At the time of this report, we see the price of Gold back above $1,300, sparked by a weaker than expected Empire State manufacturing survey. The yellow metal is teetering at the previous resistance level of $1304. This seems to be an important level as the market either accelerates or declines depending on if the trend is up or down from this level. The price of Gold had fallen just below $1,300 yesterday largely on the fading strength in the U.S. dollar.
Equity Markets are in positive territory and Global 10-year Bonds markets are mixed and the Dollar Index is virtually unchanged. So, at this point it’s anyone’s guess what the next move will be in the price of Gold.
Holders of Palladium long positions were happy to hear a report that Fiat Chrysler is going to replace the catalytic converters on 900,000 vehicles in the United States following an emissions investigation by the Environmental Protection Agency. This news should have an impact on supply and further support the price.
The difference between the price of platinum and palladium continues to widen, currently at $737.
The Most Unspeakable Four-Letter Word
What is the most upsetting four-letter word in the English language?
We are always talking about the country’s debt being out of control. Here are the statistics on how serious the student loan debt problem has become.
Right now, Americans have 1.3 trillion dollars in student loan debt. Why do I bring this up? The situation is serious enough that the White House may require colleges to have a stake in student debt payments.
It is expected that in the next five years over 40 percent of this debt will go into default.
Some might say the main reason is the lack of wage growth. The total of cost of a four-year college over the last 30 years has gone from $26,000 to over $100,000, while wage growth in the last thirty years has only increased by 6 percent. This makes it almost impossible for the average American to afford college.
And in the end, who winds up paying for these defaulting loans? The taxpayer.
This is just another example of how serious our overall debt problem has become.
At the end of 2018, household debt figures exceeded 13.5 trillion dollars. Meanwhile, Washington continues to ignore the country’s debt.
Where will it end and what will the consequences be? Seems to me an investment in Physical Precious Metals as a truly balanced portfolio is a good strategy to put in place in the event this debt problem gets out of hand.
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.