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|Precious Metals Review - 02/09/07||Views: 596|
|Feb 10, 2007 4:36 pm||Precious Metals Review - 02/09/07||#|
|PRECIOUS METALS REVIEW - 02/09/07|
In the precious metals markets this week . . .
Monex spot gold prices opened the week at $650 . . . traded as high as $669 on Friday and as low as $649 on Monday and Thursday . . . and the Monex AM settlement price on Friday was $667, up $21 for the week. Gold support is now anticipated at $656, then $635, and then $622 . . . and resistance anticipated at $669, then $682, and then $693.
Monex spot silver prices opened the week at $13.44. . . traded as high as $13.90 on Friday and as low as $13.40 on Monday . . . and the Monex AM settlement price on Friday was $13.86, up $.54 for the week. Silver support is now anticipated at $13.83, then $13.45, and then $13.23 . . . and resistance anticipated at $14.15, then $14.30, and then $14.76.
Monex spot platinum prices opened the week at $1,167 . . . traded as high as $1,201 on Wednesday and Friday and as low as $1,167 on Monday . . . and the Monex AM settlement price on Friday was $1,199, up $37 for the week. Platinum support is now anticipated at $1,185, then $1,155, and then $1,110 . . . and resistance anticipated at $1,210, then $1,245, and then $1,295.
Monex spot palladium prices opened the week at $337 . . . traded as high as $346 on Tuesday and as low as $336 on Monday . . . and the Monex AM settlement price on Friday was $341, up $5 for the week. Palladium support is now anticipated at $332, then $325, and then $319 . . . and resistance anticipated at $348, then $358 and then $371.35.
QUOTE OF THE WEEK:
From Mary Anne and Pamela Aden, the widely-followed precious metals and financial market analysts, in the February 2007 issue of their "Aden Forecast" newsletter:
"As you know, too much money is the direct cause of inflation and money has been flowing like water. With housing slowing last year, the Fed kept the money faucets on in its attempts to ensure a soft landing. And so far, it seems to be working. The economy is looking better than it did a few months ago and deflationary pressures have moved to the back burner.
Military expenses alone have been astronomical. They're more than the world's combined military expenses, at well over $500 billion for just this year. This too is inflationary and if the war in the Middle East escalates, it'll be even more inflationary due to the greater demand for money, which would intensify these market trends.
This is essentially what happened in the 1960s during the guns and butter era. As more and more money was needed to fight the war in Vietnam, as well as spending on social programs, it eventually fueled a huge inflation that became most apparent in the 1970s.
This in turn sent gold sharply higher and the oil price surged, along with other commodities. The U.S. dollar plunged, currencies soared and so did interest rates as bond prices dropped sharply. The stock market was volatile but it basically went sideways.
Could history repeat? It could. Things are never the same but the situation today, while more complex is similar. The markets are in synch for an inflationary outcome and this was recently acknowledged by the Dallas Fed chief who said that inflation is a greater risk to the economy than slower growth.
At this point, any number of developments could trigger these markets. It may be a geopolitical event like Iran, or it may not. The point is, the ingredients are in the pot, both economically and market wise, and as the old commercial goes, it would be foolish not to listen. Arrange your finances so you won't be hurt by what's currently happening, but instead set yourself up, or maintain a strategy enabling you to protect your assets and profit.
The best way to do that is by owning gold and silver. Since the metals are stronger than most of the gold and silver shares, keep a larger percentage of your metals' portfolio in the metals themselves and a smaller portion in the shares. Hold some cash too, but keep most of it in the strongest foreign currencies. That's our basic strategy. It's done well over the past few years, but we think it's about to get even more interesting."
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