Precious Metals Reacts to North Korean Missile Test July 5, 2017 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. Some positive spin? How about the gold ETF market? FastMarkets Gold Weekly Reports states, “Even in a worst-case scenario (i.e., a negative swing in speculative sentiment toward gold), the downward pressure in gold prices may prove limited.” The report goes on to say, “Going forward, we suspect ETF investors will continue to accumulate gold at a slow pace in order to have diversified portfolios, but the pace of inflows may become stronger in case of a sudden wave of risk aversion, forcing some too-complacent investors to boost their exposure to safe-haven assets like gold.” On the horizon is the June’s job report, ready to act as a “tell” on potential gold investment opportunities. Combined with the Fed’s recent policy decisions, this could be a real crystal ball for precious metals moving forward. According to some experts, the market may have a little to look forward to. Some are saying that the yellow metal may just do well in the last half of 2017. If, and only if, the latest round of Fed rate hikes turns out to be more of a bluff than a strategy. Have a wonderful Wednesday… Disclaimer: This editorial has been prepared by a senior staffer 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.