Physical Precious Metals Show Some Life

The Market Gage - Dillon Gage's Precious Metals Newsletter

Some life seen in the physical market, exhibited by domestic refiners reporting an increase in demand for product over the last two weeks. They say it’s a lot different from the last two months where they were making outbound calls looking to raise some cash to buy new lots of scrap material.

Some indicated that during the summer months, the shelves were getting heavy and they were tired of looking at all the products they had so a reduction in some premiums were in order.

So everyone’s feeling a little better as the worst seems behind us all in the physical arena.

We can look forward to the debates, the September FED meeting, and the presidential election outcome to create some demand for metals. Some billionaires are making news with their opinions, like Mark Cuban expecting a crash in the equities if Donald Trump is elected. All this chatter from prominent individuals such as FED presidents, Donald, Hilary and billionaires such as Mark Cuban, George Soros and Carl Icahn, has the ability to effect the markets.

In the meantime, we witness a slightly stronger dollar this morning putting a little pressure on the price of gold. Silver also feeling like she’s coming down with something, as the fun days when she was over 20 seems to be fading fast.

But there is hope, as demand in the ETF market continues to flex its muscles. Silver ETF holdings hitting an all-time high this week continues to support the fact that in a balanced portfolio, metals is a key component.

My professional chart gurus are asking for some time to show what they are made of and want to share their levels of support if the market trends downward. So in gold, the first level of support is close by at $1,332 in the December contract and $19.37 in the December contract for silver. They expect the market to hold these levels. I believe they are up two dinners on me.

Have a wonderful Friday.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.