Weaker Dollar Driving Gold

Gold and Silver Market Insights

A weaker dollar seems to be the main driver for higher gold prices. Ever since the market flushed out the nervous longs just a week or two ago, the price of Gold has been in a steady move upward. As we all know everyone’s watching the $ 1300 dollar level where just above that level I expect stops to be triggered. If they do reach for those stops the next level of resistance I expect to be at $ 1306.00.

The price of Silver just following Golds path as the physical supply of silver on the street is more than needed right now as indicated by the December increase in silver warrants issued.


The price of Palladium continues its surge to higher levels after starting the year 2017 around the $700 dollar level. Right now March Palladium is trading at $ 1,057.00 dollars. Rising global growth and tightening supplies have continued to fuel the rally this year with no end in sight.

Gas powered automobile sales continue to grow and with the global economy operating on all cylinders (no pun attended) and the demand for physical Palladium is expected to continue.

Hybrid vehicles which use gas and not diesel fuel which will help boost the demand for Palladium.

One PGM trader I spoke with said, “With the expected Fed interest rate increases next year, I expect the price of Palladium to surpass the price of Gold making Palladium the most valuable precious metal. I think that statement is a stretch, but I’ve been wrong before.

What does 2018 hold for Bitcoin?

Just ask some big names in the Financial Industry about their views on Bitcoin and you will seemingly
get the same answer from them all.

Jamie Dimon calls it a fraud. Warren Buffet calls it a mirage. Morgan Stanley just recently said that the real value might be zero.

It doesn’t matter what you call it, a currency, a commodity or just a product, the mere fact that you can trade it gives it value.

One can argue that Bitcoin represents an “intangible” product. Ok, if that’s the case why does the CBOE and CME exchanges give Bitcoin a value?

Nonetheless, it seems like the craze will continue in 2018.

Many say the real money to be made is by the ones who can create their own digital currencies and bring them to the market. It seems everyone is looking for the next Bitcoin and I think that is where the problems will develop; too many lookalike products that will getting the attention of investors. I expect that next year when these new Digital currencies, emerge the government will have to be all over it and will ultimately crush the little guy holding these unknown digital currencies.

Our government cannot continue to ignore these products especially without knowing who’s conducting these transactions.

So in the meantime, if you have a stomach for volatility and are willing to risk all your money with these kinds of investments understand that the wealthy financial individuals like Warren buffet and the like didn’t get to where they are today by buying and selling so called “intangible” assets.

Have a wonderful Friday and a healthy and prosperous New Year to you all.

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.