Week Ending March 13, 2022

Gold is Not About Day Trading

Gold took the markets on a roller coaster ride last week with prices ranging from a high of $2,060.00 per ounce to a low of $1,950.00 causing independent investors to re-think their positions. Stand firm! It must be noted that the very same institutions that made money on the rise from $1,750.00 to the recent record high close, are the same institutions that pocketed profits as the spot price fell $100 per ounce last week through short positions. Even in times of war and a country on the brink of economic storms, large investor greed can and will affect the markets and make it confusing for the novice participant. Regardless of the times that we live in, segmented views of charts can give day traders conflicted information. Our portfolio managers many times hear, “Yeah, but gold was down $26 yesterday.” “Yes sir, you are correct. Did you realize that Gold is up 14% in the last quarter?” Gold is not about day trading, it is about protecting the other assets you have from geo-political, and economic pressures. Gold is the tortoise in the race. There are ways to take the volatility out of your Gold positions. Ask your GMR Gold representative how this can be done.

Silver Numismatics Markets Experiencing a Tightening in Supply Not Seen in Decades

Silver did what Silver does over the past week packed with news and uncertainty. It tracked with gold exactly. The charts can almost be laid on top of each other. With a high of $26.40 per ounce to a low of $24.80 per ounce the mirror image of gold gives the middle-class investor a less expensive alternative to participate in the frenzy. This volatility is certain to continue until Europe settles down and “the powers that be” at home find a way to get control of inflation. The United States Mint announced suspension of some Silver programs until they can prioritize how to allocate what “blanks” they have available. Blaming Covid for the supply shortages, the mint offered no solution to the supply chain problems, only a rationing plan. Numismatic Silver markets are experiencing a tightening in supply not seen in two decades. This coupled with increasing demand contributes to the physical vs. spot price separation. Large internet dealers are near $43 for a common date of their choice Silver American Eagle. Once the physical demand is translated into the electronic speculative spot price, expect mind boggling prices for spot Silver and exponential increase in Numismatic Silver and Gold.

Word of the Week – Recession……….A common definition is "two consecutive quarters of decline in GDP," but this isn’t necessary for the economy to be in a recession. A recession just needs to be a contraction of the economy, featuring shrinking production and consumption, higher unemployment, and (sometimes) lower price levels.

With the Dow Jones Industrial Average down 10% from its January high we are halfway to equities being labeled a bear market. Inflation is causing families to choose between fuel and eating out, medicine and beef, or new car or auto parts store. If the United States economy does not enter a recession, it will be paramount to the Dallas Cowboys winning a playoff game. Prepare now. The line at your Precious Metals dealer is growing and after the announcement will be around the building.