Gold Approaching $1,300

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold picking up steam this morning, approaching the $1,300 dollar level.

Many issues in the marketplace are supporting the price at these levels. One major factor that can affect the value of the equity markets and in turn the price of gold is whether President Trump’s aide Gary Cohn stays on. The market views Mr. Cohn as the key person who could help the President push thru his tax reform plan. In the event he resigns, many believe that tax reform will be dead and a selloff in equities will occur.
Continue reading “Gold Approaching $1,300” »


American Eagle Sales as of 8/17/17

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 August 17th. The chart also shows the change in sales from 8/10/2017 which we reported on August 11th.

Gold
Coin Sales in oz. /#coins + from 8/10/2017
One oz.
160,000
160,000
4,000
4,000
Half oz.
14,000
28,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
216,000
530,000
4,000
4,000
Silver
Coin Sales in oz. /#coins + from 8/10/2017
One oz.
14,788,500
14,788,500
125,000
125,000

FLASH GAGE – White House Advisor Unrest

News that is impacting the markets….

A story worth mentioning, is the status of the White Houses’ top economic advisor and former chief operating officer of Goldman Sachs, Gary Cohn. News reports coming out that Mr. Cohn is extremely upset with the President’s comments regarding Charlottesville. Some news agencies are reporting he is considering stepping down. If he does this would be a huge blow to the President’s agenda and seems to be having a negative effect on equities today along with the terrorist attack in Barcelona, Spain. I believe if Mr. Cohn does step down this will totally derail President Trump’s plan for tax reform.

All this news along with the Fed comments yesterday is bullish for our Gold market.

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.


Special Edition: Stronger Dollar Fails to Dent Gold

Despite a stronger dollar and higher US Treasury Yields the price of gold marches forward. The release yesterday of the July Fed minutes seemed to convince many gold investors that the Fed does not have the ammunition to raise rates any time soon.

I found the Chairwoman’s comments interesting in how she described the low rate of inflation. She said, “I attribute the recent slowdown to idiosyncratic or peculiar factors like cheaper wireless service.” Really? Cheaper wireless service is one of the main factors inflation is low? I think she can do better than that.
Continue reading “Special Edition: Stronger Dollar Fails to Dent Gold” »


FLASH GAGE – Gold rallies on details of Fed minutes

Most Fed members in July voted to moving closer to unwinding the Fed’s $ 4.5 trillion dollar balance sheet.

But what caught the attention of many Gold investors was the members indicating it will take a couple of years for inflation to reach 2 percent and that’s what gave the price of Gold
a boost this afternoon.

As expected that news puts a damper on any rate hikes in the near future.

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’s Rally Mode Flirting with $1,300

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold overnight knocking on the door at the address $1300.00.

With the price of Gold in rally mode, because of the tensions with North Korea, some of the dealers are starting to rearrange their inventory holdings to put themselves in position to meet the demand for product in the event the market really starts to heat up.

Recently, when the market has rallied, many dealers have been seeing quite a bit of buybacks hitting their doors. But we all have seen that in the event of a strong bull market finding inventory to meet the demand can be become an issue.

Rearranging inventory and planning ahead sounds like prudent advice as most of us remember not too long ago, there were significant delays on some popular items. With the demand for physical being on the quiet side this year, one must expect the U.S. Mint and some refiners to be caught off guard in the event the market heats up.

Dealers are not the only ones planning for a gold rally. Yesterday, after hearing the next warning sent out from North Korea, a number of Wall Street gold traders took on long positions figuring that at this point there isn’t any downside risk to the price of gold.

Not only has the Gold market gotten the attention of the investor looking for a safe haven, U.S. Treasuries have received very strong investor interest of late as seen by the drop in yields down to 2.1860 percent.

If we break the $1,300 dollar level, many traders expect to see stops right above that level which should help accelerate the rally to new levels.

The price of Silver needs to play catch up and break thru the simple 200-day moving average at $17.23 before trending higher.

With equities to open higher today, I expect to see some profit taking in Gold, stalling the rally temporarily.

North Korea vs. the United States

The Washington Post reported Tuesday that North Korea now has the capability of putting a nuclear device on the head of a missile.

For those who aren’t old enough to remember the first Korean War, it took the lives of over 2.5 million people. With a madman at the controls of a potential nuclear device aimed at the U.S. that number could be just a fraction of the amount of people that could be lost if he decides to act.

Who moves first is the question? Do we take him out or do we play defense and await his first move?

Now Kim Jung Un has released a specific warning that in the next few days he intends to launch 4 rockets over Japan with plans to land them in the ocean, 18 miles off the coast of Guam. If their missile guidance systems are off, anything landing within 12 miles of Guam will be considered an act of aggression and then we expect all hell to break loose.

It has become like the night before the fight where the two fighters weigh in and stare down each other. What will happen is anyone’s guess. President Trump has no military experience and is impulsive, while Kim Jung Un is very unpredictable, so everyone needs to take a deep breath and start a dialogue. (Wishful thinking on my part). In the meantime, the U.S. must be prepared for anything. Kim Jung Un must realize that if he tries to fire a missile he must expect to be totally wiped out.

