Weekly Provident Report: December 12- December 16

Silver price recap: Silver began the week close to $17, at $16.89, but by midweek, prices took a significant downward turn to close at $16.10 (4.7% decrease).

Gold price recap: Gold showed another weak opening spot price at $1159.13, and by Wednesday, it too experienced extreme loss as the FOMC announced increased interest rates. Gold closed at $1134.03 (2.2% decrease).

Platinum price recap: Platinum opened the week at $915.50 and showed little early week movement. The FOMC meeting caused declining prices initially, but a late week boost closed the metal at $927.50 (1.3% increase).

Palladium price recap: Opening at $732.50, palladium, like its sister metals, saw little movement until interest rates rose. This sent prices down to close at $696.50 (5.0% decrease).

Silver Spot Price Chart

Market News

Early 2016 gold prices seem to indicate a prosperous year is ahead; while first and second quarter prices were the best they had been since 1979, recent trends have gold showing significant decline, as investors seek alternative commodities.

Geopolitical situations bode well for some precious metals; platinum has seen gains as much as 4.5% due to tensions and potential geopolitical angst as President-elect Trump prepares to take office.

Silver fixing woes continue as electronic communication has surfaced illuminating a very real precious metal price manipulation scandal between a myriad of financial institutions.

Market Reports

PPI-FD (December 14, 8:30 am ET): Producer Price Index of the Bureau of Labor Statistics indicates the change in prices received by producers and sellers of goods and services, domestically.  Reports indicated a 0.4% increase.

Retail Sales (December 14, 8:30 am ET): The Retail Sales report measures receipt totals for consumer merchandise and services. This report is significant, as the total accounts for roughly 2/3 GDP. Consensus forecast a 0.4% increase, but reports showed only a 0.1% increase.

Industrial Production (December 14, 9:15 am ET): The Industrial Production Report measures the production of industrial goods from sources like mines, electric utilities, and factories. Production was predicted to decrease 0.2%, but decreased 0.4%.

EIA Petroleum Status Report (December 14, 10:30 am ET):  The EIA Petroleum Status Report measures oil, gasoline, and distillates inventory levels held by the U.S. domestically and abroad. Crude oil and distillates inventories fell by 2.6 M barrels and 0.8 M barrels, respectively, while gasoline inventory levels grew by 0.5 M barrels. 

FOMC Meeting Announcement, Forecasts, and Press Conference (December 14, 2:00 pm ET): The Federal Open Markets Committee is the policy-making arm of the Federal Reserve. Federal interest rates rose from 0.25%-0.50% to 0.50%-.75%. 

Consumer Price Index (December 15, 8:30 am ET): The Consumer Price Index is a measure of the change in the average price level of a fixed basket of goods and services, and provides some insight into the economic strength of the US.  Consensus accurately predicted consumer price index to increase by 0.2%.

Jobless Claims (December 15, 8:30 am ET): The Jobless Claims Report measures the number of claims files for unemployment benefits each week, and offers insight into the health of the US economy. 254 K new jobless claims were filed according to the December 15th report. 

Philadelphia Fed Business Outlook Survey (December 15, 8:30 am ET): This an index for the manufacturing sector of the Philadelphia Federal Reserve District, that offers insight into broad manufacturing trends and industrial production.  Consensus predicted a General Business Conditions Index-Level of 10, but was well under the reported Index level reported- 21.5. 

Housing Starts (December 16, 8:30 am ET): This a report that measures the number of construction projects that begin in the survey period for structures primarily to be used as residential buildings.  The report indicated 1.090 M housing starts. 

Upcoming Market Reports

Existing Home Sales (December 21, 10:00 am ET): Existing Home Sales indicate the number of previously constructed residential structures sold within the month. Consensus predicts a range of 5.400 M to 5.650 M existing home sales for the month.

EIA Petroleum Status Report (December 21, 10:30 am ET):  The EIA Petroleum Status Report measures oil, gasoline, and distillates inventory levels held by the U.S. domestically and abroad.

Durable Goods Orders (December 22, 8:30 am ET): The Durable Goods Orders report reflects the number of newly purchased factory orders of goods for future or immediate delivery. Consensus predicts 0.4% decline.

GDP (December 22, 8:30 am ET): The GDP is a measurement of Gross Domestic Product in the US and a good indication of economic status and growth. Consensus predicts 3.3% growth.

Jobless Claims (December 22, 8:30 am ET): The Jobless Claims Report measures the number of claims files for unemployment benefits each week, and offers insight into the health of the US economy. Consensus predicts 256 K new claims for the upcoming report.

Personal Income and Outlays (December 22, 8:30 am ET)This report measures the relationship between the income of a household and major expenditures. Consensus predicts a 0.3% increase.

New Home Sales (December 23, 10:00 am ET)The New Home Sales report indicates the number of newly constructed and newly sold residential structures within a given month. The consensus predicts 580 K new home sales.

1 oz Silver Buffalo RoundTake advantage of low spot prices by ordering the SilverTowne Mint’s 2016 Buffalo 1 oz Silver Round from Provident Metals.

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