Platinum Dips This Morning

By Peter Aan.

The action Sunday night and early Monday shows little of the volatility that we’ve seen in recent weeks, except for Platinum, which is sharply lower this morning. Here’s my take as we begin the week. Continue reading →

Extreme Volatility This Morning In Precious Metals

By Peter Aan.

Nothing is constant except change. As I was writing commentary on these four markets this morning, by the time I got to the fourth one, the markets had rallied to the point where I had to return to the top to rewrite! Here’s what I see…for the moment, anyway. Continue reading →

Precious Metals Funds Report Large Outflows

By Peter Aan

Signs of the Times: Goldcorp, a major North American gold producer, cut its dividend due to weak gold prices, and stated that it would consider reconfiguring or partially closing mines if gold should linger below $1,000 for an extended period. Continue reading →

A Quiet Tone Across Precious Metals

Gold
Gold traded in a narrow range yesterday, an inside day, and doesn’t seem to be invigorated this morning. A penetration of Monday’s range (1104.90 to 1088.0, basis the December contract) may signal an end to this congestion. Continue reading →

Dillon Gage Metals Names Walter Pehowich Executive Vice President

Industry Veteran Will Oversee Precious Metals Investment Services

ADDISON, TX (July 21, 2015) – Dillon Gage Metals, an international precious metals wholesaler, has announced that Walter Pehowich has joined the executive team. Pehowich will serve as the executive vice president of precious metals investment services and will work from the company’s New York City trading office.
Continue reading →

Rising USD Continues to Impact Precious Metals

Precious metals continue to feel the weight of a rising USD as gold and company have moved lower throughout the week. With news on Greece and Iran behind us, the market has focused on Chair Yellen’s testimony before Congress which was quite upbeat and leaves no doubt that the FOMC intends to raise rates this year with many “experts” now calling for a quarter point hike in September and again in December.

The headline story for our market today is the Chinese Central Bank releasing their official gold reserves for the first time in 6 years. In 2009, China claimed to have reserves of 1,054 tonnes and today that figure is 1,658 tonnes. If this figure is correct, and there is already chatter that it is not accurate, it falls far short of market expectations. This figure puts Chinese reserves in fifth place behind the U.S., Germany, Italy and France. If this figure is accurate, it may signal that the Chinese Central Bank may be a buyer of gold in the short term as it prepares for a meeting with the IMF in the fall where it wants the IMF to include the Yuan as an approved global reserve currency. In the short term our corner of the market benefits from excellent physical demand as investors of all sizes are attracted by the lower price points.

My next commentary will be on July 27. Have a good weekend and upcoming trading week.

Roy

Roy

U.S. Econ News Shows Surprising Weaknesses

A surprisingly weaker than expected reading on U.S. retail sales yesterday again raises the question about the health of the U.S. economy and raises concern that consumers will go into hibernation if the FOMC raises rates later this year as expected. Continue reading →

Depository 101

Depository 101

The question of whether or not to own precious metals is always followed by a logistical dilemma – if I buy it – where would I store it? Continue reading →

Precious Metals Physical Demand Jumped Yesterday

The first half of 2015 ended with a stellar day for our corner of the financial world as physical demand picked up sharply yesterday on a global level. The lower price points and ongoing concerns in Greece certainly had investors and traders seeking the diversity and security an investment in physical metal can offer. This morning finds good and slightly better than expected economic data out of the U.S. continuing, which is fueling a rally in the USD and sell-off in bonds which are weighing on gold and silver as they probe lower and re-test support at $1,165.00 and $15.50. The surprise of the day comes from palladium which rallied sharply during the Asia trading day and briefly traded above $700.00. A rumored large physical order got the market moving higher which may have forced buy stops to be elected on the electronic trading platform.

