Japanese Selling Hits Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

Metal prices under pressure this morning as strong selling of all four metals is seen overnight in Japan.

Japanese stocks rallied 239 points after Prime Minister Shinzo Abe’s snap election victory. The Nikkei, Japan’s stock market, is now up for fifteen straight days. Japan investors, like here in the States, are finding the equity markets very attractive.

No wonder Japan investors are selling metals, after seeing a strong stock market, good manufacturing data and six straight quarters of growth. Japanese exporters cheering as the Yen has hit a three month low against the U S Dollar.

Back Home In The States

There seems to be no stopping the march forward to higher prices in the Dow Industrials. Big week for the release of corporate earnings as many expect results to beat the street estimates.

Spot Gold breaking thru the 100-day moving average at $1,276 triggering light stops just below that figure. A stronger dollar not helping our cause as the Dollar Index is heading higher knocking at the door at the 94 level.

Wall Street gold traders are comfortable in trading currencies at this time until some significant news is seen that can move the price of gold.

Levels of support now seen at the $1,261 area in the price of Gold and $16.48 in the price of Silver. At the present time I don’t expect these levels to be tested.

Cryptocurrencies and Blockchain Technology
There is no avoiding this fast paced market. A story on CNBC this morning taking a shot at Chase’s Jamie Dimon for his recent comments on cryptocurrencies being just “a novelty,” meanwhile over the weekend, Bitcoin set a new all-time high.

Now the head of a major Middle East-based tech investment firm said Monday that Dimon needs to better educate himself about Blockchain and Cryptocurrencies.

However, Jamie Dimon is not without his supporters. Saudi billionaire investor Prince Alwaleed told CNBC’s “Squawk Box,” “It just doesn’t make sense. This thing is not regulated, it’s not under control, it’s not under the supervision” of any central bank.” Alwaleed continued, “I just don’t believe in this bitcoin thing. I think it’s just going to implode one day. I think this is Enron in the making.”

In the meantime, don’t miss out on the next best thing since the Internet. All the hype is for real on Blockchain technology; indestructible and practicable in almost every industry from healthcare to Equity platforms to back office operations in every industry. There is a place for this type of technology. And along with the Cryptocurrencies to complete the package, there will be no stopping the development in all kind of industries.

Yes there are no guarantees that Bitcoin will survive, but one thing is for sure, the whole world has jumped on the bandwagon. All you have to do is look at Bitcoin, up over 500 percent this year alone.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. 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.