Gold Shows Resilience

Gold Shows Resilience

As we reported in our last Market Gage, a significant short position in Gold still exists, but the price of Gold still shows resiliency as it seems the shorts do not have enough support to pull the rug out from the price. In other words, buying continues to emerge as soon a we come close to support levels.

I find this very encouraging, because the longer the shorts hang around and make no progress toward their goals, the better chance we have of a significant short-covering rally.

BUT, on the other side of the coin, the key hundred-day spot moving average is sitting at $1,288. A breakthrough at that level will only give the shorts more confidence that they are holding the best hand and a further sell off is possible.

Better bank earnings and a strong opening for equities this morning could put further pressure on the price.

Silver Institute Conference

This week, the Silver Institute conducted a two-day event in New York City. Day one was a private showing at The Museum of Arts and Design in Columbus Circle where designers from over 50 counties are showing their exquisite, one-of-a-kind jewelry. They call themselves designers, but I would take it step further and call these amazing individuals silver sculptors. They are showcasing their individual silver designer items from all over the globe. Bracelets, rings, earrings, necklaces, charms and pendants were all on display. (A bracelet from jeweler Ute Decker is shown at left)

What I found fascinating is the level of creativity and imagination that was brought to each piece. Yes, they were extremely impressive and not cheap, but if you want to have a unique piece of silver jewelry, this is the place to shop. The show is called “LOOT: MAD ABOUT JEWELRY” and continues at the Museum through tomorrow.

Day two at the Conference featured the release of the World Silver Survey for 2019. The featured speaker was Johann Wiebe of GFMF, Refinitiv, the company that conducted the survey and compiled the data. I encourage everyone to read our summary of the Institute’s press release.

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.