Gold and Silver Market Update (11/10/14) – Golden Eagle
Overall we’d have to say that last week wasn’t a good one for precious metal investors, with the exception of a limited recovery in the gold spot price. Apart from that all the major commodities were down, and gold’s upwards tick wasn’t enough to make up for that despite greater volumes. The long bear market seems to be continuing and it’s hard to predict when or how it’s going to end.
Starting with gold, after a quiet day on Monday it suddenly plunged all the way to $1,140, a level it hasn’t touched since early 2010, and stayed there until Thursday morning. Then it abruptly picked up and when trading ended on Friday it was at $1,178.50 and still heading up. We’ve been bitten much too often to say a corner has been turned, and gold is still well down on where it was three weeks ago, but its slide clearly can be at least interrupted. Another two weeks – maybe even one – of healthy recovery will start to build up some momentum here.
Silver, on the other hand, spent the week headed resolutely downwards. From an already low opening price of $16.17 it shed another 2 percent of its value to close at $15.83. We’ve been wondering if confidence in this metal has completely evaporated and it looks like for the moment it has. Unless you’re interested in silver as a physical hedge this probably isn’t the time to buy – but if the price hits the $14.75 level get ready to buy, because there’s probably a strong floor down there and you’ll be well placed to earn on the recovery.
The platinum group metals have been giving a very mixed performance recently and all of them lost value last week. Platinum itself dropped from an opening spot at $1,232 all the way to $1,190 before staging a small rally on Friday, closing at $1,212. However limited weekend trading suggests it might be starting to slide again, so the picture there is far from clear.
Palladium has been doing generally better than most of the other metal stocks but this wasn’t one of its good weeks. An initial price of $791 had fallen to just below $750 by Wednesday afternoon; again a small surge on Thursday and Friday managed to get it back to $766, but that was enough to wipe out all of the previous period’s $15 gain plus another $10 on top.
And lastly rhodium. This followed the common pattern for the week, falling sharply midweek before picking up a bit over the last two days. Overall it lost $10 to close at $1,180, although it was as low as $1,170 at one point.
So not a great week overall, but the rise in gold is at least an encouraging sign. We’re reluctant to make any hard predictions on what will happen this week, but if gold manages to keep rising through Friday we could see it start to recover more strongly. At this point just a slight increase in confidence could start a movement towards the metal and it might just carry some of the others in its wake.
About the Author: Clint Stelfox
Clint is the director of marketing at Golden Eagle Coins. Son of Richard Stelfox, co-founder of the company, Clint has been living and breathing coins his entire life. After trading for a Philadelphia Stock Exchange firm for several years Clint returned to give Golden Eagle the online presence it has today. 