According to former U.N. Ambassador Jon Bolton, North Korea is willing to sell its nuclear technology to Iran in exchange for hard currency. Intelligence sources have reported that representatives from Iran were present at the first three missile launches conducted by Kim Jung Un. And we all know that Iran’s intentions are to eliminate Israel.

It’s also important to remember ALL Kim Jung Un’s massive military potential. He has 5,000 tons of chemical weapons and the ability to send them anywhere in Asia. He has over 1 million military men, 4,300 tanks and plenty of artillery that could level Seoul with 25 million people in less than an hour.

We’ve heard that he will kill anyone who stands in his way, even his own family members. He has killed over 200,000 of his own people in death camps. With that kind of track record he seems capable of doing anything.

China said this morning that if North Korea strikes first they would take a neutral stand, but if the U.S. strikes first, China will stop any further U.S. aggression. I, for one don’t, want to speculate what that might entail.

In my opinion, China’s comment is a very important development in this story as it brings a new dimension to the strategy for both sides. Right after this statement from China hit the news wires, Equity Futures rallied and the price of Gold sold off $8 dollars.

With all that’s left on the table, I’ll spare my audience asking the question what happens to the price of Gold if Kim Jung Un acts on his promise. But for now, the statement from China seems to have calmed the waters.

In the end, let’s just hope level heads prevail and say a prayer nothing happens because we are at a historical crossroads that could be the end of the road for many people.

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 8/10/2017

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 August 10th. The chart also shows the change in sales from 8/3/2017 which we reported on August 4th.

Gold
Coin Sales in oz. /#coins + from 8/3/2017
One oz.
156,000
156,000
1,500
1,500
Half oz.
14,000
28,000
500
1,000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
212,000
526,000
2,000
2,500
Silver
Coin Sales in oz. /#coins + from 8/3/2017
One oz.
14,663,500
14,663,500
160,000
160,000

North Korean Worries Lift Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

Even with a stronger U.S. Dollar, geopolitical risks have taken over and given the price of Gold a boost. Speculation in the Gold and Silver futures markets, as reflected in the CME open interest figures, are up as some investors start to rotate their investments out of equities and into metals.

Strong words from our President towards North Korea have the world’s financial markets nervous.

For those who follow the CME Fed Watch tool, a real chance of a rate hike can’t been seen until December and that number isn’t overly impressive, just sitting at 42 percent.

No doubt North Korean issues will further stall the President’s agenda, as Congress must keep a close eye in the rear view mirror as Kim Jung Un continues his threats.

Some Wall Street gold traders indicate that for the gold rally to continue, the North Korea rhetoric must escalate and a selloff in equities must occur, otherwise we will head back to the $1,250 area where they say the price of gold has strong support.

Now Today’s Featured Topic: Is The World Bankrupt?

Let’s start across the pond:

The European debt clock is currently running at over 12.5 trillion Euro. That’s an average of 24,589 Euro per person in debt.

Italy leads the group with over 2.3 trillion Euro in debt with an average of 38,136 Euro for each individual. But that’s only the tip of the iceberg in Italy as their non performing bank loans has doubled in the past 6 years to over 350 billion Euros. So far this year, Investors have taken over 60 billion Euros off of Italy s bad performing loan books at an expected return of over 4 percent. Also the government had to pump in 25 billion Euros to bail out 3 banks that were at the brink of failure.

Germany, France and the United Kingdom also have high levels of debt. France and German at over 2.2 trillion Euros in debt and the United Kingdom at 1.7 trillion Euro’s in debt.

And let us not forget Greece where all their debt problems seem to never go away, are currently holding 325 billion Euro’s in debt. Greece’s bad loans are currently siting at 110 billion Euro’s and there too, like Italy, are looking for investors for help. So far investors have taken over millions of bad performing loans at a fraction of their value as they try to renegotiate the terms of the bad loans and in some cases come in and seize their assets.

Common sense will tell us that these bad performing loans problems are miles away from an end. The question that comes to my mind is, why is anyone in Europe still underwriting these loans? What were Italy’s bank executives thinking when just their non-performing loans increased year over year for the last six years? It’s baffling to me that as they watched bank after bank need a government bailout that they wouldn’t tighten up their lending practices? And where were the government officials? Sloppy financial underwriting practices are “always” a recipe for disaster.

To our shores:

It’s not much better here in the States. Currently, our national debt is sitting at $20.4 trillion dollars. That’s $63,389 dollars of debt for each individual here in our country.

And we Americans are holding over a trillion dollars in credit card debt; that’s greater than the Gross
Domestic Product of all but 15 countries.

And now a report released on Monday this week by the Federal Reserve states that Americans now have the,
“HIGHEST CREDIT CARD DEBT IN U.S. HISTORY.” This level now exceeds the level reached during the financial crisis in 2008.

Are our bankers here having the same brain freeze issues that are facing the bankers in Europe? Or is it the 20 to 25 percent interest rates on credit cards that are so attractive to bank executives that they don’t care who they issue credit to.

This year, household debt, which includes housing, auto loans and student loans, also surpassed the numbers reached during the 2008 financial crisis. It has also been reported that grandparents have stepped up to help the younger ones with their loan burdens. This also could be a disaster for older Americans as the average American couple has only $5,000 dollars put away for retirement.

