Political Uncertainties / Weaker Dollar Boost Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Political uncertainties here in the States and in the UK and a weaker dollar have given the price of gold a boost this morning.

Equities to open slightly lower as the market is starting to get tired of all the Washington politics with four prominent Republicans stating that they cannot support the Healthcare bill as it stands today. That puts the Republicans in a corner as these four defecting members leaves them a few votes short of passing the health care bill. Which in turn delays the tax reform proposal.

Continue reading “Political Uncertainties / Weaker Dollar Boost Gold” »


American Eagle Sales as of 6/22/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on June 22nd. The chart also shows the change in sales from 6/15/2017 which we reported on June 16th.

Gold
Coin Sales in oz. /#coins + from 6/15/2017
One oz.
140,000
140,000
2,000
2,000
Half oz.
13,500
27,000
000
000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
25,000
250,000
500
5,000
Total
190,500
465,000
2,500
7,000
Silver
Coin Sales in oz. /#coins + from 6/15/2017
One oz.
11,953,500
11,953,500
272,000
272,000

Precious Metals Dipping Down On Mixed Indicators

The Market Gage - Dillon Gage's Precious Metals Newsletter

A mixed bag of indicators to start the day as we see a slightly weaker dollar and stronger Ten Year Treasury yields. Just a week ago we were seeing Ten Year U S Treasury yields at 2.10 percent, now today showing 2.17 percent this helping to keep a cap on any gold rally.

The price of gold recently broke thru a key level of support at the $1,248 level and now seems to be heading lower towards its next level of support at the $1,232 area.

Fed speakers are at it again earlier this week as New York Fed President William Dudley’s comments seem to be giving the Dollar a boost, hurting the price of gold. Even Chicago Fed President Charles Evens who is a known dove shared some hawkish comments.

Some Wall Street Gold traders are playing the market from the short side as bids in the marketplace look weak. When I mentioned silver to my trading friends the response I received for the most part was, boring, so why bother trading a directionless market.

The recent excitement in the Palladium market seems to be subsiding as we start to see the metal finding its way into the marketplace. Converting Palladium sponge to bars are heating up and finding its way to Zurich reducing the 3-month palladium lease rate from 18 percent just a week ago to 7.5 percent today and bringing in the Palladium EFP to minus 9 minus 1.

Washington Insights

President Trump’s displeasure with Kim Jung-Un’s behavior continues, as the President claims China’s
efforts to curb his continued defiance has failed. The treatment of Otto Warmbier while in a North Korea prison has seemed to agitate the president and folks on the Hill with some indicating that something has to be done sooner rather than later to stop this madman.

Yesterday’s victory for the Republicans and Karen Handel in Georgia’s special election replacing Tom
Price seems to send a message to the country that the President’s popularity is not dead in the water as some Democrats claim.

Now that the most expensive special election is over, Washington will try once again to work out a Health Care Bill. The Democrats claim these negotiations should not be held behind closed doors and should be shared with them in a transparent manner. They vow that whatever the Republicans submit will be dead on arrival, threatening that there will be no agreement before the August recess. I expect they will stand their ground which in turn will delay the tax reform and infrastructure bill to early next year. Something the equity markets don’t want to hear.

I remember when I was a kid in elementary school we started each day reciting the Pledge of Allegiance. For those who don’t remember it here it is:

“I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation, Under God, indivisible, with liberty and justice for all.”

Maybe it’s time both parties on the Hill took a pledge to stop this madness and work together with a common cause for the great people of our nation. But when I put on my hat as an Las Vegas odds maker, I place the odds of this happening at close to zero. I guess I’ll just have to wave the white towel and give up. What a shame!

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.


Gold Wavering As Global Instability Grabs Headlines

The Market Gage - Dillon Gage's Precious Metals Newsletter

Last week’s decision by the Fed to raise the benchmark interest rates by 25 basis points was both predictable and expected. What isn’t yet clear is what the FOMC is planning for its subsequent meetings this year. Lots of prognosticators are now seeming to look past the individual Fed decisions while casting for a long-term pattern. While the U.S. economy continues to hold serve, there is much apprehension across the pond with plenty of financial issues swirling. Greek bailouts, Italian market troubles and the first round of formal Brexit negotiations for the UK get underway today—despite the disastrous results for Prime Minister Theresa May’s recent snap election.

Adding to all of this uncertainty comes the following news items from just yesterday. A U.S. warplane shot down a Syrian fighter jet that had just bombed American-backed coalition soldiers. A popular tourist resort in the African country of Mali was hit by terrorists and Iran’s Revolutionary Guard targeted ISIS fighters in Syria by launching missiles in retaliation for attacking Tehran on June 7. And back in England, an apparent terrorist attack by a driver who struck Muslims leaving Ramadan services, killing one.

Lots of instability out there on the global geopolitical front. Spooked markets abroad could elevate the precious metals market, so stay tuned.

As of this morning, the gold market is holding relatively steady from the end of last week. At last check, prices for gold are hovering around $1,248, while silver has slid back to under $16.60, palladium continues to sink from last week’s supply-induced rally and it currently at $864.

There should be plenty more to discuss this Wednesday, as it seems we haven’t even scratched the surface of our own political turmoil at home.

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.


Gold Making Recovery Attempt This Morning

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold trying to recover this morning after taking a hit during the week. Helping to keep the price afloat are a slightly weaker dollar and softer Ten-Year Treasury Yields.

All the chatter from the Fed and its members this week have chased away bidders in the market, subsequently gold traded down to its lows of the most recent trading range.

My technical charting friends are telling me “not to worry.” They say as long as the price of gold stays above the $1,248 level we still see a recovery in the making.

All four metals in the ETF arena saw redemptions overnight, with the worst percentage going out of the Platinum ETF market as the action in the PGMs have been all Palladium.

Focus On Palladium

The issues in the Palladium market seem to be subsiding a bit as three month lease rates are now at 7 percent, down from 15 to 18 percent just a few days ago. Current EFP levels have also come in to minus ten at flat, down from minus 40 minus 20 just a few days ago. The recovery is not over as there still seems to be some blood in the water, but the market seems to be headed in the right direction.

Where’s all the money going?

The Financial Times reports that Exchange traded Equity funds took in more than 30 billion dollars this week, their strongest inflow of dollars seen this year.

They go on to report that in spite of a high-profile sell-off in technology shares, particularly among the so-called Faangs — Facebook, Amazon, Apple, Netflix and Google, all four of the major US indices hit new highs over the past week. The S&P 500, Nasdaq Composite and Russell 2000 reached intraday highs on Friday while the Dow Jones Industrial Average hit a fresh high on Wednesday. The equity market continues its rally. The SPDR S&P 500 ETF took in the largest amount this week.

So when any negative news hits our markets, like predicted higher interest rates in the future, money shifts to where the expected action is to be.

Now Across The Pond to Greece

Once again the Eurozone finance ministers have put together a deal to bail out Greece. July is right around the corner and this bailout package assures Greece’s creditors that the country will not default on this obligations. Pierre Moscovici, the EU’s economy commissioner said that the deal is essential for Greece and the stability of the EU.

This is Greece’s third bailout since the county’s economic crisis in 2010. They just keep throwing money at the situation hoping that things will get better. Some say this policy of just pouring money into the Greece problem is insane, and we all know the definition. Insanity: Doing the same thing over and over and expecting different results. A famous Terminator quote applies here: “I’ll be back”…(for more money later).

On To Washington

The hopes of deregulation and tax reform, in other words “Washington rhetoric,” continues to blow more air into the equity bubble. Not everyone is buying into that talk as we have seen most recently Ten Yield Bond Yields trade as low as 2.10 percent. Nonetheless the Dow continues its march higher on just promises the President’s economic agenda will be achieved.

On Wednesday, the Fed raised rates 25 basis points and have indicated that another rate hike is in the cards for 2017. They also indicated that they will begin to reduce their balance sheet later this year but didn’t indicate when that will start.

Earlier in the week the U. S. Treasury unveiled a plan to reverse the country’s financial regulatory framework,
which is exactly what the Treasury Secretary’s friends on Wall Street have been looking for. I can hear the Wall Street Executives saying, “three cheers for Mnuchin” (after all he is one of them), as some of these regulation changes can give them more freedom to speculate in the marketplace with hopes of increasing their bottom lines and padding their pockets. One thing this country doesn’t need is allowing traders to speculate with house money. After working on the street for 37 years and watching the action around me, I for one can tell you that this is recipe for disaster and one of the reasons we had the financial crisis in the first place.

Back in 1789, Ben Franklin wrote a letter that stated “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain except “Death and Taxes”. The Treasury secretary just added a third one!

Have a wonderful Friday.

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.


American Eagle Sales as of 6/15/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on June 15th. The chart also shows the change in sales from 6/8/2017 which we reported on June 9th.

Gold
Coin Sales in oz. /#coins + from 6/8/2017
One oz.
138,000
138,000
1,000
1,000
Half oz.
13,500
27,000
000
000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
24,500
245,000
5000
000
Total
188,000
458,000
1,000
1,000
Silver
Coin Sales in oz. /#coins + from 6/8/2017
One oz.
11,681,500
11,681,500
205,000
205,000

FLASH GAGE – Fed To Raise Rates by 25 basis points

As anticipated, the Fed raised rates today by 25 basis points. There was only one vote to stay put cast by Minneapolis Fed President Neel Kashkari who at the last meeting called for a reduction in the Fed’s balance sheet before the next rate hike.

