Gold and Silver Market Update (12/14/14) – Golden Eagle
Overall last week was pretty good for precious metal investors, with most of the benchmark prices showing a healthy rise. There were some fluctuations through the week, with most of the gains being made on Monday and Tuesday; the second half of the period saw most prices slip back slightly. Still, after a poor run over the last month or so the picture is a lot more positive right now.
Gold pushed up past $1,230 following a very strong opening, although it did fall from Wednesday to close at $1,221.80. That’s a gain of almost $29 over the week before, which is encouraging. Even more encouraging is the overall trend since early November, which shows a lot of volatility but an underlying steady gain. If that continues we should be looking at $1,300 by sometime in January and those who bought at the bottom of the market can start thinking about cashing in.
Silver followed a similar pattern, but in percentage terms it performed a lot better. A rise of close to 5 percent saw the spot price reach $17.03 by the time trading ended, 75 cents up on the previous Friday. That marks two successive good weeks, so hopefully confidence will start to recover after the recent bad run. Predictions of a supply deficit next year, possibly hitting 11 million ounces, offers hopes for a strong mid-term revival; silver is definitely worth hanging on to right now, and stocking up while the price is still so low could turn out to be a winning strategy.
Platinum was the weakest performer last week. After rising through Monday and Tuesday it dipped much more sharply than any of the other metals, closing at $1,225 after a peak of $1,250. That left it just $7 up on the previous period, mostly thanks to weekend gains; Friday’s close was $5 down on where it was when the markets opened Monday.
Palladium on the other hand managed to pick up $11, closing at $812. It benefitted from string industrial demand to keep rising until Thursday afternoon, peaking at $817. It looks strongly placed to rise again this week.
Rhodium has been sluggish for a while and we didn’t see any real change last week, but it still managed to pick up $10 on Monday before staying pretty much flat for the rest of the week and closing at $1,195.
The gains in the early part of the week weren’t a real surprise because they coincided with a sharp fall in the major equities indexes, but the fact metals lagged after Wednesday while equities continued down suggests the link isn’t that close. If so this could be good news, signifying that the metals sector is beginning an upwards correction after a long period of being badly undervalued. There’s been so much volatility recently that we’re reluctant to be too firm about predictions but it does look as if things are steadily improving, and the trend in gold prices is a major hint that this is the case. If you’ve been considering building a position in precious metals this could be a great time to do it.
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. 
