(Kitco, 401 G.C. Tuesday, June 11TH, 2019) – Gold prices are trading near unchanged and at their daily highs in late-morning action Tuesday. Overnight losses were erased as traders stepped in to buy the recent dip in prices and do some perceived bargain hunting. August gold futures were last up $0.60 at $1,329.60/oz. , Silver is at $14.31/oz. up + .058 , Palladium at $1,365.00/oz. up +$5.00 & Platinum at $817/oz. up +$7.00 .
Commentary
Investors should keep an eye out for the dollar to lose its value as we are expanding economically under a Fed that is dropping rates and defending the stock market in their policy decisions.
What this means for gold and the metals is continued gains as an alternate currency to the declining dollar and low interest rates. If there is no rate return above the inflation rate of 2% then gold steps in as the holder of value for market participants, both individually and institutionally. You see, gold has risen almost 30% since it’s low of approx $1,050/oz. in late 2017, currently trading at $1,330.00/oz. That’s a pretty good return for a safe haven currency not matched by a liability!
Looking forward, the industrialized metals like platinum and palladium continue their rallies as the move away from diesel engines in the auto industry takes effect. As only Russia and South Africa provide the global supply of palladium for the gas/hybrid engines, the canceling out of diesel may triple the demand for these , “noble” metals. As one huge example, China’s clean energy philosophy favors gas/hybrid cars especially palladium which has doubled since last fall 2018.
NOTE : China has a middle class car market three times larger than our country.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com