Commentary for Monday, March 17, 2014 – Gold closed down $6.10 at $1372.90 in the domestic market after trading as high as $1392.00 in overnight trading as anticipation of Russian intervention mounted. In a classic “buy the rumor – sell the fact” the gold bulls first lost momentum and then became very defensive in a market which technically looks stretched. Most honest traders will also agree the short-term profit picture in gold suggests profit-taking is likely but there is a line in the sand here as not many would like to short this market.
Lack of what could have been brutal military action by Putin calmed the waters but the White House does not recognize the results of a poll administered by what it claims are threats of violence. This situation is still very fluid but the US response has been timid and the EU is in the same boat as it wants to object, perhaps raise the issue of sanctions and in the end fears creating a bigger problem for themselves relative to the still fragile economic recovery in Europe.
In my opinion the notion that gold will move dramatically higher because of this unfolding drama is yesterday’s news and I expect a defensive market waiting for the next shoe to drop (if there is one). Still the gold held in the Exchange Traded Funds is moving higher which is probably just an insurance bet. Keep in mind however that the dollar is weaker and if everyone starts shooting all bets are off. We are still offering $5.00 off the British Gold Sovereign if you are shopping and this price makes it a great choice for those looking for smaller bullion coins cheap. Today the American Gold Eagle 1 oz was the big seller in gold.
Silver closed down $0.14 at $21.24 and this physical market remains slow even with the introduction of all the new 2014 silver bullion products. Which gives me a chance to offer advice – modern silver issues are great as long as the premiums are low but certified modern silver issues at significant premiums are a waste of your investment dollars. Certification by PCGS or NGC does not add value to coins which are minted in the millions; they just create big commissions for telemarketing brokers. The 1 oz Silver Round was the big seller in silver today.
Platinum closed unchanged at $1469.00 and palladium was up $3.00 at $776.00. While I think it might be time for gold to take a rest, I remain convinced that platinum, palladium and rhodium are cheap relative to the long term because economic uncertainty is diminishing.
Everyone thought we would be swamped this Monday with mounting problems in Crimea but our place while not deserted was considerably slower than expected. The walk-in cash trade was mild at best and the phones looked like a typical summer day which
So the American public is not making much of this political theater, and have discounted the talked about Chinese demise looking instead to spring and still wondering when the Federal Reserve will resume its tapering program.
The GoldDealer.com Activity Scale is a “4” for Monday. The CNI Activity Scale takes into consideration volume and the hedge book: (Monday – 5) (Tuesday – 5) (Wednesday – 3) (Thursday – 3) (Friday – 3). 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.
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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 your guaranteed satisfaction. And we include our No-Nonsense Policy (NNP) as a welcomed extra. Like us on Facebook and follow us on Twitter @CNI_golddealer. Thanks for reading and enjoy your evening.
