The Palladium Market is starting to see supply emerge in Zurich. In turn. the Palladium EFP is now quoted minus 45 minus 35.
It was only a matter of time before the refiners were able speed up their conversion from sponge to bars and take advantage of the very profitable spot price.
Surprisingly, the price of Palladium is trading higher today. To get the next leg up in the price, a settlement over the $1,342 spot level has to be achieved otherwise on a technical level a correction is in order. I expect the Hedge Funds to catch on quickly and take profits off the table.
Turning to Gold
The price of Gold this morning is enjoying a boost from weaker Equity Markets and a softer Dollar Index. All the technical levels are indicating a close over the $1,303 spot level is needed for the rally to continue.
The Brexit negotiations and the trade talks with China continue to be the headline stories. If the partial Government shutdown continues I expect it will eventually weigh heavily an Equity prices sending more investors over to the Gold and Bond markets.
Digging Up Mining News
Newmont Mining announced today that they would buy rival Goldcorp for 10 billion dollars. There is no overlap in any of their Gold producing facilities, so it makes for a perfect marriage. The combined company will have the largest gold reserves and resources in the sector, with mines in the Americas, Australia and Ghana.
Their reserves are expected to produce 7 million ounces of Gold over the next ten years. The announcement had no effect on the price of Gold.
The leading cryptocurrency, Bitcoin, has continued to decline after reaching a high of $19,343 in December 2017. Since then Bitcoin has seemed to have lost all interest with Millennials who were looking to cash in at one point on what they thought was a product with unlimited upside potential.
It is virtually absent from most business news channels as the price has declined today to $3,543.00.
For the ones still holding on to their so-called investment, the question now is what will be the catalyst to get everyone once again exited with this product?
My answer is: There is none!
The question I ask is, what is your tolerance for risk? Do you have extra cash that you don’t need and with continued volatility put your head on your pillow and sleep at night? Maybe it’s worth a shot.
Otherwise a better choice could be an investment in Physical Gold. Even though you might not have a lot of money to invest, there are a lot of physical products both in Gold and Silver to get you on board.
One only has to look at the wild volatility in the Equity Markets, the country’s runaway debt and uncontrollable government spending to realize this is the way to invest in a true product that has upside potential. Sure, I can’t say that you’ll get the same return you would have had if you invested in Bitcoin and sold it at the highs of $19,000, but we all know the value of a Precious Metal investment will never go to zero.
Sounds like a commercial? That was my intention.
Have a wonderful Monday.
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.