At this meeting, the FED did announce they will start to shrink their balance sheet later this year.

Gold initially traded higher on the news as the dollar weakened, but it only took a minute or two before the dollar gained some ground and gold gave back at least two thirds of the gains that it enjoyed earlier in the day.

The Fed did indicate they plan for another rate hike later in the year, but many question that with Washington in disarray and the clock running out before the House’s next recess, a tax reform plan to stimulate the economy is a longshot at this point.

As I submit this comment the Chairwomen is sharing her prepared comment which we will share with you in the next release of the Market Gage.

Enjoy the rest of your day.

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.


Gold Recovers A Little Ground

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold is in recovery mode ahead of the Fed decision today, driven by a weaker dollar and lower bond yields. Ten-year Treasury bonds across the globe are all showing softer yields today.

The price of Palladium continues to climb today, but is off the most recent highs reached just a few days ago. At the IPMI Conference in Orlando, which I attended along with a number of my Dillon Gage colleagues, the Palladium backwardation was a topic at many meetings. One concern raised was the amount of open interest contracts seen in the most active CME contract. The September Palladium open interest today stands at 34,152 contracts open. In ounces the equates to 3,415,200 ounces. Currently held in the all the CME Warehouses combined shows only a total of 41,950 ounces of which 13,671 ounces registered and 28,278 eligible. Historically, the majority of this open interest will be rolled or liquidated but as you can see it will not take much for the market to smell blood and react in a way that could be a major concern for the market and the exchange alike.
Continue reading “Gold Recovers A Little Ground” »


Precious Metals Anticipate This Week’s Fed Action

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes are locked onto this week’s FOMC meeting, set for Tuesday and Wednesday. The clear consensus appears to be that the Federal Reserve will slightly raise U.S. interest rates. Most traders and investors are also watching to see if the Fed acts to reduce its overblown balance sheet of government securities.

As of Monday, the CME Group’s Fed Watch Tool is predicting a 95.8 percent chance of a hike in the neighborhood of 100-125 bps. A near certainty, it would seem, but the Fed has surprised us before. The full statement will be read Wednesday afternoon.

In anticipation of the FOMC meeting, the gold market is a tad listless, with limited buying interest. At last check, prices for gold are down around $1,266.90. The Palladium market deserves some attention, as it recently reached a five-year high, and is currently hovering around $905 an ounce.

We’ll have much more to discuss this Wednesday, as Fed Chairwoman Janet Yellen will give us the latest interest rate news. Stay tuned…

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.


Stronger Dollar On UK Election Lowers Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

A stronger dollar is seen this morning after the surprise result in the UK election yesterday. As the results were tallied, the Pound Sterling took a dramatic drop in value and even the Euro was under pressure as the currency world turned to the US Dollar for stability. Subsequently, the price of gold continues to lose ground, even though just a few days ago it looked like the $1,300 dollar level was within reach.

The UK election

Continue reading “Stronger Dollar On UK Election Lowers Gold” »


American Eagle Sales as of 6/8/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on June 8th. The chart also shows the change in sales from 6/1/2017 which we reported on June 2nd.

Gold
Coin Sales in oz. /#coins + from 6/1/2017
One oz.
137,000
137,000
000
000
Half oz.
13,500
27,000
000
000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
24,500
245,000
500
5,000
Total
187,000
457,000
500
5,000
Silver
Coin Sales in oz. /#coins + from 6/1/2017
One oz.
11,476,500
11,476,500
229,000
229,000

Gold Pauses As Dollar Ticks Up

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold under some pressure this morning as both the dollar and Ten-Year Treasury yields are seen in positive territory. Recent previous declines in both markets have been giving the price of gold a boost, but today’s reversal just seems to be a pause in the action as we expect the decline in the dollar and softer Ten
Year Treasury yields to continue.

As such, I expect the price of gold will continue to head higher, as a two-step forward, one-step back improvement in the price. I believe the next level of resistance is the $1,295 range. If we can trade through that level, I expect an obvious speed bump at the $1,300 dollar level. Following this scenario, I expect no resistance until the previous high, back on election night (Nov. 8) last year is reached at the $1,338 level.

ETF gold funds continue to see inflows into their programs, and the CME Fed Watch Tool is at a high chance of an expected rate increase at the next Fed meeting next week standing at a 93.5 percent.

Across the pond

Tomorrow the UK holds its 2017 general election for a new government. On April 18th, Prime Minister Theresa May called for a snap election on June 8th. At that point, she was expecting to take advantage of her opponent’s weakness in hopes of obtaining a larger majority for her party to better negotiate the UK’s exit from the European Union.

But now everything seems to have backfired on her, as the polls predict that the Prime Minister’s plan might be in trouble. Since she called for a snap election she has slipped in the polls almost 18 percent and now leads in some polls by only 1 percent. She has been criticized for not having adequate policing after austerity and policy cuts. With nearly two trillion in debt and repeat terrorist attacks, many are calling for a change.

By the way, the snap election was approved by parliament 522 to 13.

Right after the election there is expected to be an arm wrestle of negotiations between the UK and continental European Leaders on the steps to their first level of talks on the UK’s exit. Talks are expected to start the week of June 19th.

No doubt the terrorist attacks will have an effect on how the people vote. So tomorrow we wait to see how this pans out.

Back to our shores

All eyes tomorrow will focus on former FBI Director Jim Comey’s testimony. Mr. Comey is scheduled to testify before the Senate Intelligence Committee and all the major TV networks are planning to air it live.

Obviously, if any bombshells come out of the Comey testimony that effects the equity markets, one could expect possible fireworks in the Gold market. We should be watching with one eye on the testimony and the other on market reaction.

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.


Gold Hits Six Week High

The Market Gage - Dillon Gage's Precious Metals Newsletter

A good start to the week as gold reaches a six week high. What makes it more impressive is the fact that the price of gold is higher today even with a stronger dollar and higher treasury yields.

Overnight over 206,000 ounces were added to the Gold ETF helping support additional gains.

Overall, without any significant news, I expect some profit taking in gold today, keeping the price of the June contract below the highs of the day reached earlier this morning at the $1,282 level. But we still see the price continuing higher at a two steps forward, one step back kind of market appreciation.

Over the pond:

As the Euro zone continues to grow in 2017 at a pace twice as fast as we are here in the states there are some shining lights that deserve attention.

Portugal, a country that a while back was headed in the same direction as Greece and Italy (just existing as a bailout country), has turned things around. Just two weeks ago, Portugal announced that it has reached a milestone as they were no longer in breach of the EU budget rules.

Portugal’s growth has increased and unemployment is at an 8 year low. The country’s budget deficit fell to 2 percent of GDP last year, well below the limit of 3 percent set by the European commission.

Only Greece, Spain and France are currently in breach of the EU’s budget rules.

So it seems like the sun is beginning to shine for the countries in the European Union and not so much here on our side of the pond.

So let’s open the window on the U.S.

Washington back to work today, will anything change?

Let’s call it like we see it. The Trump administration
wants tax reform, a simpler tax code if you will, but in reality a simpler tax code means eliminating some tax benefits that many tax payers have been accustomed to. The question remains, how do you develop a plan that both the Republicans and Democrats can agree on? With the Republicans controlling both houses one would think there would be a plan in place already.

Some on the Hill are calling for a revenue neutral plan. Good luck on that idea. Some are calling for a boarder tax. Some are calling for a across the board entitlement cuts. That idea is political suicide. And the Street is calling for corporate tax reform so the stock market can continue its rally.

There seems to be many plans or suggestions that encompass so many aspects of the tax code that in the end it will be impossible to have an across the board agreement.

So what does the future hold? It’s like global warming. Whether you attribute carbon emissions as the reason the glaziers are melting and the sea is rising or you don’t, the bottom line is unless something changes drastically the sea and our country’s debt will keep rising in the future.

In the end, when reality sets in and the world realizes that this problem cannot be corrected because the United States law makers do not have the political will to make these unpopular changes, I expect gold will be the benefactor of such policy.

The seas are truly rising and so will be the price of gold. The boat has already left the dock. There are still some good seats available.

Have a wonderful Monday.

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.


Job Report Boosts Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

We were ending the week with all four metals in negative territory, but as soon as the Non-Farm payroll number was released at 8:30, all four metals had a healthy recovery and traded higher. Non-Farm payroll figures came in at 138,000 after the street expected 185,000. The report shows retail and manufacturing jobs declined, possibly giving the Fed board something to think about before raising rates at the June meeting. In addition to a poor May job report, significant downward revisions to the March and April job reports were also released.
Continue reading “Job Report Boosts Precious Metals” »


American Eagle Sales as of 6/1/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on June 1st. The chart also shows the change in sales from 5/25/2017 which we reported on May 26th.