Also, only one third of working Americans participate in company sponsored deferred retirement accounts.

That Leads To The Topic Of Social Security:

Social Security payments for almost 40 percent of retirees represent 90 percent of all their yearly income.
You might want to read that line again. That number seems staggering to me.

When, or will we ever, address the entitlement programs here in our country? Healthcare for everyone? Not unless you are ready to allocate 60 percent of your tax dollars to cover the cost of universal health care.

It will only be when credit agencies tell us, “the world is bankrupt” that bankers and government officials “get it.”

As in long car rides when my children would say, “are we there yet?” In this case, my children, I’m sad to say, “yes we are!”

After reading this, for a secure future, doesn’t an investment in physical Gold make sense?

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.


Dollar Strengthens as Gold Hangs In There

The Market Gage - Dillon Gage's Precious Metals Newsletter

Labor Market Holds, Dollar Makes a Comeback and Somebody’s “Un” Trouble Overseas…

Are the rallies in the gold and silver market starting to lose enthusiasm? Many leading analysts are saying that on the heels of a better than expected July jobs report, the U.S. dollar is starting to strengthen, which is set to temper market interest. The dollar reached a 13-month low last week, but is expected to make some modest gains, as the jobs report is another strong factor for an economy still doing well, all things considered. The labor market appears to be holding up nicely.

As we start this trading week, gold is hanging on at just under $1,260, with silver doing the same at around $16.20.

One thing about this month in particular is the lack of economic news which could readily move the spot price needle. At the time of this writing, analysts are split 50-50 on another interest rate hike when the Fed meets again. Next item of any significance will be the July report on the Consumer Price Index, which we’ll see by the end of the week.

In geopolitical news, the U.N. Security Council body-slammed North Korea with a new set of sanctions on Saturday. In a unanimous vote, this new resolution targets North Korea’s primary trade exports, including coal, iron, lead, lead ore and seafood. They also target additional revenue streams, including banks and joint ventures with foreign investment. According to leading policy experts in the region, these sanctions should cut North Korea’s annual export revenue by up to $3 billion. As the old saying goes, “Hit ‘em in the pocketbook.” Pyongyang’s official new agency, KCNA replied this morning, “There is no bigger mistake than the United States believing that its land is safe across the ocean.” Precious metals have not yet reacted to this verbal escalation. This is a situation that bears close watching.

Have a wonderful and productive week!

Disclaimer: This editorial has been prepared by a Dillon Gage Metals senior staffer. 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 Ticks Down On Positive Jobs Report

The Market Gage - Dillon Gage's Precious Metals Newsletter

Champagne on Wall Street and Jobs, Jobs, Jobs…

The Dow hit 22,000 this week, achieving a new record high, however precious metals have been holding their own despite the big party on Wall Street. Those loud popping noises you’ve been hearing are all the champagne bottle corks flying in every direction.

Gold is coming off a six-week high this week, however as we all know too well, the monthly U.S. employment report from our Labor Department is most certainly a key indicator of price swings at this same point every month. Out this morning, U.S. added 209,000 jobs in July with unemployment dropping from 4.4 to 4.3, that’s the lowest in about 16 years. Also on the positive side, wages are up slightly by .3%, that puts wages up 2.5% from last year at this time. Gold was immediately affected when this news hit, dropping about $7 from $1,268.80. Gold is hanging tough at $1,262.70 at the time of this writing.

Safe haven demand for gold is likely to remain active and high, given the spikes we see every time Kim Jong Un gets the inclination to test another of his intercontinental ballistic missiles. Does anyone else wonder about his surplus?

The U.S. Dollar Index hit a 13-month low on Wednesday of this week, boosting the precious metals trade in both gold and silver. One hopes this boost will continue to provide a hedge for metals traders.

Silver prices have been on the rise for the fourth straight week, but it was dinged by .18 when the Jobs report was announced this morning and is currently trading at $16.63.

It’s been a busy and productive week. So have a wonderful and safe weekend…

Disclaimer: This editorial has been prepared by a senior staff member from 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 Eagles Sales as of 8/3/17

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 August 3rd. The chart also shows the change in sales from 7/27/2017 which we reported on July 28th.

Gold
Coin Sales in oz. /#coins + from 7/27/2017
One oz.
154,500
154,500
1,000
1,000
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
210,000
523,500
1,000
1,000
Silver
Coin Sales in oz. /#coins + from 7/27/2017
One oz.
14,503,500
14,503,500
50,000
50,000

What Will It Take To Move Gold Past $1,300?

The Market Gage - Dillon Gage's Precious Metals Newsletter

For the price of Gold to trade higher, many of the Wall Street Gold traders were calling for a settlement in the Dollar index below the 93.50 area. And that’s exactly what they got and the price of Gold didn’t move. Matter of fact, the Dollar Index traded below the 93.00 level and still no movement in the price. It wasn’t until we had seen the U.S. 10-year Treasury Yield drop from 2.32 percent to 2.27 percent that Gold rallied 5 dollars.

At the moment, the dollar index is trading at 93 and the 10 year U.S. Treasuries are off the lows of 2.2541 percent and now close to 2.27 percent. So the question everyone is asking what will it take for the price of Gold to test the $1,300 dollar level again?

