Subtle Shifts
Here’s our weekly recap of the precious metals markets for May 29. As of this recording, here is where precious metals stand:
The price of gold is $2323.37, down 1% from a week ago.
The price of silver is $31.92, down nearly 0.5%.
Platinum is currently $1038, down $16 or 1.5%.
Palladium is at $957, down 2.5% this week.
Today there’s a sea of red in the markets — including the Dow Jones Transportation index and Dr. Copper. Even Bitcoin is down $1,000 or 1.5%.
The exception is the US dollar.
Stability in a Sea of Red
The US dollar has been sitting in the same trading range for about 18 months now, without a breakout one direction or the other. This gives a little credence to the argument coming from the Fed that they have tried to keep things relatively stable.
Geopolitical Outlook
Chinese investors continue to snap up gold, putting a floor in the US market. This is part of the reason why the price of gold has risen.
Continued concerns across the world have also influenced the precious metals markets. No matter which direction you look, there’s tension — not just the Middle East and Eastern Europe, but also China and Taiwan issues that continue to flare up. It’s also an election year in the US, and a perceived weakness in US leadership.
When there are major geopolitical tensions, governments tend to buy up gold while individual investors buy what they can in silver.
Gold/Silver Ratio Tighter
While gold declined this week, it is still pushing into all time highs. Silver has remained over $30, and is still holding even into summer.
What’s noteworthy is the gold to silver ratio has tightened, down below 73 to one. The gold to silver ratio is currently not too far away from an historical rising average, getting closer to reaching 58 to one.
Double Your Ounces
With the gold to silver ratio tightening, it may soon be time to trade from silver to gold and increase your ounces of gold. The best way to know when to make the trade is to get in touch with a trusted McAlvany advisor. You can book a free, no-obligation consultation call with an advisor to discuss your personal situation.
Advisors are available Monday through Friday, 8 am to 5 pm Mountain Time at 800-525-9556. You can also get in touch through our website.