Gold
Coin Sales in oz. /#coins + from 5/25/2017
One oz.
137,000
137,000
500
500
Half oz.
13,500
27,000
000
000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
24,000
240,000
000
000
Total
186,500
452,000
500
500
Silver
Coin Sales in oz. /#coins + from 5/25/2017
One oz.
11,247,500
11,247,500
300,000
300,000

Weakened Dollar Puts Gold In Positive Territory

The Market Gage - Dillon Gage's Precious Metals Newsletter

As the dollar continues to weaken this morning, the price of gold is seen in positive territory, sitting at the higher end of the most recent trading range. A triple top in the gold chart right above the $1,270 level is the next hurtle for the price of gold to surpass.

I believe the market has taken into account that they will raise rates 25 basis points at the next Fed meeting to be held on June 13th-14th. Federal Reserve Governor Lael Brainaed said Tuesday that a rate hike is “likely appropriate soon,” but slowing inflation could change that. Also joining the ranks of speaking between Fed meetings was Dallas Fed President Robert Kaplan who said he does not think the economy is about to take off. According to the CME FED Watch Tool, December which had shown some strength for the next anticipated rate hike is now below 50 percent. The most recent numbers on inflation released yesterday show core inflation at just 1.5 percent, well below the 2 percent target rate that the FED is looking for. So once again the Fed has a way OUT whichever path they choose, as they can now justify raising rates or holding off.

Greece in the news again

Greece Finance Minister Euclid Tsakalotos warned Brussels that a Greek recovery will not happen if they block a debt deal at the next meeting of the Euro Finance Ministers. Tsakalotos said, “It is incumbent on all sides to find a solution. Currently Greece has over 7.5 billion Euro debt repayments due in July and unless we get some help we will default on our obligations and plunge Greece into a deeper recession.”

The Greek debt problem has been going on for seven years now and even with a triple bailout they still are in need of another. Creditors are calling for further pension cuts and continued austerity measures
as Greek pensions have already been cut by 18 percent. Greek debt continues to increase and is currently at 314 billion Euro or 180 percent of their Gross Domestic product. When will their problems ever end?

Other Euro Zone News

Since the elections in Holland and France are over, most European investors are feeling a lot better that
the chances of any other country leaving the EU have been taken off the table. Nonetheless, European Central Bank President Mario Draghi said on Monday that the EU still needs substantial stimulus. Some EU countries are calling for Draghi to start a strategy exiting the bank’s Bond purchases. Draghi, as well as our Fed President Janet Yellen, still sees a 2 percent inflation target rate needing to be reached before raising interest rates and cutting back on monetary policy.

We continue to share these off shores stories with you because the news that impacts the price of gold
can come from anywhere around the globe and not just here in the US.

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.


Dillon Gage Metals Wins Prestigious Industry Leadership Award

2017 Platts Global Metals Awards Committee Honors Company

ADDISON, Texas (May 31, 2017) – Dillon Gage Metals, an international precious metals wholesaler, was recently awarded the inaugural 2017 Precious Metals Industry Leadership Award by the Platts Global Metals Awards committee. Reserved for precious metals companies who exhibit the best in innovation and commitment to the industry, the honor was bestowed upon Dillon Gage for its unflinching dedication to its clients and groundbreaking proprietary online trading technologies.

Platts Award for Industry Leadership in Precious Metals Awarded to Dillon Gage“On behalf of our employees and our vast network of global precious metals dealers, we humbly accept this great honor,” stated Terry Hanlon, president of Dillon Gage Metals. “To receive this level of recognition by the entire Platts Global Metals Awards committee is the very culmination of our combined efforts to operate as an industry-leading precious metals wholesaler.”

The annual awards are conducted by S&P Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets with over 30,000 subscribers globally.

The S&P Platts’ Committee bestows the Global Metals Awards on exceptional candidates, singling out those who drive the precious metals industry to new heights—including excellence in leadership, innovation, client relationships, safety, integrity and overall performance.

The 2017 Platts Global Metals Awards were officially presented at a black-tie gala on Thursday, May 18, at Marriott Grosvenor Square in London.

For more information, please visit the Dillon Gage Metals website or call 800-375-4653.

# # #
About Dillon Gage Metals
Dillon Gage Inc. of Dallas (DillonGage.com), founded in 1976, companies include:

  • Dillon Gage Metals (www.DillonGage.com/Metals), 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 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.

Contact:
Jeffrey Cheatham
Senior Account Manager
TrizCom PR
(972) 247-1369
jeffc@trizcom.com

 


Gold Breaks Through Overnight On Soft Treasury Yields

The Market Gage - Dillon Gage's Precious Metals Newsletter

First quarter GDP numbers were released this morning at 8:30 EDT as the Commence Department revised their previous number from 0.7 to 1.2 percent. Consumer spending was stronger than initially thought, but later in this report you will see that the spending seems to be up on “borrowed money.”

Double and triple tops on most recent gold charts were broken thru overnight as Ten-Year Treasury yields softened below 2.25 percent.
Continue reading “Gold Breaks Through Overnight On Soft Treasury Yields” »


American Eagle Sales as of 5/25/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on May 25th. The chart also shows the change in sales from 5/18/2017 which we reported on May 19th.

Gold
Coin Sales in oz. /#coins + from 5/18/2017
One oz.
136,500
136,500
4,000
4,000
Half oz.
13,500
27,000
500
1,000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
24,000
240,000
1,000
10,000
Total
186,000
451,500
5,500
15,000
Silver
Coin Sales in oz. /#coins + from 5/18/2017
One oz.
10,947,500
10,947,500
595,000
595,000

FLASH GAGE – Dollar At Session Low After Fed Minutes

The Dollar and Ten-Year Treasury Yields are at session lows right after the Fed minutes were released today.

Gold immediately took a bid off the news, but overall price movement was soft. Wall Street Gold traders remain on the short side of the price of gold as predicting what the Fed will do next is described by some as a coin flip. Even though the CME FED Watch tool odds of a rate hike in June currently stand at 83.1 percent.

Enjoy the rest of your day.

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.


Precious Metals Holding Their Support Levels

The Market Gage - Dillon Gage's Precious Metals Newsletter

Precious metals prices seem to be consolidating at levels that hold their support levels.

Meanwhile, Moody’s downgraded China’s rating from A1 to A3 yesterday on worries of slower economic growth and growing debt. Some investors there saw this as an opportunity to diversify their holdings into Gold and Silver helping support both metals at these levels. Moody expects government debt to rise toward 40 percent of GDP by 2018.

Still some Wall Street gold traders I spoke with said at this point they prefer to be a little short, rather than a little long as they see no real catalyst in the market place that can move the prices significantly higher from here.

The Fed:

Today at 2pm, the Federal Reserve will be releasing the minutes from their last closed door meeting. Currently, the market is expecting another rate hike at the next Fed meeting in June. What they should be more concerned with is how to unwind the balance sheet and not worry too much about raising rates. Some traders see this release of information as old news as changes to the economy have occurred changing some of the Fed Presidents’ opinions since the last meeting. Chicago Fed President Charles Evens said just a week ago that he still views greater risk in inflation running too low, rather than too high. Nonetheless, we will be listening to what was said to see if it has any impact on the markets.

Bond prices and the price of Gold.

Softer yields on U.S. Treasuries have given the price of gold a boost. JP Morgan and Goldman Sachs indicated that they have lowered their expectations for higher bonds yields this year as the President’s agenda has hit unexpected road blocks and adjustments which in turn could slow down the economy. On Monday, the price of Gold reached a three week high. Since then the dollar gained some strength causing the price of gold to head in the other direction.

Over the pond:

Greece’s potential financial crisis is not over yet as creditors failed to reach a deal on debt relief. Talks broke down on Monday after seven hours of negotiations with Germany and the IMF officials. The July deadline is fast approaching as Greece is in need of a 86 billion Euro bailout to meet its obligations. As a result, Greek two-year bond prices jumped 25.4 basis points to reach 5.4 percent, their highest level in over a month. Before Germany agrees to any bailout, Greece must guarantee that the negotiated tax, pension and labor reforms will be put in place.

China and U.S. investments:

In a report issued by the U.S. Treasury Department on Monday, we find that in the month of March China bought 28 billon dollars’ worth of U.S. Treasuries. China is still not America’s largest creditor, Japan has that title. Overall, offshore investors bought almost 60 billion dollars worth of U.S. Treasuries in March. This might explain President Trump softening his rhetoric towards North Korea. How so you say? One must believe that before any action is taken on North Korea, our President should have the approval of China’s president Xi. Neither country wants to jeopardize the trade and investment relationships they enjoy today. As we all know, it all boils down to money.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Weaker Dollar Continues To Prop Up Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Continued weakness in the dollar index, now trading below the 97 level, is propping up the price of gold this morning.

Political uncertainties here in the U.S. are also contributing support to the yellow metal. As you turn on the TV this morning, the dominant talk on the business news channels is unfriendly to the President, as commentators discuss the impeachment process, looking for that a smoking gun.

It seems these days, an investor in precious metals must be aware of the gains and losses in the equity markets, as it appears these two markets have an inverse correlation.

On Wednesday of this week, the markets will be waiting for the FOMC minutes to be released from the last Fed meeting. Currently, the CME Fed Rate watch tool is predicting the odds of a June rate hike at 78.5 percent.