It looks like an uphill battle as we see the equity markets breaking records every day. It seems our market will need some bad economic news or something to happen with North Korea before the equity investor will be willing to take some profits off the table. It will be only then that we will see a rotation out of equities and back into metals.

As the saying goes “the trend is your friend” and until that trend is broken we expect the price of Gold and Silver to be just range bound.

Where have all the traders gone?

In the past I’ve mentioned the Word “algorithms” many times referencing the mechanism used that creates wild price movements in the price of Gold right after some unexpected news hits the wires.

Algorithms are defined as a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

Algorithms are used by many trade houses in order to get a jump on the average investor by being able to execute their trading strategies seconds before anyone else can react to any significant news.

The street is getting so high tech that JPMorgan has developed a first of its kind so called trading robot to execute its trades in its global equities business. Its function is to execute client orders with the maximum speed and efficiency eliminating the human element completely.

If you remember years ago when the business news channels gave you a glimpse of the New York Stock Exchange floor you can see a wall of people trying to conduct their business. Today that’s just not the case as there are just a few folks doing what it took it hundreds of people before to do before. And who if you been around the Gold market for a number of years you must remember the open outcry market on the Commodity Exchange.

I can remember when I worked on Wall street trading Gold and Silver, from the moment I arrived in the office till the end of the trading day, I had a customer in one ear giving me orders to buy or sell Gold and in my other ear the floor broker executing the traders for me. I’m always asked why I speak so fast, I guess I’ve been “programed” (no pun intended) to execute orders on the behalf of my clients at what I hoped at the time was lightning speed. But not even close to the speed and accuracy now offered by electronic trading we have today.

Just think how attractive these new systems are to financial intuitions on Wall Street as these so called robots don’t require any benefits and don t ask for any trading bonuses.

In my 41 years in this business I’m truly amazed how far we have come. From my first trade ticket was that just hand written, timed stamped and at the end of the day confirmed by my trading assistant with the floor broker. To today, where the amount of business that’s executed, confirmed in a millisecond is just amazing.

And now with the Blockchain technology at our door step, even the amount of people needed as a support staff is dramatically reduced.

So we all must embrace this technology as its no doubt here to stay and have a true understanding how it could enhance our business model. Staying ahead of our competition is imperative for a successful future in this business.

Cryptocurrencies anyone?

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.


Retail Investors Likely to Focus On Equities This Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

Quite a few of the companies reporting earnings this week will keep the retail investor focused on equities. So far this quarter, 73 percent of companies that have reported earnings have beat the street estimates, giving investors the confidence that the equity market rally has more room to the upside even if Washington is not capable of getting anything done.

Since July 12th, the Gold ETFs have seen a steady decline in holdings as over 1.8 million ounces have been redeemed by investors. I, for one, would expect to see this in a declining market not one trading higher. So even with all these redemptions the price of the yellow metal has been absorbing the selling quite well.

At the time of this report, we see the Dollar Index trading just below the 93.50 level that everyone continues to watch. Predicting the direction of the price of Gold every day is as easy as watching the action in the dollar index. On Thursday last week, the Dollar index set a new low for 2017, reaching a low of 93.15.

For the Gold rally to continue, we must stay below the 93.50 level in the dollar index. Otherwise, I expect to see some profit taking by those who I call “nervous longs” exiting the market, creating an offer bias on the price for the short term.

It is no surprise we have seen buying interest of late in the gold market with the news out of North Korea and the newly imposed sanctions put on Russia.

Levels of resistance are now at $1,279 in the December Gold Futures contract and $17.02 in the September Silver Future’s contract.

Believe It Or Not

The Sun reports a box possibly carrying 4 tons of a “valuable metal” has been found by UK based Advanced Marine Services aboard a Nazi ship that sank off the coast of Iceland in 1939. The metal could be gold stolen from South American banks that may be worth 130 million dollars.

Or it could be a pile of rocks.

Still, many believe the S.S. Minden was in route to Germany when Hitler ordered the ship to be sunk on purpose. According to The Daily Mail, Advanced Marine Services has asked the Icelandic government for permission to cut a hole in the ship to remove the box. Ergo, finders keepers. However, Iceland is reportedly going to be making a statement on who owns the metal. This isn’t the first time Brits have made their way into Icelandic seas hoping to discover gold rumored to be stolen by Hitler. Rumors of Nazi gold have swirled for decades with some theories saying Hitler was stealing gold and art for the pensions of his top officials.

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.


FLASH GAGE – North Korea Missile Launch Announcement Sparks Gold

CNBC is reporting that North Korea fired a missile that may have landed in Japan’s exclusive economic zone, per Japanese Prime Minister Shinzo Abe.

North Korea fired a projectile that appeared to be a missile shortly before midnight Japan time on Friday according to Japan’s public broadcaster NHK, citing government officials. Reuters is reporting that Abe is convening an emergency meeting of officials.

The Pentagon says it has detected what it assesses was a ballistic missile launch from North Korea. Japan’s chief cabinet secretary Yoshihide Suga is expected to brief media shortly.

Gold rallies off the news. Dollar index at its day’s low trading at 93.29 fueling the rally.

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.


