Commentary for Tuesday, Jan 14, 2014 (www.golddealer.com) – Gold closed down $5.70 at $1245.20 in an expected round of profit taking as a modest run which saw prices as high as $1255.00. This close is slightly below gold’s 50 day moving average ($1247.00) but I would not read much into these numbers.
For sure gold has been in a minor uptrend channel in a generally negative price environment but more time is needed for further confirmation. At least the paper market is becoming more tradable which augurs well for continued unwinding.
The big question still remains in that no one wants to stick their neck out and declare a bottom. The economic news coming from the EU continues to improve much like the sometimes sputtering numbers here at home. I use the word sputtering because December retail sales were up 0.02% and not impressive.
And gold has gained nearly $50.00 this year primarily on new concerns that the economic rebound may not be as robust as expected. Still the Federal Reserve is weary at making any further predictions relative to quantitative easing. Everyone wants more time to see what is going to happen.
Silver closed down $0.11 at $20.25 with the “no new fanfare” story still in place but gold’s little cousin is still holding above its 50 day moving average ($20.17). Actually I am surprised we have not seen more sparks in this market considering we have moved into a new year which always brings new designs and strong promotions by manufacturers. The new 2014 American Silver Eagle will soon be in stock and for some reason the supply of 10 oz silver bars is drying up.
Platinum closed down $10.00 at $1433.00 and palladium was also down $1.00 at $738.00.
I am not a big fan of the notion that the reason gold is not going higher in value is because the game is fixed. I also don’t get Bitcoin unless the application is in a region of the world where a real currency does not function.
But there are plenty of readers who believe in both gold manipulation and Bitcoin so in fairness take a peek at this from Jay Taylor (www.jaytaylormedia/Kitco): On December 31, I had Dimitri Speck, author of The Gold Cartel, on my radio show. He provided various reasons why it is so important to the money printing thieves of Wall Street and Washington (of which JPMorgan is no doubt the biggest culprit) to drive the price of gold lower, especially when there is reason for people to lose confidence in the existing fraudulent fiat money scheme. You can listen to my discussion with Dimitri at http://jaytaylormedia.com/audio/ (go to the third segment of the show of 12/31/13). One example of when and why the landlords of the world drove the price of gold down was the Cyprus financial crisis and the “bail-ins” that were designed to “fix” the problem. People were certainly not happy about the idea that government could suddenly rob them of the wealth. And if the gold price began to rise at that moment, people around the globe would be tempted to switch from fiat money to the money that has been tried, tested, and proven as honest money for thousands of years—namely, gold. But since the price of gold was slammed hard exactly at that point in time, the idea of switching out of the fiat money system—which works in favor of the ruling elite and against the masses—was taken off the table. Interestingly enough, while gold went down, the Cyprus crisis was exactly the trigger point for Bitcoin to enter the world’s stage. I find it interesting that more and more mainstream corporations are getting behind Bitcoin and that this Crypto-currency seems to fit very well with the notion of a cashless society that even the U.N. is planning for our future. Of course, already, all manner of electronic paying mechanisms are in place and it isn’t hard to imagine in the not too distant future that government and their incestuous banking partners may insist that any citizen wishing to remain alive and within the system have a chip implanted in their wrist so that every breath taken and every choice made and every dollar spent can be monitored and controlled by government and their banking partners in crime. As TV journalist, author, and syndicated columnist Dian Diamond recently wrote, “Orwell’s ‘Big Brother’ Prediction on a Fast Track to Reality.” So I’m wondering if the promotion of Bitcoin at the very time of the Cyprus blowup may not be the beginning of a brave new world in which what remains of our freedom to come and go and buy and sell what we like may be nearing an end. Also last week on my radio show, for one of the best interviews I have had to date on the topic of Bitcoin and why it is not superior to gold as money, I also spoke with John Rubino of DollarCollapse.com fame. But that may not stop government from trying to force us to have chips implanted in our bodies at some time in order to control our every move. By the way, I intend to have John on my show in the near future to talk about why current government moves to drive the price of gold down will inevitably fail and also to join James Turk to talk about a new book that the two of them have co-authored, addressing the fundamentals of Bitcoin, gold, and a host of other topics, so stay tuned!
The walk-in cash trade and phones were active all day. Not hurried but busy and still we experience considerably more buyers than sellers. There have been however a few large gold bullion sellers.
The GoldDealer.com Activity Scale is a “5” for Tuesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 3) (last Thursday – 3) (last Friday – 4) (last Monday – 4) (Tuesday – 5). The scale is 1 through 10 and we believe this is a reliable way to “sense” real bullion business.
On the New GoldDealer.com site: 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 and the change function works: the consumer can now compare the Comex close with live product pricing for a transparent picture. The Bullion link displays all products on one page and the bid and ask price in included: buy and sell premiums are on the product landing page. Live Chat is doing well and new customers like setting up their own encrypted accounts.
Thanks for your patience. We have implemented many of your suggestions so let us hear what makes you smile. Most of these changes will be implemented over the next several months and thanks for your comments.
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