U.S. Gold Coins Gold American Eagle Coins Gold Buffalo Coins Commemorative Gold Coins First Spouse Gold Coins High Relief Gold Coins Pre-1933 Gold Coins
Today’s commentary may read very similar to last Friday’s, as gold and silver remain range bound, while volume continues to be below average. Platinum and palladium have again taken over the headlines this week as intra-day ranges and trading volume continue to be impressive. This week has already brought us the highest palladium price since August of 2011, as the market flirted with $830.00. Physical platinum continues to grow scarce and is supporting higher prices as witnessed by platinum producer Impala stating that their supply chain could run dry by the end of next month.
I have discussed in previous commentaries that I thought a bond market rally was coming which would support and assist in a gold/silver rally. Bonds have indeed rallied as the 10-year bond yield dropped below 2.50 percent this week. While gold and silver tried higher again mid-week they backed off very quickly from the first of several resistance levels above. Continue keeping a close eye on the bond yield in the days and weeks ahead, as I see the yield dropping to 2.25 percent which should continue to support precious metals and further assist rally attempts. Following up on previous discussions of the gold/silver ratio, I will conclude today’s commentary with this thought. I continue to look for gold to probe higher and test $1,335.00 – $1,340.00. If that turns out to be correct, I would further look for the gold/silver ratio, which currently stands at 66.80, to contract and move to 62.50 which would result in silver rallying $2.00 from current levels as it tests $21.35.
Good luck and have a good weekend,
This editorial has been prepared by Roy Friedman 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. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, 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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.