This morning finds palladium is still up $25.00 at $698.00 and it appears to be assisting platinum, which is up $11.00 at $1,091.00. With liquidity already decreasing in front of a long holiday weekend in the U.S., the rest of the week could bring fireworks as we will receive the June U.S Employment Report tomorrow and the market will continue to trade on Friday. Physical demand should continue to support the market on the dips towards $1,155.00, but a break below $1,150.00 in gold likely signals a revisit of the low $1,100.00s. Technical resistance from the 10-, 50- and 100-day averages, which are currently residing between the low $1,80.00s through low $1,190.00s, should be stiff, but a break above $1,200.00 could see shorts running to cover along with momentum buyers jumping in, so the rally could be significant.

Happy July 4th to all who celebrate and to everyone else have a good weekend. My next commentary will be on Monday.

Roy

Greek Headlines Briefly Impact Precious Metals

News over the weekend that talks broke down between Greece and its lenders sent gold and silver higher when trading resumed yesterday. Gold and silver briefly chipped away at resistance above $1,185.00 and $16.00, but it was short lived and in early U.S. trading gold, silver and platinum are back to Friday’s closing levels while palladium is down $8.00 at $670.00. The short and sweet on Greece is that debt repayment tomorrow is very unlikely. The government of Greece has imposed capital controls and closed the country’s banks through July 6. The citizens of Greece will have access to their deposits only by visiting an ATM machine where they will be limited to withdrawing 60 Euro per day. On July 5, Greece will vote on a referendum where they will decide what their future will be within the EU.

While it is not receiving nearly as much news today as Greece, stories are breaking that Puerto Rico is on the verge of default as it is unable to meet debt obligations tied to bonds that were sold to finance the government. Today brings us to the beginning of the “summer holiday season” and, while today may offer no indication of where prices are headed, I continue to think we will see increased volatility in July, August and beyond.

30 Years of HELPing

For thirty years, HELPS International has provided enduring programs of practical, social and spiritual value to the people in the developing world through a system of partnership and mutual responsibility. Continue reading →

Impressive U.S. Econ Data Weighs on Precious Metals

As the trading week draws to a close, precious metals continue to probe lower as good U.S. economic data has been impressive and weighs on our market as the yield on the ten year bond is now at 2.46 percent. The uptick in physical demand with the lower spot prices has been impressive and the low volume being seen in the futures market would indicate the pace of speculative selling is slowing. These two factors would indicate, as we approach the lower end of the recent trading range, that a move back up may be in the cards for next week.

When trading began in Europe this morning, silver spiked lower, but held support at $15.50. It has since bounced and is currently at $15.80. As the June 30 deadline for Greece is just around the corner there is still no resolution on debt repayment. Another emergency meeting is scheduled for tomorrow as all markets await news early next week.

Have a good weekend,

Roy

Several Factors Weigh On Silver and Gold

Gold and silver moved lower yesterday with several factors weighing heavily as we move towards the lower end of the recent trading range. Here are the factors, in no particular order: silver’s failure to hold $16.00 was disappointing for the longs and brought speculative sellers back to the table, the situation in Greece appears a bit calmer as headlines would indicate progress is being made over debt repayment, and the USD moved higher as did rates with the yield on the 10-year bond again above 2.40 percent. The good news for our corner of the market is that physical demand picked up sharply on the dip as it continues to do, but the bad news may be that the bottom is not far off and a rally from here means demand will slow down as we move towards the middle or upper end of the trading range.

In a bit of a surprise yesterday, Fed Governor Powell said two rate hikes this year remain a possibility. If hawkish comments like this continue during July and August, the likelihood is the USD will strengthen and, during a period where many market participants are on vacation, gold and silver could be vulnerable to spikes lower as speculators increase short positions during a period where liquidity is not great. In the short term, I would expect the market to test $1,155.00 and $15.40 where I expect it to hold, at least initially. Resistance levels are not far away and gold should face plenty from $1,185.00 through $1,195.00 while silver can expect resistance from $16.05 through $16.15 and again as it approaches $16.50.

