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    Gold Tests Recent Lows on Better Than Expected Unemployment Numbers

    Last updated 11 hours ago

    Commentary for Thurs, July 24, 2014 (www.golddealer.com) – Gold closed down $13.90 today at $1290.60 giving up the important $1300.00 support as US weekly unemployment numbers came back better than expected, with just 284,000 registering, while the forecast was for 310,000. This was the lowest reading since February 2006 and points to continued improvement in the economic recovery. This would reinforce current Fed policy which aims to reduce quantitative easing by year end.

    The US manufacturing sector has once again failed to hold on to expansion rates above 57 (see below), however, this indication of a reduction in expansion does not necessarily imply a negative connotation to the sector.  Demand remains robust and, with export order growth remaining subdued, this implies that demand continues to be driven domestically as economic momentum continues to pick up steam. This is further backed by new business growth which continues to increase strongly, albeit at a slightly reduced rate on last month, where manufacturing production increased to a four month high.

    Going forward, we should continue to see strong demand within the manufacturing sector which should continue to add upside pressure to base metal prices. This sign of sustained strength within manufacturing, which indicates maintained consumer confidence going forward, will likely increase downside pressure on the precious metals, as we would expect this to spur increased speculation that the Federal Reserve could decide to raise rates earlier than is currently expected, as this decision remains data dependent.

    This latest test of support is also technically driven so let’s look at gold’s 50 Day Moving Average ($1293.00) its 100 Day Moving Average ($1303.00) and its 200 Day Moving Average ($1287.00).

    Gold broke below its 100 Day Moving Average ($1303.00) which indicates a continuation of last week’s sell-off but then found significant support around the 50 Day Moving Average ($1293.00).

    This pattern is similar to last week’s test – gold at that time reversed in short covering and settled higher ($1313.00) but failed to gather further upside strength resulting in the usual push/pull market between the bulls and bears.

    So I would consider today’s action another test of the downside putting the bears in charge short term but there has not been enough damage to claim we have resumed the bearish trend -  especially with developing military problems in Ukraine and Gaza.

    But the bulls are under assault and so gold’s 200 Day Moving Average becomes key ($1287.00) – a break below this number would likely set up a retest of recent $1240.00 lows and confirm a long term range bound market.

    Silver followed gold lower down $0.58 at $20.37. In a similar fashion watch silver’s moving averages for short term clues: 50 Day Moving Average ($20.13) – 100 Day Moving Average ($20.09) and 200 Day Moving Average ($20.35). 

    From Standard Bank – Walter de Wet - "China’s June silver imports a mere blip – “We keep a close eye on silver. It has been quite resilient, trading between $18.50 and $22 since late last year. As with many other metals, China’s silver import numbers are crucial to the metal’s price, especially since China turned net importer of silver in 2009. China’s latest silver import numbers show the same picture as for gold and platinum – the country has probably imported too much metal of late. We therefore foresee that the silver price will not manage to sustain rallies beyond $22. China imported 107mt of silver in June, up from 47mt in May and 70mt in March. Although the rise of silver imports in June is encouraging, volumes have been lacklustre.

    Also, YTD total imports are largely skewed by the large import number of 332mt in February (Figure 1); the year otherwise has been very weak. At the current pace of imports, China would have imported 1,630mt in 2014, compared to total imports of 3,578mt in 2010, 2,236mt in 2011 and 1,994mt in 2012. Nevertheless, total imports for 2014 would be marginally higher than the 1,360mt imported in 2013. However, unlike palladium, where our estimates would suggest the bias lies towards China importing more metal in H2:14, silver’s bias lies to China importing less metal in H2:14 than H1:14. This is premised on the fact that since 2011, H2 has been characterized by seasonal weakness, with m/m declines in silver imports starting in September and continuing into December.

    What would change this profile? A sharp decline in the silver price. Indeed, given the seasonal weakness in Chinese imports starting in September, combined with the fact that we see mine supply rising and a speculative market that has flipped from being very short silver to very long silver on COMEX, we maintain that the price bias for silver lies to the downside, as the price is currently near the upper end of the $18.50 - $22.00 range.”

