Ten-Year Treasury Yields at 2.96 percent heading for the 3.00 percent level are putting significant pressure on the price of Gold. Continue reading →
The price of Gold just can’t get going. A stronger dollar and higher Treasury Yields keeping the price of Gold in place. Continue reading →
There’s good news for everyone on Wall Street as strong corporate earnings were reported early this week led by transportation sector giants J.B. Hunt and Norfolk Southern. Continue reading →
The equity markets are turning a blind eye to all the political news and are waiting and watching for more corporate earnings to be released this week. Continue reading →
No movement in the Dollar Index nor in the Ten-Year Treasury Yields, so it’s no surprise that the price of Gold is virtually unchanged. Continue reading →
The Fed’s minutes from the March meeting reveal a hawkish tone. Here are the headlines from their March meeting. The Fed: Continue reading →
The price of Gold up this morning reacting to the Presidents tweet warning Syria that missiles are on the way. Oil prices also head higher on the news. Continue reading →
We start the week seeing little movement in the U.S. Dollar and bond prices across the globe. Equity markets continue their up one day, down one day posture, no wonder the price of Gold and Silver continue to be range bound. Continue reading →
Overnight, President Trump proposed an additional 100 billion dollars in Tariffs against China. The news was released yesterday around 7 pm and immediately equities sold off 400 points.
Off the news the price of Gold rallied 5 dollars but since then the price of Gold has come off as the U S Dollar has rebounded.
Things seem to be heating up between the U S and China as China’s Finance Minister said, “China will fight to the end and will retaliate on any trade sanctions the U.S. imposes”.
An all-awaited March Job numbers report released at 8:30 est. today revealed it was up 103k jobs, well below the consensus of 178k jobs. Average hourly earnings up 0.3 percent.
After the number was released, Equities dropped a little, the U.S. Dollar softened up a bit and the price of Gold and Silver recovered from their intraday lows.
Debts All – Folks!
On Wednesday, NBC news released a story revealing that the majority of millennials are in debt, hitting a pause on major life events.
Credit card debt, rather than student loans, are the most prevalent type of debt among the group.
The NBC News report claimed three out of every four millennials in the U.S. have some form of debt.
A quarter of millennials, those 18-to-34 years old, are over $30,000 in debt, including 11 percent who are over $100,000 in debt. Only 22 percent of millennials are debt free. Credit cards, meanwhile, are playing an even bigger role than student loans.
Three-in-ten millennials have less than $1,000 in their personal savings, and only 1 percent have over $100,000 saved. A quarter, 24 percent, have no personal savings.
So even though many are working, this kind of debt limits their ability to buy homes and save for retirement.
Now let’s look at the overall consumer debt as reported by Bloomberg news: A healthy economy can be a dangerous thing.
Americans have a history of loading up on debt in good times, then paying dearly when the bills come due. Adding to the pain: A booming economy is often accompanied by rising interest rates, which make mortgages, credit cards and other debt much more expensive. As the U.S. Federal Reserve raises rates, there are signs that consumers could be putting themselves in peril. “When consumers are confident, or over-confident, is when they get into credit-card trouble.”
Spending on U.S. general purpose credit cards surged 9.4 percent last year, to $3.5 trillion, according to industry newsletter Nilson Report. Card delinquencies are also rising. U.S. household debt climbed in the fourth quarter at the fastest pace since 2007, according to the Federal Reserve.
So after reading these headlines, along with pondering that potential trade war with China, how in the world, with good conscience, can the Fed raise rates at the next Fed meeting as planned?
- Last three months inflation is at 1.8 percent
- Consumer overall debt at an all-time high at over 13.5 trillion dollars
- Consumer credit card debt up over 9.4 percent as delinquencies rise
- Country’s debt over 21 trillion.
Credit card debt is typically based on the prime rate that’s directly linked to the Fed fund’s rate. If the Fed rate increases just a quarter-point, your card’s rate will increase, adding more pain to pay off the balance.
And now, with the threat of a trade war with China hanging over us, I expect many CEOs to rethink their spending, possibly holding off any capital expenditures until this is all cleared up. In other words, holding on to the cash from the tax cuts for a so-called “rainy day.”
This is my argument for higher gold prices. If this all comes to fruition, rising interest rates will slow the economy causing consumers to curb spending. Companies will be hesitant to hire new employees and will also curb spending. So In the end, the economy will slow and the Feds will not have the data to raise rates four times as expected. Hence ,investors will flock to Gold as a viable investment.