Silver Solos Higher This Morning

Trading resumed yesterday on a quiet note as China was closed for a holiday and all market participants waited for the latest news on Greece. While the potential for a default still exists and headlines are mixed, it does appear as a bit of progress was made today as the deadline for debt repayment draws closer. While gold traded steadily on Friday, it was unable to close above resistance at $1,205.00, which I thought was necessary to get this week off to a good start (for those rooting for higher prices). It appears that many short term position traders may have had the same view as gold’s failure to move higher overnight has brought sellers back to the market with gold now working its way through support which runs from the low $1,180.00s through the mid $1,170.00s.

Platinum and palladium are continuing their move lower this morning as palladium has fallen below $700.00 while platinum has fallen to a $120.00 discount to gold. Silver is the highlight this morning as it is up on the day despite its 3 siblings being sharply lower. News that speculative silver short positions continued to increase last week on the futures exchange while physical demand is increasing may indicate the “shorts” are growing nervous this morning as they look to lighten up. The gold silver ratio, which was at 75.00 last week, is now at 73.30. If the ratio continues to move lower, look for silver to take a run at $16.75 in the coming days.

FOMC Goes Dovish – Precious Metals Rally

The FOMC / Chair Yellen gave us a dovish report Wednesday afternoon, which brought a rally to our market that has continued as the USD weakened and interest rates moved lower. While it still appears a rate hike is coming this year and some voting members would actually support two hikes this year, it was comments about forward projections that all markets focused on. Specifically, the FOMC has lowered their target federal funds rate in 2016 and 2017, which means they foresee fewer rate hikes over the next two plus years. Chair Yellen made reference in her press conference to international economic conditions adversely affecting U.S. GDP in the coming years, in addition to making comments about inflation levels likely to not meet target levels.

Gold has been the leader of the pack as it has broken through $1,200.00 as many short positions have likely been covered along with a strong pick up in physical demand globally, but strong technical resistance still looms through $1,215.00. The news out of Greece continues to worsen as protestors have taken to the streets, which only adds to their economic woes. The IMF continues to take a hard stand, telling Greek officials that repayment must begin on June 30th, but the meeting that took place yesterday produced no results and another emergency meeting is scheduled for Monday. Today feels like a summer Friday, as volume is surprisingly light, but a gold close above $1,205.00 could set the stage for a break above resistance next week and a run beyond $1,225.00.

Have a good weekend,

Roy

How to get the most out of your sterling silver flatware

The return from refining your sterling silver flatware can be maximized by taking a few extra steps prior to sending in to the refinery. The handles of knives contain a variety of materials that are used to provide weight and balance to the knives. Knife blades are not sterling silver and, therefore, have no value. You can chose to remove these before sending to the refinery or leave them attached. It is possible that leaving them attached can dilute the melt and reduce the percentage returned.

U.S. Econ Data Pressuring Precious Metals

Precious metals approach the end of the trading week pressured by improving U.S. economic data and supported by growing concerns regarding Greece. Yesterday’s better than expected U. S. retail sales report was followed this morning by a better than expected reading on the producer price index. Both economic releases are in line with what the FOMC is looking for with regard to economic activity and inflation. With the increasing likelihood of a rate hike coming sooner than later, unless this trend for good economic data suddenly reverses again, we could be looking at a USD that continues to rally and weighs on our market over the summer months.

Support continues to come from the sharp increases in physical demand on all dips as we have already seen this morning with the bounce in gold off $1,175.00. The issue within the Eurozone appears to be at the 23rd hour and growing more critical by the moment as negations between Greece and the IMF over loan repayments have broken off. An outright default could begin the process for Greece withdrawing from the Euro community, which should trigger a sharp increase for physical demand in Europe.