Inflows seen in both Gold and Silver ETFs overnight as some equity investors start to diversify
their portfolios. One Financial Advisor I spoke with this morning indicated that as time goes on and nothing gets accomplished in Washington, he expects more of his clients will ask to put some of their investments into hard assets.

Looking overseas:

Iran:
Over the weekend Iranian President Hassan Rouhani won his re-election by a significant margin. During his election speech, Rouhani indicated that his country is “not ready or willing to be threatened or to be sanctioned.” He also indicated that, “Iran wants to live in peace and friendship with the rest of the world.” Only time will tell during the next four years of his presidency what road he will take in complying or defying his agreement on nuclear enrichment with the US.

North Korea:
North Korea said on Sunday that it launched another successful medium range ballistic missile. This comes a week after they tested a new type of missile capable of carrying a large nuclear warhead. South Korea’s foreign ministry said Sunday the launch was “reckless and irresponsible” while our Secretary of State Rex Tillerson called it “disappointing and disturbing.” As North Korea’s President Kim Jon-un keeps practicing and developing his missile program, the world just sits and watches. Does anyone have any idea what this guy is capable of? He’s like a 16 year old kid sitting in his father’s car with the keys in the ignition just waiting for the opportunity to start driving. “BEWARE”

I share with you the news on both Iran and especially North Korea, because I believe any unexpected
action could affect the price of price of gold in a big way.

I expect if Kim Jong-un continues his testing, some action will be taken on North Korea when President Trump finishes his trip. One might think during the President’s trip he would ask for support to help curb the actions taken by the North Korea before it acts.

Have a wonderful Monday.

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.


Mixed Bag Keeps Gold Stagnant

The Market Gage - Dillon Gage's Precious Metals Newsletter

A mixed bag of indicators to end the week keeping the price of gold virtually unchanged.

A weaker dollar and stronger Ten yield Treasuries sending mixed signals to the market.

Equities seemed to have flattened out, looking for some news for direction.

The CME Fed Watch Tool targeting a rate hike at the next Fed meeting in June at 78.5 percent up from 64.6 percent a day ago.

Platinum Market Overview for 2017

The price of Platinum started the year around the $930 area. Since hitting a high of over $1,030 dollars at the end of February, the price for the most part has been all over the charts. Currently the price of Platinum in the most active CME contract is trading at $ 944.00 .

Platinum ETF holdings in the last ten days have increased by 91,000 ounces. CME Platinum Warehouse stocks currently at 95,000 ounces registered and 130,000 eligible.

This was Platinum week in London where a lot of comments were made by Mining CEOs. The Chief Executive Chris Griffith of the world’s largest platinum miner, Anglo American Platinum, told Reuters on Tuesday, “Policy uncertainty in South Africa and low commodity prices are hurting investment in the mining sector and will lead to further job losses. The miners are awaiting a release of the South African Mining Charter filled with regulations addressing imbalances in South Africa’s past apartheid rule which requires miners to keep black ownership at 26 percent. Uncertainty is dreadful for investment.”

Sixty percent of the industry is losing money and more jobs are at risk. Amplats has cut 15,000 jobs over the last four years and smaller rival Lonmin fired about 15 percent of its staff in 2016. In the end, he expects more mines to close if prices fail to rise.

Currency issues are also facing the miners with the Rand strengthening against the U S Dollar which raises operating costs.

Platinum has many uses. Jewelry, auto catalysts, many industrial applications as well as medical devises. If this administration fails to get a corporate tax cut in place and the economy slows down, all the areas of Platinum consumption will be effected.

Reuters reports Platinum prices were higher last year, but still near eight year lows despite expectations of a sixth year supply deficit. Two questions remain:, If the price of Platinum falls, at what price does it become an issue for the miners? And if the demand continues to exceed the supply, at what price point might the price of Platinum turn around?

Sorry I have no answers on this one, but it will be an interesting market to watch.

Have a wonderful Friday.

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.


American Eagle Sales as of 5/18/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on May 18th. The chart also shows the change in sales from 5/11/2017 which we reported on May 12th.

Gold
Coin Sales in oz. /#coins + from 5/11/2017
One oz.
132,500
132,500
3,000
3,000
Half oz.
13,000
26,000
000
000
Quarter oz.
12,000
48,000
500
2,000
Tenth oz.
23,000
230,000
1,000
10,000
Total
180,500
436,500
4,500
15,000
Silver
Coin Sales in oz. /#coins + from 5/11/2017
One oz.
10,352,500
10,352,500
580,000
580,000

Gold and Silver Boosted By Lower Dollar Index

The Market Gage - Dillon Gage's Precious Metals Newsletter

It has been a few months since we have seen the dollar index below the 98 level. With the Ten-Year Treasury yields now below 2.3 percent, both markets giving Gold and Silver a boost this morning.

As I started this report this morning we have seen equities down triple digits. It seems that as the equity markets head south, more investors are seen taking profits off the table and heading for the bond market and precious metals. Looks like the President’s agenda is on life support, with many looking for a way to pull the plug once and for all.

Some guests on CNBC were saying this morning that as time goes by, the chances of the President doing something that would get him impeached will increase dramatically. They went on to say that Pence and the Republicans will really give the Equity markets a boost. In my opinion, it doesn’t matter whether you support the President or not this kind of rhetoric only divides the country further.

Today I was asked to give a little information on how well the Palladium market has done in 2017, but before I talk about the price movement let’s talk about the primary uses for physical palladium.

The largest use of palladium is in catalytic convertors for automobiles.
Palladium is also used in dentistry, watch making, electrical contacts and
surgical instruments. It can also be found in laptop computers and mobile phones.

Palladium is rarer than gold or platinum and is one of the six elements in the so-called Platinum Group Metals (PGM’s). The other products are Platinum, Rhodium, Ruthenium, Osmium and Iridium.

At the beginning of 2017, we saw palladium trading around the $705 area. So far this year, investors have realized a gain in the price on the highs, most recently of approximately 15 percent. Who says the Equities are the only market giving double digit returns?

This year Palladium hit an intraday high of $830.35. The last time we seen these levels for Palladium was back in September of 2014. Open interest on NYMEX has been increasing and institutional investor interest increased in the month of April.

According to the charts, the level of resistance for the long term investors is at the $ 819- 820 level in spot. That area has been challenged this year a few times this year with no follow thru on any London fixing price. Currently the spot price of Palladium is trading at $786.00.

Palladium ETF movement has been flat of late, sitting at 1,526.000 ounces, and the CME group is reporting approximately 12 thousand ounces registered and 30 thousand ounces eligible in approved depositories.

I believe any increases in the price of palladium will be attributed to how the economy fares in the future. It’s no wonder the palladium market has done so well this year with all the promises of this administration for stronger growth. In the end, if the economy continues to grow as some members of the Federal Reserve predict, the price of palladium could
be the diamond in the ruff for investors.

But the question remains, is this country headed in the right direction?

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Dillon Gage Metals Offers Exclusive One-Ounce Silver Round

Uncle Sam silver rouind
Celebrates 100th Anniversary of Famous “I Want YOU” Poster

ADDISON, Texas (May 17, 2017) – Dillon Gage Metals, an international precious metals wholesaler, is set to release an exclusive and original one-ounce silver bullion medallion celebrating the 100th anniversary of Uncle Sam’s famous recruitment poster heralding, “I Want You for U.S. Army.” This iconic image is being portrayed for the first time in .999 fine silver and is being produced in the United States. Shipping of the rounds will be on a first come, first serve basis, expected to begin the week of May 22.

Continue reading “Dillon Gage Metals Offers Exclusive One-Ounce Silver Round” »


Weaker Dollar Continues To Boost Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

A continued weaker dollar is giving gold a boost this morning. Overnight, good physical silver buying has emerged in the Far East as tensions with North Korea continue to be on the minds of most in that region.

Chinese President Xi has indicated that he will spend 78 billion for infrastructure projects, helping prop up the value of metals across the board.

Strong inflows continue in the Platinum ETF as investors and commodity funds seem to have a new found interest in the PGM arena.

Turning to the EU – now that the French Presidential Election is over and most European investors are feeling better about their currency as we saw last week with a $6bn flow into European stock funds. Earnings growth in Europe have been better than here in the States so some traders have seen a rotation out of metals and into equities since the French Election. One gold dealer said, “My sales have dried up since the French Election and the only action I have is some folks coming thru the door selling some products they bought a short time ago.”

Also a shining light in the Eurozone has been the report of manufacturing hitting a 6-year high in April. The biggest participants have been France, Germany and Italy. Greece still seems to be struggling as they reported falling output for the eighth month in a row. So it looks like idle money will flow where the action is and it seems this is just what the EU community needed after all the gloom and doom it has experienced since the migrant crisis.

On our shores – U.S. Stock Funds saw their second week of outflows, redeeming almost $2.4 billion dollars, and have been exiting these products since March at a combined total of over $20 billion dollars. The question I have, is this the start of a rotation out of U.S. Equities and into hard assets? It’s too early to tell if this pattern will continue, but don’t you think the smart money sees what’s going on in Washington and is starting to protect their gains since the election?