So later this year, the patient gold investors will get their reward as investors will realize once again that a truly balanced portfolio must have a portion of physical precious metals in its content.
Have a wonderful Friday.
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.
Overnight, China imposed tariffs on 106 U.S. products and markets across the globe reacted. Continue reading →
We start the week with markets closed all over Europe for Easter Monday.
Far East buying in Gold seen overnight as the U.S. Dollar declines against other world currencies. Continue reading →
A Dillon Gage Metals Primer on Proper Compliance
Here are our hours of operation over the holiday weekend. Continue reading →
Final revised fourth quarter GDP figures released today come in at 2.9 percent. Continue reading →
We enjoyed a nice rally in the price of Gold last week, but holding up the rally from continuing further this morning are higher Ten-Year Treasury Yields and a significantly higher equity market due to a cooling off of trade war tensions with China. Continue reading →
Strong demand for the yellow metal overnight in the Far East. At the time of this report, the price of Gold is up over twenty dollars. Continue reading →
Here are the highlights from today’s meeting:
- Fed fund rates increase by 25 basis points to 1.50 -1.75 percent. Continue reading →
Lead by the new Fed chairman Jerome Powell, the Federal Reserve is expected to make its first rate increase in 2018, today at 2 PM EST. Continue reading →
Friday was a quadruple witching day (Quadruple witching happens when three related classes of options and futures contracts expire, Continue reading →
Someone start a fire……Please…..
Looking at a bar chart in gold, for the most part in 2018 the heavy bulk of trading has been between $1,320 and $1,350. Continue reading →
Walter Pehowich is off today. Today’s insights are provided by senior Dillon Gage staff.
Yesterday’s bumpy road in Washington gave us a short-lived bump up in gold prices. Continue reading →
The world stock markets had a positive reaction to the U.S. Jobs report from Friday, regaining some of their losses from earlier this year. Continue reading →
Terrific job number this morning adding 313,000 jobs in February. Eight hundred thousand people have entered the work force. All impressive news for a stronger equity market. Continue reading →
The President is to announce his plan on tariffs at 3.30 pm Eastern time. His decision could have a profound effect on markets. Please stay tuned for his announcement.
If the market’s resulting behavior merits notice, we will send an additional FLASH GAGE this afternoon. Otherwise, look for results in tomorrow’s Market Gage.
Enjoy the rest of your day.
For every action there is a reaction. President Trump’s proposed tariffs on steel and aluminum are causing quite a stir in the European community. Continue reading →
We start the week looking at a mixed bag of financial data: stronger dollar, softer Ten-Year Treasury yields and a lower CBOE VIX Volatility index. Continue reading →
It’s time to speak out.
After 42 years in the Precious Metals business, it finally hit me why I’m losing my hair. Continue reading →
A Solid Gold Statuette Would Be Worth How Much?
ADDISON, Texas (Feb. 27, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesaler firms, is ready to provide an explanation to a hypothetical question that will be on people’s minds in the near future. Continue reading →
Fed Chairman Jerome Powell’s remarks stuck a dagger into the price of Gold. Continue reading →
Good news for the Gold market as we see the momentum in Ten-Year Yields heading in the opposite direction of late, now softening up. Continue reading →
A higher U.S. Dollar and lower Ten-Year Treasury yields are keeping the price of Gold in place. Continue reading →
The January Fed minutes have been released. Here are the highlights:
- Further “gradual” increases in rates are expected
- Members debating whether inflation will be an issue Continue reading →
A mixed bag of financial indicators keeping the price of Gold in slightly positive territory this morning. Continue reading →
On this President’s Day, the Equity markets and Bond markets are closed. Continue reading →
First, let’s take a look at the Platinum group metals. The recent resurgence in the price of Platinum is attributed to aggressive buying by car manufacturers trying to stay ahead of the curve. Continue reading →
This “Year of the Dog’ Bullion is Struck by the Royal Canadian Mint
ADDISON, Texas (Feb. 15, 2018) – Dillon Gage Metals, one of the world’s largest precious metals wholesaler firms, is once again the exclusive source for the Royal Canadian Mint’s Silver Lunar Privy bullion coin. For the past five years, Dillon Gage Metals has had the sole distribution of this unique RCM Silver Maple Leaf. The “Year of the Dog” in the Chinese Lunar Calendar officially kicks off this Friday, February 16, 2018. To honor this loyal Lunar symbol, this year’s coin features an intricately engraved Labrador Retriever for the privy seal (the standard Canadian Maple Leaf privy is a smaller leaf with the year number inside).