Have a good weekend,

Roy

Rising Crude Prices Could Boost Precious Metals

Precious metals traded quietly yesterday as decent physical demand may be getting the “shorts” nervous, but overall light volume kept our market in a narrow range. On the positive side for precious metals, we have crude oil sharply higher as it is back above $60.00 and the USD has weakened on the back of comments by President Obama who said the USD is too strong and Bank of Japan officials saying the Yen needs to rally. Lastly, the Euro is back above 1.13 as uncertainty about Greece’s proposal for debt repayment appears to be unsatisfactory.

On the negative side, we have rising interest rates with the yield on the U.S. ten year bond now at 2.47 percent. In addition, a better than expected report on job openings in the U.S. raises the possibility for a strong June employment report which will support a rate hike by the FOMC.  This morning finds gold leading the charge higher as short covering / buy stops were hit when the market broke above the 10-day average at $1,183.25.  While silver is currently back above $16.00 it is not keeping pace as the gold / silver ratio now trades above 74.00.  Look for gold to face stiff resistance from the 50-day average at $1,196.50 through the 100-day average at $1,205.20.

What Should You Look for in a Depository?

Making the decision to move your physical precious metals out of your house or safe deposit box can be a big decision. Many investors are used to having their assets available for quick access. However, many do not know that both of these arrangements are risky. Storing in your home leads to personal safety issues. Storing in a bank’s safe deposit box does not provide insurance coverage in the event of a loss. In fact, some companies like Chase Manhattan Bank prohibit the storage of non-collectible precious metal items in clients’ safe deposit boxes. Another issue is the size of your holdings – while gold does not require a lot of physical space, silver holdings become a logistical issue due to its weight and size and difficulties with transportation.

One alternative – that offers full insurance and expert security is a private storage vault. Indeed, many institutional investors take advantage of this option due to security, ease of access and market place trading availability without incurring ancillary charges of transportation. Before selecting a private depository make sure you have answers to the following: How long has the depository been in business?

Is it approved as a facility by the LBMA (London Bullion Market Association) or an Exchange – such as the Intercontinental Exchange (ICE) or the COMEX?

Does the Depository have 24-hour, off-site monitored security?

IS the facility a UL-rated Class III Vault?

Are the assets insured against loss?

Are the assets held off the company’s balance sheet?

How quickly can I take delivery, audit, or have my assets shipped to me?

International Depository Services Group that offers two locations (in the US and in Canada) has a fully monitored, multi-redundant security system, with Class III UL-rated vault and is LBMA approved in both countries. Customer assets are stored off balance sheet and are fully insured through a policy underwritten by the world’s leading insurance provider. IDS is also approved by the Exchange and can issue electronic warrants against Eligible precious metal. Customers can have their inventory shipped or pick up the assets within 24 hours of making the request. This is the fastest in the industry.   IDS also offers VaultDirect™ – immediate online access to inventory management and transactional activities – offering its client’s the transparency that no other depository can match.

If you have additional questions about storing your precious metals in a secure facility in the United States or Canada, please call 888-322-6150 or email info@IDS-Delaware.com

Rate Hike Speculation Overshadows Precious Metals

Precious metals resumed trading yesterday while still digesting Friday’s very strong U.S. employment data as discussion and speculation about the timing of a rate hike overshadows our market. On Friday morning, N.Y. Fed President Dudley said that labor market improvement, higher wage compensation and rising inflation must continue in order for him to support a rate increase.  While it appears the FOMC is determined to raise rates this year, I continue to think there is enough uncertainty in our economy, and certainly the global economy, that a rate increase this year will be a single event, likely to be in September and perhaps most importantly likely already built into the market.

Overnight, China released data that shows their economy will continue to need further stimulation as their exports declined for a third straight month while their imports declined for a seventh straight month.  The import data could weigh on base metals which could bring additional pressure to precious metals.  The most recent Commitment of Traders report showed speculative long positions on the exchange continued to decline while speculative short positions continued to increase. This may indicate the trading range of recent months is likely to continue as shorts may be poised to cover their positions and take profits in the support range from $1,155.00 through $1,140.00.

