A Lift

The Market Gage - Dillon Gage's Precious Metals Newsletter

Our morning market news finds the price of Gold receiving a boost today at 8:30 Eastern Time, when the GDP report was released. A second quarter result of 2.6 percent and a lower revision on the first quarter number rallied the price of Gold five dollars, just falling short of the next level of resistance in the December Gold futures contract at $1,274.

Also helping the price of gold this morning is a weaker dollar. Currently the dollar index is trading below the 93.50 area, a number that many traders are watching. Traders believe the 93.50 level is a key figure that we need stay below, for the price of Gold to continue its progress to the upside. Yesterday, the dollar index was all over the map trading in almost a big figure range for the day confusing many Gold day traders about where the yellow metal is really headed.

I watch the dollar index every minute of every day to see how the price of gold reacts to its movement, so I must say I can agree whole heartedly with the guys on the street, that currently the 93.50 number in the dollar index is the needle mover. Above 93.50 we trade lower, below 93.50 we rally. For the time being it looks as simple as that.

Sure there are other factors that can come into play, but for now this is the pattern many Gold Traders are watching.

In The News

A story published in Wednesday’s edition of Mining Weekly, points out that in the past four months, Gold prices moved in a 7.6 percent range, the least in ten years, while 120-day volatility is at the lowest since 2005. No wonder the Wall Street Gold Trader has turned to currencies to make a living.

The story goes on to say that Miners have given up hedging future production under pressure from shareholders, concerned that it pushes metals prices lower.

While irritating for Gold traders who make a living betting on strong moves, the sleepy gold market also reflects stability in other assets, with measures of global shares at record highs. Investors from currencies to equities have been boxed in between concerns over a weakening dollar and speculation that central banks will tighten money supply.

The last time the Gold market was experiencing strong volatility was when Britain was threatening to leave the EU where Gold’s 120-day historic volatility hit a two-year high above 18 percent.

Over The Pond

This week’s Greece 3 billion, 5-year Bond sale was a big success. Priced out at 4.625 percent, pleased investors over the pond looking for a better return on their investments versus the 5-year German debt that is still trading at a negative yield. There is no doubt the Greek economy still poses a high risk to investors, but Prime Minister Alexis Tsipras is determined to try to pay off his debt before the EU’s bailout program ends next summer. We all wish him luck, he’s going to need it.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 7/27/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on July 27th. The chart also shows the change in sales from 7/20/2017 which we reported on July 21st.

Gold
Coin Sales in oz. /#coins + from 7/20/2017
One oz.
153,500
153,500
500
500
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
209,000
522,500
500
500
Silver
Coin Sales in oz. /#coins + from 7/20/2017
One oz.
14,453,500
14,453,500
215,000
215,000

Fed Comments Weaken Dollar – Boost Gold

If you remember in Monday’s commentary in The Market Gage, Wall Street Gold Traders were calling for the dollar index to test the 93.50 area sometime this week. Well, they were right, but I don’t think they really knew what the catalyst would be.

At the time of the Fed announcement at 2:00 pm Wednesday, the dollar index was trading at 94.29. Right after the announcement the dollar started to slide, breaking thru the level the traders had called for at 93.50 and traded to a low of 93.39 that afternoon. This fueled the rally in gold thru the $1,252 level of resistance and subsequently took out stops at the $1,258 level in the August contract.

The selloff in the dollar was attributed to the dovish comments made by the Fed on inflation. A slight shift in wording took the market by surprise. In June the Fed announced that inflation was “running somewhat below 2 percent,” but in Wednesday’s comment the Fed said “inflation was running below 2 percent.” The change in words from “somewhat” to “was” was taken by the market as a dovish tone and the dollar sold off, rallying the price of gold ten dollars.

Have a wonderful Thursday.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – No Changes From the Fed

Fed comments just released …..

As expected, the Fed announces no change in interests rates.

Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term, but to stabilize around the Committee’s 2 percent objective over the medium term.

The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated.

Gold catches a bid off the news, now in positive territory for the day.

Enjoy the rest of your day.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


The Dollar Rises and Gold Slows

The Market Gage - Dillon Gage's Precious Metals Newsletter

First, a look at our market this morning. A Wall Street Gold trader I spoke with said, “I can’t get too excited with Gold at these levels so I guess I’ll just stick with trading currencies for the time being.”

A stronger dollar and higher Treasury yields are hurting the price of gold as the Dollar Index is over the 94 level again after trading overnight down to 93.64, just short of the 93.50 level some traders were looking for.