    We believe sooner or later silver will break to the upside – in the meantime take advantage of “sale” prices. The discount to old highs is substantial and no one is smart enough to call the exact bottom so buy weakness. When considering silver bullion stick with the standard fair – low premium bullion products.

    And avoid the telemarketing nonsense – high premium “fake collectable bullion” designed to look like something special.

    And always keep in mind the big advantage silver bullion offers - a low premium and affordable entry price. Everyone - on all economic levels can participate. This is powerful investment leverage which will eventually produce results.

    Platinum was lower by $13.00 at $1472.00 and palladium was down $4.00 at $869.00. In a similar fashion watch platinum’s moving averages for short term clues: 50 Day Moving Average ($1473.00) – 100 Day Moving Average ($1457.00) and 200 Day Moving Average ($1432.00).  

    The walk-in cash trade today was active which is usual on lower prices but there was not a big pop in buyers which might indicate the public is a bit spooked by the sudden drop in prices.

    I would be concerned but not get carried away – it’s summer like trading conditions – thin really – so traders can push markets around for short term gains.

    The phones were just average and we will need a few more days to see if this weakness confirms or is just another blip in a market which continues range bound.  Rather large bullion activity going into IRA Accounts continues.

    The GoldDealer.com Activity Scale is a “5” for Thursday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 2) (last Thursday – 4) (last Friday – 4) (Monday – 4) (Tuesday – 4) (Wednesday – 5). The scale (1 through 10) is a reliable way to understand our volume numbers.

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water and cokes. No popcorn machine as yet and I am working on the In and Out burger plan again.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading from your friends at GoldDealer.com and enjoy your evening.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Remains Quiet in a Tight Trading Range

    Last updated 1 day 10 hours ago

    Commentary for Wed, July 23, 2014 (www.golddealer.com) – Gold closed down $1.60 at $1304.50 in another uneventful trading session. The overnight markets in gold were completely flat – Hong Kong and London trading in a $5.00 range which continued into our domestic market.

    This even with the news that two Ukrainian fighter planes were shot down so while the Israeli and Ukraine conflicts continue to underpin these markets it does not appear safe-haven buying will appear unless there is further escalation.

    So gold remains sleepy and holding a tight range showing overhead resistance at the 50% Fibonacci retracement number ($1308.00) and its 21 day moving average ($1317.00).

    Support seems strong at the 100 day moving average ($1303.00) and the Dollar Index is stronger (80.81) as violence continues in the Middle East.

    Our State Department claims there is no direct evidence tying Russia to the downing of the Malaysian commercial flight – which makes sense. Still they are supporting Russian separatists so there is some culpability but little will be done. Sanctions are ineffective and Europe’s economic ties to Russia are strong and include the need for natural gas in eastern Europe and French construction of Russian warships.

    According to the World Gold Council China imported 19% less gold in the first half of 2014 than during the same period in 2013. Her imports were 569.5 tons versus a record 1176 tons last year which was helped by a 28% drop in prices.

    Also of note is that China is the world's largest gold producer accounting for some 420 tons in 2013. And the World Gold Council estimates that gold demand will grow by 25% in the next five years - the result of bigger and wealthier populations.

    Silver closed down $0.01 at 20.95. Not much action here either - silver has given up the sweet spot below $20.00 and cannot manage a big push to higher ground which would certainly create more physical buyers here in the US.

    This from Ian Walker (FastMarkets) - London 23/07/2014 - Research firm Metals Focus said it expects strong gains in primary silver mine supply during the first half of this year, despite a near 25 percent reduction in average prices.

    Although complete second quarter results have yet to surface, reports have indicated that versus the same period last year, average production in primary silver has increased by five per cent year-on-year, supplying an extra 2.8 million ounces to date.

    Gains were driven by a two percent rise in the average grade of ore processed and a similar lift in the average rate of silver recovery from the process plant, the firm said. Trends are expected to continue into the second half of this year and could help propel primary output - which does not include silver mine production as a by-product - to around 250 million ounces in 2014.

    "As a whole, a large part of the primary sector's resilience to lower metal prices has been down to cost cutting," Metals Focus said.