 

 

Weakened USD Failed to Support Precious Metals

Despite a weakening USD, dovish comments by Fed Governor Tarullo, and an urging by the IMF that the FOMC hold off any rate hike(s) until 2016, precious metals continued to probe lower yesterday as nearby support levels were breached. This morning’s highly anticipated U.S. employment report for May was a shocker by how strong it was. Economic consensus was for 225,000 new jobs being created in May, but data showed that 280,000 jobs were created which is the best showing since last December. The data also included upward revisions for job growth in March and April. As expected, the USD is rallying sharply, bonds are selling off with the yield on the 10-year bond now above 2.40 percent, crude oil and most other commodities are sharply lower as talk of a rate hike sooner rather than later gains momentum yet again.

<p>Our market is lower across the board but certainly not in a free fall as much of the speculative selling and long liquidation may have been done earlier in the week. Gold is bouncing a bit off the intraday low of $1,162.10 as physical demand is picking up. Look for support in the mid-$1,150.00s with a break below $1,150.00 likely signaling that a test of $1,125.00 will be seen. Silver, which has traded below $16.00 earlier this morning, is back above that level as physical demand is very strong.

 

<p>Have a good weekend,

 

<p>Roy

 

Keep An Eye On Platinum

Precious metals firmed up yesterday, but considering that the Euro jumped from the low 1.09s to the high 1.11s, the move higher in our market was not very impressive.  Dovish comments from FOMC members and the ongoing issues with Greece and their debt payments provided the support. This morning finds precious metals lower across the board as we continue to look for direction. Despite sluggish economic data continuing this week, interest rates are moving higher which is likely weighing on our market. 

The yield on the 10-year U.S. bond has jumped over 3 percent this morning.  The yield, which was moving lower just a few days ago, is now at 2.33 percent and follows a global sell-off in bonds which began yesterday. Support for gold and silver continues to be found in the low $1,180.00s and at $16.50 where we continue to see a sharp increase in physical demand.  That same physical demand slows down considerably as we probe either side of $1,200.00 gold and above $17.00 on silver.  Keep an eye on platinum as it is trading at an $80.00 discount to gold and could be a “good buy”.

 

 

Gold Poised to Revisit Upper End of Range?

Last week came to an end with gold and silver holding the lower end of their recent trading ranges and showing signs that we were poised to revisit the upper end of the same range. The two key supportive events last week were a downward revision in U.S. Q1 GDP which now shows the economy shrank by 0.7 percent as the strong USD weighed heavily on exports. While this is “yesterday’s” news it allowed bond yields to fall and the USD rally took a break which helped stabilize gold and company.

<p>The second event took place in the GLD ETF market where a very large purchase report to be 100,000 contracts (1 million ounces) of a bullish options strategy was reported to have been placed by one trader.  Following these events there has been much chatter over the weekend which surrounding the possible Greek exit from the Eurozone and the possibility of a spike in oil prices as tensions continue to grow in the Middle-East as fighting in Iraq intensifies. Both of these headlines are likely to cause many of the recent “shorts” to cover.    In early U.S. trading gold and silver have rallied above $1,200.00 and $17.00 but the in order for the momentum to continue gold needs to break through resistance from $1,210.00 through $1,215.00.

 

Gold and Silver Testing Higher and Lower This A.M.

Precious metals traded quietly yesterday following Tuesday’s early sell off as physical demand and speculative selling offset each other. This morning finds that gold and silver have already tried it a bit higher and a bit lower from yesterday’s settlement prices, but there was no follow through on either side and as I finish today’s commentary, both are trading at yesterday’s settlement prices as we continue to look for direction. The USD has been in rally mode, which has weighed on precious metals and most commodities, but it is now approaching levels where traders may unwind positions that should help gold and silver retest $1,200.00 and $17.00.

