EU Rates To Stick Until NEXT Summer

Market Gage - Precious Metals Newsletter Impacted by Europeon Markets

ECB President Mario Draghi said yesterday that he will keep EU interest rates unchanged until summer next year, In contrast, U.S. Fed Chairman Jerome Powell took a more aggressive stance, trying to stay ahead of the curve, announcing continued rate hikes. Continue reading


Gold’s Calm Before A Storm?

Market Gage Gold Market Insights

Walter Pehowich is attending the IPMI conference. Today’s comments were compiled by Dillon Gage senior analyst

The precious metals market is calm across the board this morning, on pause as we await the details of the pending summit between President Trump and North Korean leader Kim Jong Un. Continue reading


Memorial Holiday Hours

Dillon Gage trading room and refinery will be closed Monday, May 28th, in honor of Memorial Day.

FizTrade, electronic trading, will be open*:
• Sunday, May 27th: 5pm Central through Monday, May 28th at Noon Central
• Monday, May 28th: Reopens 5pm Central and continues normal hours

Have a safe Memorial Day Weekend.

*Subject to change without notice. Hours are dependent upon Globex Market hours. .


Gold Clings To NK News Bump

Market Gage Gold Market Insights

Most of the Wall Street Gold traders I speak with daily have left already to enjoy the Memorial Day weekend. I can’t say I blame them as the beginning of the holiday weekend is shaping up to be spectacular here in New York with the second half not so good. Continue reading


FLASH GAGE – North Korean News Boosts Gold

President Trump writes a letter to North Korean leader Kim Jong Un, calling off proposed summit, “for the good of both parties,” but as he put it, “to the detriment of the world.”

In turn, Gold and Silver rally on the news.

Have a wonderful Thursday.


Gold Had Brief Overnite NK News Lift

The Market Gage - Gold is Elemental

Overnight the price of Gold got a temporary boost off the news that North Korea just might cancel the meeting with President Trump. During that period the June CME gold contract traded up to $ 1296.40. Continue reading


FLASH GAGE – Gold Rallies on Iran Pull-out

President Trump decides to exit the Iran nuclear deal and the price of Gold rallies on the news.

The President says this was the worst deal we ever entered into. Allies up in arms on the
President’s decision after numerous tries to convince him otherwise.

The President says there is definite proof that Iran lied about their nuclear program.

The President said sanctions will be imposed on Iran and any of the U S allies that don’t follow us they will have to answer to their citizens.

Enjoy the rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. 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 Launches FizTrade Upgrades

FizTrade Enhancements Announced

 Aimed squarely at improving customer experience and efficiencies

ADDISON, Texas (May 8, 2018) – Dillon Gage Metals, the premier precious metals wholesale firm, has launched an updated version of its leading online trading platform, FizTrade™. Continue reading


Good Jobs Numbers Hit Gold

The Market Gage - Gold Silver Market Insights

Unemployment rate now 3.9 percent lowest in 18 years. The average hourly wage rose by 2.6 percent year over year indicating a continuation of a growing economy. Continue reading


Koala – Next Generation

Koala - Next Generation Silver Bullion Series

This is a Dillon Gage exclusive, the Perth Mint’s new silver series that features a mother and baby from the iconic Australian Outback wildlife.

For more details, click here.


FLASH GAGE – Gold Up On Israeli PM Comments

Israeli Prime Minister Benjamin Netanyahu is making an announcement right now that the Iranians have been cheating from the get-go with their nuclear capabilities.

The prime minister said, “I think the greatest threat to the world and to our two countries , and all countries, is the marriage of militant Islam with nuclear weapons and specifically the attempt of Iran to acquire nuclear weapons.”

The price of gold rallies on the news and equities sell off.

The U S Secretary of State Pompeo said: “We remain deeply concerned about Iran’s dangerous escalation of threats towards Israel and the region.”

We all hope level heads prevail and nothing develops from these announcements.

Enjoy the rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. 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.


