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.
Gold opened the week at $1981.00 and closed trading on Friday at $1,994.00. Clearly the recent rally can be attributed to the reaction of Israel to the attack by Hamas. While Israel’s resolve is to erase Hamas from the Gaza Strip, the rest of the world is collectively holding their breath as to what this erasure will prompt the rest of the Muslim world will do in response to the response. While the Geopolitical chaos is driving the rally from the recent lows in the mid $1,800’s it is merely the catalyst to a precarious stack of triggers.
An interesting event occurred on Friday when there was a pullback from the weekly high as safe haven buying was overshadowed by profit taking. A practice that is not unprecedented when margin calls from stock trades send investors and institutions in search of cash. The Dow has now erased all its gains since January to settle Friday in negative territory for 2023.
It is folly to grab numbers from small parameters to make a point. These two comparisons over different time periods, however, tell a dramatic story. Year to date Gold is up 9%, the DJIA is Down 2%. For the last 12 months Gold is up 19%, the DJIA is dead even. For the last 5 Years Gold is up 61%, the DJIA is up 28%. Gold is the best kept secret in investing.
Silver failed to follow the rally that Gold enjoyed last week. Opening trading at $23.37 per ounce and closed at $23.11 on Friday. It is important to note that Silver is still in a long-term upward trend coming from $17.00 per ounce in August 22. This impressive move was solely investment driven as industrial demand for Silver is considerably depressed.
The lack of a Gold tether in this current move exhibits Gold’s safe haven qualities that Silver does not possess. However, a delayed “mimic” rally should be expected smaller investors follow the moves of institutionals. Physical Silver still demands an elevated premium. Random Dated Silver American Eagles are trading at 50% over spot at the mega internet dealers, while Generic Silver Bars are slightly more palatable at 37% over the electronic price.
Platinum and Palladium were both up for the week. Platinum opened at $899.00 and closed at $906.00 while Palladium fared slightly better starting the week at $1,102.00 and finishing at $1,134.00. 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
GMR Gold has consistently been updating our clients on the “stack of triggers” that could set off a long-awaited breakout in Gold and Silver. It is not too late to protect your savings and portfolios. We are witnessing the first domino in the stack toppling over which will cause the unleashing of the stored-up momentum. As the comparisons above reveal, there is never a bad time to buy Gold and Silver, but some times are better than others!
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