Keep a close eye on the U.S. 10-year bond and crude oil markets as they may hold the key for the next move in our market. The yield on the 10-year bond is currently at 2.15 percent and has been drifting lower. A move in the yield back towards 2.00 percent should bring buyers to our market, while a jump in the yield above 2.25 percent will likely see precious metals pressured by speculative short selling. Crude oil, which was recently above $60.00, has fallen to $57.00 this morning as mounting inventories in the U.S. and concern that the summer driving season in the U.S. will be impacted by a weak economy have brought sellers to that market, which is likely to weigh on gold.

Revenue Opportunities – 2nd in a Two Part Series

Is jewelry repair or custom manufacturing on your menu of services? If the answer is yes, you know these additional services can give an additional revenue stream and keep your customers coming back giving you the opportunity to sell additional items. But, did you also know you may be missing a hidden source of revenue that is a result of these services?

Residue that collects on jeweler’s benches, carpets and even air filters may contain precious metals that can be recovered during the refining process. Materials are processed in our state-of-the-art facility by burning, milling, sampling and assaying for the highest return possible on your materials. Since all steps of the process are done in our facility we can complete your lot in 7-10 business days, which is the quickest in the industry.

Low grade materials can be shipped using several methods. Because even fine dust can contain precious metals, the key is to ensure that the contents are not able to fall out during shipping. Use a heavy bag inside a shipping box or call us for a shipping drum with secure seal. We would be happy to send this to you free of charge.

Precious Metals Kick Off “Summer” on Defensive

Precious metals are beginning the unofficial start of the summer season on the defensive following a Friday afternoon speech by Chair Yellen and comments by her colleagues over the weekend. While the FOMC claims their decisions on a rate hike will be data driven, the comments from most voting members are certainly “hawkish” as their intent is to raise interest rates this year with a growing focus on September being the target date. This has brought us a stronger USD and driven gold and company below recent support levels as long positions are likely being liquidated while new short positions are being initiated.

This morning’s economic data has been mixed but the ley reading may be contained within the Durable Goods report as the closely watched business investment component rose sharply which indicates industry is investing in capital equipment as they gear up for an improving economy. All in all, the chatter this week will focus on the strength of the USD, its impact on all markets and any further indications on the course of the FOMC. Look for gold and silver to find support in the low to mid-$1,180.00s and $16.60s. If these levels hold, we could be in for a long week as the market drifts up towards $1,200.00 and $17.00. A dip below these levels could bring a test of $1,150 and $16.25.

FOMC Minutes Barely Move Market

The FOMC minutes on Wednesday afternoon provided no surprises and little new information. As such, the highly awaited release barely moved our market and had little impact on all other markets’ intraday trading. While the committee did express concern over a slowing in job creation and economic activity, they did remove key words like “patient” that normally provide support for precious metals and most commodity prices. All in all, I would say the report leaned toward the dovish side and a rate hike for June is off the table. The committee continues to stress that their decision on a rate hike will be data driven, but so far the data does not support a rate hike, especially while consumer confidence and retail sales are falling.

In front of a three-day weekend we find ourselves with a market again looking for direction. The USD has moved a bit higher, but so far precious metals have been able to shake that off. On the flip side, weak economic data has not provided the steam for higher prices. This morning’s consumer price data revealed that the Index has fallen 0.2 percent over the past 12 months which is a further sign that the FOMC’s inflation target will not be met and further delay a rate hike. With gold setting the course, look for support from $1,201.00 through $1,196.00 and resistance from $1,210.00 through $1,215.00.

Enjoy the long weekend,

Roy

Scrap gold jewelry melting in crucible

Additional Revenue Opportunities – 2 part series

Has the volume of customers selling scrap to you decreased? We are hearing that from clients in all 50 states. During the boom in the gold market in 2011-2012, everyone witnessed a huge uptick in people selling gold and platinum jewelry, stainless steel flatware and other items containing precious metals. Continue reading →