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  • Gold: $1,168.60 -11.25 |
  • Silver: $16.70  -0.15 |
  • Platinum: $934.25  0.55 |
  • Palladium: $735.65  -11.40 |
  • Rhodium: $780.00  0.00 |
Weekly Market Wrap

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A New Bear Market?

Recent Downside Movement, but No Collapse Yet; Next Few Weeks Will Be Key...

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Announcer:

Welcome to Money Metals Exchange's weekly market wrap podcast. Helping precious metals investors during these treacherous times. Now, here's this week's market wrap with commentary and analysis from the fastest growing precious metals dealer in America, Money Metals Exchange.

Mike Gleason:

Welcome to this week's market wrap podcast, I'm Mike Gleason.

Well, the precious metals markets took a beating this week. Gold and silver each broke down from their recent areas of consolidation, with silver falling hardest.

Just when it seemed like sentiment toward the metals couldn't get any worse, this week's technical damage on the charts caused a spate of new bearish headlines and forecasts to appear. The Wall Street Journal ran a piece stating that "silver prices have entered a bear market." CNBC told viewers gold is heading to $1,375.

These bearish analyses are based almost entirely on forward projections of current downside momentum. But momentum can reverse at any time for any reason. Moreover, there is precious little in the way of a fundamental case for sustainably lower precious metals prices in this environment of unlimited and unending global currency debasement.

Could prices go lower temporarily? Yes, they could. But the people who are saying that gold and silver are now in bear markets are getting ahead of the actual price action. The fact is that neither metal has broken major horizontal support levels going back to 2011. Until gold closes decisively below $1,500 and silver breaks below $26.00, it makes no sense to proclaim that the metals have entered a bear market.

Major support levels in the low $1,500s for gold and $26-and-change for silver are still holding for now – and both metals have bounced back a little bit this morning. In spite of the extreme bearishness among commentators and frustration among holders of precious metals, no new correction lows have been made.

Our top silver expert David Morgan, who edits the Money, Metals, and Mining newsletter, remains confident that the metals are in the process of bottoming out. He thinks they will soon head higher.

Those who avoid margin and stick to a disciplined program of dollar-cost averaging through monthly accumulation actually stand to benefit from lower prices. They'll be able to obtain more ounces for their money.

Acquiring ounces is the name of the game. That's why Money Metals Exchange developed the first-of-its-kind Monthly Accumulation Plan. No one can consistently time the market correctly. But anyone can position themselves correctly for the end-game, which under our monetary system is relentless inflation and very likely sky-high gold and silver prices.

Speaking of distrust in the U.S. currency, China and Australia just announced that they will begin directly trading their currencies against one other, bypassing the U.S. dollar. Reuters reported that the agreement between Shanghai and Sydney will to help lower trade transaction costs. It also helps give the two inter-dependent trading partners more independence from the U.S.-centric monetary system.

Meanwhile, some elected officials in the state of Texas are seeking more independence from the U.S. dollar on behalf of those in the Loan Star State. A Texas lawmaker has introduced a bill to create a state bullion depository. It would enable the state government and citizens to store gold bullion in the facility. Texas is a big state, and such a move could be a game changer that attracts whole new categories of gold owners to the physical market.

Before we sign off for this week we have an exciting announcement about the Money Metals Exchange website. Those who have been asking for a way to place orders online can now do so with our newly designed e-commerce website.

So if you're unable to call or want to place an order during non-business hours you'll definitely want to check it out. The website address is simply www.MoneyMetals.com.

As always you can still call and talk to one of our knowledgeable and no-pressure specialists by dialing 1-800-800-1865. But now you have two ways to make precious metals purchases. Again the web address is www.MoneyMetals.com.

Well, that will do it for this week's market wrap podcast, thanks for listening. This has been Mike Gleason with Money Metals Exchange reminding you that we remain fully committed to getting you the most value for your depreciating dollar... with speed, with accuracy, and with top notch service. Have a great weekend everybody.

Announcer:

Thank you for joining us for this edition of the Money Metals Exchange Weekly Market Wrap. Be sure to come back next week, and don't forget to subscribe to our weekly podcast through iTunes. For answers to all of your questions, or to discretely and securely buy or sell gold or silver coins, bars, and rounds, call 1-800-800-1865. Our knowledgeable and no-pressure specialists are standing by between 7:00 a.m. and 5:30 p.m. mountain time, Monday through Friday. Visit us at www.MoneyMetals.com or call 1-800-800-1865.

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