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The Week in Review - ALERT

June 19, 2009

Another extremely volatile week comes to a close. Please note we are using Thursday’s closing prices due to the importance of this memo:

1. More bankruptcy filings occurred this week, with Six Flags and Eddie Bauer chief among them. A judicial body is now urging Congress to authorize new bankruptcy judgeships to keep up with the surge in filings.

2. This year’s peak home-buying season is being described as “lackluster” by Coldwell Banker Real Estate. Homeowners are still having a difficult time selling their current homes, so the usual “move-up” buyers, those looking to trade up to a larger home, were absent this year.

3. First time claims for unemployment rose slightly, staying above 600,000 for the twentieth straight week. Continuing unemployment claims decreased slightly leading to mixed views on the job market prospects.

4. The Treasury announced on Thursday that they would be auctioning a record setting 104 billion in debt next week. Treasuries moved down and fears over further weakness in the dollar cropped up anew in reaction to the news.

5. Militants in Nigeria threatened to sabotage more oil facilities and the protests over election results in Iran continued. The tensions in these two countries appear to be keeping oil above the 70 dollar mark.

6. In the Frankfurt airport, passengers can now pay 30 euro for 1-gram wafers of gold. The supplier’s mark-up is about 20% above current market prices, making the case for acquiring gold from professional wholesale suppliers.

7. The dollar saw light gains against the euro, and began creeping higher on the yen. Worries about a decrease in Treasury buying could weaken the dollar further though.

8. President Obama announced sweeping new changes in regulation, turning the Fed into a super-regulator. He also announced plans to dismantle the Office of Thrift Supervision this week. Already the lawmakers in Washington D.C. are beginning to argue the merits of such sweeping changes, and one can’t help but suspect that the confusion that will ensue will lead to even more volatility in the stock market as the rules and regulations governing it become unclear.

9. For the most part, the media has been curiously silent over the seizure of 134.5 billion in bearer bonds in Italy. The bonds were found in a false bottom of a briefcase carried by two men on the border of Italy and Switzerland. A Treasury spokesman has said that the bonds are counterfeit but their existence, fake or no, calls into question whether other such instruments are out there. Such uncertainty could lead to even more weakness in the US Dollar.

Friday to Thursday Close

Here are your Short Term Support and Resistance Levels for the upcoming week.

Volatility should still be expected to continue. Some analysts feel that the recent downward retracement, specifically in the prices of gold and silver, is now in the bottom end of the retracement and that we may not see prices go much lower. In fact, there is now a strong consensus that gold and silver are actually poised for an explosive move to the upside as more and more countries begin to question the use of the dollar as their currency for trade. As we feel that current prices are very attractive for long term appreciation, acquisitions at this time for gold and silver seem to be very much warranted and those looking to acquire at lower prices may not have the opportunity to do so. Just remember: never over-extend yourself and keep your ability to stay the long term.

Trading Department – Precious Metals International, Ltd.

This is not a solicitation to purchase or sell.

© 2009, Worldwide Precious Metals.
www.wwpmc.com

The Week in Review - ALERT
Posted by Worldwide Precious Metals on Friday, June 19, 2009

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