GDP Report Gives Gold A Lift

The Market Gage - Dillon Gage's Precious Metals Newsletter

Our morning market news finds the price of Gold receiving a boost today at 8:30 Eastern Time, when the GDP report was released. A second quarter result of 2.6 percent and a lower revision on the first quarter number rallied the price of Gold five dollars, just falling short of the next level of resistance in the December Gold futures contract at $1,274.

Also helping the price of gold this morning is a weaker dollar. Currently the dollar index is trading below the 93.50 area, a number that many traders are watching. Traders believe the 93.50 level is a key figure that we need stay below, for the price of Gold to continue its progress to the upside. Yesterday, the dollar index was all over the map trading in almost a big figure range for the day confusing many Gold day traders about where the yellow metal is really headed.

I watch the dollar index every minute of every day to see how the price of gold reacts to its movement, so I must say I can agree whole heartedly with the guys on the street, that currently the 93.50 number in the dollar index is the needle mover. Above 93.50 we trade lower, below 93.50 we rally. For the time being it looks as simple as that.

Sure there are other factors that can come into play, but for now this is the pattern many Gold Traders are watching.

In The News

A story published in Wednesday’s edition of Mining Weekly, points out that in the past four months, Gold prices moved in a 7.6 percent range, the least in ten years, while 120-day volatility is at the lowest since 2005. No wonder the Wall Street Gold Trader has turned to currencies to make a living.

The story goes on to say that Miners have given up hedging future production under pressure from shareholders, concerned that it pushes metals prices lower.

While irritating for Gold traders who make a living betting on strong moves, the sleepy gold market also reflects stability in other assets, with measures of global shares at record highs. Investors from currencies to equities have been boxed in between concerns over a weakening dollar and speculation that central banks will tighten money supply.

The last time the Gold market was experiencing strong volatility was when Britain was threatening to leave the EU where Gold’s 120-day historic volatility hit a two-year high above 18 percent.

Over The Pond

This week’s Greece 3 billion, 5-year Bond sale was a big success. Priced out at 4.625 percent, pleased investors over the pond looking for a better return on their investments versus the 5-year German debt that is still trading at a negative yield. There is no doubt the Greek economy still poses a high risk to investors, but Prime Minister Alexis Tsipras is determined to try to pay off his debt before the EU’s bailout program ends next summer. We all wish him luck, he’s going to need it.

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 7/27/17

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 July 27th. The chart also shows the change in sales from 7/20/2017 which we reported on July 21st.

Gold
Coin Sales in oz. /#coins + from 7/20/2017
One oz.
153,500
153,500
500
500
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
000
000
Total
209,000
522,500
500
500
Silver
Coin Sales in oz. /#coins + from 7/20/2017
One oz.
14,453,500
14,453,500
215,000
215,000

Fed Comments Weaken Dollar – Boost Gold

If you remember in Monday’s commentary in The Market Gage, Wall Street Gold Traders were calling for the dollar index to test the 93.50 area sometime this week. Well, they were right, but I don’t think they really knew what the catalyst would be.

At the time of the Fed announcement at 2:00 pm Wednesday, the dollar index was trading at 94.29. Right after the announcement the dollar started to slide, breaking thru the level the traders had called for at 93.50 and traded to a low of 93.39 that afternoon. This fueled the rally in gold thru the $1,252 level of resistance and subsequently took out stops at the $1,258 level in the August contract.

The selloff in the dollar was attributed to the dovish comments made by the Fed on inflation. A slight shift in wording took the market by surprise. In June the Fed announced that inflation was “running somewhat below 2 percent,” but in Wednesday’s comment the Fed said “inflation was running below 2 percent.” The change in words from “somewhat” to “was” was taken by the market as a dovish tone and the dollar sold off, rallying the price of gold ten dollars.

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


FLASH GAGE – No Changes From the Fed

Fed comments just released …..

As expected, the Fed announces no change in interests rates.

Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term, but to stabilize around the Committee’s 2 percent objective over the medium term.

The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated.

Gold catches a bid off the news, now in positive territory for the day.

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.


The Dollar Rises and Gold Slows

The Market Gage - Dillon Gage's Precious Metals Newsletter

First, a look at our market this morning. A Wall Street Gold trader I spoke with said, “I can’t get too excited with Gold at these levels so I guess I’ll just stick with trading currencies for the time being.”

A stronger dollar and higher Treasury yields are hurting the price of gold as the Dollar Index is over the 94 level again after trading overnight down to 93.64, just short of the 93.50 level some traders were looking for.

Strong outflows in both the Gold and Silver ETFs overnight are not helping the longs at all. Matter of fact, it seems to becoming a trend as the outflows in the Gold seem to be picking up momentum.

On the second day of a Fed meeting we would normally say, “all eyes on the Fed.” It seems not to be the case for this meeting, as no real news is expected. The CME Fed Watch Tool gives the odds of a rate hike at this meeting at only 3.1 percent.

As always, at every meeting we wait to hear any indication of a change in Fed policy. So at 2pm, we will be waiting to hear what they have to say. No one expects any comments to move any markets today.

It’s All Equities

Recently 73 percent of the companies reporting earnings have beat the Street’s estimates. So it’s not a surprise that the Financial Advisors I speak with claim equities are the only game in town. Tech companies have had a great run since the election, and with the economy doing pretty well, investors are happy where they stand at the moment.