Strong outflows in both the Gold and Silver ETFs overnight are not helping the longs at all. Matter of fact, it seems to becoming a trend as the outflows in the Gold seem to be picking up momentum.

On the second day of a Fed meeting we would normally say, “all eyes on the Fed.” It seems not to be the case for this meeting, as no real news is expected. The CME Fed Watch Tool gives the odds of a rate hike at this meeting at only 3.1 percent.

As always, at every meeting we wait to hear any indication of a change in Fed policy. So at 2pm, we will be waiting to hear what they have to say. No one expects any comments to move any markets today.

It’s All Equities

Recently 73 percent of the companies reporting earnings have beat the Street’s estimates. So it’s not a surprise that the Financial Advisors I speak with claim equities are the only game in town. Tech companies have had a great run since the election, and with the economy doing pretty well, investors are happy where they stand at the moment.

Washington politics and the Trump agenda seem to have no effect on the equity markets, and in the event that something good comes out of all these negotiations, it can only be seen as a plus to equity market valuations.

A Question

Do you know what is one of the most demanding and intense jobs on the planet right now?

It’s the lobbyist for the health insurance companies.

With nobody really knowing what direction this Health Care Bill is headed, healthcare lobbyists will stop at nothing to get their firms positioned on the right side of the upcoming Bill.

You can talk about tax reform and an infrastructure bill, but there is nothing more important than the future of health care facing our nation.

Because of the enormity of the amount of money at stake here, it scares me to think that with all this pressure being put on our representatives that they won’t, “cow down,” to the insurers and forget who elected them in the first place.

Last year, insurers spent almost 147 million dollars and paid out almost 79 million in political contributions and now they are looking for a return on their investments.

Whatever bill congressman put their signatures on, one can expect diminished coverage, higher premiums and probably future tax increases because our representatives will find it extremely difficult to take away
something the less fortunate already have…some kind of coverage.

A follow up to Monday’s comment of “The Gage”

Where else but in Texas would we hear from a Congressman calling for stricter “Cryptocurrency” Regulations?

You think he read Monday’s comment of the Gage and acted? (Just kidding.)

The excitement continues over the evolution of Cryptocurrencies. So much so that it has caught the attention of Texas Congressman Roger Williams. He is calling for Cryptocurrency start-ups to be subject to anti-money laundering and “know your customer” regulations.

The congressman said, he believes that cryptocurrencies are restructuring international finance and are increasingly offering a wide range of unprecedented opportunities that need to be monitored.

The Congressman goes on to say that since cryptocurrencies are run over the internet, it makes the platforms vulnerable to being used by anti-state elements, terrorists and criminals.

I expect monitoring these groups will require a lot of manpower from our government and governments around the globe as these financial instruments are not just based here in the States, but are global in nature.

Digital currency operators and users are already pushing back today saying that for these products to operate efficiently, government intervention is not necessary and by the way not welcomed.

Let the battle begin…….

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Weak Dollar Continues Boosting Gold Rally

The Market Gage - Dillon Gage's Precious Metals Newsletter

The rally in the price of Gold continues this morning as the sell-off in the Dollar Index continues. Overnight the Dollar Index had a very tight trading range, showing a high of 94.08 and a low of 93.82. Which, by the way, is a 13-month low reached this past Friday.

Some Foreign Exchange Traders on the street said this morning that they expect the Dollar Index to continue to trade lower and test the 93.50 level later in the week.

If that’s the case, the price of Gold will continue to benefit from such a move.

A mixed bag reported in the ETF arena where Gold saw outflows and Silver saw inflows into
the fund overnight.

MONEY……Past and Present

We’ve come a long way from the first introduction of paper money here in the U.S.
and now to a new way of mimicking cash, called “Cryptocurrencies.” Is cash as we know it
going away? Heading out each day, will all I need to carry in my pocket is a smart phone and a handkerchief?

Let’s start by looking at some of the significant steps on the history of money’s timeline:

Paper money here in the U.S. was started in the year 1690 issued by the Massachusetts Bay Colony to fund Military expectations.

The first printed checks are traced to 1762 in England. The word “check” originated in England where serial numbers were placed on pieces of paper as a way to keep track of or “check” on them.

The first credit card was issued by Diners Club in 1950, allowing members to charge
the cost of restaurant bills only.

Wire transfers originated in the 19th century and since then they have become one
of the most successful methods of transferring money across the world.