    Spot silver was last at $20.93/20.98 per ounce, down a cent on yesterday's close. The company added that in the first quarter of 2013, average production costs fell by about 20 percent year-on-year to an estimated $8.50 per ounce on a total cash basis, and to $15.50 on an all-in sustaining basis. "Primary silver producers have outperformed their gold counterparts in this department," the firm added. "That said, this has in part been driven by necessity given that silver’s price decline over this period was more pronounced than gold, and the fact that less than a third of global silver mine supply is derived from primary operations, meaning producers have less protection from the industry cost curve.

    Metals Focus said that in spite of modest price projections, primary silver is expected to grow by around three percent in 2014. The firm said that about 10 percent of the first quarter cost curve was loss making, on an all-in sustaining basis, further cost cutting and the addition of some new lower cost mines should see this share fall. Most notably, production increases at Escobal in Guatemala and the Cerro de Pasco oxide project in Peru will create positive trends in the market. Furthermore, Saucito II in Mexico and Inmaculada in Peru are expected to enter production before year-end.

    Platinum closed down $3.00 at $1485.00 and palladium was down $1.00 at $873.00.

    All Gold Exchange Traded Funds: Total as of 7-16-14 was 55,496,611. That number this week (7-23-14) was 55,410,455 ounces so over the last week we dropped 86,156 ounces of gold.

    It might also be interesting to note that in 2013 the record high holdings for all gold ETF’s was 85,112,855 ounces. In 2014 the record low was 54,773,273 ounces.

    All Silver Exchange Traded Funds: Total as of 7-16-14 was 625,902,322. That number this week (7-23-14) was 624,906,059 ounces so over the last week we gained 996,263 ounces of silver. 

    All Platinum Exchange Traded Funds: Total as of 7-16 was 2,850,329 ounces. That number this week (7-23-14) was 2,874,109 ounces so over the last week we gained 23,780 ounces of platinum.

    All Palladium Exchange Traded Funds: Total as of 7-16-14 was 3,066,470 ounces. That number this week (7-23-14) was 3,064,551 ounces so over the last week we dropped 1,919 ounces of palladium. 

    This from Mike Myer (EverBank World Markets) – “The currency market saw some life injected into it after we had a sizeable increase in the US data department. We first had a look at June's Consumer Price Index (CPI) which gave us another increase.

    As it suggests, CPI gauges inflation experienced by consumers as measured by changes in the price level of a market basket of goods and services. The point of contention that many have with this report, of which I share, is just what goods or services are taken into account and how the results are calculated. We've hit on this many times in the past, but inflation pressures experienced by most consumers appears to be much higher than these government reports suggest.


    Chuck has mentioned this quite a few times as well, but inflation is personal and can vary widely from person to person. For example, someone who has children in college will be directly impacted by a rise in tuition costs whereas those who have no children won't feel the pain of those higher costs. Since everyone needs to eat, my opinion is that food prices should always be taken into account when talking about inflation. Please note that core inflation strips out both food and energy prices, so it just doesn't paint an accurate picture when it comes to measuring inflation on main street, as far as I'm concerned. I get why core inflation can be a useful measure, but just not as it applies to real life.

    Food prices have increased for six straight months so I would say we can call this a trend, although the upward pace has eased a bit. It was close to being a push as dairy, cereals, and produce prices all declined in June while the price for meats, fish, and eggs increased. At the end of the day, food prices in June inched up 0.1% and was the smallest move since January. Anyway, the elevated CPI figure was primarily due to higher gasoline prices. Janet Yellen and others are fairly confident these recent pressures are temporary in nature, but if the geopolitical issues escalate in the slightest bit, we could see oil prices rise and remain sticky.

    I just realized that I've talked about everything except the actual data. Headline inflation increased 2.1% on an annual basis in June, which matched May's figure. The report also indicated the 3.3% rise in gas prices accounted for about 2/3 of the increase. Core inflation came in a bit lower at 1.9% as lower prices for new cars is being attributed to the declaration from 2%. One of the bigger issues affecting consumers is the fact that hourly earnings haven't been outpacing inflation. On one hand, we have Yellen downplaying inflation expectations and then on the other hand, we have James Bullard from the St. Louis Fed warning that inflation could take off if employment improves.”