Washington politics and the Trump agenda seem to have no effect on the equity markets, and in the event that something good comes out of all these negotiations, it can only be seen as a plus to equity market valuations.

A Question

Do you know what is one of the most demanding and intense jobs on the planet right now?

It’s the lobbyist for the health insurance companies.

With nobody really knowing what direction this Health Care Bill is headed, healthcare lobbyists will stop at nothing to get their firms positioned on the right side of the upcoming Bill.

You can talk about tax reform and an infrastructure bill, but there is nothing more important than the future of health care facing our nation.

Because of the enormity of the amount of money at stake here, it scares me to think that with all this pressure being put on our representatives that they won’t, “cow down,” to the insurers and forget who elected them in the first place.

Last year, insurers spent almost 147 million dollars and paid out almost 79 million in political contributions and now they are looking for a return on their investments.

Whatever bill congressman put their signatures on, one can expect diminished coverage, higher premiums and probably future tax increases because our representatives will find it extremely difficult to take away
something the less fortunate already have…some kind of coverage.

A follow up to Monday’s comment of “The Gage”

Where else but in Texas would we hear from a Congressman calling for stricter “Cryptocurrency” Regulations?

You think he read Monday’s comment of the Gage and acted? (Just kidding.)

The excitement continues over the evolution of Cryptocurrencies. So much so that it has caught the attention of Texas Congressman Roger Williams. He is calling for Cryptocurrency start-ups to be subject to anti-money laundering and “know your customer” regulations.

The congressman said, he believes that cryptocurrencies are restructuring international finance and are increasingly offering a wide range of unprecedented opportunities that need to be monitored.

The Congressman goes on to say that since cryptocurrencies are run over the internet, it makes the platforms vulnerable to being used by anti-state elements, terrorists and criminals.

I expect monitoring these groups will require a lot of manpower from our government and governments around the globe as these financial instruments are not just based here in the States, but are global in nature.

Digital currency operators and users are already pushing back today saying that for these products to operate efficiently, government intervention is not necessary and by the way not welcomed.

Let the battle begin…….

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.


Weak Dollar Continues Boosting Gold Rally

The Market Gage - Dillon Gage's Precious Metals Newsletter

The rally in the price of Gold continues this morning as the sell-off in the Dollar Index continues. Overnight the Dollar Index had a very tight trading range, showing a high of 94.08 and a low of 93.82. Which, by the way, is a 13-month low reached this past Friday.

Some Foreign Exchange Traders on the street said this morning that they expect the Dollar Index to continue to trade lower and test the 93.50 level later in the week.

If that’s the case, the price of Gold will continue to benefit from such a move.

A mixed bag reported in the ETF arena where Gold saw outflows and Silver saw inflows into
the fund overnight.

MONEY……Past and Present

We’ve come a long way from the first introduction of paper money here in the U.S.
and now to a new way of mimicking cash, called “Cryptocurrencies.” Is cash as we know it
going away? Heading out each day, will all I need to carry in my pocket is a smart phone and a handkerchief?

Let’s start by looking at some of the significant steps on the history of money’s timeline:

Paper money here in the U.S. was started in the year 1690 issued by the Massachusetts Bay Colony to fund Military expectations.

The first printed checks are traced to 1762 in England. The word “check” originated in England where serial numbers were placed on pieces of paper as a way to keep track of or “check” on them.

The first credit card was issued by Diners Club in 1950, allowing members to charge
the cost of restaurant bills only.

Wire transfers originated in the 19th century and since then they have become one
of the most successful methods of transferring money across the world.

The first ATM machine was installed by Chemical Bank at their Rockville Centre in New York. The first ATMs were designed to dispense a fixed amount of cash when a user inserted a specially coded card.

The Advent Of The Internet:

The history of the internet begins with the development of electronic computers in the 1950s. In 1960, the U.S. Government’s defense project called ARPANET was developed to interconnect several super-computer sites in our country so that if any one of them is destroyed in a nuclear explosion the defense system will continue to function.

In 1983, several researchers began to assemble the network of networks.

It wasn’t till 1990 that the internet really took off when computer scientist Tim Berners-Lee invented the World Wide Web.

Why I have changed gears, so to speak, from paper money to the internet? It’s because of the many ways money transfers over the Internet. The most famous money transfer program “PAYPAL” was developed and launched in 1999.

Now we will examine the future in money transactions called “Cryptocurrencies.”

With the extensive development of the Internet in ways we could never imagine, it’s not a surprise that a demand has increased for a way to transfer money quickly, seamlessly and anonymously. Banks are shaking in their shoes over this technology.

Even JP Morgan’s Chairman Jamie Diamond sees that his group must get involved in the new technology.

So what are Cryptocurrencies and what does the future hold?

The most famous Cryptocurrency is “Bitcoin,” a virtual currency that is not controlled by any Central Bank. Instead, Bitcoins are created through a process called mining, in which a computer tries to solve a cryptographic problem. The total supply of Bitcoins is capped, which has led to comparisons with assets like Gold.

