Gold
Gold opened trading for the week at $2,330.00 and closed $2,344.00 on Friday night. To say that Gold was flat last week would be like saying Tiger Woods is a pretty good golfer. With an historic run that now has the attention of the entire investment community, the real story is what Gold accomplished in the last 6 weeks and what it touched on Friday. When the yellow metal reaches critical resistance on the spot market, there are typically weeks to months of battles above and below those levels. Gold has rammed through three levels of resistance without taking a knee. $2,100 Gold fell on March the 4th. Two weeks later $2,200 succumbed to buying pressure. Another two weeks and $2,300 gave up to throngs of new investors that along with the Global Central Banks pushed the bar higher again to $2,426 in a short seven days. The bears grabbed the reigns, slowed the march, and took over $80.00 away in just a couple of hours Friday midday. The message is, Gold is entering a secular Bull Market. The Question is, what is Gold trying to tell us?
Silver
Silver very nearly had a monster week. Opening at $27.50 per ounce and closing at $27.88 sounds Ho Hum. The last five days of trading were anything but Ho Hum. Following an impressive 18 months of stepping out of Gold’s shadow and performing on her own fundamentals, the shiny metal appeared to slumber through March as Gold broke out. Apparently Silver Bulls were just taking a well-deserved break as they battered the psychologically important $30 level. Getting all the way to $29.63 on Friday morning before the same bears announced, “that will be enough for now” and pulled it back nearly 10%. Two exciting things to think about Silver. We know now, it is capable of independent performance outside of Gold’s coat tail, and it is comfortable being tethered to the yellow metal for now. Expect premiums to increase, as closet bulls re-enter the market and the U.S. Mint fails to keep pace. We only have to go back 12 months to remember when thee premium on Silver American Eagles reached 60%.
Platinum And Palladium
Platinum gained nearly 5% on the week while Palladium managed a modest 2% gain clearly due to investor bargain hunters. Platinum and Palladium both had sunk to their production cost on the spot market. With metals finding their way to the front page, savvy buyers realized this anomaly and took advantage. There is still no increase in industrial and manufacturing demand as the Global Economy is stuck in Geopolitical chaos and stifling inflation.
Conclusions
If you are reading this report, it is preaching to the choir. You already knew what was inevitable. Precious Metals investors are intelligent enough to know when someone is urinating on your leg while telling you it is raining. Be very attentive to subtle leaks in the press in the coming weeks and months. Gold is trying to tell us something. Big Money is trying to tell us something. Central Banks are trying to tell us something. The targets to watch are the banking system, the middle east, domestic dangers crossing our open borders, inflation, the posthumous adjustments to economic reporting, and of course a volatile election cycle in an extremely divided country. For more information, see our article in the resources tab at GMRgold.com entitled, “Why is Gold Screaming at Us.” There is never a bad time to buy Gold and Silver. But some times are better than others.
Sincerly,
GMRgold President
