Daily Market Report

Gold Teetering at $1,304

At the time of this report, we see the price of Gold back above $1,300, sparked by a weaker than expected Empire State manufacturing survey. The yellow metal is teetering at the previous resistance level of $1304. This seems to be an important level as the market either accelerates or declines depending on if the trend is up or down from this level. The price of Gold had fallen just below $1,300 yesterday largely on the fading strength in the U.S. dollar.

Equity Markets are in positive territory and Global 10-year Bonds markets are mixed and the Dollar Index is virtually unchanged. So, at this point it’s anyone’s guess what the next move will be in the price of Gold.

Palladium

Holders of Palladium long positions were happy to hear a report that Fiat Chrysler is going to replace the catalytic converters on 900,000 vehicles in the United States following an emissions investigation by the Environmental Protection Agency. This news should have an impact on supply and further support the price.

The difference between the price of platinum and palladium continues to widen, currently at $737.

The Most Unspeakable Four-Letter Word

What is the most upsetting four-letter word in the English language?

DEBT!

We are always talking about the country’s debt being out of control. Here are the statistics on how serious the student loan debt problem has become.

Right now, Americans have 1.3 trillion dollars in student loan debt. Why do I bring this up? The situation is serious enough that the White House may require colleges to have a stake in student debt payments.

It is expected that in the next five years over 40 percent of this debt will go into default.

Some might say the main reason is the lack of wage growth. The total cost of a four-year college over the last 30 years has gone from $26,000 to over $100,000, while wage growth in the last thirty years has only increased by 6 percent. This makes it almost impossible for the average American to afford college.

And in the end, who winds up paying for these defaulting loans? The taxpayer.

This is just another example of how serious our overall debt problem has become.

At the end of 2018, household debt figures exceeded 13.5 trillion dollars. Meanwhile, Washington continues to ignore the country’s debt.

Where will it end and what will the consequences be? Seems to me an investment in Physical Precious Metals as a truly balanced portfolio is a good strategy to put in place in the event this debt problem gets out of hand.

Have a wonderful Friday.

Investing in Precious Metals

Many Investment advisors recommend precious metals as part of a properly diversified portfolio to provide capital appreciation, liquidity, and a hedge against conventional paper assets. Because precious metals are counter-cyclical to paper assets, a diversification into gold, silver, and platinum can therefore reduce the total risk of your overall portfolio and preserve your wealth. History supports the premise that investment in precious metals is the best protection against uncertainties in the future.

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