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Precious Metals Review

Market information and news is critical for precious metal investing. However, many investors have limited time to sort through the massive amounts of market data and gold, silver and platinum news. The Monex Precious Metals Review consolidates the week's activities in a concise snapshot of the precious metal markets.

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PRECIOUS METALS REVIEW - AUGUST 19, 2016

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,337 . . . traded as high as $1,356 on Tuesday and as low as $1,333 on Monday . . . and the Monex AM settlement price on Friday was $1,339, up $2 for the week.  Gold support is now anticipated at $1,328, then $1,306, and then $1,285 . . . with resistance anticipated at $1,362, then $1,385, and then $1,422.

SILVER:
Monex spot silver prices opened the week at $19.81 . . . traded as high as $20.06 on Tuesday and as low as $19.23 on Friday . . . and the Monex AM settlement price on Friday was $19.30, down $.51 for the week.  Silver support is now anticipated at $19.17, then $18.55, and then $17.90 . . . and resistance anticipated at $19.55, then $20.06, and then $20.42.

PLATINUM:
Monex spot platinum prices opened the week at $1,122 . . . traded as high as $1,141 on Tuesday and as low as $1,107 on Wednesday . . . and the Monex AM settlement price on Friday was $1,116, down $6 for the week.  Platinum support is now anticipated at $1,106, then $1,078, and then $1,050 . . . and resistance anticipated at $1,128, then $1,167, and then $1,198.

PALLADIUM:
Monex spot palladium prices opened the week at $692 . . . traded as high as $720 on Wednesday and as low as $684 on Monday . . . and the Monex AM settlement price on Friday was $710, up $18 for the week.  Palladium support is now anticipated at $707, then $694, and then $662 . . . and resistance anticipated at $724, then $755, and then $833.

QUOTES OF THE WEEK:

From Thomas G. Donlan, in his ''Editorial Commentary'' column in the August 15th issue of Barron's magazine:

''The point of investment is profit, not jobs, and this is a standard that governments fail to apply, time and time again.  They should charge tolls and user fees for public assets -- new and old alike.  And they should not fix prices.

As [John] Cochrane said in his well-named blog, the Grumpy Economist, the candidates should 'abandon the whole idea that we're doing it to provide 'jobs' and 'demand.'

He could go further:  Private investment should fund private infrastructure wherever possible.  And where it's not possible, it's probably not needed.

. . . and from Simon Black, in a posting on the Sovereign Man website on August 15th:

''Now, instead of holding subprime mortgages and pretending that they're risk-free, banks are holding subprime government bonds.
 
They've loaned trillions and trillions of dollars of YOUR MONEY to bankrupt governments, in many cases at NEGATIVE interest rates where the bank is almost guaranteed to lose money.
 
And yet they continue to categorize these assets as 'risk free.' ''

''Look, I'm not suggesting that your bank is going to collapse tomorrow.
 
But the reality is that your bank is probably nowhere near as safe as you think it is.
 
And this matters.
 
As I've written before, most people spend more time arguing about what they'll eat for dinner tonight than thinking about the financial health of their bank.
 
A bank is your financial partner.  Don't simply assume that it's safe just because everyone else does.
 
Be sure.  And if you can't be, it certainly wouldn't hurt to reduce your exposure to the bank. ''

. . . and from Steve Forbes, in his ''Fact & Comment'' column in the August 23rd issue of Forbes magazine:

''Forget the nonsense chatter about 'secular stagnation' and other seemingly portentous forces that supposedly doom us to sluggish or nonexistent growth.  We aren't doing well because of government policy errors -- excessive taxation, regulation and spending.  In political and economic circles the biggest cause, monetary policy, gets no mention at all because policymakers and observers think it's a tool for growth.  The central bank policies of quantitative easing and zero interest rates have perversely skewed credit markets in a way that is deflating economies, not stimulating them.  Governments and corporations have access to cheap money, while the most dynamic, creative parts of the economy -- small and new enterprises -- suffer short rations.

Pro-growth structural changes in fiscal and monetary policy would lead to rapid revivals of dead-in-the-water economies.''

. . . and from Diane Alter, in a posting on the Money Morning website on August 18th:

''Despite the metal's 3.8% decline so far this month, our new silver price prediction shows big gains for the rest of 2016.

In fact, Money Morning Resource Specialist Peter Krauth sees silver prices posting double-digit returns from now through December.''

''The U.S. Dollar Index (DXY) hit a seven-week low overnight.  A declining dollar is bullish for the silver price since the metal is priced in dollars.  When the dollar depreciates against other currencies, it makes silver cheaper for users of those foreign currencies.

While the Fed and dollar are boosting silver prices today, the metal has seen a huge rally this year.  It's surged 43% in 2016 thanks to global stock market volatility, low oil prices, and the use of negative interest rates.  The Brexit vote has also stoked interest in silver as a safe haven and will continue to do so as the consequences take years to unfold.''

''All of these reasons are why silver is among the best-performing asset classes this year.''

. . . and from Mary Anne and Pamela Aden, in the August issue of their Aden Forecast newsletter:

''Gold has become a safe haven and the currency of last resort.

It costs less today to hold gold than to hold euros or yen, for example.  So it's no surprise to see gold rising in terms of several currencies . . . gold actually reached its lows in most currency terms in 2013, at the end of the worst decline in the bear market.  Gold's been on the rise since then and . . . it's been a quiet steady rise.

Gold in U.S. dollars didn't reach a low until last December, almost two years later.  But once the dollar finally turns down, it'll give a bigger boost to gold.

The challenges to investors globally aren't easy when over 11 trillion dollars in sovereign debt are carrying negative yields.  This negative interest rate environment will continue to be very bullish for gold and the gold universe.

Real assets are gaining more ground than financial assets.  And it clearly makes sense in today's debt ridden and liquidity driven world.  While the major  central banks are on a spree, many others like China and Russia also continue to buy gold for their growing reserves.

Gold is very attractive as a global currency and it looks like this will continue indefinitely.''

Last update: Aug 19, 2016 01:03:57 PM

This is not a recommendation to buy or sell.