    The walk-in cash trade today was just average and the phones were on the quiet side. There has been however some rather large bullion activity going into IRA Accounts.

    The GoldDealer.com Activity Scale is a “5” for Wednesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 2) (last Thursday – 4) (last Friday – 4) (Monday – 4) (Tuesday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers.

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water and cokes. No popcorn machine as yet and I am working on the In and Out burger plan again.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading from your friends at GoldDealer.com and enjoy your evening.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    GoldDealer.com Is Kind & Generous

    Last updated 1 day 13 hours ago

    • on GoldDealer.com
    • Here I am, a new customer, yet your kindness and generosity make me feel like I have been dealing with your firm for decades! Thank you for understanding my situation. I will do everything in my power to continue to earn your trust.
      Best regards

      More
      R.

    Reasons to Invest in Precious Metals

    Last updated 1 day 14 hours ago

    It’s never too early (or too late) to start investing in your future. And when it comes to retirement investing, experts recommend having a diverse investment portfolio. While there are certainly benefits to investing in real estate and IRA accounts, precious metals can protect your hard-earned wealth from the ravages of an unstable economy. If you are looking for a new investment channel, consider these reasons to invest in precious metals.

    Protected from Inflation
    The number one reason why financial professionals recommend investing in precious metals during times of economic hardship is that they are virtually inflation-proof. In a time when government deficits are skyrocketing and the value of paper currency is plummeting, moving your wealth into gold and silver can protect your fortune.

    Tangible Wealth
    If you trade on the stock market, how many of your stocks can you touch and feel with your own hands? Because precious metals such as gold bullion and silver bars are tangible assets, they act as a hedge against losses from more volatile investments such as stocks and bonds.

    Worldwide Value
    You might not find another country in the world that has a 401(k) program like yours, but precious metals share a high level of international liquidity. Nearly every country in the world participates in the precious metal exchange market, and most governments have a gold reserve. In other words, when you invest in precious metals, you can trade it anywhere.

    If you are interested in investing in precious metals, contact California Numismatic Investments. We are one of the largest precious metal dealers in the United States, and we bring more than 30 years of experience to the table. Visit our website to learn more about the precious metals we offer, including gold bullion, silver bullion, and platinum bullion. If you have questions, call us toll-free at (888) 612-2679. 

    Gold Moves Lower Against a Stronger Dollar

    Last updated 2 days 9 hours ago

    Commentary for Tuesday, July 22, 2014 (www.golddealer.com) – Gold closed down $7.60 today at $1306.10 so we have seen a kind of mixed market these last few days with some short term profit taking as the dollar strengthened. The Dollar Index (80.78) has been trending higher since Monday so this will produce some drag on the price of gold while news regarding Gaza and the downed Malaysian aircraft continue to support some safe haven buying.

    London 22/07/2014 - Core CPI in June was 0.1 percent, the lowest reading since February, indicating a reduced rate of inflation. CPI has dropped to 0.3 percent, meeting its forecast, which is likely to mute reactions to this data release. This show of a reduction in CPI across the board will signal to markets that the FED is likely to hold rates lower for longer to continue to stoke inflation, which will add upside momentum to precious metal prices. 

    So you might ask why gold has not reacted more violently to Middle East tension and problems in the Ukraine. The answer being that while both are a humanitarian tragedy – neither seems to be escalating beyond management so traders watch carefully but remain unengaged. But this may prove problematic – Hamas is a terrorist organization being helped by Iran – this is a formula for disaster so the US had better be sweating the details.    

    Volume numbers today (Tues) in gold were 120135 contracts which is high relative to action in the last 5 trading sessions. Look at the number of contracts traded – yesterday (428) – last Fri (116687) – last Thurs (2691) – last Wed (522).

    In the last 5 trading sessions - 3 days were quiet - two days were very busy - yet gold moved in a very tight range - $1298.20 (low) - $1322.40 (high).  This looks like a military market (just made that up – hurry up and wait) – and you can draw your own conclusions but this looks like short term volume trading with short term profits in mind. This also reminds me of a wandering price trend which may be with us through the summer - but at the same time supported by international tensions.

