This week in metals 7/2/2010

GOLD:
  spot gold prices opened the week at $1,254 . . . traded as high as $1,262 on Monday and as low as $1,201 on Friday . . . and the   AM settlement price on Friday was $1,207, down $47 for the week.  Gold support is now anticipated at $1,200, then $1,182, and then $1,168 . . . with resistance anticipated at $1,215, then $1,232, and then $1,281.
 
SILVER:
  spot silver prices opened the week at $19.05 . . . traded as high as $19.22 on Monday and as low as $17.64 on Friday . . . and the   AM settlement price on Friday was $17.74, down $1.31 for the week.  Silver support is now anticipated at $17.60, then $17.43, and then $17.00 . . . and resistance anticipated at $17.80, then $18.11, and then $18.52.
 
PLATINUM:
  spot platinum prices opened the week at $1,582 . . . traded as high as $1,582 on   Monday and as low as $1,494 on Thursday . . . and the   AM settlement price on Friday was $1,500, down $82 for the week.  Platinum support is now anticipated at $1,482, then $1,456, and then $1,429 . . . and resistance anticipated at $1,513, then $1,525, and then $1,587.
 
PALLADIUM:
  spot palladium prices opened the week at $481 . . . traded as high as $481 on Monday and as low as $425 on Thursday . . . and the   AM settlement price on Friday was $426, down $55 for the week.  Palladium support is now anticipated at $426, then $417, and then $380 . . . and resistance anticipated at $439, then $454, and then $480.
 
QUOTES OF THE WEEK:
 
From David Reilly, in an article on the ''Heard On The Street'' page of The Wall Street Journal on June 30th:
 
''Treasury investors will do well if deflation is imminent, as some fear.  Gold investors, however, could feasibly benefit from either the prospect of deflation or heavy inflation.  And the Federal Reserve likely wouldn't allow deflation without a fight. It would probably step back in with quantitative easing, even as the federal government embraced more stimulus spending.  That could likely trigger a steep dollar fall, if not against other paper currencies, then against gold.  It also would raise the chance the central bank prints too much new money, causing inflation.
 
If, however, deflation did take hold, gold could yet prove itself as a crisis hedge against more upheaval in the global-banking system. The enemy of both trades is some form of 'Goldilocks' economic recovery, with reasonable growth and contained inflation.
 
But if the immediate future is more instability, gold, despite the fact it generates no yield, should keep giving Treasurys a run for their money.''
 
. . . and from veteran gold market specialist and financial analyst Jim Sinclair, founder of the widely-followed JSMineSet.com website, in an email to his ''Comrades In Golden Arms'' on July 1st:
 
''There are times when you must ignore the hedgie madness in the marketplace and revert to why we are doing what we are doing.
 
The deflation being spoken of today is the catalyst for the coming hyperinflation.  The fact is it has been so in all historic examples.  The flooding of markets with debt has been brought on for different reasons, but the ways and means of hyperinflation has always been the same.
 
Therefore it is today's financial market deflation talk that is the reason why you should own gold.
 
This continued downturn in business will find government in a panic, not in austerity when their constituency does the Greek dance of panic as the pain on Main Street becomes intolerable.  It will.
 
Contemplate what each of the following means to you one at a time.  Do not try to do them all at once.  You do not want to do this as a routine memory exercise as much as a meditation on why you have bought the insurance you have.
 
-Gold is a currency with no liabilities attached.
-Gold is competition to paper currency.
-Gold is not a commodity.
-Gold is a barometer of fear.
-Gold is a barometer of confidence in Government.
-Gold is insurance.
-Insurance is not something to trade.
-Gold is money when money fails.
-Hyperinflation is a currency event, not an economic event.
-Hyperinflation is a currency event described as a loss of confidence in the currency.
-Gold in your hand eliminates counter-party risk.
-Gold is the high ground when the global tsunami hits.
-Gold removes financial agents between you and your assets.''

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