Physical Gold and Silver on Brink of “Historic Price Increases”

Release Date: 
Wednesday, November 25, 2015

Gold and Silver Prices
During this abbreviated trading week, gold prices fell as the expected interest rate hike continues to weigh on the yellow metal.

“The price of gold edged down on Wednesday on a rebounding dollar and expectations of a U.S. rate hike next month, but the downside was capped by retail demand emerging on tension between Turkey and Russia. Turkey shot down the Russian jet near the Syrian border on Tuesday, saying the plane had violated its air space, in one of the most serious publicly acknowledged clashes between a NATO member country and Russia for half a century.

“The tensions initially triggered a sell-off in equities and the dollar, while boosting safe-haven yen, gold and government debt.” (“Gold price drops on dollar, but political risk tempers losses,” Reuters, 11/25/15.)

Gold ended Wednesday down $6.10, closing at $1,071.90. Silver prices closed Wednesday at $14.26, up $0.03.

Physical Gold and Silver on Brink of “Historic Price Increases” – King World News
King World News commentator and market veteran Robert Fitzwilson told readers to prepare for a historic change in the gold and silver markets.

“Unfortunately for all of us, countries and their central banks are now falling into the same traps that swallowed manipulators in the past, namely massive printing and currency wars. While the central banks have been able to play this game in the shadows up until now, the desperate and empirically failed policy of printing money to stimulate economic growth and wealth generation is now both out of control and out in the open. The burgeoning currency war between China and Japan is right out of the historical playbook from the 1930s…

“The end result of the madness will be the same as has always been the case, failure. The currency wars are only just beginning. It will get much worse before it ever gets better… Geopolitics, supply/demand and historic tendencies for age-old conflict will be the triggers to let the markets out of that figurative burlap bag…

“Assets reliant on zero interest rates and unlimited low-cost capital are at tremendous risk. Physical assets, particularly gold and silver, are on the brink of historic price increases. Investors should continue to accumulate these …  regardless of the shenanigans by desperate Western central planners ahead of the Swiss referendum.” (“Happy Thanksgiving & Why Gold & Silver Set For Historic Turn,” King World News 11/25/15.)

Famed Market and Gold Analyst Richard Russell Passes Away
One of the most influential market analysts, Richard Russell, passed away this week.

Richard Russell, who shared his technical analysis with subscribers through the influential Dow Theory Letters since 1958, has died. He was 91…

“Stock analyst Robert Prechter wrote in his 1997 book: “Russell has made many exceptional market calls. He recommended gold stocks in 1960, called the top of the great bull market in stocks in 1966 and announced the end of the great bear market in December 1974.” (“Richard Russell, Publisher of Dow Theory Letters, Dies at 91,” Bloomberg, 11/23/15.)

Nearly one year ago, Russell wrote the following about gold’s status as a safe have asset: “[L]iterally every nation in the world is attempting to deflate its currency in order to aid its exports. Japan has just announced a monster infusion of yen into its system, thereby sending the yen south. The head of the central bank in Europe threatens to follow the Fed's example and move to QE. So we have all the central banks simultaneously degrading their currencies. Thus by default, the US dollar reigns supreme. Money around the world is pouring into the dollar.

“Wait, there is one superior safe haven. And that safe haven is gold.  My thinking is that one way or another, a new monetary system will develop and will be a mixture of a number of major currencies, plus high-priced gold. Thus gold, by necessity, will sneak into the new monetary system.”  (“Richard’s Remarks,” Dow Theory Letters, 11/24/14.)

US Mint Sells Out of One-Ounce, Tenth-Ounce, Quarter-Ounce 2015 Gold Eagles; Will Stop Production of 2015 Silver Eagle
The U.S. Mint sold out of its 2015 quarter-ounce, tenth-ounce and one-ounce gold American Eagle coins and is ending production of its 2015 one-ounce silver American Eagle coin.

“The U.S. Mint has sold out of 2015-dated American Eagle one-ounce gold bullion coins, with no plans to produce any additional ones at this time, officials reported late Tuesday. Previously, the Mint ran out of the one-tenth and one-fourth ounce sized coins… Gold-coin sales have been stronger in the second half of the year than the first. A report on gold demand trends from the World Gold Council, released earlier this month, said buying of coins and bars was encouraged by lower prices in the third quarter. In fact, the WGC said, U.S. demand hit a five-year high during the July-September period.” (“U.S. Mint: 2015 American Eagle One-Ounce Gold Bullion Coins Sold Out,” Kitco News, 11/25/15.)

Reuters reported, “[t]he U.S. Mint said on Tuesday that it would stop making 2015-dated American Eagle silver bullion coins after the week of Dec. 7 following a period of strong demand that forced it to place them on weekly allocations for much of the year.

“The annual halt to American Eagle silver coin production will come after an unprecedented supply squeeze spurred by spot silver prices that tumbled to a six-year low in July and then extended losses in November. This attracted heavy coin demand that forced some sovereign mints around the world to ration sales while U.S. buyers raced abroad to fulfill this burst of interest.” (“U.S. Mint set to stop making 2015 American Eagle silver coins,” Reuters, 11/24/15.)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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