Welcome back to our weekly precious metals market update, where we provide you with a comprehensive overview of the performance of gold, silver, platinum, and palladium. Whether you are a seasoned investor or someone considering precious metals as an investment option, this update will equip you with valuable insights into the recent performance of these timeless assets.
A tough week for Gold Bulls last as the yellow metal retreated near the $1,900.00 level seemingly ignoring the conflict in the Middle East and trouble at home in the economy. Opening the week at $1,992.00 and finishing Friday at $1,936.00 the baseline above $1,900.00 is still significantly higher the lows prior to the Israeli-Hamas conflict at $1,821.00. At this writing Gold is going to start the week modestly down even following the news late Friday that Moody’s has once again dropped their rating on the United States from “Stable to Negative”. This on the heels the Treasury’s 30 Year bond auction party on Thursday afternoon and the “A-Listers” did not show up.
The auction was dubbed as a bust after the usual suspects from foreign sovereignties did not attend and the Federal Reserve was forced to cover the house. The only opinion one can derive from the lackluster appetite of Treasury bonds is that the world, along with Moody’s has changed their opinion on the stability of the United States. To put this in perspective. For the Treasury to print dollars, there must be an equal amount of bonds sold, ie, loans, to support the printing.
George W. Bush handed Barrack Obama a national debt of $10 Trillion. That was from 1776 to 2009. Barrack Obama handed Donald Trump a national debt of $20 Trillion. Doubled in 8 years. Donald Trump handed Joe Biden $27 Trillion in national debt. Another $7 Trillion in 4 years. In three years since, we are up $6 Trillion more to $33 Trillion. Including $1.7 Trillion this year alone. And, the Dollar is strong, the stock market is at an historic high, Congress is sending 100’s of Billions of US Dollars in hush money to Ukraine, and all the while Gold is only up 4% for the year. Gold is poised for an upside proportionate move do you want to buy today or after that move?
Silver fell 5% last week with the same pressures that disappointed the Gold Bulls. Opening the week at $23.22 and closing trading on Friday at $22.25. As with her big sister, any dips in the Precious Metals Markets should be seen as buying opportunities. Physical buying strength remains brisk as premiums to own the physical variety of Silver is still at historic levels. Silver American Eagles demand a 48% premium over spot. Generic Silver Bars, 36%, and Silver Rounds at 27%.
Platinum and Palladium were both down for the week. Platinum opened at $934.00 and closed at $835.00 while Palladium fared slightly better starting the week at $1,120.00 and finishing at $955.00. The Platinum family of metals will remain in this tight trading range until there is some news on the horizon about a Global Recovery in manufacturing.
Outlook and Conclusion
The World Economy, Geo-Political situation, and Civil Unrest are all three a powder keg about to blow. Just like every time before, Investors are “locked up” looking for a sign. There is never a bad time to buy Gold and Silver. But, some times are better than others.
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