Commentary for Thursday, Dec 5, 2013 (www.golddealer.com) – Gold closed down $15.00 at $1233.20 so most of yesterday’s gain was lost but the good news is that in the midst of a poor technical picture we are still holding above the important $1200.00 level.
The reason for this is because while the economic data is improving the interpretation remains mixed: the surprisingly strong increase in Gross Domestic Product numbers was largely discounted as a function of increasing inventories and not a powerful US economy.
And inflation might be on the rise because buried in the figures was a hiccup (1.9% to 2.0%). And ECB president Draghi seems to think zero interest rates rule.
Silver closed down $0.26 at $19.51 and seems happy below $20.00 with buying steady but not creating any heat.
Platinum closed down $13.00 at $1364.00 and palladium was up $8.00 at $736.00.
It seems to me the precious metals might be entering a holiday mood if you get what I mean…but remember Friday’s labor numbers could hold big medicine for the taper group.
From a reader and interesting if you think all investors are moving out of gold: “Morning – not so much a question but a comment. There are people like me who missed the 10 year run in precious metals. Finally – I get the problem with the Fed Easing program, trust them or not, eating ones young is never a good idea. So where some people may not want to see gold drop, it is great to be buying at 1200. Indeed I hope it continues because my eyes have been opened and I can see the future – it is not a matter of if it will all fail, but when. So let gold drop, I have a fist full of paper I want to exchange for it. Thanks for the great read with my morning coffee.” The idea of buying into gold price weakness is a core investment approach. Gold after all is on sale so why not take advantage?
Also from a reader in response to my question: “So what do you think? Is the taper on or off? “On”? I think way to much is made of the taper on or off. Sooner or later, when the trillions of dollars created since 2008 find their way into the economy and there is any measure of velocity, then inflation will become impossible for the government to cover up and gold will go up rapidly. I do not believe you can so dramatically increase the money supply without it leading to serious inflation, dollar weakness, and a rush to gold, silver, and hard assets.”
Another reader responds: “I believe that when taper actually gets approved that will be the all clear signal to buy precious metals, most will react in the wrong manner. QE is debt forgiveness, when the debt cycle gets reset taper will begin, money velocity will increase and the metals will begin a long up trend. Taper is a buy signal not a sell signal for the metals. Our debt based monetary system is inherently deflationary and must be reset occasionally.”
The walk-in cash trade was on the slow side today and the phones were just average. The GoldDealer.com Activity Scale remains steady at “7” and we did see a few rather large gold sellers today. The CNI Activity Scale takes into consideration volume, open and closed orders (buying and selling), the cash trade, and the hedge book: (last Friday – closed) (last Monday – 8) (last Tuesday – 7) (last Wednesday – 6) (Thursday – 7). The scale is 1 through 10 and we believe this is a reliable way to “sense” what a real bullion business is doing without the sales pitch.
The techs are stress testing the new servers, so apparently we have more people watching this site than previously thought and Phase One of the new GoldDealer.com website should soon make an appearance. Also keep in mind that 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 and you must talk with a live person to confirm and receive an order number. It will also include Live Chat, you will be able to set up your own customer account, receive automatic email confirmation, and ask for the daily Gold Newsletter email.
Phase Two will make accounting, shipping and tracking easier (check to see if we have your email address in the new system). We now offer the choice of USPS or FedEx Ground. Our new flat screens within the CNI Building are operational and cash is always available. The feed and graphs are live and bullion products are programmed with premium spreads: there is nothing like this on the West Coast and visitors enjoy complete transparency. Like us on Facebook and follow us on Twitter @CNI_golddealer. And remember our Daily Gold Newsletter archive is now part of our Facebook page.
Remember our best price guarantee (buying or selling) 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. These markets are volatile and involve risk: Please Read Before Investing
Written by California Numismatic Investments (www.golddealer.com).