Author Archives: Everett Millman

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Silver Supply May Be At-Risk

April 25th, 2017 by

Supply and demand are the essence of any market, and the precious metals are not excepted from this fact. This principle is particularly true of silver, however. More so than even gold, which has tremendous existing stockpiles that are frequently remelted (and endlessly loaned out), the price of silver is sensitive to disruptions in the mining industry.

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french-election

Gold Eases on French Election

April 24th, 2017 by

french-election

The focus of the markets on Monday was the results from the preliminary round of France’s presidential election. The polls showed that Emmanuel Macron, who is seen as the moderate or centrist candidate, finished first in the pack with 24% of the vote. Macron came in ahead of right-wing National Front candidate Marine Le Pen, who finished second in the polls.

In response, much of the safe-haven flight into gold eased up in early trading. The gold price retreated about $15 per ounce, or 1.15%, to trade around $1,269/oz. Spot silver was also lower, dropping about 0.67% to $17.75/oz.

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How Transparent is the Fed?

April 23rd, 2017 by

Much has been made by Federal Reserve Chair Janet Yellen and her predecessor Ben Bernanke about making the central bank’s actions more open and transparent. A variety of steps have been taken toward this end, but they mainly consist of greater disclosure of Fed officials’ thinking on monetary policy and interest rates.

As far as the actual business of conducting policy goes, however, the Fed still has a long way to go.

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United_States_penny,_obverse,_2002

Congress Shows Some Common “Cents”

April 17th, 2017 by

For several years, one of the least controversial criticisms of the way the Treasury Department operates has been the need for a major coinage reform. For each of the last 11 years, Treasury has been subsidizing production of the one-cent penny and the five-cent nickel, both of which actually cost more to manufacture than they are worth as legal tender.

bag-of-old-coins

It costs 1.5¢ to strike and distribute each penny, and about 7.5¢ for the nickel. In other words, the government—and taxpayers—actually loses money by making these coins. 11 years in a row!

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gold-rally-market

Gold Continues Safe-Haven Rally

April 17th, 2017 by

gold-rally-market

The precious metals continued to benefit from rising tensions around the globe, particularly with North Korea. The gold price traded as high as $1,295 an ounce overnight before traders took some profits. When markets opened in New York on Monday morning, spot gold was down just $1 per ounce to $1,287/oz.

Spot silver was also off slightly, losing 3¢ per ounce to $18.50/oz. Platinum was actually 0.7% higher, while palladium lost 0.5%.

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© Bank of England [2015]  Used in Accordance with Section 18 of the Forgery and Counterfeiting Act 1981

EBay Hijinks for Polymer £5 Notes

April 15th, 2017 by

Coin and currency collectors can be a quirky lot. It’s the nature of numismatics: sometimes the most interesting—and valuable!—rare collectibles are the product of some very small nuance or detail.

For the collectors chasing the novel new polymer five-pound banknotes introduced in the U.K., this has undeniably been the case.

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pile-of-gold-rally

Five-Month High for Spot Gold Holds

April 13th, 2017 by

Early morning gains during Thursday’s trading session propelled spot gold to a fresh five-month high. The yellow metal was up slightly, about 0.1%, to $1,286/oz, its best intraday mark since November 10th. This followed a 1% advance on Wednesday.

pile-of-gold-rally

For some perspective on the level of volatility in gold prices around that date, gold’s previous five-month high had occurred on November 11th (the next day) around $1,264/oz—more than $20 lower. On the previous day, November 9th, gold was trading as high was $1,333/oz!

In other words, the sell-off after the election was swift, and the precious metals have been mostly flat since then (but gradually on the rise).

Spot silver also moved higher on Thursday, adding 8¢ per ounce (+0.4%) to $18.60/oz.

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charting gold price

Gold Price Clears $1,260/oz

April 11th, 2017 by

The gold price broke through an important resistance level (its 200-day moving average) on Tuesday, crossing above the $1,260-per-ounce threshold for the first time since November. This represents a five-month high for the yellow metal, which added 0.65% on Tuesday to trade around $1,264/oz. Spot silver likewise pared its previous losses, advancing 0.75% to trade near $18.10/oz. Meanwhile, the Platinum Group Metals were sharply higher, as platinum gained 1% and palladium jumped 2% in early trading.

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gold-egg-basket

Gold Price Surges on Safe-Haven Flight

April 7th, 2017 by

Financial markets were troubled by news overnight of U.S. military response to the alleged use of chemical weapons by the Assad regime in Syria. Friday morning’s nonfarm payrolls also offered a disappointing picture of the American economy, further driving safe-haven buying of precious metals.

gold-egg-basket

After jumping above $1,270/oz at one point when markets opened this morning, spot gold traded a solid $14 per ounce higher (+1%) at $1,265/oz. This was still a five-month high for the yellow metal.

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Gold Price, Jobless Claims Lower

April 6th, 2017 by

Although each of the precious metals were treading negative territory by 9:30 am in New York on Thursday, gold and silver held onto most of yesterday’s late-session gains. This was surprising given the release of an encouraging weekly jobless claims report from the Labor Department this morning. Spot gold still traded above $1,250/oz despite losing 0.25% following the opening bell.

Spot silver was down 7¢ (-0.35%) to just north of $18.20/oz; meanwhile, platinum and palladium both lost about 0.8% during the first hour of the trading session.

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gold rally

Is It Bullion’s “Time to Shine”?

April 5th, 2017 by

We all know that gold and silver bullion are lustrous—in a word, shiny. It’s one of the physical properties that helps distinguish these metals from their more commonplace cousins.

In a more figurative sense, however, 2017 may prove to be the time that these precious metals really began to shine (as financial assets).

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Gold Price Loses Momentum on Jobs Report

April 5th, 2017 by

The precious metals bore the brunt of traders’ wrath on Wednesday, losing ground due to profit-taking and renewed exuberance for equities. The main driver of this momentum shift was the release of yet another exceptionally good jobs report from ADP this morning.

In response, spot gold slid 0.75% to hold right at $1,246/oz by 10 am EST. Spot silver lost 10¢ per ounce (-0.55%) to trade slightly below $18.20/oz.

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