Friday’s data on U.S. inflation and retail sales in April came in weaker than expected, softening the dollar. Buying emerged in the 10-Year treasuries giving gold and silver a boost.

After the disappointing economic data was released on Friday, the odds of a rate hike in June according
to the FOMC Fed Watch rate tool dropped from 83 percent to 72 percent.

A few months ago I thought that if there was going to be a rally in the precious metals markets it would be started from across the pond. Now it looks like the any rally will be initiated from actions here in Washington and possibly the Far East.

Have a wonderful Monday.

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.


American Eagle Sales as of 5/11/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on May 11th. The chart also shows the change in sales from 5/4/2017 which we reported on May 5th.

Gold
Coin Sales in oz. /#coins + from 5/4/2017
One oz.
129,500
129,500
500
500
Half oz.
13,000
26,000
500
500
Quarter oz.
11,500
46,000
000
000
Tenth oz.
22,000
220,000
1,000
10,000
Total
176,000
421,500
2,000
11,500
Silver
Coin Sales in oz. /#coins + from 5/4/2017
One oz.
9,772,500
9,772,500
450,000
450,000

Gold and Silver Volumes Increase Over April 2016

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold and Silver CME futures volumes pick up over 30 percent in April compared to April last year, but most see this price action headed in the wrong direction.

Outflows seen overnight in the Gold and Silver ETF as some short term players head for the exit.

A mixed bag of indicators this morning as we see a stronger dollar and softer Ten Year Treasury Yields.

Gold’s 100-day moving average was violated yesterday but since has recovered which gives some nervous longs a little courage to hold on to their positions.

Now for a look at the politics that can affect the economy AND precious metals:

Washington continues to be one big special interest group and it doesn’t matter who’s in the White House, it’s the same old politics.

Let’s look at the proposed Trump tax plan. As Treasury Secretary Steve Mnuchin calls it, “The biggest tax cut and the largest tax reform in the history of our country.” (Just remember his job history and you’ll understand why he’s behind this plan.)

How will this affect individuals:

  • Reduce the number of tax brackets from seven to three and cut the top marginal rate from 39.6 to 35 percent.
  • Double the standard deduction, but eliminating state and city taxes from your federal return (Yes, your property taxes are on the deductible chopping block) However, Mortgage interest and charitable contributions are still deductible.
  • Repeal the Alternative Minimum Tax, the Estate Tax and the Obamacare tax on investment income.

Starting to see a picture developing? Good I’ll go on…

How will this affect businesses :

  • Reduce the corporate tax rate from 35 percent to 15 percent and a onetime tax on a trillion of dollars overseas.
  • Allow small businesses to have their profits taxed at 15 percent.
  • An income earned tax which is “territorial in nature” as businesses would only be taxed on income earned in the U.S. In other words, if you manufacture a product here and sell it overseas the you pay no tax on the earned income.

Just think how big corporations must be cheering these proposals, along with the corporate tax reduction.

Are you seeing a really clear picture. Are you concerned?

One more piece regarding healthcare. The so-called repeal and replace plan has one part that I think is a real injustice; instead of giving a stipend to low income folks helping to offset some of the cost of their healthcare they took that away and are now giving them a tax break to help to cover for the loss of the stipend. Does anyone know how many folks that are in the low income category pay any taxes at all? So really folks, how does that help them?

By now you must be saying to yourself, are they for real? Yes they are…

So sit down for the next statement. The tax policy center concluded that the Trump plan would cut taxes by 6 trillion dollars over 10 years WITH ALMOST 50 (YES, 50 PERCENT) of savings going to the TOP 1 percent.

Figure this: Corporate taxes only make up 10 percent of the federal intake of revenues. According to the Center for a Responsible Federal Budget this plan would reduce the income the U S treasury would receive in the next ten years by more than 2 trillion dollars.

REMEMBER the country’s debt is almost 20 trillion dollars and then there’s our entitlement programs. How in the world will we be able to reduce the debt and fund the likes of a promised Social Security and Medicare?

Are they really draining the swamp or just feeding the “alligators”?

Oh yea, by the way, did you remember where Treasury Secretary Steve Mnuchin once worked? I rest my case.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


French Election Fails to Impact the Price of Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

The market finds support after last week’s selloff. Neither Le Pens loss in the French Election nor the stronger dollar and higher Ten Year Treasury yields seem to have had a negative impact in the price of gold this morning.

A disappointing loss for the European gold bugs that were rooting for Le Pen to win, as her promise to see France exit the EU was something they were hoping for.

But the European gold bugs have not given up hope just yet. All you have to do is remember the continued bad debt crisis effecting Italy.
Continue reading “French Election Fails to Impact the Price of Gold” »


Gold in Recovery Mode This Morning

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of Gold in recovery mode this morning despite a stronger dollar and higher treasury yields.

Some Wall Street Gold traders on Wednesday put on short positions as the price of gold broke thru the 200 day moving average at $1,250.80. As I indicated in the past, their strategy is to make a profit of fifteen to twenty dollars and get out. And that’s exactly what they did as soon as we broke thru the strong support level of at $1,232.00.

Now onto economic and political headlines from Europe.

Continue reading “Gold in Recovery Mode This Morning” »


American Eagle Sales as of 5/4/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on May 4th. The chart also shows the change in sales from 4/27/2017 which we reported on April 28th.

Gold
Coin Sales in oz. /#coins + from 4/27/2017
One oz.
129,000
129,000
2,000
2,000
Half oz.
12,500
25,000
000
000
Quarter oz.
11,500
46,000
000
000
Tenth oz.
21,000
210,000
000
000
Total
174,000
410,000
2,000
2,000
Silver
Coin Sales in oz. /#coins + from 4/27/2017
One oz.
9,322,500
9,322,500
530,000
530,000

FLASH GAGE – No Change in Fed Policy

No change in Fed policy at today’s May meeting. the FOMC Watch Tool gives a chance of a 25 basis point rate hike at 67.4 percent at the next meeting in June.

I’ll take the other side of that bet as the Democrats and some Republicans keep a hard line position against anything President Trump puts on the table.

Even if they take a vote tomorrow and the Health care bill passes, that’s just one house, there is another that needs to join the Health care ranks. And no one knows how long it will take before a tax bill can even be submitted to both houses.

The media is acting like a bunch of teenage cheerleaders trying to keep the narrative alive that the Equity markets have a lot more upside potential when President Trump’s agenda gets done.

Not so fast everyone, this is Washington politics and everything takes forever.

Enjoy the rest of your day.

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.


Fed Wraps Its May Meeting Today As Gold Remains Listless

The Market Gage - Dillon Gage's Precious Metals Newsletter

The Fed concludes its May meeting today with the Street only looking at a 4.8 percent chance of a rate hike.

After the poor first quarter GDP number, I assume there really isn’t much to talk about, so they might as well take out the lunch menu and order out.

No press conference today from the chairwoman, so we just have to wait to see what the six paragraph
statement contains.

Gold knocking on the door of the 200-day spot moving average at $1,250.80 level and I suspect if that figure is taken out, some stops will be executed. Levels of spot below are soft at $1,248 and not
until $1,232 do we get to see a good level of support.
Continue reading “Fed Wraps Its May Meeting Today As Gold Remains Listless” »


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.


Gold Fails To React To 1st Quarter GDP

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of Gold shows no reaction to the 1st quarter GDP number released this morning. Real gross domestic product only increased at an annual rate of 0.7 percent, compared to the fourth quarter 2016 which showed an increase of 2.1 percent.

A weak economy reduces the chance the Fed will have the ammunition to raise rates at the June meeting as expected by some on the street. And with that bullish news the price of gold just sits in hibernation mode.

What is going on in Washington? On Fox business today, Texas Representative Lou Gohmert said he believes there are people in the Republican Party that want to see President Trump fail. Case in point, the Republicans had hoped they would be able to vote and pass a health care bill today and after Ryan spoke with his party members he realized that a vote today would be a waste of time. So the health care bill, something that the president promised he would get done as soon as he got into office, is back on the shelf.

Now if you think he got nowhere with that promise, what about the promise to the American people he will significantly reduce the corporate tax rate and give a real tax break to middle class America? Anyone want to guess the odds of getting this done? Yes, recent corporate earnings on Wall Street have been promising but don’t you think the real reason for the rally on Wall street has been his promise to give everyone, especially the big corporate giants, a significant tax break? I wonder how long it will take for the equity market to wake up and see there is total gridlock in Washington and tax relief is miles away. At that point one could expect a nice rally in the price of gold as everyone in the equity market will be heading to the exits.

Now to Trump’s proposed tax plan. If you work for a Wall Street firm or run a small business you might be cheering, otherwise here is what some tax scholars are saying the majority of us will see.

They estimate that the top 1 percent of households would see a 14 percent increase in after tax income, while low and middle-class Americans will see gains of just 1.2 percent to 1.8 percent. Doesn’t sound like the enormous tax benefit he promised. First let me be clear, I’m only sharing what I read, I don’t belong to any political party.

Here’s the details:

As reported in USA Today, the standard deduction, currently $6,350 for single people and $12,700 for married couples, would double. As a result, many more low to moderate income families would pay no taxes. But all other deductions, except for mortgage interest and charitable contributions, would be eliminated, including state and local taxes and medical expenses and the property tax deduction is also on the chopping block.

