Commentary for Monday, Dec 16, 2013 – Gold closed up $9.30 today at $1245.50 in what appears to be a little nervous jump in prices.
This is not necessarily bullish but just another insurance bet as doubt enters the picture as to what Uncle Sam is going to do with his famous quantitative easing program this week.
Gold did see highs of $1251.00 probably because of short-covering and while trade expects some modification in the $85 billion a month program…just what will happen is cloudy.
The latest Federal Open Market Committee (FOMC) meeting happens this Tuesday and Wednesday so unless we see leaked information we are talking about Wednesday afternoon for more direction input. By then the paper markets are closed for day, we have a holiday trading atmosphere, Christmas is right around the corner and for the most part we have talked this change into the ground.
I am not saying we won’t see volatility if the $85 billion number is changed but the result may not be anything more than a yawn.
Some sources say the taper will proceed but the economy still looks a bit on the pale side to most and even with higher stocks it would take a pure optimist to say we are out of the woods.
So were does that place the metals between now and the first quarter of 2014? Again my prediction holds, in that we will probably test the $1200.00 mark once again and with a bounce higher we could see a continued tight trading range.
Still with higher real estate, higher stocks and little inflation the precious metals might play second fiddle until something more promising shows up on the radar. Remember that all investing is about anticipated change and it is safe to say that few anticipate higher prices short term in the metals.
For real believers this remains a time for accumulation on weakness and for everyone else they are now wondering what Bezos has in mind with all those robots.
Silver closed up $0.49 today at $20.15 in fairly quiet physical trading and my opinion about higher American Silver Eagle premiums because of the US Mint retooling for 2014 has not created any traction.
Platinum closed down $3.00 at $1360.00 and palladium closed unchanged at $716.00.
The walk-in cash trade and phones were again holiday like today. The GoldDealer.com Activity Scale was a “3” and most of the employees were paying more attention to lunch than market activity. The CNI Activity Scale takes into consideration volume and the hedge book: (last Tuesday – 4) (last Wednesday – 4) (last Thursday – 5) (last Friday – 4) (Monday – 3). The scale is 1 through 10 and we believe this is a reliable way to “sense” real bullion business.
The new GoldDealer.com site is up and running and we continue to make changes and adjustments to various pages. Some pages on the old site were not carried forward so while the site ID has not changed a particular landing page might need adjustment. This new approach will show you live buy and sell bullion prices but you must talk with a live person to confirm and receive an order number. It now includes Live Chat, new customers can set up their own encrypted accounts in advance, automatic email confirmation (buying or selling) is working and the graphs are back. You might also note we brought back the Gold Newsletter 1 week archive.
Phase Two will make accounting, shipping and tracking easier. We now offer the choice of USPS or FedEx Ground. Our new flat screens within the CNI Building are operational, the feed and graphs are live, premiums defined and cash available. Like us on Facebook and follow us on Twitter @CNI_golddealer.
Our best price guarantee (buying or selling) is famous so call Kenny at 1-800-225-7531. The CNI Holiday Schedule: We will be closed Tuesday, Wednesday and Thursday (Dec 24th, 25th and 26th) for Christmas. For New Year’s we will be closed Tuesday and Wednesday (Dec 31st and Jan 1st): a reminder that shipping during the holiday season slows so your patience is appreciated. Thanks for reading and enjoy your evening.
If you are interested in buying precious metals please look at the 10 oz Silver Bar and the Canadian Silver Maple leaf