The Market Gage - Gold is Elemental

Gold & Silver Stuck In Range

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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 and Silver Market Insights

Gold Recovered After Job Report

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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.

The Market Gage - Gold Silver Market Insights

Gold’s Rally Slowed by Treasury Yields

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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 →

FLASH GAGE – Tariff Announcement

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The President is to announce his plan on tariffs at 3.30 pm Eastern time. His decision could have a profound effect on markets. Please stay tuned for his announcement.

If the market’s resulting behavior merits notice, we will send an additional FLASH GAGE this afternoon. Otherwise, look for results in tomorrow’s Market Gage.

Enjoy the rest of your day.

What would a solid gold Oscar be worth?

Calculating an Oscar’s Worth

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A Solid Gold Statuette Would Be Worth How Much?

ADDISON, Texas (Feb. 27, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesaler firms, is ready to provide an explanation to a hypothetical question that will be on people’s minds in the near future. Continue reading →

Silver Maple with Year of Dog Privy Mark

Exclusive Lunar New Year Coin

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This “Year of the Dog’ Bullion is Struck by the Royal Canadian Mint

ADDISON, Texas (Feb. 15, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesaler firms, is once again the exclusive source for the Royal Canadian Mint’s Silver Lunar Privy bullion coin. For the past five years, Dillon Gage Metals has had the sole distribution of this unique RCM Silver Maple Leaf. The “Year of the Dog” in the Chinese Lunar Calendar officially kicks off this Friday, February 16, 2018. To honor this loyal Lunar symbol, this year’s coin features an intricately engraved Labrador Retriever for the privy seal (the standard Canadian Maple Leaf privy is a smaller leaf with the year number inside).

In the most recent decades, the dog represents those born in 1922, 1934, 1946, 1958, 1970, 1982, 1994, 2006 and now 2018. Individuals born in the Year of the Dog are honest and loyal, much like their canine counterparts. In Chinese culture, if a dog happens to come to a house, it symbolizes the coming of good fortune and prosperity. This year’s Lunar Privy bullion coin is the perfect gift or keepsake for those born under the Year of the Dog sign.

“The Chinese Zodiac Calendar is a very important part of traditional Chinese culture,” stated Terry Hanlon, president of Dillon Gage Metals. “This exceptional limited mintage Royal Canadian Mint Silver Maple Leaf that bears a Lunar Year privy mark celebrates that heritage. This unique coin is a great gift for those who participate in Lunar New Year festivities, and it’s also great for any coin collectors in your life who happen to love dogs.”

Inset image of the Year of the Dog privy seal

The coin is crafted in the Royal Canadian Mint’s exceptional 99.99 percent pure silver. It features a serrated edge and a unique reverse-proof finish. This coin is the highest denomination made available on a 1-ounce silver bullion coin – $5 CAN. Along with Canada’s beloved monarch, Her Majesty Queen Elizabeth II, on the obverse and the iconic Canadian Maple leaf on the reverse. The coin is 38 millimeters in diameter and weighs 31.110 grams.

This limited-mintage special release will be available to authorized dealers from Dillon Gage. For information and pricing, call 800-375-4653 or go to www.dillongage.com to purchase on the electronic trading platform, FizTrade.com.

# # #

About Dillon Gage Metals
Dillon Gage Inc. of Dallas (DillonGage.com), founded in 1976, companies include:

  • Dillon Gage Metals (DillonGage.com/) one of the world’s largest precious metals wholesale trading firms. The firm is an authorized purchaser for all major world mints and maintains inventory in over 20 countries around the world. Additionally, the company provides advanced tools and technologies that enable market participants to be more successful in their businesses, allowing electronic trading and offering cloud-based solutions for the physical precious metals marketplace 800-375-4653
  • FizTrade Online Trading (www.FizTrade.com) offers real-time bid/ask trading platform for gold, silver, platinum and palladium. 800-375-4653
  • Dillon Gage Refining (dillongage.com/precious-metals-refining/), professional assayers and refiners of precious metal scrap, from low grade to karat scrap. Stone removal services and diamond experts on staff. 888-436-3489
  • International Depository Services Group with locations in Texas, USA (www.idsofTX.com; 888-322-2431), Delaware, USA (www.ids-delaware.com; 888-322-2431), and Ontario, Canada (www.idsofcanada.com; 855-362-2431), offers secure, efficient and insured precious metals and certified coin depositories that focus of custom business logistics solutions which include storage, fulfillment, inventory managements and many other value-added services.

Contact:
Jo Trizila
TrizCom PR
(972) 247-1369
Jo@trizcom.com

Silver Peace Dollar - Model was Scupltor's Wife

Peace and Love

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In 1921, a young bride inspired her husband’s design for America’s Peace Silver Dollar, which would be the last actual “silver” dollar produced. Continue reading →

Flash Gage - News Headlines that Impact precious metals as they happen.

FLASH GAGE – Gold Sells Off

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Gold market reacts to comments made by Automation CEO Mike Jackson, the now newly elected Atlanta Fed President, that the Fed needs to normalize interest rates as the economy expands.

The price of Gold and silver immediately sold off after his comments.

Enjoy the rest of your day.

RCM Silver Maple Leaf with Double-sided Incused strike

RCM Maple Leaf Coin…With a Twist

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Incuse Struck Design on Both Sides Offered by Dillon Gage



ADDISON, Texas (Jan. 17, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesale firms, is pleased to announce the release of a unique and innovative bullion coin. Continue reading →

Winter Olympic 2018 Medal Precious Metal Value

What’s An Olympic Gold Medal Worth?

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Precious Metals Wholesaler Dillon Gage Metals Reveals Composition and Value

ADDISON, Texas (Jan. 18, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesale firms, is educating the public on everything they need to know about the Olympic medals slated to be awarded during the 2018 Winter Games in Pyeongchang, South Korea. Continue reading →

Blockchain technology for precious metals

Blockchain Primer

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The euro traded at a three-year high right after the European Central Bank announced that it is cutting its Crisis Era stimulus program faster than expected. Continue reading →