    Silver closed unchanged at $20.96.

    Platinum closed down $5.00 at $1488.00 and palladium was off $2.00 at $874.00. The buying of the Baird Rhodium 1 oz bar ($1320.00/Delivered) remains active.

    Bloomberg claims this morning that Credit Suisse will exit commodities – “Credit Suisse Group AG said it will abandon commodities trading as a $2.6 billion fine to settle a U.S. tax investigation pushed the Swiss bank to its biggest quarterly loss since 2008.” It looks like they will keep their precious metals interests but consolidate them under foreign exchange. Most people relate Credit Suisse to that beautiful gold bar they produce but really their precious metals interests are small relative to their banking and international reach.

    This from Kira Brecht (Kitco) – “For those technical traders who like to monitor developing patterns, there is a potential "inverted head and shoulders" bottom formation that could be forming on the daily chart. This pattern has not been confirmed. But, it is something worth watching. See Figure 2 below.

    An inverted head and shoulders pattern is a bottoming formation. These patterns rarely fit the textbook criteria. Action during April could have formed a complex "left shoulder." The "head" is seen at the June lows. The right shoulder may have started forming in late June into mid-July.

    In order to "confirm" the bullish potential of this pattern, a strong and sustained rally would be needed above "neckline" resistance, which is seen on Figure 2 below and comes in around $1,349.10 on Monday. The right shoulder could continue to develop for even a few more weeks. But, this is something worth watching. The measuring objective would be quite large (the width of the pattern from the neckline to the head) and would project significant gains if confirmed.

    However, as of now this is not a confirmed or tradable pattern. It remains in the development stage, but is worth watching. Sustained declines under the $1,294 area would likely destroy the pattern's viability.

    Bottom line? The near term outlook is sideways to higher as long as support at $1,294 holds firm. If a strong rally were seen above the "neckline" trendline in the days or weeks ahead, more substantial gold market gains could be targeted into the late summer or early fall months.”

    Trading patterns have a big following in the gold business and Kira Brecht (TraderPlanet) is always worth reading. The above pattern as presented is not complete but this market does have “feel” to it which might suggest change. I know “feel” is a very subjective word but if you are not a confirmed “bear” the struggle to higher ground or current fight between the bulls and bears is hopeful to us bulls. The general market commentary relative to gold has been negative for some time but the break above the recent descending tops line is noteworthy. Let’s hope so because once a real “bottom” in gold is a reality the sidelined action will quickly return. 

    Because many believe the value of the dollar is inversely proportional to the price of gold I thought it would be interesting to take a look at what has happened to the good old American buck over the long term. According to Trading Economics the United States Dollar increased to 80.50 in July from 79.78 in June of 2014. The United States Dollar averaged 97.45 from 1967 until 2014, reaching an all-time high of 164.72 in February of 1985 and a record low of 71.58 in April of 2008.

    There are some in the gold bullion community that believe the dollar is ultimately doomed and so encourage a counter investment in gold to offset such a possibility. I guess this is possible but the rhetoric surrounding the dollar’s demise has been around since the early 1970’s and you can see by the averages above that the record does not support the theory.

    There is also the theory that since 2008 the monetary expansion was so huge that “this time around it’s curtains for the dollar”. I think this would be true if indeed all the money printed was circulating and available. But most of that cash (some believe as much as 80%) is just gathering dust as the reserves of our national banks go through the roof.

    The banks are not lending the money to business and individuals because (they claim) profitable opportunities have not returned since the 2008 debacle. 

    This may be why our economy remains sluggish - we have not experienced inflation and the value of the dollar has not tanked.

    Now we are not economists by any stretch – just regular old gold and silver bullion dealers who have been telling the public for more than 33 years that it might be a good idea to put a small part of their savings into something more substantial than the “full faith and credit of Uncle Sam”. 

    And just how long the Federal Reserve can maintain this balancing act is another question. Remember – even coin dealers know that economics is not an exact science. Things could easily get out of control or these theories can miss the mark leading to another financial crisis.

