Gold
Gold fared very well last week after a pullback from the all time high of $2,431.00 the week before. Many analysts who were expecting an even more dramatic correction awoke on Monday to see that some of that happened overnight in the Far East and in Europe. While a consolidation at this point is neither unexpected or abnormal, the fundamentals that drove the run over the last five months are still in place. There is some optimism in the Geo-political influence that the tensions have tapered between Iran and Israel which cannot be overlooked in the price drop. When additional economic reports and leaked information from the Federal Reserve that interest rate cuts are not a near-term guarantee will boost prices along the way. An opportunity to buy Gold $100 per ounce less than two weeks ago will feel like a bargain in the coming months. Savvy metal investors will buy all the way to the bottom and ride the wave back to the top. Gold opened last week at $2,344.20 and closed at $2,392.15 after topping the $2,400.00 mark again last week. The low for the week was the open which shows the momentum of the yellow metal. Citi Bank’s chief financial analyst has raised their expectations of Gold to $3,000.00 during 2024 to 2025.
Silver
Silver opened the week at $27.88 and closed at $28.67 echoing the momentum of Gold. When Silver Bugs poured their first cup of coffee Monday morning, they experienced the same emotions as Gold Buyers at the new week’s opening. Silver loyalists do not have to be reminded of the Garage Sale pricing as history would tell us there will be a run on physical Silver this week as the speculators suppress the spot price of the shiny metal that can be put under the mattress. Attention should be given to Silver’s resilience with industrial demand waning throughout the world. The investment demand on Silver has held strong and kept the price elevated without that important industrial segment of demand. There is a huge segment of the Silver demand that is more comfortable buying a dozen ounces of Silver rather than one ounce of Gold.
.png)
Platinum And Palladium
Platinum and Palladium gave back the gains they picked up last week returning closer to their production costs. Platinum opened at $977.31 and closed at $935.36. Palladium also gave back nearly 5% opening on Monday at $1,049.90 and finishing on $1,031.32 at the bell. Like Silver, the Platinum family of metals is dependent on Industrial Demand, namely gasoline powered auto production, to show any strength.
Conclusions
There are those that will pause during the consolidation process that is occurring right now with Gold and Silver. Those that understand that consolidations and corrections are necessary in any commodity will realize that this is a buying opportunity. The same uncertainty about the economy and the Global Geo-political climate, coupled with the problems here at home that are not being televised, are still hiding around every corner waiting to startle the economy even further. Gold and Silver are tried and proven assets for every portfolio. Performing steadily as they serve their purpose of keeping up with inflation until the moments that they really shine as an alternative investment. As more and more Americans loose confidence in paper assets, Gold and Silver will continue to thrive. And when the news that savvy investors have known all long reaches the Front Page of the Financial Section, more people will find safety in the Precious Metals Sector. There is never a bad time to buy Gold and Silver. But some times are better than others.
Sincerly,
Doug Pullen
President, GMRGold Companies
