Quiet Start For Gold Despite Weaker Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

Quiet start to the week as we see the dollar in negative territory and Ten-Year treasury yields slightly higher.

As the price of gold continues to be in hibernation mode, some dealers have indicated that they are tightening up their credit lines to clients. Some dealers have indicated if the market stays like this for a while consolidation of some firms and dealers heading for the exits could accelerate.

As expected, Wall Street gold traders are looking to other markets for action with some exclusively trading oil and currencies until some life comes back into the precious metals arena.

Now on to the political arena and a character that seems to be forgotten. Can you guess who this is?

Hello Washington remember me? With all that’s going on in the world it seems I’m being totally ignored for some reason.

Obviously no one in Washington really cares about me. Everyone is so concerned with repealing Obama care and giving everyone a tax break. Even the equity markets give me no respect.

And now you might have some bigger issues to contend with, like the potential North Korea conflict or the continued Russian involvement in world politics. But you will be doing your country a very
big injustice if you continue to ignore me.

Because I can become a condition that you will have no cure for until it’s too late.

I am your country’s debt!

My last physical in March revealed that I am gaining weight (approaching 20 trillion) and I have no chance of losing weight any time soon.

At the close of my health exam at the end of last year I had:

  • $8.5 trillion ($8,542,000,000,000) in liabilities that are not accounted for in the publicly held national debt, such as federal employee retirement benefits, accounts payable, and environmental/disposal liabilities.*
  • $29.0 trillion ($29,038,000,000,000) in obligations for current Social Security participants above and beyond projected revenues from their payroll and benefit taxes, certain transfers from the general fund of the U.S. Treasury, and assets of the Social Security trust fund.*
  • $32.9 trillion ($32,900,000,000,000) in obligations for current Medicare participants above and beyond projected revenues from their payroll taxes, benefit taxes, premium payments, and assets of the Medicare trust fund.*

Combining the figures above with the national debt and subtracting the value of federal assets, the federal government had about $84.3 trillion ($84,306,000,000,000) in debts, liabilities, and unfunded obligations at the close of its 2016 fiscal year.*

The obligations for Social Security and Medicare represent how much money must be immediately placed in interest-bearing investments to cover the projected shortfalls between dedicated revenues and expenditures for all current participants in these programs (both taxpayers and beneficiaries).*

After reading this you can see how contagious I can really be. So much so, that I can eventually infect every single American and their children for years to come. Washington please find a cure for me before it’s too late.

Have a wonderful Monday.

*Figures are reported by Just Facts.

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.