Removing the state and local deductions would have the biggest impact on middle class America.

Another so-called thorn in the side for most wealthy Americans, is the Alternative Minimum Tax. This tax would be eliminated. Unless your income is in the highest so-called bracket, this elimination would not benefit you.

There is so much more on the table including less tax brackets to simplify the system. So please familiarize yourself on what is being proposed.

The idea was to simplify the tax plan, but at this point the jury is still out on whether that will be accomplished.

I share this information with you because the new rules will have a direct impact on the Dollar and Equity markets. As an informed investor, understanding what’s ahead is essential to making intelligent investment decisions.

Just some news from over the pond that effects the price of gold:

On Thursday the European Central Bank left its benchmark rate at zero and the deposit rate at minus 0.4 percent. They will continue to buy 60 billion Euros in mostly government bonds under their quantitative easing platform that should run to years end.

I’m sure this decision was made as the key political risk of France leaving the EU for the most part is now off the table.

ECB President Mario Draghi said yesterday, “Growth is improving. Things are getting better.” He sees record low interest rates and the ECB’s asset purchasing programs as the main reason for continued growth.

Some ECB officials are not sharing Draghi’s optimism until the French election is decided. Sounds just like our Federal Reserve panel here in the states.

I’ve said enough today, but I can’t leave you without saying,

Have a wonderful Friday.

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.


American Eagle Sales as of 4/27/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on April 27th. The chart also shows the change in sales from 4/20/2017 which we reported on April 21st.

Gold
Coin Sales in oz. /#coins + from 4/20/2017
One oz.
127,000
127,000
1,000
1,000
Half oz.
12,500
25,000
000
000
Quarter oz.
11,500
46,000
000
000
Tenth oz.
21,000
210,000
1,000
10,000
Total
172,000
408,000
2,000
11,000
Silver
Coin Sales in oz. /#coins + from 4/20/2017
One oz.
8,792,500
8,792,500
235,000
235,000

Gold Under Pressure From Higher Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

Let’s start with the domestic morning headlines that are impacting precious metals:

  • A stronger U.S. dollar and higher treasury yields are keeping the pressure on the price of gold this morning.
  • Outflows continue in both the Gold and Silver ETF funds as investors look to cash in their chips for a chance at the equity table.
  • The entire U.S. Senate heading to the White House today for a North Korea briefing. I would love to be a fly on that wall.

Now to the News around the globe that has a direct effect on our market.

What does Ms. Marine Le Pen have to do to win the run off with Mr. Macron for the French Presidency?

It seems that not only the markets are thrilled with Mr. Macron’s victory in the first round of the election, the European Union Community experienced a welcome sigh of relief.

Even though the polls give Mr. Macron 62 percent and Le Pen 39 percent with under two weeks to go, don’t count her out just yet. Most political French commentators say it’s not possible for her to win unless something radical happens. First and foremost, she needs to change her policy on exiting the Euro to give herself any chance. Something European gold investors would not be happy with.

We all agree she is a highly controversial individual because of her anti-immigration policies and her close ties to Russia. What most believe hurt her, was her trip in March to visit with Russia’s President Putin. It was reported she was there also to try to secure financing from Russian banks to help with her campaign.

Time Magazine has reported that in 2014, Le Pen’s Party, The National Front, took out a nine million Euro loan from a Moscow bank, so it seems that there is a strong relationship with Russian government.

Since this is a known fact about Ms. Le Pen, I agree something radical must change in the next 11 days to give her any chance, otherwise she will go the way of the 2016 Democratic Vice President candidate (I bet most don’t even remember his first name) Tim…Kaine, probably never to be politically heard from again.

The Gold market had heightened interest in this election as most believed a Le Pen victory would be the end of the EU, as France would be the next to exit and ultimately cause a breakup of the European Community. But at this point the odds are in favor of the EU staying just as it is today.

I find it interesting that since President Trump met with China’s President Xi, North Korea hasn’t
attempted their sixth Nuclear test. I don’t want to anticipate America’s response to that test as Kim Jung-un must be fully aware that the U.S. might respond militarily if he tries something.

I mention both the French election and the problem with North Korea, as these two news items are seemingly the only catalysts for a higher gold price at this time. Just look at all the attention the stock market has received since the corporate tax cuts are all the talk on Wall Street. Avoiding a government shut down is also at the top of the list. So at this time, without any significant news, the price of gold seems to be headed into market hibernation for the time being.

If you remember a week ago we reported that the Wall Street Gold Traders took their profits when the market traded back to the $1,278-$1,279 level and got out. Since then the only place you might find them is at a high end steak house on the east side of Manhattan enjoying their lunch.

If the gold market breaks thru the 200-day moving average at $1,253, I expect they will be back in the market playing it from the short side.

Patience everyone, there are better days ahead.

Finally, here is a public service announcement: Don’t get too excited about the proposed corporate tax cuts when the politicians are behind closed doors trying to take away or reduce your 401(k) tax benefit. THAT’S RIGHT, as Wall Street is cheering President Trump’s corporate tax cut guess who winds up paying for part of that tax windfall; YOU DO!

Congress is reportedly looking at how it treats all 401k contributions. Right now, any income and gains your 401(k) generates don’t get taxed until you make withdrawals. But one proposal would impose a 15% tax on annual gains within 401(k) plans. If you participate in a 401k you need to call your representative and tell him or her don’t you dare tax upfront our 401k plan!

Just giving you a heads up, and remember always read the small print first.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


French Election Results Ding Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Le Pen’s second place finish hurts the price of gold.

As soon as it was obvious that Le Pen was not going to win the first round of the French Presidential election, the price of gold took it on the chin. In the early evening here in the states, the CME Gold futures contract traded down $23.00 to an intraday low of $1,266.00.

Le Pen finished in second place behind a former investment banker and political novice Mr. Macron. This is a very untraditional outcome, as neither candidate came from the establishment parties that have been in power for decades.

Nonetheless, a second place finish gets her into a runoff in two weeks to see who will be the next President of France. According to the polls and the way the equity markets are reading the tea leaves this morning they are not giving her much of a chance of defeating Mr. Macron.

So now it looks like the European Community will stay together and just have to deal with the UK leaving. We will have to wait to see what the financial impact will be as the process develops.

This election was so much a part of the recent rally in the price of gold that even with the lower dollar this morning, gold seems to be in an offer mode down $17 dollars at the time of this report. I do expect the price to recover somewhat but for now the rally has lost all its momentum.

Back to our shores, U.S. news events that can impact the markets this week:

Will both parties come to an agreement later this week to fund the Government, or will the Democrats play hardball with the president? Healthcare seems to have zero impact on any market and everyone’s awaiting the big announcement on Wednesday promised by the President with his plan for tax cuts both corporate and individual. Equities around the globe are up nicely this morning and the Dow is up over 200 points on the opening. So one could expect the equities to get all the coverage this week unless some unexpected news hits the wires.

The next level of support in the gold is at $1,248.00 and silver at $17.52.

Have a wonderful Monday.

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.


All Eyes Are On This Weekend’s French Election

The Market Gage - Dillon Gage's Precious Metals Newsletter

If you read our comment on Wednesday, I indicated that we would have to hold the level of support in gold at the $1,278-$1,279 level in the June gold contract otherwise I believed that the anticipated Wall Street Gold traders stop loss levels would be triggered.

And if you watched the action Wednesday in the June Gold Futures contract, that is what seemed to have happened. So much so that at that point the selling accelerated the price of gold to a new inter-day low in the June contract of $1,275.40. It seems as soon as the anticipated stops were filled, the market rebounded back to the $1,282 area.

Today, it seems everyone is happy making a couple of dollars and now the traders I speak with will wait for the next opportunity to surface.

To news over the pond:

The International Monetary Fund is warning that when Brexit is finalized, it could have an unpredictable outcome, posing a risk to global financial stability. Wednesday, on an lopsided vote by British law makers, they agreed to hold snap elections on June 8th. This should give the UK’s Prime Minister Theresa May parliamentary support and gain more leverage to negotiate Britain’s withdrawal from the European community. The Prime Minister said, ”A general election is the best way to strengthen Britain’s hand in the negotiations ahead.”

Watch out world, as the Washington Post reported on Wednesday, the French Communist party candidate Jean-luc Melenchon is gaining in the polls in the French election to be held this Sunday. What is so interesting is the fact that Mr. Melenchon, like his opponent Ms. Le Pen, is also in favor of France reclaiming her independence from the EU. Right now, he is in third place and very close in the polls to the gentleman in second place Mr. Emmanuel Macron.

The question that is on everyone’s mind around the globe is, if both Ms. Le Pen and Mr. Melenchon come in one-two in Sunday’s French election, how will the financial markets and the commodity markets react come Monday morning? A trader I spoke with this morning said if they come in one–two he expects a selloff in the euro Sunday night and a rally in the dollar moving gold lower.

As expected, no one candidate will win a majority so the two front runners will compete in a run-off election in May. Living here in the States, you might not think that this is big news, but globally this is a “very big deal.”

