Commentary for Wednesday, Jan 8, 2014 – Gold closed down $4.10 at $1225.30 and saw lows of the day at $1219.00 on improving payroll data from ADP which showed 238,000 new jobs. Gold still hovers above last year’s low close of $1195.00 but there is little other than strong Asian buyers to stimulate prices. After the close the Federal Reserve released the minutes from their last meeting; the predominant opinion being that quantitative easing is having less and less impact. Some with the Fed would like an even larger taper which created more downward pressure on gold prices.
Gold continues weak because the economic data including today’s jobs report continues to improve. I also noted on CNBC this morning that things are improving in Greece and Spain as bond rates move lower. And the economic news out of Europe is also looking better as US stocks continue to surge. But the European unemployment numbers are still around 12% and famous gold guru James Turk thinks the economic recovery numbers mask continued serious problems.
It is hard to argue with spec money moving back to Wall Street however because the numbers are the numbers and what Wall Street has for the present and gold does not is simply buzz. You really need that groundswell of enthusiasm to replace the current gold mantra of “Well the Fed is tapering and the fear factor is residing.” The thing which makes this story underwhelming is the extraordinarily long time frame gold has remained undecided. We would be better off if gold was headed lower that it did so quickly. This always creates action in the physical market.
I did my unscientific dealer survey today to see what other national players are doing and all think these market remain slow from the holiday season. So discount those telemarketing ads which claim things are jumping. And laugh at the recorded “busy conversations” they use to create the air of business. Really things are slow across the country in the physical business which makes sense if you consider soft prices and no inflation.
Silver closed down $0.25 at $19.51 and continues weak losing $0.67 this week. Sales remain lackluster which is curious because we usually see a significant pop in sales under $20.00 as physical buyers remain value shoppers. The US mint announced they will have up to 3.5 million American Silver Eagles available in the first delivery session. We should have coins here January 21st and are taking orders. No increase in prices.
Platinum was down $1.00 at $1414.00 and palladium was down $3.00 at $738.00.
The Activity Level number yesterday was a whopping 9 and today comes in at a whimpering 3. Which nicely illustrates how disjointed this market remains.
The walk-in cash trade was busy today and the phones were just average. I say few big sellers and most of today’s buyers would be average or less in numbers.
The GoldDealer.com Activity Scale is a “3” for Wednesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Thursday – 4) (last Friday – 3) (last Monday – 7) (last Tuesday – 9) (Wednesday – 3). The scale is 1 through 10 and we believe this is a reliable way to “sense” real bullion business.
Comex closing prices are working and posted (upper right hand corner of the home page) and now are included on individual landing pages.
Live pricing works and the change function is also working (halleluiah). The consumer can now use a perfect pricing model to choose the right bullion product anytime we are open.
The Bullion link (upper left hand corner of the site) will soon be modified with the traditional sort everyone wants from the old site (all gold, all silver, all platinum and all palladium). Next week an All button will be added so you can see all products for comparison. Finally both our buy and sell prices will be included (similar to the old bullion page).
This site is a work in progress and some of the improvements are pushing the envelope so your patience is appreciated. We have added new buy and sell premiums: Example – RCM 100 oz Silver Bar – Buy Premium: Spot – $00.10 Sell Premium: Spot + $00.80
The new system still requires a live person for pricing confirmation.
Live Chat is doing well and new customers can set up their own encrypted accounts. The automatic email confirmation (buying or selling) should be working next week.
We have two great new pages called Precious Metals For Your IRA and Independent Precious Metal Storage that offer valuable information on storage and IRA’s.
Thanks for your patience and if you have other ideas your email is appreciated.
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Thanks for reading and enjoy your evening.
Today the American Gold Buffalo was the best selling product.