New Market Doubts Lead to Gains for Precious Metals

APMEX

12/26/2018 12:15:26 PM

Daily Gold & Silver Market Report – 12/26/2018

• Precious Metal prices rise on new market uncertainties.
• Two- to three-year bull market predicted for Gold.
• Over 90 fraud cases concerning cryptocurrency filed in the last two years. 

The price of Gold reached a six-month high Wednesday, driven by growing concerns of a shaky stock market. Slowing growth around the globe and a U.S. government shutdown gave many investors a push toward low-risk assets such as Gold and Silver. An FX Empire report published by Yahoo! Finance pointed out the U.S. dollar has been tarnished by several factors despite volatility for euros and British pounds. Canadian and European markets closed Wednesday in observance of Boxing Day, which increased demand for Gold. Geopolitical factors will likely drive support for Precious Metals until the new year when governments address current tensions.

Five-Year Forecast Published for Gold, Palladium, Platinum and Silver

Leading independent Precious Metals consulting firm Metals Focus released quarterly forecasting covering the next five years. Among other predictions, the report states many investors who sold off Gold to acquire high-yielding assets will come back to the yellow metal late in 2019. As cited by Coin World, the analysts behind the report believe the bull market for Precious Metals will last two to three years.

The report suggests Silver will outperform Gold, with a tighter Gold-to-Silver ration in the coming months. Platinum will likely continue to sell at a discount to Palladium, as a large surplus exists. The bullish trends for Palladium are also expected to continue due to several years, as supply levels are unlikely to meet demand.

90+ Fraud Cases for Cryptocurrency in Last Two Years

During the last two years, the Securities and Exchange Commission (SEC) and state regulators have filed more than 90 fraud cases regarding Bitcoin and cryptocurrency. While investors may have lost billions of dollars due to fraud, only $36 million has been recovered. The Wall Street Journal said this is due to “the elusive nature of the currency.”  But the anonymity that makes fraud hard to trace also lends appeal to Bitcoin and other cryptos.

SEC Chairman Jay Clayton is quoted as saying his agency “may not be able to effectively pursue bad actors or recover funds.” Many of the state and federal cases revolved around blatantly illegal cryptocurrency sales, but others involve Ponzi schemes and unknown international entities. Clayton pointed out numerous warnings from the SEC regarding digital coins. He believes these words of caution together with a larger enforcement caseload have challenged high-percentage gains Bitcoin saw in 2017, saying, “The SEC helped to get rid of the veneer of legitimacy.”

At 12:45 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,272.80 Up $1.60
• Silver, $15.17 Up $0.34
• Platinum, $803.50 Up $11.10
• Palladium, $1,255.10 Up $9.00

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