Any more terrorist attacks like the one yesterday should help the front runner Ms. Le Pen gain more votes. Yesterday she indicated that if elected she will expel every suspected terrorist in France immediately.

As reported in the Washington Post, some are in a panic state. Investors have begun frantically selling off French bonds, while the head of France’s largest trade union has decried what he described as Melenchon’s “rather totalitarian vision.” But thousands of others have responded with joy.

According to the Washington Post nearly 25,000 people assembled in a predominantly middle class northern French city this past Wednesday evening to hear Melenchon. With his distinct wit, erudition and rhetorical flair, he charmed his crowd, that was packed inside and outside a local sports arena, waving communist banners, Palestinian flags and signs adorned with the Greek letter phi, the campaign’s official symbol.

It seems as if every weekend of late has a big event on tap. Just last weekend all eyes were on North Korea’s holiday, “The Day of the Sun,” where their leader Kim Jung-un threatened the world with another Nuclear test. Luckily that didn’t happen.

This weekend the world might not be as nervous as it was last weekend, but you can be sure all investors around the globe will be watching this election closely.

One must believe that eventually any one of these stories coming to fruition can give the price of gold a huge boost.

Have a wonderful Friday.

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.


American Eagle Sales as of 4/20/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on April 20th. The chart also shows the change in sales from 4/6/2017 which we reported on April 7th.

Gold
Coin Sales in oz. /#coins + from 4/6/2017
One oz.
126,000
126,000
1,000
1,000
Half oz.
12,500
25,000
000
000
Quarter oz.
11,500
46,000
000
000
Tenth oz.
20,000
200,000
500
5,000
Total
170,000
397,000
1,500
6,000
Silver
Coin Sales in oz. /#coins + from 4/6/2017
One oz.
8,557,500
8,557,500
345,000
345,000

Weaker Dollar Buoys Gold As We Eye France’s Election

The Market Gage - Dillon Gage's Precious Metals Newsletter

A weaker dollar index of late under 100 keeping the price gold a float.

The Ten-Year Treasury yield at 2.20 percent in positive territory this morning, up overnight from a low yield of 2.1943 keeping some pressure on the gold price this morning.

I’m told large fund selling in the far east overnight also putting pressure on the price of gold. This move has kept the Wall Street Gold traders guarding their long positions. Both my technical friends and the Wall Street Gold traders I spoke with this morning are calling the $1,278-$1,279 level in the June contract a level of support. I expect this is where the smart traders are entering their stop orders after going long at the $ 1260 area a week ago.

For the readers who follow the FOMC Fed Rate Watch Tool here is an update. The next Fed meeting in May is only showing a 4.3 percent chance of a 25 basis rate hike . June is showing a 42.3 percent chance and at no point at the remaining meetings does the odds exceed 45.8 percent. Only a Chrystal ball prediction, if there is no data to support another increase.

Now to news from across the pond:

We will be following the French election closely this weekend as the outcome can have a significant
impact on the price of gold in the coming months.

We all know Ms. Len Pen’s stance of taking France out of the EU. She has stated that within six months into her term she will put together a referendum for France’s exit from the European Community, and if it fails, she indicated she will step down.

Two suspects were arrested on Tuesday on suspicion of planning an imminent and violent terrorist attack ahead of the first round of France’s election this weekend. Not surprisingly, Ms. Le Pen has increased her anti-immigration and Anti-Islamic rhetoric, trying to excite her constituents before the election.

The arrest will benefit Ms. Len Pen’s campaign. Over the weekend she continued with her promise to give the French their country back by suspending all legal immigration and protect their way of life. She stated “Give us France back, damn it” as her supporters yelled in a loud voice “This is our home.” Ms. Le Pen also said, “this election is about losing the way of life the French people have enjoyed for centuries…In France, we drink wine whenever we want. In France we do not force women to wear the veil because they are impure. In France, we get to decide who deserves to become French”.

No one expects any one of the five candidates to win a majority, so a runoff election is scheduled next month.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Holding Steady as a Safe Haven

The Market Gage - Dillon Gage's Precious Metals Newsletter

Let’s start this Monday morning with some headlines:

Money is pouring into the U.S. Ten Year Treasuries as the yield just a couple of weeks ago was at 2.60 percent, today the ten year is yielding 2.23 percent.

Gold virtually unchanged this morning as it too recently has been a home of the safe haven investments like the U.S. treasuries.

The dollar index approaching the 100 level once again as the President continues to promote his idea that a weaker dollar is good for our economy. It is also happens to be good for the price of gold.

Gold ETFs up for the fourth day in a row, adding a healthy 356,000 ounces into the funds.

As I indicated before, I expect gold to move at a steady pace higher as all the world financial headlines and political uncertainties give the price a boost.

If you have been following my most recent comments, you’ll see that the Wall Street Gold traders are on the same page, continuing to hold on to their long positions with adjusting their trailing stops, as the market trends higher to protect their earned profits.

Now news over the pond, The volatility in the euro increased to the highest levels since before the Brexit vote as our “Golden Lady,” Ms. Len Pen, increases the pressure on her rivals just before the French election. The polls indicate a very tight race without any one candidate getting a majority. The most recent figures show Ms. Len Pen and Mr. Macron at 23 percent followed by Mr. Fillon and Mr. Melenchon with 20 and 19 percent respectively. At this point the chance a of a run off in May is almost a sure thing.

Ms. Le Pen continues her stance that France is better off out of the Euro Zone. So if she wins, a referendum on whether to exit the EU is expected in just six months after she is sworn in. Obviously if this happens, the price of gold will be a big benefactor of the exit of France from the EU.

Now to the news the whole world is watching.

Everyone was expecting something significant to happen as the North Koreans celebrated the most important holiday of their year, called the “Day of the Sun.” Thankfully nothing of consequence happened Saturday in North Korea except a failed missile launch.

One must keep a close eye on North Korea as it continues to be like a boiling pot of water. Since Kim Jong-un
didn’t test his sixth nuclear test on Saturday, let’s have some fun and call him the “Potato” and President Trump the “Egg.” No I’m not going crazy. Just think when you have a boiling pot of water in front of you and you drop a potato and an egg in the pot at the same time. What happens after a couple of minutes? That’s correct, the potato softens and the egg gets hard. That’s exactly what happened this weekend. Kim Jung-un softened up a bit. Maybe the advice of the Chinese or the “hard” stance taken by the U. S. gave him second thoughts. Nonetheless, I’m sure this confrontation is far from over.

Have a wonderful Monday.

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.


FLASH GAGE – How Will U.S.’s Big Bomb Drop Affect Gold

The U.S. just dropped the mother of all bombs on an ISIS tunnel in Afghanistan. This is the largest non-nuclear bomb the U.S. has in its arsenal.

The Trump administration at the same time issues a picture of our military capabilities of our aircraft carriers ready to strike North Korea if they send up a missile or even worse test their nuclear capabilities for the sixth time possibly on Saturday commemorating their founders birthday.

The gold market has no reaction to the story as we see the dollar stronger and the ten year treasury softer keeping gold in its place. But equities are selling off the news. But as the equity markets sell off I expect gold to catch another bid.

This weekend we all should be watching closely and I mean closely all the news out of North Korea as they celebrate their holiday on Saturday. There is no telling what Kim Jung-un is capable of but one thing is for sure based on what we seen from President Trump so far if he acts we are coming and gold will be a benefactor to his actions.

I’m curious to see where the markets will open up on Monday if anything happens.

Have a wonderful Thursday.

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.


Huge List of Potential News Headlines That Could Boost Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Where do I start? There is so much going on here in the States and around the globe that affects the price of gold in a positive way. I can hear the Wall Street Gold traders cheering the price of gold on with all the news to fuel their long positions, including:

  • A weaker dollar and treasury yields
  • Strong inflows into the Gold ETF s overnight
  • Weaker equities (Is the Trump rally over?)
  • Russia talking tough
  • Syrian issues
  • North Korea threat
  • Healthcare (when?)
  • Tax reform (if?)
  • The Democrats digging in their heels promising to fight tooth and nail on any bill or action proposed by The Trump administration.
  • If the President and congress fail to act we are looking at a potential U.S. government shut down without a budget on April 28. Hundreds of thousands furloughed employees, closed national parks, lack of government services and you better hurry up and get your tax return in because if the government shuts down so does your refund.

So with all this going on do you still believe the economic data will justify a rate hike anytime soon?

In the end how will the equity market react to all this news? One might think for the time being this news will stop any rallies.

And let’s not forget the French election right around the corner. And whether you believe it or not that Russia had anything to do with our presidential election, just look at what’s going on in France. Putin loves Marine Le Pen, the “golden lady.” Russia began financing Ms. Le Pen just after she travelled to Moscow in March to boost her international profile and to show the world the they both agree that a EU without France would be a good thing.

We all heard President Trump complain about fake news and now Ms. Le Pen’s main opponent Emmanuel Macron is publically accusing Russia of trying to discredit him through Fake news stories distributed by Kremlin run media channels. It will be very interesting to see how this election pans out. As I reported before, Ms. Le Pen said and still believes France is better off on their own without the EU. If France follows the UK and leaves, this will have a profound effect on the price of gold, that’s why we call her the “golden lady”.

