April 17, 2023 – Gold and silver prices rallied strongly last week through Thursday before giving back some of their gains on Friday. The U.S. dollar edged slightly lower, and demand from safe-haven buyers remains strong.
Not every investor is buying the month-long rally in stock prices.
Many are still convinced the worst lies ahead for the U.S. economy.
Order volume for retail bullion products is 2-3 times higher than in the first two months of the year. Bid and ask premiums have moved higher, and there are shipping delays associated with some products.
However, wholesaler inventories are in better shape than expected given the weeks of extraordinary demand. It is a testament to how much mints and refiners have added to production capacity in recent years.
Money Metals has hired 23 people in its fulfillment department to help clear the packing and shipping backog.
Friday’s Close (Weekly Gain/Loss)
Monday Morning (Gain/Loss from Friday’s Close)
Gold
$2,017 (-0.1%)
$2,010 (-0.3%)
Silver
$25.62 (+1.5%)
$25.51 (-0.4%)
Platinum
$1,060 (+3.2%)
$1,066 (+0.6%)
Palladium
$1,549 (+1.7%)
$1,579 (+1.9%)
Gold : Silver Ratio (as of Friday’s closing prices) – 78.7 to 1
How to Decide Whether to Store Your Precious Metals Yourself… or Hire a Depository
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Depository storage is a great option for bullion investors who do not want to store their entire precious metals stack themselves.
Like most big decisions, there are advantages and disadvantages to consider. The list below will help you think through which factors are most important to you.
Providing adequate physical security will be a problem for you. Some clients are at higher risk of burglary or home invasion.
The value of the metal being stored at home rises to a financially significant level. Many investors will want professionals to handle secure storage of their holding when values reach into six figures or even millions of dollars.
Insuring the metal against theft and loss is a primary concern. It is generally not possible to insure precious metal at home above certain thresholds. The cost of insurance coverage against loss and theft is one of the best reasons to store your metal in a depository.
Handling the metal is difficult. Silver can be heavy in large quantities. A box containing 500 ounces weighs roughly 40 pounds. Carrying and storing boxes that heavy will be more than some people want to contend with.
The cost and delay associated with shipping metal is something you want to avoid. Shipping comes with some hassle, delay, and risk.
You want to be able to sell hassle-free when the time comes and not be responsible for packaging and shipment. Money Metals clients can buy, sell, AND store in one place. The metal never leaves our secure building, so these issues disappear.
You want to set up a line of credit against your own gold and silver. Money Metals can lend up to 75% of the value of the gold and silver clients store in our vaults.
Choose personal possession if:
You want to eliminate 100% of all counterparty risk and assume full and immediate control of your metals. Investors who take possession of their bullion can avoid reliance upon any third party.
You want immediate access to your bullion in case of a sudden personal emergency or meltdown in the financial system.
You want to avoid storage fees. Secure storage (including insurance coverage) is not free. Money Metals Depository has the lowest fees in the industry, and they start at $96 per year (find the complete fee schedule here).
The majority of Money Metals clients choose personal possession. We suspect many others take the middle road – opting to keep a core holding of precious metals at home and then storing the rest in our depository.
If secure storage is not for you, we absolutely understand. In fact, we urge clients to take delivery of at least some of the metal they own.
If, however, storage sounds like a good fit, you can find more information online or by giving Money Metals a call at 1-800-800-1865.
Potential Market-Moving News This Week
Monday, April 17th – Empire State Manufacturing. Manufacturing activity was down sharply in the March report (-24.6). Economists are predicting more weakness in that sector in today’s report.
Thursday, April 20th – Existing Home Sales. Home sales are expected to decline again in this week’s report for March. Falling affordability, driven largely by higher mortgage rates, is taking a toll.
Thursday, April 20th – Leading Economic Indicators. LEIs have been signaling a recession and most expect those signals to get louder in the March report. The consensus is for a drop from -0.3% in February to -0.7%.
This week’s Market Update was authored by Money Metals Director Clint Siegner.
This copyrighted material may not be republished without express permission. Offer only available through email promotion. Offer does not apply to previous orders and may not be combined with any other offer or program. Special shipping rates or other restrictions may apply to international orders. The information presented here is for general educational purposes only. Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. While our track record is excellent, investment markets have inherent risks and there can be no assurance of future profits. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing from Money Metals, you understand our company is not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. Money Metals Exchange is not a regulated trading “exchange” as defined by the CFTC and the SEC.
Money Metals Exchange • PO Box 2599 • Eagle, ID 83616
