You may have heard yesterday that over 50 emergency satellite phones were handed out to senators. Is this normal course of business or do they know something they don't want to tell us? There was also news of thousands of punds of explosives missing from a California train recently. Has anyone checked UHaul records? If you know you know. All these factors, along with out of control illegal immigration, bank failures (that they are now calling "mergers" - don't be fooled), massive defeats in Europe, and more, we have never seen in 20+ years of doing this a better time to make sure your'e hedged with gold and silver.
The bears decided the unprecedented run Gold has enjoyed above the psychologically critical $2,000.00 mark should come to an end. While the talking heads blamed the jobs report for Gold’s demise, there is much more to consider about the week in Gold. Gold opened at $2,010.00 and but for a late week rally, dropped practically from the opening bell to end Friday’s trading at $1,977.00. Before turning noses up at Gold because of the poor week, one should note that the yellow metal is up over 21% since September while the S & P and the DJIA have only advanced 17% and 16% respectively. The dollar came charging out of its slumber following the jobs report. Commercials Investors reassessed their belief that rate increases by the Federal Reserve were either over or would pause to take the temperature of the economy. The only sign of life the Gold price was just minutes after a statement by Treasury Secretary Janet Yellen to a meeting of over two dozen Bank Executives regarding the current state of the banking sector. The spot price rose $24.00/oz. in the minutes following the report. According to CNN, Yellen told the CEO’s and executives that more bank “mergers” in the future may be necessary. Translation, we will no longer have bank failures in this administration. They will hereafter be known as “mergers.” We will make “mega” banks even more “mega” as they absorb the poor management decisions of failed institutions. What could possibly go wrong with this scenario? This on the heels of an admission that making depositors, both insured and uninsured, whole in recent failures by Signature and Silicone Valley Banks has helped to control negative public opinion toward the Banking Sector. One only has to look back two weeks when San Francisco based Pacific West Bank lost 80% of their stock value while admitting all options are on the table for survival. The ensuing “gag” order has begged to ask the question, “in the interest of negative public opinion control will the next “merger” be televised?”
Silver righted the ship after the thrashing that it took the week before by trading in a tight range down 12 cents from $23.97 to end at $23.85. The narrative does not change at all for the shiny metal. Physical investors of all sizes continue to ignore the separation between the physical and spot price structures. Premiums remain at an all-time high and have only changed slightly during the May massacre. Even with supplies increasing, the prices are holding which would indicate a 360-degree flip in fundamentals for the Silver market. Typically, Silver uses economic news and coat-tailing off Gold to fuel movements. Currently physical demand is ignoring traditional fundamentals and likely will cause the electronically traded spot market to close the disparity. Dealers on all levels report brisk sales and larger purchases.
The Platinum Family of Metals continue the slumber and should be considered a long-term speculative play at best considering that when the Global Recession comes to an end, whether already started or not, manufacturing demand should favor higher prices for this struggling group.
GMRgold provides a platform for all types of Precious Metals Investors. For the seasoned Gold and Silver Investors we offer our Webstore at Shop.GMRgold.com where you will find Bullion Products from the most prestigious Mints and Refineries in the World at highly competitive pricing. For the novice or perhaps more sophisticated investors, we offer our advisory services at 877-795-9585 where our unique approach to customize Gold and Silver Positions allows us to curate a plan just for your specific needs. There is never a bad time to buy Precious Metals. But sometimes are better than others.