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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 - JULY 3, 2015

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,183 . . . traded as high as $1,183 on Monday and as low as $1,161 on Thursday . . . and the Monex AM settlement price on Friday was $1,168, down $15 for the week.  Gold support is now anticipated at $1,156, then $1,148, and then $1,136 . . . with resistance anticipated at $1,176, then $1,191, and then $1,204.

SILVER:
Monex spot silver prices opened the week at $15.83 . . . traded as high as $15.87 on Monday and as low as $15.46 on Tuesday . . . and the Monex AM settlement price on Friday was $15.68, down $.15 for the week.  Silver support is now anticipated at $15.60, then $15.50, and then $15.20 . . . and resistance anticipated at $15.80, then $16.10, and then $16.40.

PLATINUM:
Monex spot platinum prices opened the week at $1,081 . . . traded as high as $1,092 on Wednesday and as low as $1,079 on Monday and Tuesday . . . and the Monex AM settlement price on Friday was $1,087, up $6 for the week.  Platinum support is now anticipated at $1,082, then $1,074, and then $1,057 . . . and resistance anticipated at $1,091, then $1,108, and then $1,136.

PALLADIUM:
Monex spot palladium prices opened the week at $676 . . . traded as high as $703 on Wednesday and Thursday and as low as $668 on Monday . . . and the Monex AM settlement price on Friday was $686, up $10 for the week.  Palladium support is now anticipated at $678, then $655, and then $649 . . . and resistance anticipated at $691, then $707, and then $736.

QUOTES OF THE WEEK:

From David Stockman, writing in The Daily Reckoning newsletter, published by Agora Financial, LLC, on June 29th:

''Needless to say, repeated and predictable bailouts create enormous moral hazard and extirpate all remnants of financial discipline in financial markets and legislative chambers alike.  Since 2010, the Greeks have done little more than pretend to restructure their state finances and private economy, and the Italians, Portuguese, Spanish and Irish have done virtually nothing at all.

The modest uptick in the reported GDP of the latter two hopeless debt serfs are just unsustainable rounding errors.  The numbers are flattered by the phony speculative boom in their debt securities that was temporarily fueled by Mario Draghi's money printing ukase that is presently in drastic retreat.

This Monday morning push has come to shove; Angela Merkel and her posse of politicians and policy apparatchiks were not able to kick the can one more time after all.

Instead, the troika's authoritarian bailout regime has stimulated political revolt throughout the continent.  Tsipras' defiance is only the leading indicator and initial actualization -- the match that is lighting the fire of revolt.

But what it means is that there is now doubt, confusion and fear in the gambling halls.  The punters who have grown rich on the one-way trades enabled by the money printing central banks and their fiscal bailout adjutants are being suddenly struck by the realization that the game might not be rigged after all.

So let the price discovery begin.  In the days ahead, we will catalogue the desperate efforts of the regime to reassert its authority and control and to stabilize the suddenly turbulent casino.

In riding the central bank bubbles to unconscionable riches the big axes in the casino have falsely claimed to be doing 'God's work.'

As they are now being forced to liquidate these inflated assets, they actually are.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on June 29th:

''The world is deflating.  But people don't want to see their standard of living go down.  As a result, they continue to borrow.  In turn the politicians continue to spend, and the federal debt continues to rise.''

''As subscribers know, I'm a cheerleader for the US and its place in the civilization of the race.  I continue to think that we should side with nature and let a bear market clear out the debts and inflation that have built up since World War II. ''

''I have said that in future years, the standard of living of nations throughout the world will decline.  But out of the ashes of a deflated world will come a better world than ever.  For my subscribers, I continue to advocate holding physical silver and gold, and getting ready for difficult times.  But in the end, we'll have a better and wiser world to live in.''

''There's been a huge move into the US dollar, in a flight to safety.  As I see it, the dollar is now overbought and overloved.  It closed down 0.64% today.  The Dow closed down 350 today at 17,596.  It would not surprise me to see the Dow sink below 17,000 during the next week or so.  As far as the Transports, a decline of 80 points or more will take them below the critical 8,000 level.  I trust my subscribers are out of the market and holding only physical silver and gold.''

. . . and from The Silver Institute, in an article on an overview of their World Silver Survey 2015, in the June issue of their ''Silver News'' newsletter:

''Total physical silver demand was 1.07 billion ounces in 2014.  This was the fourth highest level recorded since 1990, but a 4 percent decline from 2013 levels largely due to a fall in coin and bar demand from 2013, which had been a record year.

Industrial applications accounted for 56 percent of all silver demand in 2014.  On a regional basis, a modest increase in industrial demand in developing countries, led by 4 percent growth in China and Taiwan, was offset by weaker demand in advanced countries in 2014.  This marks the fifth consecutive
year of Chinese industrial demand growth.  Last year's industrial demand total for Taiwan was 23 percent above their 2009 figure.''

''In 2014, silver coin and bar purchases remained at historically high levels, mainly due to growth in silver coin demand in several key markets.  Growth was seen in the United States, Canada, India and Spain.  Silver coins and medals demand was 107.6 million ounces last year.''

''Silver mine production grew by 5.0 percent to 877.5 million ounces, mainly the result of stronger output from the primary silver and copper sectors, new projects that came online last year, and significant production gains in Central and South America, the survey reported.  Mexico was the world's leading silver producer, followed by Peru, China, Australia and Chile.''

. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on July 1st:

''Debt: With the financial world transfixed by Greece's debt-driven meltdown, Puerto Rico announces it can't pay its $73 billion in debt.  Once again, we're learning that welfare statism is no replacement for fiscal responsibility.''

''It's a story repeated over and over around the world.

If Puerto Rico defaults, it won't suffer alone, however.  As the New York Times notes, 'much of Puerto Rico's debt is widely held by individual investors on the United States mainland, in mutual funds or other investment accounts, and they may not be aware of it."

So better check your 401(k).  Or your hedge fund.  Because virtually all of that $73 billion is held by the U.S.

Meanwhile, across the globe, we're headed toward a reckoning on excessive debt, and it won't be pretty.  The welfare state model with big pensions for all and lavish unemployment benefits is dead.

We're watching its death throes now.  Only the politicians don't get it.

Yes, the welfare state model is dead, but the debt lives on.  The fiscal irresponsibility is breathtaking.  Someday maybe taxpayers will get wise and kick the rascals out.''

Last update: Jul 03, 2015 10:43:20 AM

This is not a recommendation to buy or sell.