    So gold bullion plays an important role as a counterbalance to government edict – it really is primary financial insurance. Especially now that the Federal Reserve claims its quantitative easing program will end by December of 2014. Reversing this monetary expansion by lowering bank reserves – the only check on inflation at the moment will not be an easy task - and is subject to Murphy’s Law. 

    And talking about what the Federal Reserve promises versus what it delivers consider the following - (Reuters / James Kelleher) - U.S. job rebound not spurring spending, Wal-Mart's Simon says - U.S. employers may be hiring again, but the job market recovery is not giving ordinary consumers enough confidence to increase their spending, a top Wal-Mart (WMT.N) executive said on Monday.

    In an interview with Reuters, Bill Simon, the president and chief executive officer of Wal-Mart U.S., said the improving employment picture had so far failed to raise cash register receipts at the retailer's U.S. stores.

    “It's really hard to see in our business today … that it's gotten any better,” he said. “We’ve reached a point where it’s not getting any better but it’s not getting any worse – at least for the middle (class) and down."

    Last week, the U.S. Labor Department reported that U.S. employment growth jumped in June, and the jobless rate closed in on a six-year low.

    The news, which was seen as proof the U.S. economy was finally growing briskly after years of a lackluster recovery, helped send the Dow Jones Industrial Average above 17,000 for the first time.

    Simon said Wal-Mart's lower- and middle-income customers appeared to have made a number of changes to their shopping habits that were "not the best thing in the world for a retailer," splurging on events like back to school and holidays like the Fourth of July, but pulling back spending in between.

    "They’re adapting to what has been a difficult macroeconomic situation," he said.

    In May, Wal-Mart Stores Inc said its profit fell nearly 5 percent in the first quarter and forecast weaker-than-expected second-quarter earnings, citing among other things the continued financial struggles of its lower-income customers.

    At least one in five of Wal-Mart's customers relies on federal government assistance to help buy groceries and other goods at the retailer's more than 4,000 U.S. stores. Wal-Mart has also faced pressure from discount retailers such as Dollar General Corp (DG.N), which have lured away financially struggling lower-income customers by slashing prices.

    "People think we do better in a down economy," Simon said. "We don't. We do better when the GDP is growing, when the economy's good and we really need that in the long run for the business to improve."

    The above post is interesting not because Wal-Mart is starving – the last time I was there you could not get into the place. And it’s true the US economy is getting better – but now the cracks in the European model are showing and that is getting more publicity.

    So a possible scenario relative to gold bullion. There is theory that present US fiscal policy is just the same old policy only on steroids because the 2008 financial collapse was the largest in history. And there is a real limit to what the Federal Reserve can accomplish before we meet critical mass. I think Bernanke’s comments about “fiscal limits” when he talked to Congress was at the center of this thinking. In other words he implied the Fed is rowing as fast as they can but Congress needs to pick up its game in the fiscal battle.

    But what if Congress can’t do more, the European’s debt implodes and the Federal Reserve realizes that continuing to pump up their balance sheet is no longer effective. Running the red ink meter from less than $1 trillion before the crisis to more than $4 trillion during the crisis has averted catastrophe - but has not fixed the underlying problem because there are plenty of “Wal-Mart” experiences like the one above and all present those little red flags that something is not right.

    And investors need gold bullion in their personal possession when all they have between themselves and inflation are government promises that things are getting better.

    Especially when smart guys like Wal-Mart’s Bill Simon claim things are not adding up.

    The CNI Activity Scale has been steady and active but the downstairs walk-in cash traffic has been slow. This would point to higher phone traffic but without that downstairs noise it may seem quieter than it really is – who knows these days because the buy/sell action is pretty much split between the bulls and bears. There was one whale that showed up early today which is promising.

    The GoldDealer.com Activity Scale is a “4” for Tuesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 2) (last Thursday – 4) (last Friday – 4) (Monday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers.

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water and cokes. No popcorn machine as yet and I am working on the In and Out burger plan again.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    Thanks for reading from your friends at GoldDealer.com and enjoy your evening.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

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  • 9:00 AM to 5:00 PM Wednesday
  • 9:00 AM to 5:00 PM Thursday
  • 9:00 AM to 5:00 PM Friday
  • Closed Saturday


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