Gold and Silver Held Yesterday

Market Gage - Precious Metals Newsletter

Both Gold and Silver tested their support levels yesterday and held. That’s the good news. The bad news is, many Wall Street traders are telling me they expect this sell off to continue and they usually put their money where their mouth is.

Gold ETFs overnight saw redemptions in the funds, while the Silver ETFs gained sizeable additions.

The U.S. Dollar is slightly stronger this morning and U.S. Treasury yields are off a bit.

So with this mixed bag of news, our market just stands still for the time being awaiting something significant to move it to the next level.

Over the Pond

Are the Brexit deal negotiations on the edge of a cliff?

The European Union and Britain ended top-level diplomacy discussions on Monday without a deal on the terms of Brexit. But they did indicate that they were within striking distance of such an agreement. Both sides said that they need to broaden the talks in future negotiations.

Some of the issues that need to be addressed are specific details on the exit bill, rights of citizens on each other’s territories and guarantees for a transparent border for Ireland.

European leaders want a deal on these issues in time for them to agree at a summit on Dec. 14th. These items need to be addressed in order to move the negotiations on to the next stage of talks. The lack of progress so far has raised concerns that Britain may not have a deal on key issues by the time it officially leaves on March 29, 2019.

British Prime Minister Theresa May has indicated that she is confident these talks will conclude positively. Her critics claim otherwise, but Brussels seems pretty confident that they along with the UK can keep the negotiations on track.

And why shouldn’t Brussels stay positive? Just like in any divorce there will be a big payout to the winner, in this case Brussels. They will be the recipient of 50 Billion Euros.

Bitcoin

The US Federal Reserve has issued a warning, stating digital currencies, specifically Bitcoin, pose “financial stability risks. Thanks, I think we all know that!

They go on to say, “More serious financial stability issues may result if they achieve wide scale usage. Digital currencies are a niche product that sometimes garners large headlines. The product has no intrinsic value, is not the liability of any regulated banking institution and in leading cases, is not the liability of any institution. Indeed, how to treat and define this new asset is complicated.”

My son, who like many other Millennials seem to have a great deal of interest in these kind of investments, asked me what do I think about these types of products. I hesitated at first to give him my real opinion, but I thought that since he was only thirty and has some very small discretionary income, I shouldn’t discourage him, but give him this advice. I said, “you know investing in this product comes with risks of losing your full investment.”

“But obviously, if you are using money that you don’t need to pay bills and feel compelled to make an investment, here is the strategy Dad wants you to use: Whenever you make an investment, especially of this kind, give yourself a target price or gain on your investment you would be happy with. When it reaches your goal get out and don’t look back and say “what if”.

“Also give yourself a stop out price and if your investment fails to reach your goal, get out and don’t look back with a “what if.” Because if you get greedy, you will always make bad decisions in the process every time. Have fun, good luck and keep me in the loop, I wish you well.”

By no means am I advocating or not advocating an investment in Bitcoin nor offering a trading strategy to adhere to, I just wanted to share a Dad’s advice to his son who is new in the investment world.

Everyone has to start someplace.

Oh by the way, if you haven’t been following the price, Bitcoin continues its upward movement
this morning valued at $ 12,874.99.

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.