The first ATM machine was installed by Chemical Bank at their Rockville Centre in New York. The first ATMs were designed to dispense a fixed amount of cash when a user inserted a specially coded card.

The Advent Of The Internet:

The history of the internet begins with the development of electronic computers in the 1950s. In 1960, the U.S. Government’s defense project called ARPANET was developed to interconnect several super-computer sites in our country so that if any one of them is destroyed in a nuclear explosion the defense system will continue to function.

In 1983, several researchers began to assemble the network of networks.

It wasn’t till 1990 that the internet really took off when computer scientist Tim Berners-Lee invented the World Wide Web.

Why I have changed gears, so to speak, from paper money to the internet? It’s because of the many ways money transfers over the Internet. The most famous money transfer program “PAYPAL” was developed and launched in 1999.

Now we will examine the future in money transactions called “Cryptocurrencies.”

With the extensive development of the Internet in ways we could never imagine, it’s not a surprise that a demand has increased for a way to transfer money quickly, seamlessly and anonymously. Banks are shaking in their shoes over this technology.

Even JP Morgan’s Chairman Jamie Diamond sees that his group must get involved in the new technology.

So what are Cryptocurrencies and what does the future hold?

The most famous Cryptocurrency is “Bitcoin,” a virtual currency that is not controlled by any Central Bank. Instead, Bitcoins are created through a process called mining, in which a computer tries to solve a cryptographic problem. The total supply of Bitcoins is capped, which has led to comparisons with assets like Gold.

To clear the air and try to explain the new technology in layman’s terms, lets define both Cryptocurrencies and Blockchain Technology. Blockchain is the technology that enables the existence of Cryptocurrency. (Bitcoin is the name of the best-known Cryptocurrency. The one for which Blockchain technology was invented.) A Cryptocurrency is a medium of exchange, such as the U.S. Dollar, but it is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.

The mechanism for tracking the price and volume is like an exchange or Blockchain that instantly documents and electronically publishes every transaction.

Some investors really believe this technology is the future because they believe the world’s Monetary System has flaws and will eventually collapse. They claim that with all that’s going on in Washington, the Dollar’s global dominance is coming to an end and will be replaced in the future with cryptocurrencies.

Whether you believe the Dollar is doomed or not, this technology is here to stay and catching on in a big way. Just in the past three months, investors pumped over 1 trillion dollars into Cryptocurrencies.

Now many exchanges like the (CME) Commodity Metals exchange are looking at Blockchain technology for trading and operations.

Cryptocurrencies, Blockchain technology, driverless cars and a cashless society…the future is upon us, and you can rely on the folks at Dillon Gage to be your go-to Precious Metals experts to keep you updated on the future enhancements in technology in our industry and elsewhere.

Will you be ready?

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Weaker Dollar Sparks Gold Climb

The Market Gage - Dillon Gage's Precious Metals Newsletter

Good news for the Wall Street Gold traders this morning as the price of Gold reached their levels and now they can get down to the Wall Street heliport early and take a 35 minute ride to their homes in the Hamptons.

At the time of this report, August Gold has reached a high of $1,252.00 fueled by a weaker dollar and lower Ten-Year Bond yields across the globe. The dollar index traded as low as 94 overnight, continuing its momentum to the downside and boosting the price of Gold. Will this continue?
Continue reading “Weaker Dollar Sparks Gold Climb” »


American Eagle Sales as of 7/21/17

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

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on July 20th. The chart also shows the change in sales from 7/13/2017 which we reported on July 14th.

Gold
Coin Sales in oz. /#coins + from 7/13/2017
One oz.
153,000
153,000
5,000
5,000
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
500
5,000
Total
208,500
522,000
5,500
10,000
Silver
Coin Sales in oz. /#coins + from 7/13/2017
One oz.
14,248,500
14,248,500
725,000
725,000

Quiet Overnight Trading Keeps Gold Static

The Market Gage - Dillon Gage's Precious Metals Newsletter

Quiet overnight trading abroad is keeping the price of Gold virtually
unchanged. Some Wall Street gold traders long from the $1,232 area
are hoping for this rally to continue and would be satisfied heading
for the exits around the $1,248- $1,252 area. In the event the price of Gold
sells off, they will be watching the $1,232 level on the downside. The reason I mention these fellows is that the amount of volume they transmit into the market can influence the price.

Continue reading “Quiet Overnight Trading Keeps Gold Static” »