Investing in precious metals 101

PM Daily Market Commentary – 11/26/2014

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  • Thu, Nov 27, 2014 - 02:43am

    #1

    davefairtex

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    PM Daily Market Commentary – 11/26/2014

Gold dropped -2.50 to 1198.10 on moderate volume; silver dropped -0.18 to 16.47 on light volume.  Gold didn't do much today, while silver just sold off slowly.   Both gold and silver remain below their MA 50 and above their EMA-9.

The gold/silver ratio moved up +0.66 to 72.77.

The USD sold off for the third day in a row, dropping -0.28 to 87.68, closing below its EMA-9 for the first time in a month.  The major currencies look ready to rally against the buck after long downtrends – perhaps even the Yen has found a low for now.  The buck needs a close below 87.50 before it can mark a top; 87.50 has been a strong support area for four weeks now, and a close below that level would likely signal a top in the buck.

Miners retraced a bit today, with GDX off -1.42% on moderately light volume, and GDXJ dropped -2.35% on light volume.  Recently, the pattern seems to be rallies on high volume, and retracements on lighter volume, which is a generally bullish pattern.

SPX rose +5.80 to to 2072.83, making another all time closing high.  VIX dropped -0.18 to 12.07.  Who wants to buy puts before a long vacation weekend?  Not me.

TLT continued rising, +0.27% having risen for five days in a row.  Bonds are looking moderately strong, the equity market continues rising, while the dollar drops.  Its a curious pattern.

The commodity index dropped -0.04%, more or less unchanged on the day.  Hope for a continued move higher in commodities remains alive, but it appears to be a slow process.  WTIC made a new closing low, dropping -0.41 to 73.47.  Brent dropped -0.58 to 77.75.  Oil continues steadily lower.

Not much happened on the day before the Thanksgiving holiday; oil continued dropping, the USD is hinting it might be showing a top, and that's about it.  Friday we have a half day of trading, and then its off to Switzerland on Sunday, where we get to see actual democracy in action with the Gold Referendum.  Imagine that, a country where people have the ability to vote and enact real change.

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  • Thu, Nov 27, 2014 - 05:36am

    #2

    thatchmo

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    Indeed.  Imagine that.  Does

Indeed.  Imagine that.  Does Switzerland have PACs and Corporate Citizens?  I'll be interested to see their voter turnout numbers.  Think a positive vote will make the MSN?  Aloha, Steve.

  • Fri, Nov 28, 2014 - 01:59pm

    #3

    Chris Martenson

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    Swiss Gold Referendum…pulling out all the stops

I received this via email and thought is useful framing for the SWI gold referendum.

Apparently the powers that be are pulling out all the stops in their efforts to thwart a "yes" vote on the referendum.

Dear friends, I received this article from Eric Schreiber (former Credit Suisse and Union Bancaire Privée).

We are facing an enormous anti-gold propaganda campaign by all members of the Swiss establishment – I haven’t seen anything like this before. It is a fact that the pro-side is widely oppressed in Switzerland when it comes to the mass media and TV-stations.

The Swiss National Bank is all over the place, which has never happened before. They are really nervous and are now pushing their agenda with political statements, also sth [SIC  ?] which they have never done before in the past.

However, this just shows that we might see a close call on Sunday. Today we even had members of private banks writing against the gold-initiative…very, very uncommon. Whatever happens end of November, we achieved a widespread debate and opened the minds of a lot of people for gold and individual liberty – therefore we will push the debate and keep it alive.

People will realize how insane the actual central bank policy (system) is and that it only leads to the impoverishment of the hard working and honest people. Let’s combine our efforts to make the people think by motivating them to do their own research on how this fraudulent system works.

The Swiss Referendum On Gold: What’s Missing From The Debate http://goldsilverworlds.com/physical-market/the-swiss-referendum-on-gold-whats-missing-from-the-debate/

Please feel free to share.

