News
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March 18, 2020
In response to my update yesterday - Demand Shock: The Forces Behind Rising Premiums - many of you sought to know an answer to the question: why are prices falling if demand is so unprecedented? I will seek to explain below. To clarify, yesterday I wrote about premiums; today I am writing about “spot price.”
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March 17, 2020
An Explanation of Rising Premiums
Most of you are now aware that the inventory of most precious metals dealers has evaporated. Premiums on common products have skyrocketed. I am writing this to offer some insights into these price changes so that you can make informed decisions. I will use the US Mint as the proxy for all mints.
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March 13, 2020
Dear TPM clients,
The market dynamics are changing rapidly, and the physical inventory situation industry-wide has worsened considerably since my message yesterday. I want to remind each of you that we will only sell products that we have in stock. We will not forward sell demand and ship after long delays. The future supply chain is uncertain at this point and we can only guarantee what we have in stock. Therefore, I need to apprise you of two important announcements.
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March 13, 2020
Dear TPM Clients,
A long running policy of Texas Precious Metals has been "If we don't have it, we don't sell it." Over the last few days the supply of most common items has greatly decreased, and we are only selling what we have in stock. We will not forward sell.
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March 12, 2020
The sell off in markets accelerated by coronavirus and the global reaction to curtail the pandemic has left no prisoners, as nearly all asset classes are selling off in a flight to liquidity. As large institutions face margin calls, they are forced to close positions or raise cash by selling anything and everything that is liquid. Gold and silver - the “safe haven” assets - are no exception. I would remind readers that in the global financial crisis gold fell 27% and silver fell 55% in nominal terms. Gold outperformed equities on a relative basis, but silver actually underperformed.
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March 12, 2020
Dear TPM Clients,
As you all know, the effects of coronavirus (COVID-19) have accelerated what is now a precipitous decline in equities. Access to liquidity in the markets has become an issue, and all asset classes are being affected - including precious metals. This historic turn of events has created a demand shock in the physical precious metals industry. Following years of slow to moderate sales following the Greek crisis in 2015, the entire industry has been cautious to build large inventories. This includes the United States Mint, which experienced a terrible production decline of Silver American Eagles, down to only 14.9M ounces minted in 2019.
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March 09, 2020
Dear TPM Customers,
As a health and safety precaution we will be closing our client lounge for the next thirty days. If you wish to purchase or sell metals, please contact our trading desk at 361-594-3624. We will either ship items we sell to you or arrange shipment for items we buy back from clients.
Texas Precious Metals Depository will remain open for clients to retrieve or drop off contents during this time. We appreciate your understanding.
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March 03, 2020
Fear or Greed?
The last two weeks have been extremely volatile in the markets, and for the first time in a long time my friends and family have called to inquire about “what is going on in the markets?” Coronavirus contagion fears, coinciding with all-time highs in the markets, has been the scapegoat for a rapid, deflationary decline across nearly all markets except bonds, which resiliently continued to fetch a bid. Even the US Dollar, traditionally a safe haven in deflationary swoons, declined.
Here is how I see the markets:
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February 13, 2020
Trend Remains Strong and Intact
Price action in gold has traded in a narrow window over the past few weeks, winding into a tight coil as it begins to consolidate for another leg higher. The wave counts suggests that gold is in the early stages of a Wave 5. In the chart above, the key near term level to watch to the downside is $1540. This level served as resistance in September 2019, and has been support for the last month. This level also roughly coincides with rising support from the uptrend channel that commenced in August 2018.
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February 03, 2020
Gold Breaks Out; Silver Gearing Up for a Move
Gold bugs should be pleased with the monthly performance of gold in January. The definitive monthly break of the $1520 level, which had acted as strong monthly support six times between 2011-2013, before serving as resistance during this recent consolidation period between August and December, has sent a bullish longer term signal to the market.