In the most recent decades, the dog represents those born in 1922, 1934, 1946, 1958, 1970, 1982, 1994, 2006 and now 2018. Individuals born in the Year of the Dog are honest and loyal, much like their canine counterparts. In Chinese culture, if a dog happens to come to a house, it symbolizes the coming of good fortune and prosperity. This year’s Lunar Privy bullion coin is the perfect gift or keepsake for those born under the Year of the Dog sign.
“The Chinese Zodiac Calendar is a very important part of traditional Chinese culture,” stated Terry Hanlon, president of Dillon Gage Metals. “This exceptional limited mintage Royal Canadian Mint Silver Maple Leaf that bears a Lunar Year privy mark celebrates that heritage. This unique coin is a great gift for those who participate in Lunar New Year festivities, and it’s also great for any coin collectors in your life who happen to love dogs.”
The coin is crafted in the Royal Canadian Mint’s exceptional 99.99 percent pure silver. It features a serrated edge and a unique reverse-proof finish. This coin is the highest denomination made available on a 1-ounce silver bullion coin – $5 CAN. Along with Canada’s beloved monarch, Her Majesty Queen Elizabeth II, on the obverse and the iconic Canadian Maple leaf on the reverse. The coin is 38 millimeters in diameter and weighs 31.110 grams.
This limited-mintage special release will be available to authorized dealers from Dillon Gage. For information and pricing, call 800-375-4653 or go to www.dillongage.com to purchase on the electronic trading platform, FizTrade.com.
About Dillon Gage Metals
Dillon Gage Inc. of Dallas (DillonGage.com), founded in 1976, companies include:
- Dillon Gage Metals (www.DillonGage.com/) one of the world’s largest precious metals wholesale trading firms. The firm is an authorized purchaser for all major world mints and maintains inventory in over 20 countries around the world. Additionally, the company provides advanced tools and technologies that enable market participants to be more successful in their businesses, allowing electronic trading and offering cloud-based solutions for the physical precious metals marketplace 800-375-4653
- FizTrade Online Trading (www.FizTrade.com) offers real-time bid/ask trading platform for gold, silver, platinum and palladium. 800-375-4653
- Dillon Gage Refining (www.dillongage.com/why-dg-3/), professional assayers and refiners of precious metal scrap, from low grade to karat scrap. Stone removal services and diamond experts on staff. 888-436-3489
- International Depository Services Group with locations in Texas, USA (www.idsofTX.com; 888-322-2431), Delaware, USA (www.ids-delaware.com; 888-322-2431), and Ontario, Canada (www.idsofcanada.com; 855-362-2431), offers secure, efficient and insured precious metals and certified coin depositories that focus of custom business logistics solutions which include storage, fulfillment, inventory managements and many other value-added services.
Senior Account Manager
In 1921, a young bride inspired her husband’s design for America’s Peace Silver Dollar, which would be the last actual “silver” dollar produced. Continue reading →
Higher interest rates are on the minds of all traders and investors this morning as CPI figures indicate inflation is on the rise. Continue reading →
After the last two weeks, there’s almost no telling what will happen in the equities market when the Dow opens for the week. Continue reading →
Today we’ll look at the Past, Present and Future. First, we’ll tackle the present. Continue reading →
White spots on silver bullion coins have been a known issue in the global bullion market for years. Continue reading →
The U.S. Dollar is trading higher this morning keeping the pressure on the price of Gold. Continue reading →
Here’s why the equity market sell-off will not help the price of Gold in the short term, but will in the long term. Continue reading →
About 15 minutes ago, the Dow Industrial average was down over 1500 points. Continue reading →
The price of gold caught in crosscurrents of a significantly weaker equity market, a stronger dollar and softer 10-year bond prices around the globe. Continue reading →
A lot of news for the market to absorb this morning as Ten-Year treasury yields continue to climb, affecting both the price of Gold and the Equity markets. Continue reading →
Here’s the current release schedule of just SOME of the new bullion that will be available soon from Dillon Gage. Continue reading →
The price of Gold in recovery mode this morning as the Dollar index breaks below the 89 level once again and Global Ten-Year Bond yields are all seen edging lower. Continue reading →
The price of Gold under pressure as we see Bond yields across the globe higher today. Continue reading →
Yesterday, the President’s comments left all the currency traders and the Gold traders scratching their heads. Continue reading →