To clear the air and try to explain the new technology in layman’s terms, lets define both Cryptocurrencies and Blockchain Technology. Blockchain is the technology that enables the existence of Cryptocurrency. (Bitcoin is the name of the best-known Cryptocurrency. The one for which Blockchain technology was invented.) A Cryptocurrency is a medium of exchange, such as the U.S. Dollar, but it is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.

The mechanism for tracking the price and volume is like an exchange or Blockchain that instantly documents and electronically publishes every transaction.

Some investors really believe this technology is the future because they believe the world’s Monetary System has flaws and will eventually collapse. They claim that with all that’s going on in Washington, the Dollar’s global dominance is coming to an end and will be replaced in the future with cryptocurrencies.

Whether you believe the Dollar is doomed or not, this technology is here to stay and catching on in a big way. Just in the past three months, investors pumped over 1 trillion dollars into Cryptocurrencies.

Now many exchanges like the (CME) Commodity Metals exchange are looking at Blockchain technology for trading and operations.

Cryptocurrencies, Blockchain technology, driverless cars and a cashless society…the future is upon us, and you can rely on the folks at Dillon Gage to be your go-to Precious Metals experts to keep you updated on the future enhancements in technology in our industry and elsewhere.

Will you be ready?

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.


Weaker Dollar Sparks Gold Climb

The Market Gage - Dillon Gage's Precious Metals Newsletter

Good news for the Wall Street Gold traders this morning as the price of Gold reached their levels and now they can get down to the Wall Street heliport early and take a 35 minute ride to their homes in the Hamptons.

At the time of this report, August Gold has reached a high of $1,252.00 fueled by a weaker dollar and lower Ten-Year Bond yields across the globe. The dollar index traded as low as 94 overnight, continuing its momentum to the downside and boosting the price of Gold. Will this continue?
Continue reading “Weaker Dollar Sparks Gold Climb” »


American Eagle Sales as of 7/21/17

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 July 20th. The chart also shows the change in sales from 7/13/2017 which we reported on July 14th.

Gold
Coin Sales in oz. /#coins + from 7/13/2017
One oz.
153,000
153,000
5,000
5,000
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
29,000
290,000
500
5,000
Total
208,500
522,000
5,500
10,000
Silver
Coin Sales in oz. /#coins + from 7/13/2017
One oz.
14,248,500
14,248,500
725,000
725,000

Quiet Overnight Trading Keeps Gold Static

The Market Gage - Dillon Gage's Precious Metals Newsletter

Quiet overnight trading abroad is keeping the price of Gold virtually
unchanged. Some Wall Street gold traders long from the $1,232 area
are hoping for this rally to continue and would be satisfied heading
for the exits around the $1,248- $1,252 area. In the event the price of Gold
sells off, they will be watching the $1,232 level on the downside. The reason I mention these fellows is that the amount of volume they transmit into the market can influence the price.

Continue reading “Quiet Overnight Trading Keeps Gold Static” »


FLASH GAGE – Gold Jumps On Low Dollar

The Dollar hit a ten-month low after the news that the Healthcare Bill in the Senate was declared dead.

Ten-year yield bonds around the globe are all in negative territory, giving Gold a boost this morning. For the first time in many months I’ve been told by my friends over the pond that overnight there was good buying of Gold out of the Middle East. Oil prices are up and the weak dollar gives them all the reason to step into the Gold arena at this time.

Some of the Wall Street gold traders are long from the $1,232 area, a number we’ve been calling to confirm
that a further price improvement was in order and the market wasn’t just reacting to the Chairwoman’s comments on Thursday. But knowing how they think, if I was trading Gold and was holding a long position, I would be very careful and put a stop loss order in around the $1,233 area. As historically, if the price of gold comes back to their entry level, they will exit the market causing it to trade below the $1,230 area.

The price of silver really not reacting to the rally in gold as all the action overnight seemed to be in the yellow metal.

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


American Eagle Sales as of 7/13/17

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 July 13th. The chart also shows the change in sales from 7/6/2017 which we reported on July 7th.

Gold
Coin Sales in oz. /#coins + from 7/6/2017
One oz.
148,000
148,000
5,500
5,500
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
000
000
Tenth oz.
28,500
285,000
1,000
10,000
Total
203,000
512,000
6,500
15,500
Silver
Coin Sales in oz. /#coins + from 7/6/2017
One oz.
13,523,500
13,523,500
970,000
970,000

Fed’s Statement Boosts Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on Fed Chair Janet Yellen’s testimony today as she reports to congress. However, her prepared statement was just released, so gold is already reacting.

In her statement the Chairwoman said that the Federal Reserve will need to keep gradually raising interest rates over the next few years, but that rate won’t need to rise to levels seen in previous cycles. Immediately after her comment was released to the media, gold rallied nine dollars. Silver also liked the news, up 20 cents at the time of this report.
Continue reading “Fed’s Statement Boosts Gold” »


Gold Under Pressure from Far East Selling

The Market Gage - Dillon Gage's Precious Metals Newsletter

Far East selling overnight brings the price of gold to a four month low. In the past two weeks, higher global bond yields have put a lot of pressure on the price of gold. Global bond yields are to be watched closely as they are controlling the direction of the gold market.

