Week Ending January 8, 2022
Global Reserve Revealing
There is still huge resistance at the $1,800.00 per ounce of gold level through the first full week of 2022. Expect a tight range of trading +/-$50 of this critical technical barrier until the large institutional investors have cleared their naked short positions and whomever wants the US Dollar to appear stronger than it actually is pulls the curtain back for the world to see. With gold priced globally in the USD, a strong move to the upside would signal weakness in the Global Reserve Currency.
Mining Operations Support Silver Supply vs. Demand
Silver remains camped out in $22 land with the lack of positive manufacturing data. It is in times like these that knowing a basic fact of silver supply and demand. According to the Silver Institute, who reports on silver and does not trade silver, has reported that 85% of the global annual demand for silver is satisfied through the tailings of other mining operations. While several lessons can be learned from this, the primary knowledge should be that there is no shortage of silver. When silver spot price drops below the Price to Produce mines are closed. When above ground silver dwindles, prices increase and remain strong until the mines reopen and solve the supply vs. demand temporary problem. Call your representative today to learn how to use certified and graded silver coins to leverage a sleepy market.
Platinum Could Be a Bargain Right Now
The Platinum Group of metals joined in other metals in extending the holiday season. Again, the same principle as silver is dealing with affects this family. Eventually the supply of usable platinum and palladium will dwindle and prices must respond via the basic law of economics. This could be a bargain price we are looking at today as the world struggles to find employees willing to grab a pair of boots and a shovel.
This is a huge week for economic reports with the CPI, PPI, Import Numbers, Wholesale Inventories, Federal Budget, and Retail Sales Reports. Expect some fireworks as Wall Street digests the results and the markets react.
How Far Will Biden Be Pushed?
Geopolitical news is once again pushed from the headlines by more important distractions, while Russia rattles it sword on a second possible front on the border with Kazakhstan. With Russia announcing in 2021 that would divest to zero their US Dollar holdings in the strategic reserve and accomplishing that within 120 days, one must ponder how far Putin will push President Biden, and far President Biden will allow Putin to push.
Getting Creative
When the metals are flat and bumping into technical barriers, die hard gold and silver investors must get creative by choosing leverageable avenues. GMRgold does the hard work for you, scouring the market to choose the top recommendations for especially these times. Ask your representative about products that have consistently outperformed the spot prices for the shiny metals. You don’t wait to buy Gold and Silver Coins, You buy Gold and Silver Coins and wait!