I expect the gold rally to continue at a slow and steady pace. The price action could escalate in the event Kim Jong-Un decides to fire a missile on Saturday to celebrate their national holiday honoring their founder. Reuters has reported that North Korea might also be planning another nuclear test, its sixth, and if the U.S. retaliates, Kim Jong-Un threatens us with a nuclear attack.

As I said in the beginning of this report, there are a lot of things going on that can and will have a positive effect on the price of gold. The question remains when and how much. I cannot find any news except more rate hikes that can push gold in the opposite direction. We will just have to wait and see.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – North Korean Concerns Driving Precious Metals Up

The Gold market is heating up as North Korea has issued a stiff warning to the U.S. CNN is reporting a statement from officials in Pyongyang, North Korea’s capitol saying that the “current grim situation” justifies North Korea’s “self – defensive and pre-emptive strike capabilities with the nuclear force at the core. We will make the U.S. fully accountable for the catastrophic consequences that may be brought about by its high-handed and outrageous acts.”

President Trump is talking tough in a tweet said, “North Korea is looking for trouble. If China decides to help, that would be great. If not, we will solve the problem without them.”

These strong words have gotten the Wall Street traders back into the gold market this morning. Last week when the U.S. hit Syria with missiles, everyone thought no big deal, this was a “one off,” so they ignored the news and when the market absorbed all the news the market sold off.

The potential showdown with North Korea is a completely different animal, and here’s why: In the event that this escalates, some Wall Street traders believe that congress will be so tied up addressing President Trump’s actions that healthcare and tax reforms will be put on the back burner. Remember, the Wall Street Gold traders are looking for a pop in the market where they can earn $15 or $20 dollars in a day or two and historically are not long term holders of gold.

This type of news plays right into their thinking as the rally starts off slow they buy in on the news and then the rally accelerates. And as I’m writing this comment that’s exactly what’s transpiring.

North Korea is looking at our deployment of 5000 sailors and 60 aircraft on the USS Carl Vinson escorted by guided missile destroyers USS Wayne E Mayer and Michael Murphy and the guided Missile cruiser USS Lake Champlain.

Saturday, April 15th, is a special holiday in North Korea. It’s the birth anniversary of Kim ll-sung, founder and President of North Korea. It’s the most important national holiday in the country. Kim ll-sung’s birthday, which has been an official holiday since 1968, was renamed Day of the Sun in 1997, three years after his death. A commentator on Fox news this morning said, “I wouldn’t be surprised if on Saturday to commemorate the holiday Kim Jong-un will launch a missile, which I’m afraid could be shot down by one our military cruise missiles.” If that happens only God knows how that would end.

The point I’m trying to make is you need to watch this market closely as the comments of one Wall Street Trader put it, “it would take only one tweet from the President to move the gold market in an unexpected way.” That’s why the Wall Street Gold Traders have been on the sidelines. But we all must believe that the next Trump tweet
will not be wishing Kim Jong-un a wonderful holiday. As we approach a three day holiday at the end of the week positioning yourself for the unexpected might be a wise move.

Seatbelts fastened. I expect the next few days we will see a very active Gold market.

Have a wonderful Tuesday.

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.


Gold Fails To Stay Above 200-Day Moving Day Average

The Market Gage - Dillon Gage's Precious Metals Newsletter

The attack in Syria and the poor jobs report cannot get gold to stay above its 200-day moving average at $ 1256.25 spot – number that all traders see as a level of support that must be maintained for gold to trade higher.

Subsequently, we are now back to the levels seen before the Syrian attack and the jobs reports were released.

Wall Street gold traders didn’t take the bait and remained silent for the most part during these events.

The dollar and Ten-Year Treasuries are trading sideways, keeping a lid on the price of gold.

Financial advisors and their clients seem content with President Trump’s economic agenda and are pretty comfortable as viewed by volatility levels across asset classes, especially with the dovish tone revealed most recently by the Fed.

At this juncture, with such calm equity markets, we see very few investors buying volatility protection against a downturn in the market – So much so, that the Implied Stock Volatility index is near historic lows. Still ahead, is the European elections and the continued turmoil in Congress on whatever President Trump puts before them. I can’t see the volatility remaining this low for too long as Russia and Iran are flexing their muscles with comments that they will respond with force to any future American aggression.

One spark, one trigger point can move our calm equity markets into a tailspin and give the price of gold a boost as witnessed last week with the Syrian attack. We will have to wait and see if the equity market can keep its rally alive, but I for one believe all the news of late is just the calm before the storm. As one financial advisor put it, “At this time I’m taking a cautious approach and asking my clients for their risk tolerance levels. Then I am moving forward protecting their profits realized since the election in the event something happens. Smart investors ride their profits and put scaling stop losses to protect what they already earned.” Sound advice for sure.

So today we watch the dollar and the treasuries as those two markets are the driving force for any future price movement in our metal markets ahead.

In the meantime:

Have a wonderful Monday.

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.


Overnight Gold Hit Five Month High After Missile Strike

The Market Gage - Dillon Gage's Precious Metals Newsletter

Last night, as soon as the news hit the wires that the United States had dropped tomahawk missiles on Syria, gold rallied $12 dollars. Far East traders reacted to the news and here in the States Algorithm programs kicked in. It wasn’t until the President made his speech that gold took another $5 leg up. As things calmed down, some short term trading profits were taken and now we sit and watch and wait to see if there are any repercussions to our actions.

Before the attack, I already had a comment I wanted to share with you today. With Gold up $ 11 dollars this morning solely on the attack last night and the dollar and Treasuries kind of flat, we now await precious metal’s reaction to the job numbers that just came out. In the meantime, I still think sharing these comments and news items makes a lot of sense.

Premiums softening as dealers see more products coming in the door than out. Tight trading ranges and continued retail interest in equities seem to be the major factors affecting our markets. But the main culprit is the Federal Reserve members current policy of sharing their unwanted opinions between meetings. I know I am repeating myself, but when the main players are absent from our market, like the Wall Street Traders who create liquidity, the market just sits there. One just needs to look at the CME Futures trading volumes of late to understand what is going on.

I am sure if the Chairwoman comes out and states that there will be no more sharing of opinions by Fed members our market will come to life again. Just look at the story this week on the resignation of Richmond Fed President Jeffery Lacker.

We all see the Dollar and 10-year treasuries trading in a tight range and those two items are the catalyst for any movement in the price of gold. But the Fed is driving the car and unfortunately has our road
cut off, and until a policy change is put in place I expect our car will be in park for a while.

But there is a lot going on around the globe and the U.S, isn’t the only country that has a say in the price of the yellow metal. You just have to look over the pond to see where the potential firestorm will erupt.

Here is one part of the world that can have a serious impact on the future price of gold, Greece.

Greece is back in the news once again as negotiations in Brussels between Greek ministers and bailout monitors get close to an agreement on pension cuts and labor reform. Athens has no choice but to adapt these reforms as more bailout money is desperately needed.

Greek prime minister Alexis Tsipras has asked for an emergency summit of EU leaders this month if the finance ministers fail to reach an agreement on the next bailout for Greece today. An agreement today will pave the way for a release of over six billion Euros to avoid a Greek default on its credit obligations in July.

As the country tries to keep afloat, we still see major hurdles to overcome. Greece’s unemployment rate is an astonishing 23.5 percent and according to the Greece state employment agency new claims have risen since the beginning of the year. The unemployment rate in Greece stands way above its EU partners where the average unemployment rate is 8 percent. Things are getting worse in the country as over half of the unemployed have been without a job for over a year. One interesting figure to share with you is that over 300,000 skilled young workers have left the country in the last 6 years to look for work elsewhere.

For the employed, they have seen big increases in taxes which in turn has helped the government in revenue collections this past year. That’s the only good news from the government prospective. Central bank officials are concerned with the amount of money that has been taken out of the banks in 2017. These funds were withdrawn by small to medium size companies worried about a failure to get bailout money which in turn could cause a banking crisis. Banks in Greece have a similar problem like their friends in Italy. Greek banks have almost a 50 percent non-performing loan portfolio on their books. I cannot imagine here in the states what would happen if we had a 23.5 percent unemployment rate and a bank loan default rate of close to 50 percent. There probability would be blood in the streets.

As I have written in the past, an exit from the EU by Greece, Italy, Portugal or Spain is highly unlikely. In my opinion they will hang around to the very end looking for a handout from the EU. And if France departs from the EU (remember the election in France is days away) this will leave Germany holding the never ending responsibility of keeping these countries afloat. When will it ever end?

As this saga continues and investment in physical Gold looks like a wise investment.

Have a wonderful Friday.

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.


American Eagle Sales as of 4/6/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on April 6th. The chart also shows the change in sales from 3/30/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 3/30/2017
One oz.
125,000
125,000
1,500
1,500
Half oz.
12,500
25,000
000
000
Quarter oz.
11,500
46,000
500
2,000
Tenth oz.
19,500
195,000
500
5,000
Total
168,500
391,000
2,500
8,500
Silver
Coin Sales in oz. /#coins + from 3/30/2017
One oz.
8,212,500
8,212,500
255,000
255,000