Company Updates

CANYON, Texas, June 8, 2021 /PRNewswire/ -- GoldStar Trust Company, one of America's largest custodians of self-directed IRAs specializing in precious metals, announces the addition of Texas Precious Metals Depository ("TPMD") as a secure storage location for customers. In conjunction with GoldStar's custodial services, TPMD will complement the retail services provided by Texas Precious Metals to provide turnkey solutions for precious metals IRA investors.

Per the Internal Revenue Code, retirement investors may incorporate physical bullion and coins meeting specific criteria into their portfolios while retaining the applicable tax benefits of their accounts. Any precious metals held in such accounts must be stored in a depository or other qualified third-party storage facility.

"We are excited to meet the growing needs of GoldStar Trust's precious metal investors by providing them with a secure storage option right here in Texas," said Jeff Kelley, president of GoldStar Trust Company. "Tarek and his team have been great partners for many years, and Texas Precious Metals was the clear choice."

"Having worked with GoldStar Trust for more than a decade, we believe them to be the premier IRA custodian in the United States. We are thrilled for the opportunity to expand our partnership and provide a Texas-based storage option for GoldStar clients," said Tarek Saab, President of Texas Precious Metals and TPMD.

Texas Precious Metals Depository is a private underground bullion depository. The facility is entombed in concrete with multiple layers of protection, bulletproof doors, biometric access, armed security and 24/7/365 interior and exterior surveillance. TPMD is insured by underwriters at Lloyd's of London and monitored by county and city law enforcement.

About GoldStar Trust Company GoldStar Trust began serving customers in 1989 and is the leader in providing specialized services as a self-directed IRA custodian, trustee and escrow/paying agent. With over $2.5 billion in assets, GoldStar Trust is custodian for more than 37,000 self-directed IRAs and offers unique retirement solutions that allow investors across the nation to diversify their IRA portfolios with alternative investments to traditional stocks, bonds and mutual funds. GoldStar Trust is the trust branch of Happy State Bank.

About Texas Precious Metals Depository TPMD has been used as the main storage and logistics center for Texas Precious Metals since 2012, processing nearly $1 billion in precious metals transactions during that time while servicing private, commercial and institutional clients. Texas Precious Metals and TPMD are subsidiaries of Kaspar Companies, a fifth-generation Texas business founded in 1898.

SOURCE GoldStar Trust Company

The precious metals market is very clearly in a secular uptrend and prices look poised for further significant upside into the end of the year. My technical view is that in the short term prices have gotten a bit extended and that a pull back/consolidation is due (and healthy) to build the base for the next leg higher.

GOLD

As I stated in my last post from July 8th: “I have always viewed the $1800 price level in gold as more significant than the $1910 blow-off top in 2011. The price level at $1800 was the multi-month, triple tested resistance level that precipitated the six-year base. If price holds, the breakout above this level is secular and very bullish.”

This past week December gold futures eclipsed $2000 and the front month August contract peaked just shy of the 127.2 Fibonacci extension. When this level breaks and holds, my text target is $2260 at the 161.8 Fibonacci extension. However, with the 14-period RSI in extreme overbought conditions, eclipsing 86 for the highest on record, and with bullish sentiment frothing, the timing seems ripe for a pullback (even if just a modest one).

For a more granular view, the August front month contract has been trading in this channel since February, and is also now approaching the upper bound. A logical place for a reentry to add to longs would be a small consolidation to rising support.

SILVER

The level to watch in silver is $26 (the July high was 26.27). The $26 level was triple tested support in 2011-2012 and is now acting as resistance. This is also the 38.2 Fibonacci retracement from the peak in 2011 to the the 2015 low. The risk/reward favors a long position above $26 or on a retest of the $19.80 breakout level. Price could get choppy in between as the market digests the recent moves. When price breaks out above $26, the next key targets are $33 and $35 (the 61.8% Fibonacci retracement).

US DOLLAR

The US Dollar supports the metals thesis, acting as the inverse of metals price action. Big picture, in July, the US Dollar broke down from its 12-year rising channel (and diamond top pattern) and all technical indications look bearish.

However, in the short term, price is likely to push back to at least 94.60 as the dollar works off extreme oversold conditions and historic bearishness to retest prior support.

We are looking for further metals strength and dollar weakness as we head into the fall. As always, we welcome any feedback and comments.

Precious metals prices broke out this morning above key resistance levels in the mining sector as well as the underlying futures market for the raw metal.

SILVER

In my post from June 10th, I mentioned 18.90 as a key initial target for silver. This level at sub-$19 has been an importance resistance level in silver for four years, getting rejected each time except for the false breakout in September. The breakout here is meaningful. The 14-day RSI (Relative Strength Index) is still not overbought and price looks like it has some room to run. The next target is $21, which represents the 161.8 Fibonacci extensions from the February/March high/lows.

Pan American Silver (PAAS), one of the leading silver mining stocks, also broke out this morning with a gap up above the 127.2 fibonacci Extension from the February/March high/lows. This move follows a multi-week basing period and targets just under $36 on this initial thrust, which is the 161.8 fibonacci extension.

GOLD

I have always viewed this $1800 price level in #gold as more significant than the $1910 blowoff top in 2011. The price level at $1800 was the multi-month, triple-tested resistance level that precipitated the 6-year base. If price holds, the breakout above this level is secular and very bullish, in my opinion, with the initial target at $2,000/ounce, or the 127.2 fib extension.

GDX

The Van Eck Gold Miners ETF had breakout and successful retest of the $32 level, broke out of the bull flag and is now taking out the May peak. My target is $42, which is the 161.8 extension from the Feb/March high/lows.

GDXJ

The Van Eck Junior Gold Miners ETF has been the laggard, but it is finally finally retesting the 2016 peak. Price has some room to run here and a bullish breakout/retest would be a great setup to add to long positions. The RSI hasn't been overbought on the daily chart since July 2019. Now would be a good time to show some strength.

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.

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.

The selloff in the markets has gold now testing key technical levels and silver breaking down from support. Mining stocks have accelerated to the downside even faster. In a liquidity crisis, nothing is immune.

GOLD

Gold is now retesting the rising trend line from the August 2018 low. A break here would target the major horizontal breakout area ~$1530-$1540. That will be the last gasp to preserve a bullish regime. If price trades below that level, it could send gold down towards a retest of the six-year breakout level at 1370.

GDX - GOLD MINERS ETF

GDX is in a similar position to gold. All key technical levels have broken down and only one remains before a complete capitulation (the rising trend line from July 2018) at ~21. A breakdown there would target 17.

SILVER

Silver has broken down from its megaphone pattern, and most importantly just broke horizontal support. This is bearish action in silver, and there is no meaningful support here until a retest of 14.30 from May 2019.

Trading activity in the physical market has been extremely robust and consuming nearly all of my time, but I will try to keep updates coming. Be safe out there!