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.
Welcome to this week's market wrap podcast, I'm Mike Gleason.
Well, until this morning the gold and silver markets have been trading rather quietly for a couple of weeks now. For many investors, it's a welcome reprieve from the extreme gyrations that hit the markets last month. The wild selloff in the paper market caused shortages in junk silver quarters and dimes, American Eagles, and other physical bullion products. Availability of most items is improving, causing lead times and premiums to come down a bit.
Over the past few weeks, a large number of customers came in the door and started – or added to – their positions during this rare buying opportunity. Metals prices have not traded in this range since 2010, and the value is compelling.
At the same time, though, we know there are a large number of potential buyers that got spooked by the correction. They are still, even now, procrastinating on making their first gold or silver purchase.
Frankly, there will always be excuses NOT to begin building a position in precious metals, but we feel it's of critical importance that folks get off the dime and take action.
A good way for first-time investors to overcome nervousness about entering the market is simply to buy in segments over time, rather than all at once. Money Metals Exchange's monthly gold and silver savings program can add some discipline to your investment plan. All you have to do is set it up and put it on auto-pilot. Visit our website or contact us for more information on how you can join almost 3,000 others who are enrolled in this fantastic program.
As for this week's price action, both gold and silver will post losses for the week, thanks mainly to an early morning sell-off on Friday. Prior to today gold has spent the past ten trading days stuck in a range between $1,440 and $1,480, but the yellow metal has broken below that now and currently trades at $1,427.
Like gold, silver has been mired in a narrow trading range over the past ten days – between $23.50 and $24.50. But similarly, now trades just below that range after selling off this morning and currently trades at $23.31 per ounce as of this recording on Friday morning.
So will the next significant directional move in silver and gold be up or down? We can look for clues in the price action of the other precious metals – platinum and palladium. They have been diverging positively and appear to be blazing a bullish path for gold and silver. Platinum is mostly unchanged for the week despite being down this morning, currently trading at $1,490 per ounce and maintains its premium to gold – roughly a $60 premium at present.
Palladium looks even stronger. It cleared the $700 level on Thursday and still sits just above that and has turned positive for the year. The spot price for palladium is currently $702 an ounce.
Although a few days' price action isn't conclusive, there is good fundamental reason to believe that platinum and palladium will lead the precious metals complex higher. It's a simple supply and demand story. Due to ongoing labor and political strife in South Africa, the world's primary source of platinum and palladium production, supplies are dwindling. Platinum production fell 10% in 2012 to 5.8 million ounces, whereas annual demand remains steady at about 8 million ounces. Recycling makes up some of this deficit, but it can't offset 2 million ounce shortfalls in perpetuity. Something has to give, and the market's way of resolving these imbalances is typically higher prices.
Palladium supply has for years been augmented by releases from Russian stockpiles. But the stockpiles are shrinking, and the Russians may release only 100,000 ounces or so this year, according to reports. By contrast, in 2010, Russian stockpiles supplied the market with a million ounces of palladium. Those days could be gone forever.
As a consequence of physical scarcity, we may one day see shortages in retail platinum and palladium products. For now, though, the platinum group metals remain off the radar of most investors.
For those ahead-of-the-curve contrarians looking to diversify into platinum and palladium, Money Metals Exchange has a few low-premium options. We offer platinum and palladium Canadian Maple Leafs and one-ounce platinum coins from Australia's Perth Mint, which carry slightly lower premiums than the Maple Leafs. Bars are available from time to time as well for those looking to save a little bit on the premiums versus the more popular coin form.
To check live up-to-the-minute pricing on any gold, silver, platinum or palladium items, or to place an order through our secure shopping cart just visit www.MoneyMetals.com. And as always you can give us a call and talk to the best precious metals specialists in the business by dialing 1-800-800-1865. You'll never get pressured or hassled, so give us a call to find out what makes us so different from the competition and why we've become the fastest growing precious metals dealer in America.
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.
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.
About the Author:
Mike Gleason is a Director with Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. Gleason is a hard money advocate and a strong proponent of personal liberty, limited government and the Austrian School of Economics. A graduate of the University of Florida, Gleason has extensive experience in management, sales and logistics as well as precious metals investing. He also puts his longtime broadcasting background to good use, hosting a weekly precious metals podcast since 2011, a program listened to by tens of thousands each week.