Silver and Gold On Up Swing

There’s good news for everyone on Wall Street as strong corporate earnings were reported early this week led by transportation sector giants J.B. Hunt and Norfolk Southern. Continue reading


Gold & Silver Stuck In Range

The Market Gage - Gold is Elemental

We start the week seeing little movement in the U.S. Dollar and bond prices across the globe. Equity markets continue their up one day, down one day posture, no wonder the price of Gold and Silver continue to be range bound. Continue reading


Gold Recovered After Job Report

Gold and Silver Market Insights

Overnight, President Trump proposed an additional 100 billion dollars in Tariffs against China. The news was released yesterday around 7 pm and immediately equities sold off 400 points.

Off the news the price of Gold rallied 5 dollars but since then the price of Gold has come off as the U S Dollar has rebounded.

Things seem to be heating up between the U S and China as China’s Finance Minister said, “China will fight to the end and will retaliate on any trade sanctions the U.S. imposes”.

An all-awaited March Job numbers report released at 8:30 est. today revealed it was up 103k jobs, well below the consensus of 178k jobs. Average hourly earnings up 0.3 percent.

After the number was released, Equities dropped a little, the U.S. Dollar softened up a bit and the price of Gold and Silver recovered from their intraday lows.

Debts All – Folks!

On Wednesday, NBC news released a story revealing that the majority of millennials are in debt, hitting a pause on major life events.

Credit card debt, rather than student loans, are the most prevalent type of debt among the group.

The NBC News report claimed three out of every four millennials in the U.S. have some form of debt.

A quarter of millennials, those 18-to-34 years old, are over $30,000 in debt, including 11 percent who are over $100,000 in debt. Only 22 percent of millennials are debt free. Credit cards, meanwhile, are playing an even bigger role than student loans.

Three-in-ten millennials have less than $1,000 in their personal savings, and only 1 percent have over $100,000 saved. A quarter, 24 percent, have no personal savings.

So even though many are working, this kind of debt limits their ability to buy homes and save for retirement.

Now let’s look at the overall consumer debt as reported by Bloomberg news: A healthy economy can be a dangerous thing.

Americans have a history of loading up on debt in good times, then paying dearly when the bills come due. Adding to the pain: A booming economy is often accompanied by rising interest rates, which make mortgages, credit cards and other debt much more expensive. As the U.S. Federal Reserve raises rates, there are signs that consumers could be putting themselves in peril. “When consumers are confident, or over-confident, is when they get into credit-card trouble.”

Spending on U.S. general purpose credit cards surged 9.4 percent last year, to $3.5 trillion, according to industry newsletter Nilson Report. Card delinquencies are also rising. U.S. household debt climbed in the fourth quarter at the fastest pace since 2007, according to the Federal Reserve.

So after reading these headlines, along with pondering that potential trade war with China, how in the world, with good conscience, can the Fed raise rates at the next Fed meeting as planned?

Figures:

  • Last three months inflation is at 1.8 percent
  • Consumer overall debt at an all-time high at over 13.5 trillion dollars
  • Consumer credit card debt up over 9.4 percent as delinquencies rise
  • Country’s debt over 21 trillion.

Credit card debt is typically based on the prime rate that’s directly linked to the Fed fund’s rate. If the Fed rate increases just a quarter-point, your card’s rate will increase, adding more pain to pay off the balance.

And now, with the threat of a trade war with China hanging over us, I expect many CEOs to rethink their spending, possibly holding off any capital expenditures until this is all cleared up. In other words, holding on to the cash from the tax cuts for a so-called “rainy day.”

This is my argument for higher gold prices. If this all comes to fruition, rising interest rates will slow the economy causing consumers to curb spending. Companies will be hesitant to hire new employees and will also curb spending. So In the end, the economy will slow and the Feds will not have the data to raise rates four times as expected. Hence ,investors will flock to Gold as a viable investment.

So later this year, the patient gold investors will get their reward as investors will realize once again that a truly balanced portfolio must have a portion of physical precious metals in its content.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. 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 Slowed by Treasury Yields

The Market Gage - Gold Silver Market Insights

We enjoyed a nice rally in the price of Gold last week, but holding up the rally from continuing further this morning are higher Ten-Year Treasury Yields and a significantly higher equity market due to a cooling off of trade war tensions with China. Continue reading