Weak Dollar Lifts All Precious Metals

Market Gage Gold Market Insights

The U.S. Dollar hitting a three-year low giving fuel to higher Gold prices this morning. The price of gold reaching a new high in the February contract now above the $1,350 level which in turn has chased the shorts out of town.

The dollar index at a new low of 89.38 as Treasury Secretary Steve Mnuchin says, “a weaker dollar is in the best interests of our economy.” Speaking at a press conference at the World Economic Forum in Davos today, he made a bid for investment into the U.S., saying the government was committed to growth of 3 percent or higher.

President Trump on his way to the Forum expected to say the U. S. is absolutely committed to free and fair trade.

Nice to see all four metals in positive territory today. Silver up $ .48 cents, Platinum enjoying a $15 dollar move to the upside and Palladium regaining some momentum up $12 dollars.

Let hope this trend continues.

Blockchain News

The Securities Exchange Commission (SEC) said, “not so fast,” to the companies adding the word Blockchain to their names or giving the impression that their business model is now part of the Blockchain network.

In other words, the SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws.

As the cryptocurrencies craze continues, but not at its previous pace like the activity in Bitcoin, Ripple or Ethereum, companies are trying to take advantage of all the hype without being on the forefront of this new and exciting technology.

One must remember that if you are interested in Blockchain technology, you can remove yourself from Cryptocurrencies and research companies that are in their infancy stage in developing this type of technology as part of their business model. The amount of practicable applications are never ending in all types of business, and we are just scratching the surface.

For those not up to speed, Blockchain is a database protocol developed to underpin bitcoin. Rather than having a central record keeping system, identical records are spread across everyone connected to a network. They are all updated simultaneously and transactions only go through when enough parties on the network sign off on them. This technology eliminates the need for costly middlemen in financial transactions, but also presents endless opportunities for new ways of record keeping and decentralizing markets.

Overall, the Blockchain technology is based on strong, simple and effective security principles. A key component of technology maturity cycle is discovery of software defects, attempts to hack, leading to further robustness in the technology and maturity of best practices. As Blockchain evolves, law enforcement will need to have better skills and guidelines to investigate and prosecute security breaches. This should not deter firms and developers from adopting the technology and realizing its benefits. A key element of the adoption of any new technology is also the evolution of best practices around security management.

As I said before, if you can imagine it, it can and will be put on a Blockchain network in the future.

Have a wonderful Wednesday.

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.