Monthly Archives: January 2018

  • Why You Must Own Silver in 2018

    Gold is very close to a major breakout (in price) its strength has not filtered down to Silver yet. Gold is 3% away from a major breakout and comfortably above its long-term moving averages. However, Silver is well below its 2016 high and is currently battling its 200-day moving average. But that is okay. Silver typically lags and underperforms Gold until Gold gains momentum or breaks key resistance. A major breakout in Gold this year and its effect on Silver is just one reason why Silver could have a big year.

    If and when Silver breaks above its 2017 highs, we can declare its bear market over (in terms of time). The chart below plots all of the major bear markets in Silver. They all end at the point when Silver begins to make higher highs and rises in an impulsive fashion. Silver’s bear market was the second worst by price and potentially the worst in terms of time.


    The next chart shows the rebounds in Silver from the endpoints in the previous chart. From the three endpoints Silver rebounded significantly in the next 12-15 months. We also included the 2008 crash from which Silver rebounded 100% in the following 13 months.


    Turning back to the present, we find $20 on a monthly closing basis to be the most significant resistance for Silver. The chart below is a plot of monthly closing prices. It is quite clear that a monthly close above $20 (the 2016 high) could kickstart a good run for Silver.


    Moving from the very long-term to the present, we note that Silver faces initial resistance at trendline 2 as well as the 2017 highs near $18/oz. That stands between Silver at present and the important $20 resistance (which is also shown at trendline 1).


    While silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months. Since Silver follows Gold, a breakout in Gold could be a huge catalyst for Silver to test and break resistance at $20/oz. If that happens, Silver would be on its way to another, typical substantial rebound. It has happened before and we expect it will happen again. We already own a few juniors with the best silver deposits but we continue to look for junior explorers and silver plays with 5 to 10-fold potential that could benefit from a breakout in precious metals.

    Source: TheDailyGold

  • All Precious Metals Fall Today

    Today saw losses for all precious metals, with gold down 0.4 percent to $1,335.02 per ounce. This makes the second consecutive day of losses, following Monday's average decline of 0.7 percent across the precious metals spectrum.

    Platinum lost a mighty 0.9 percent today, leading the precious metals losses and averaging losses today to 0.6 percent. Base metals also posted losses today, down on average 0.9 percent across the board. While lead only slipped by 0.1 percent, nickel posted losses of 1.8 percent this trading session.

    The U.S. dollar is seeing some bounce back in buying and is currently up to 89.50 on its index. Pricing in spot Brent crude oil slipped by 0.57 percent to $69.01 per barrel. The yield on U.S. ten-year treasuries is looking good at 2.72 percent, while the German ten-year bund is up to 0.69 percent.

  • Monday Sees Little Change in Precious Metals

    While last week saw losses for gold, silver, and platinum of about 0.3 percent on average (silver squeaked out 0.3 percent in gains), today was overall fairly uneventful in trading. Gold is at $1,348.75 per ounce.

    Platinum is at $1,010.80 per ounce today. Palladium is close at $1,089.50 an ounce. Silver came in at $17.39 an ounce. Base metals were up an average of 1 percent today, with only aluminum and tin posting losses of -0.2 percent and -0.2 percent, respectively. Zinc and Nickel are both up about 2 percent today, and copper rose by 0.8 percent.

    In other markets, pricing on U.S. 10-year treasuries made a good show at 2.68 percent. The German ten-year bund is up to 0.63 percent. Pricing on spot Brent crude oil slipped by 0.29 percent today, to $70.26 a barrel. The U.S. dollar has seen some buying, coming in at 89.24 on its index.

  • Gold Closes Week Ahead

    Thanks to a drop by the greenback this week, gold is ending the week on an overall high note, up 1.3 percent over the week to $1,350.70 per ounce.

    This week was made notable when the U.S. Treasury Secretary Steven Mnuchin announced that a weaker U.S. dollar was overall going to help the economy. President Donald Trump has said that he favors a stronger dollar overall, and Mnuchin later stated that his point on the dollar was taken out of context.

    As the U.S. dollar continues to be put under pressure and loses ground, gold and precious metals are expected to make significant gains. However, some market participants, the belief is that in fact gold should be the market to consolidate somewhat since the government shutdown is over and the current price for the precious metal may be seen as unsustainable.

  • Precious Metals Start New Week Well

    The new trading week started out with precious metals posting solid gains on all sides. Gold rose up to $1,330 per ounce.

    Silver also posted gains yesterday, up to $17 an ounce. However, the platinum group metals were much more mixed, with platinum up 0.7 percent to $1,017 an ounce, while palladium rose by only 0.5 percent to $1,113 an ounce. As for base metals, the complex rose on average by 0.2 percent. Three-month copper leaped up 0.7 percent. Nickel, lead, and zinc game in at approximately a 0.3 percent gain.

