Commentary for Thursday, May 8, 2014 – Gold closed down $1.20 today at $1287.40 which makes for the third day we have seen lower prices but the overall action was subdued and the short players got scared when the dollar reversed direction in late trading.
Yellan is still talking with Congress today and her upbeat comments support the continued tapering program in place so besides a dollar bounce gold remains muted to the upside.
I guess you could make a case that all things are on hold relative to Putin and Crimea but it is hard to figure if the Russian leader will risk more monetary sanctions on insiders. CNBC this morning made this mess sound less like an armed conflict and more like something which could be controlled through diplomatic channels which would take recent gold support out of the equation.
Gold has been trading in this current range since mid-March and at least three times we have pulled just below the $1280.00 level and then reversed direction, bouncing higher on short-covering and bargain hunting.
ECB President Mario Draghi commented today that “action” relative to the euro would happen in June but in the meantime pressure does exist to do something about deflationary pressures in Europe. This is interpreted to mean that more quantitative easy is necessary which would support gold but Draghi or the ECB did not change rates today so all of this amounts to talk only designed to lower the value of the euro.
Silver closed down $0.21 today at $19.09 and physical activity increased dramatically. Inactivity in the physical market is directly related to price and if silver weakens again to below $18.75 the public will once again load up with the traditional bullion products like 1 oz Silver Rounds and American Silver Eagle Monster Boxes.
So we are seeing more interest in silver with some citing the large gold to silver ratio (67.4) as evidence that silver is cheap. Ratio trading in the 1970’s silver market was big in the LA area but has since received less attention. Any revival would be great for silver bullion enthusiasts.
Platinum closed up $3.00 at $1438.00 and palladium was higher by $8.00 at $804.00. If your interested in platinum the Australian Platinum Platypus 1 oz is a great investment.
This from Martin Hayes (Chief Correspondent, FastMarkets) – Kazakhstan adds to gold reserves in Q1, German sale seen – London 07/05/2014 – Kazakhstan added five tonnes of gold to its central bank official holdings during the first quarter of this year via purchases and swap operations, data issued by the World Gold Council (WGC) shows. The country now holds 148.7 tonnes of gold, making it 26th in the list of global official gold holders, the WGC said on Wednesday. Germany sold 0.8 tonnes of gold in March – a sale under the third Central Bank Gold Agreement (CBGA3), the data also shows. Since the start of the current CBGA3 year on September 27, 2013, Germany has sold 4.2 tonnes of gold out of the total sold of 4.3 tonnes so far. In each individual year – this is the fifth year of the current agreement – a total of 400 tonnes can be sold. Under the four-and-a-half years of CBGA3 to date, a total of 204.8 tonnes have been sold. Germany, which holds a total of 3,386.4 tonnes of gold, is the second largest holder behind the US’ 8,133.5 tonnes. Further activity was seen from Turkey in March – it sold 14.3 tonnes of gold, contributing to a first-quarter disposal total of 36.2 tonnes. “Gold has been added to Turkey’s balance sheet as a result of new policy accepting gold in its reserve requirements from commercial banks,” the WGC also said. Russia sold 1.2 tonnes of gold in March but was net buyer of 5.6 tonnes for the first quarter, mostly due to purchases in the domestic market.
The walk-in cash trade today approached “hot” and the phone business was pretty busy all day. This is simply the result of a cheaper market in silver but overall I think the public remains cautious. The same is true of the physical world market because most investors think the market is defensive but don’t know what to make of the Russian problem.
The big gold bullion seller remains the American Gold Eagle 1 oz. Value shoppers might also want to consider the Australian Kangaroo (1 oz) – a pure gold coin at only $35.00 over spot. It comes in a protective special plastic holder and there is no Form 1099 reporting when you sell back to any dealer.
The GoldDealer.com Activity Scale is a “4” for Thursday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Friday – 3) (Monday – 3) (Tuesday – 4) (Wed – 6). The scale (1 through 10) is a reliable way to understand our volume numbers.
An update on the In and Out Hamburger Wagon in our parking lot idea. Everyone loves a good hamburger and we thought it would be a nice way of saying “thanks” for the business. Anyone with a tax free invoice ($1500.00) can get a free Double/Double on the way out. The truck would be in the parking lot about 2 hours and we would have tables in one corner. The upside to this idea is getting a great hamburger when you make a purchase in person. The downside is that while we have a large lot this idea might create a parking problem. Please opine at RSchwary@aol.com and thanks for the input.
The initial reaction is mixed. Some love the idea and some claim the parking lot can be crowded at times and this idea will create more problems for those who are in a hurry.
So the jury is still out but the most creative answer to our free hamburger dilemma has to go to this reader: First Prize (there really was no prize giveaway but we needed some sort of drum roll) – LOVE the idea of burgers in the parking lot. I can buy bullion to protect against hyperinflation, whilst hyper-inflating my waistline.
Live pricing on the site moves all bullion products up or down during the day. The Bullion Products link on the home page 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 internet 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. Also note that our old Specials Email list is not compatible with the new format so we have cleared all data.
If you want to be notified about specials please check the Special Offers box under All Bullion Products. Also note that the email list for the Gold Newsletter and our Special Offers are separate.
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. We guarantee your satisfaction and include our No-Nonsense Policy (NNP) which clients consider a welcomed extra. Like us on Facebook and follow us on Twitter @CNI_golddealer. Thanks for reading and enjoy your evening.