Claudio

Claudio Grass

Again, it bears mentioning that the real reason any central bank truly hates the intent behind the gold referendum is because it limits their ability to slowly impoverish their people via exchange rate fiddling.  That is, financial repression works if and only if you can both engineer negative real interest rates and prevent people from escaping your predations via a golden escape hatch.

The gold referendum would effectively build just such a hatch right into the central bank balance sheet – not entirely, just at the 20% level – but that's enough to drive a statist central banker bonkers.

  • Fri, Nov 28, 2014 - 02:16pm

    #4
    joesxm2011

    joesxm2011

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    Is there a Black Friday Sale on Silver ??

I was just checking and it seems that there is a Black Friday Sale going on with Silver.  I thought it was only on retail products?

  • Fri, Nov 28, 2014 - 03:19pm

    #5

    HughK

    Status Gold Member (Offline)

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    silver sale

[quote=joesxm2011]

I was just checking and it seems that there is a Black Friday Sale going on with Silver.  I thought it was only on retail products?

[/quote]

Ha ha…the  lines at the US Mint are around the block! 

  • Fri, Nov 28, 2014 - 05:29pm

    #6

    Chris Martenson

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    More ridiculous “”market”” behavior

[quote=HughK]

[quote=joesxm2011]

I was just checking and it seems that there is a Black Friday Sale going on with Silver.  I thought it was only on retail products?

[/quote]

Ha ha…the  lines at the US Mint are around the block! 

[/quote]

Yes, I am among those that think the entire COPEX ""market"" for precious metals is just one big cesspool of shenanigans.

Today, on a market day where there is among the lowest of possible volumes for the year we find that "someone" has decided that to be the perfect time to carpet bomb the few bids that exist with sell orders.

This is not useful price discovery, but more overt price manipulation.  Of the few, by the few, for the few.

And this same behavior happens in lots of other markets, or should I type ""markets"", because they are thoroughly broken.  

And the center of the rot in the US and it's completely unregulated "markets" where nobody big ever gets called out let alone punished.

It's no accident that what few bank wrist slaps have happened this year all happened due to European regulators with the sole exception of the US slapping PNB over alleged violations of the Iran sanctions.

Yes, lots of shenanigans happening in the US, but, no, they will not ever be investigated.

  • Fri, Nov 28, 2014 - 05:58pm

    #7

    sand_puppy

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    Ahhhh. Okey Dokey.

Nothing to see here.

 

  • Fri, Nov 28, 2014 - 06:27pm

    #8

    Time2help

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    Seriously.

[quote=sand_puppy]

Nothing to see here.

[/quote]

Move along.

  • Fri, Nov 28, 2014 - 08:36pm

    #9

    davefairtex

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    while gold was hurt, oil was absolutely trashed

So from what I see, since the close on Wednesday, gold is off $32 [-2.6%] while oil is down $7.60 [-11.5%].  The overall commodity index is down -2.64%.

Oil's move lower off the OPEC meeting was absolutely astonishing to me.  The drop is massive.

My sense on this event is that after oil broke support on Thursday, the path of least resistance for the entire commodity index was lower.  So the shorts jumped on the bandwagon and down everything went.

Was gold singled out for beatings?  Given every other commodity got a beating that same day, it doesn't seem likely to me.

 

  • Sat, Nov 29, 2014 - 12:41am

    #10
    dryam2000

    dryam2000

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    davefairtex wrote:So from

[quote=davefairtex]

So from what I see, since the close on Wednesday, gold is off $32 [-2.6%] while oil is down $7.60 [-11.5%].  The overall commodity index is down -2.64%.

Oil's move lower off the OPEC meeting was absolutely astonishing to me.  The drop is massive.

My sense on this event is that after oil broke support on Thursday, the path of least resistance for the entire commodity index was lower.  So the shorts jumped on the bandwagon and down everything went.

Was gold singled out for beatings?  Given every other commodity got a beating that same day, it doesn't seem likely to me.

 

[/quote]

I guess that makes sense if one views gold as any other commodity.  

My fiancé sees gold as a (nice) commodity, but like several billion people throughout Asia, India,  those throughout the Muslim community, and some folks in Russian I see gold as money.

 

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