    The U.S. dollar is consolidating once again at 90.54, continuing the recent negative trend that started in September of last year. The euro is holding strong at 1.2236. The Dow Jones industrial average is up 0.21 percent, and the Euro Stoxx 50 closed at a particularly strong 0.78 percent rise.

  • Precious Metals Up, With Platinum Highest

    Precious metals have benefited from a strong trading day today, thanks to a good numbers in oil and base metals, as well as a weakened U.S. dollar. Gold is currently up 0.5 percent to $1,328.95 per ounce.

    Continuing the recent trend of strong trading by precious metals, palladium gained 0.7 percent today to $1,090.40 per ounce. Silver gained slightly more, to $17.12/ounce - an increase of 0.8 percent. However, platinum led by far with a solid 1 percent increase today, up to $992.10 an ounce. Base metals are also posting gains for the most part (up 0.5-0.6 percent), with only tin posting losses at -0.1 percent to $20,159 a ton.

    Pricing on spot Brent crude oil is looking good at $69.06 per barrel. U.S. ten-year treasuries is solid at 2.55 percent, and the German ten-year bund has leaped from yesterday's 0.46 percent to today's 0.53 percent. The U.S. dollar has slipped again on its index, down to 91.71. The euro is stronger at 1.2074.

  • Precious Metals End Week on High Note

    All precious metals are posting strong gains today, boosted in part by a good show in oil and a slightly weaker dollar. Gold is currently up 0.5 percent to $1,328.95 per ounce.

    In other metals, palladium is up 0.7 percent to $1,090.40/ounce. Silver gained slightly more, up to $17.12 an ounce, an increase of 0.8 percent. Platinum posted the biggest rise of all today, up a solid 1 percent today to $992.10 per ounce. This follows yesterday's trading which saw all precious metals but palladium posting solid gains.

    Prices on spot Brent crude oil is looking strong at $69.06 per barrel. The yield on U.S. 10-year treasuries is solid at 2.55 percent. The German 10-year bund is up significantly at 0.53 percent (yesterday was 0.46 percent). The U.S. dollar has slipped on its index, currently quoted at 91.71.

  • Gold Rides Higher Thanks to Weaker Dollar

    Last week's unfortunate U.S. jobs report has had a predictably negative impact on the U.S. dollar, giving gold a significant boost. The precious metal gained $1.25 from last session, rising to $1,320.25 per ounce.

    The U.S. jobs report, released on Friday, showed that non-farm payrolls fell significantly short of market expectations of 190,000 at only 148,000. Unemployment remains at 4.1 percent, though average hourly wages are up 0.3 percent from last month. The U.S. dollar made slight recovery in today's session, however, inching up 0.03 percent higher to 92.05.

    Spot silver rose by $0.030 today to $17.23 an ounce. Platinum is up to $973, an increase of $4 per ounce. Palladium jumped by $9 an ounce to $1100. Prices on Brent spot crude oil is up $0.03 to $67.73 per barrel.

  • Following Strong Session, Precious Metals Consolidate

    While yesterday saw the precious metals complex closing at an average of +0.9 percent, with palladium leading at +1.6 percent, today is proving to be a much quieter day in trading, with gold down 0.2 percent to $1,318.09 per ounce.

    Silver is also consolidating somewhat today, slipping by 0.1 percent to $17.16 an ounce. Platinum and palladium are both posting gains today, however, up 0.3 percent and 0.1 percent, respectively. With the last few weeks showing considerable rallies for the precious metals complex, some consolidation is to be expected. Base metals are generally seeing good trading today, with all metals but nickel posting gains in the 0.1 percent to 0.4 percent range.

    In other markets, the German ten-year bund is at 0.44 percent while the yield for U.S. ten-year treasuries posted at 2.45 percent. Spot Brent crude oil prices slipped by 0.12 percent to $67.85 per barrel. The U.S. dollar is consolidating on its index at 91.94.

  • Rare Penny Sells for $282K at Denver Auction

    DENVER – Talk about a lucky penny.

    A one-cent coin minted in 1943 sold for $282,000 at an auction in Denver this week.

    The coin in question is one of only 10 or 15 Lincoln pennies known to exist that were mistakenly made with bronze instead of zinc-coated steel in 1943. The U.S. Mint had switched to steel that year because of copper shortages during World War II.

    A handful of leftover bronze blank coins got stuck in the trap door of a tote bin used to feed the coin press machinery and the bronze pennies wound up in the coin press with the steel coins.

    Wednesday’s auction was the first time this particular penny went to auction.

    The auction took place as part of the World’s Fair of Money, which runs through Saturday at the Colorado Convention Center.