Commentary for Tuesday, April 1, 2014 – Gold closed down $3.80 today at $1279.60 even with continued weakness in the dollar. This could be a combination of short trading pressure, further technical correction and the continued malaise we have seen on the trading floor these past few weeks. But the short sellers could also be getting tired and so the moves lower are getting smaller. This morning on CNBC Santellie was commenting on the price rise in commodities like wheat and corn which portends some push higher in inflation numbers. But overall the trading environment looks a bit deflationary. Not enough to push the special red button but there is some bias.
Short term gold is down $100.00 which is significant but even this move lower has failed to produce any buzz in this market. By the same token these strong moves lower have also failed to produce any large gold bullion sellers. So what gold lacks here, one way or the other is motivation.
If you are looking for a big game changer it might be the job’s number coming this Friday. And there are signs now that both Japan and the EU will continue to inflate (perhaps at an even higher rate) their currencies. These two factors along with continued physical buying (China – India) will support the gold price short-term but lack the firepower to push this market higher in the short term. The popular gold product today was the Australian Gold Kangaroo 1 oz
Silver closed down $0.07 at $19.67 and activity here remains relatively active today. A few large 90% $1000 face bag orders are being placed. Believe it or not the 90% half dollar is bringing a premium over the dime and quarter which amounts to about $400.00 extra per bag. This would only happen because someone is promoting 90% half dollars by the bag. The reasoning behind this escapes me but the higher premium is nationwide so something is up. The popular silver product today was the Austrian Silver Philharmonic 1 oz
Platinum closed up $9.00 at $1428.00 and palladium is up $4.00 at $781.00. We are selling the Baird Rhodium 1 oz bar for $1295.00 today. Because the price of the Gold Eagle and the Rhodium bar are about equal we are seeing a jump in trading, especially from those thinking about rebalancing or diversifying their holdings.
This from Neils Christensen (Kitco) – The U.S. manufacturing sector improved modestly in March, according to the latest data from the Institute for Supply Management. According to the ISM, the manufacturing sector expanded in March, with the Purchasing Managers Index showing a reading of 53.7%, up from February’s reading of 53.2%. According to media sites, economists were expecting to see a reading around 54.2%. According to the report, this is the tenth consecutive month the manufacturing sector has expanded and the 58th consecutive month of overall expansion for the U.S. economy. “Several comments from the panel reflect favorable demand and good business conditions, with some lingering concerns about the particularly adverse weather conditions across the country,” the reports. Looking at the components of the report, the production index saw the biggest increase as it registered a reading of 55.9%, up 7.7 points from February’s reading of 48.2%. The employment index dipped modestly as it showed a reading of 51.1% in March, down 1.2 points from February’s reading of 52.3. New orders increased to 55.1%, up 0.6 of a point from February’s reading of 54.5%. The U.S. economy is slowly working through the impacts of a winter-induced slowdown and the latest ISM data points to sustainable upside momentum, said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities. “This report offers an upbeat assessment on U.S. manufacturing sector momentum in March, and more importantly with the key forward-looking heading higher, it provides a constructive outlook on the performance of this crucial sector going forward,” he said. “The broad-based nature of the gains among industries, with 14 of 18 industries reporting growth, also underscores the extent of the rebound.” A reading above 50 indicates that the manufacturing sector is expanding and a below-50 reading indicates that it is contracting. The ISM data comes after previous disappointing reports on the state of the manufacturing sector. Just before the ISM data, private research firm, Markit reported that its final PMI for March came in at 55.5, the same reading from its flash estimate and down from February’s reading of 57.1. On Monday, the Chicago PMI data for March showed that regional activity dropped to 55.9 in March, down 3.9 points from February’s reading of 59.8. The Chicago report added that the first quarter average in 2014 was 58.4, down from the 2013 fourth-quarter average reading of 63.3.
In the old days you could walk into a good dealership, put down cash and walk away with product. This is still true with us and a few others but most of the volume business is done nationally using the internet. The gold and silver market is not government regulated like the stock market. Other than normal business licenses there is no special requirement necessary to call yourself a precious metal dealer. And the gold business has always had its share of dealers with no regard for your money. So don’t assume that nice dealer on the other end of the phone has your best interest in mind. The chances are literally 50/50 that you are talking to a “phone room” designed to part you from your money so let’s be careful.
To avoid problem dealers (there are at least two still out there) look for precious metal dealers who belong to ICTA (Industry Council for Tangible Assets) and the PNG (Professional Numismatists Guild). Dealers who are members of both organizations are held to a higher ethical, financial and professional standard. Look for memberships in both ICTA and PNG from any national dealer and avoid headaches.
This was another day of moderate walk-in cash trade and the phones were on the slow side.
The GoldDealer.com Activity Scale is a “3” for Tuesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 4) (last Thursday – 3) (last Friday – 5) (Monday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers.
On the new GoldDealer.com site: Comex closing prices are posted on the home page and individual product landing pages. Live pricing on the site moves all bullion products up or down during the day.
We reworked the All Bullion Products link on the home page. It now includes our Bid (blue) and Ask (green) prices. Premium quotes vary with product and look like this – “spot plus $15.00” or “spot plus $50.00” and bullion products list them under the live prices on their respective landing pages.
This makes product comparison simple and GoldDealer.com is the only precious metal site on the net with this transparency. Live Chat is doing well and new customers like setting up their own encrypted accounts. We recommend upgrading old browsers to Google Chrome (free/secure) especially as our site becomes more advanced.
Sign up for our daily Gold Newsletter on the Gold Newsletter page if you are so inclined.
Email confirmation using a PDF File when buying or selling is functional and includes payment instructions. You can now see the 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).
Our four flat screens downstairs with live independent pricing (BullionDesk) are a big hit with the cash trade. This live stream moves all buy/sell prices so the cash buying or selling public can see the markets move on a real time basis. Our site uses the same pricing model so no more guessing.
Our best price guarantee (buying or selling) remains famous so call Kenny (1-800-225-7531) and get more money in your pocket with guaranteed satisfaction. And we include our No-Nonsense Policy (NNP) which clients consider a welcomed extra. And steering is also not allowed. Steering is the trade term used to talk you out of what you want (low cost bullion) and into stuff with big telemarketing commissions. Like us on Facebook and follow us on Twitter @CNI_golddealer. Thanks for reading and enjoy your evening.