Gold ETF holdings have declined every day from June 29th, as investors see little or no upside potential in the price. Silver ETFs holdings have been very steady for the same period, even with the price of silver declining.
Continue reading “Gold Under Pressure from Far East Selling” »


Jobs Go Up – Gold Trends Down

The Market Gage - Dillon Gage's Precious Metals Newsletter

“Un” Garde! North Korea Situation Demands Attention…while Jobs Report Could Demand Rate Increase?

First…the Jobs Report
The monthly employment update from the U.S. Labor Department landed this morning with a bit of a boom. After a seeing a very volatile Thursday, Gold has actually not reacted as much as you might expect, this morning. After a short UP tick, the yellow metal has moved down to around $1,216 as we go to press. So it appears the Gold market had already factored in a tighter monetary policy from the Fed. And the positive Job Report will certainly strengthen that Fed trend.
Continue reading “Jobs Go Up – Gold Trends Down” »


American Eagle Sales as of 7/6/2017

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 July 6th. The chart also shows the change in sales from 6/29/2017 which we reported on June 30th.

Gold
Coin Sales in oz. /#coins + from 6/29/2017
One oz.
142,500
142,500
2,000
2,000
Half oz.
13,500
27,000
000
000
Quarter oz.
13,000
52,000
1,000
4,000
Tenth oz.
27,500
275,000
1,500
15,000
Total
196,500
496,500
4,500
21,000
Silver
Coin Sales in oz. /#coins + from 6/29/2017
One oz.
12,553,500
12,553,500
395,000
395,000

Precious Metals Reacts to North Korean Missile Test

The Market Gage - Dillon Gage's Precious Metals Newsletter

Hope everyone had a safe and fun 4th of July…now, down to business.

We spoke a little about global geopolitical strife late last week and guess what? It’s returned with a vengeance. As of yesterday, the 241st birthday of our nation, North Korea launched an intercontinental ballistic missile (ICBM), supposedly capable of striking the contiguous United States (in this case, Alaska). U.S. and South Korean forces immediately held a joint drill in response to such a provocation. And what happened in the precious metals market as a result? Gold prices edged up to just shy of $1,230 an ounce in response yesterday, but as of this morning, the yellow metal has settled down again to around $1,220, while silver has hit a six month low below $16. Asian markets are clearly spooked by the news and it may be anyone’s guess what happens next.
Continue reading “Precious Metals Reacts to North Korean Missile Test” »


Mixed Bag for Precious Metals as Week Winds Down

The Market Gage - Dillon Gage's Precious Metals Newsletter

Walter Pehowich is on vacation through July 10th. Today’s comments are from a Dillon Gage senior staffer.

There’s good news, there’s in-between news and then there’s not-so-good news. As the week draws to a close, precious metals have seen key market indicators fluctuate wildly as market interest remains relatively flat. This is why prognosticators get paid the big bucks. Gold is currently pricing slightly down at $1,243 and silver has tipped up in the last hour at $16.67.

Continue reading “Mixed Bag for Precious Metals as Week Winds Down” »


American Eagle Sales as of 6/30/17

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 June 29nd. The chart also shows the change in sales from 6/22/2017 which we reported on June 23rd.

Gold
Coin Sales in oz. /#coins + from 6/22/2017
One oz.
140,500
140,500
500
500
Half oz.
13,500
27,000
000
000
Quarter oz.
12,000
48,000
000
000
Tenth oz.
26,000
260,000
1,000
10,000
Total
192,000
475,500
2,000
10,500
Silver
Coin Sales in oz. /#coins + from 6/22/2017
One oz.
12,158,500
12,158,500
205,000
205,000

Gold Higher On Set Back To Health Bill

The Market Gage - Dillon Gage's Precious Metals Newsletter

We see the price of gold higher this morning after the Fed Chairwoman’s comments about rich asset valuations and the set back in the President’s health care bill.

Also helping the price of gold this morning are comments from European Central Bank President Mario Draghi who talked about the strength of the Euro Zone which in turn raised the Euro and pushed the dollar index to a new year low at 96.14.
Continue reading “Gold Higher On Set Back To Health Bill” »


IMF Downgrades U.S. Growth Prospects

The International Monetary Fund cut its outlook on the future of the U.S. economy for this year and 2018, predicting that the President’s target of 3 percent growth is not realistic.

Trump’s proposed fiscal stimulus package, including healthcare reform, infrastructure improvements and tax reform, is taking too long to implement as the debt clock keeps ticking to unsustainable levels.

I believe this is just the beginning of a debt crisis hitting our country.

See what can happen in tomorrow’s edition of “The Gage”.

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.


Lower Dollar and Ten-Year Bonds Fail to Support Gold

The Market Gage - Dillon Gage's Precious Metals Newsletter

A lower dollar index and lower Ten year bond yields around the globe should have the price of gold in positive territory this morning. But looking at the screen that’s not the case.

Around four o’clock this morning a very large Gold future trade was executed on the CME. It seems someone sold over 18,000 contracts in less than five minutes crushing the price of gold down twenty dollars. In ounce terms, that’s 1.8 million ounces. Silver also got hit, but nowhere near the size of the gold trade. At the same time gold was falling, someone sold over 5,000 silver CME future contracts.
Continue reading “Lower Dollar and Ten-Year Bonds Fail to Support Gold” »


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” »