Closing Gold & Silver Market Report – 8/4/2014

Peter LaTona

8/4/2014 4:07:00 PM

PRICES ON THE RISE DESPITE FED DASHBOARD

Sara Eisen, writing for CNBC, brings an interesting view on inflation. She points out that now that we have heard the earnings report from more than three quarters of the companies, there is an easy to spot trend. Companies across all industries are raising prices on the consumer. Hershey and Mars are passing along rising costs of cocoa, dairy and nuts to the tune of 8 percent and 7 percent respectively. Kraft is raising prices between 5 percent and 12 percent on beef, turkey, cold cuts, and cheese. Restaurants, airline tickets, coffee, cars, shoes, and soft drinks are all going up. Even Netflix is increasing prices for new subscribers. The bottom line is that no matter what is showing up on the Fed dashboard, prices are going up and inflation is here. If there is a Fed misstep, could it be a golden age for Gold?

Strong earnings boosted stock prices today despite sharp drops in the high dividend paying utility stocks. August tends to be a quiet month; so many traders are expecting weaker volumes the next several weeks. “The S&P has had a huge run, and it's earned the right to sit for a bit. The key is to make sure selling remains somewhat contained," Adam Sarhan, chief executive of Sarhan Capital in New York, said. "We're in a very strong bull market right now. Markets may retreat over the next few weeks as traders go on vacation and the Fed continues backing out of its bond-buying program. The real question becomes, will the Fed be able to transition and exit from QE3 gracefully?"

At 5 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,289.10 Down $5.70
• Silver, $20.19 Down $0.19
• Platinum, $1,465.10 Up $1.80
• Palladium, $857.50 Down $8.10

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.