As a refined metals dealer, the one product I must have on hand is one ounce silver coins. As of today, we have run out of most coins, and so have most of the other coin wholesalers in the United States.
Gold looks set to have a third week of higher closes and is heading for the longest run of weekly advances since March. Gold is up 1.6% in U.S. dollars and 2.3% in Australian dollars due to concerns about the outlook for both the U.S. and Australian economies.
Although precious metals attempted to bounce back from Friday’s sell-offs on Monday, they resumed their downward path with a vengeance this morning. Tripped up by a significantly stronger US dollar, spot gold prices fell to a fresh six-week low.
Tuesday morning trading in precious metals got underway while participants were still on active watch for any news from "Stalemate Central" in Washington, DC. The trading tilt was towards lower values at the start of the daily session.
The inverse correlation between the S&P 500 and gold prices is growing increasingly significant, reinforcing the yellow metal's safe-haven credentials. Like oil, that amounts to an uncertain near-term outlook at the moment as sentiment.
The wind is not at your back if you choose to speculate in natural gas producers. However, cheap abundant natural gas is a positive black swan. What happened to the natural gas business is a case study on how commodity bull markets end.
Although inflation worries have not abated, investors are less worried than a few months ago, which has lowered gold demand as it is a purely monetary asset. Silver on the other hand is a metal with industrial and monetary components.