Treasury Yields Depressing Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Hard to make a case for higher Gold prices when the Ten-Year Treasury Yield is sitting at a seven-month high of 2.46 percent. Nonetheless, no one has pulled the rug out from under the Gold price. Still behind the curtain is North Korea and that situation has little chance of going away any time soon.

Wall Street corporate earnings reported so far this week continue to excite the equity investors with more strong results expected in the next couple of days.

No change in the levels of support as they stand at $1,261 in gold and $16.48 in silver. I find it very interesting that with the historic rallies in the Dow, S&P and Nasdaq that the price of Gold hasn’t headed for the exits.

Matter of fact, the CME reported that in September, the volume in Gold year over year is up
88 percent, with an average future trading volume at 360,000 contracts per day. One must say that is extremely impressive. Silver volumes are also up year over year in September at 40 percent, not bad at all.

So for the naysayers expecting the price of Gold to go to zero, they just have to look at all the participants trading Gold and Silver futures these days. From Retail, to Funds, to Mining Companies, the numbers speak for themselves.

The most recent commitment of traders report still showing a net long of 200,000 contracts. So there are still folks that believe in the price of Gold at these levels. But one must have a concern if the price of Gold does sell off, these longs at some point must
cover a potentially accelerating the sell off.

Some Blockchain Applications

Do you have questions on what Blockchain technology can do for you? Or how it will make your life simpler and more secure?

Let’s look at some practicable and secure applications that are at the doorstep of this new technology. Without mentioning the names of some of these startup operations (because these are private ventures) I wanted just to share on their exciting startup applications.

Since the Equifax breech, are you worried that your identity has been compromised? There are new and innovative programs that can protect your identity digitally.

Blockchain technology offers a solution to many digital identity issues, where identity can be uniquely authenticated in an irrefutable, immutable and secure manner. Current methods use problematic password-based systems of shared secrets that are exchanged and stored on insecure systems. Blockchain-based authentication systems are based on irrefutable identity verification using digital signatures based on public key cryptography. In Blockchain identity authentication, the only check performed is whether or not the transaction was signed by the correct private key. It is inferred that whoever has access to the private key is the owner and the exact identity of the owner is deemed irrelevant.

Meaning all your vital information can go on a Blockchain platform that only YOU have
the ability to open and share. This is much more involved than the current credit lock feature offered by the three major credit agencies.

This platform can store driver’s license, passport, birth certificate, medical records,
social security information, bank statements and much more. Some governments are looking at Blockchain technology to secure their voting results.

Every entry onto the platform comes with a time stamp that’s entered onto the block. Each piece of data entered into the Blockchain is called a “hash.” Since this program is
not Internet based the program is currently impenetrable.

Will Europe beat the U.S. to implementing Blockchain technology on all government projects?
Earlier this year, the European Parliament created a new task force to study practicable
applications and regulations that will include this type of technology.

There must be thousands of types of applications our government can use to eliminate fraud with Medicare, Medicaid and Food stamps. Not to mention protecting everyone’s Social Security information and tax returns.

Blockchain Technology is an exciting program that you must be familiar with. It’s as important as reading and writing. So much so that colleges around the globe are starting to offer classes on Blockchain.

We at Dillon Gage continue to research all new applications being developed in our industry. One to mention is the CME / Royal Bank digital trading and back office platform
using Cryptocurrencies and Blockchain technology that is right around the corner. This platform will give the investor the ability to buy or sell Gold in increments of as little as one gram and store it in a secured depository. Very attractive to some investors as it’s the first platform to work with a government agency.

There are many others in the development stage so stay tuned to the Market Gage in the future for further developments.

Have a wonderful Wednesday.

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.