October has been a month of seesaw silver prices, with the latest weekly silver numbers plunging in both New York and London. Last week the metals overcame the previous week’s decline. This week those gains were given back, and more.
New York silver futures for December delivery closed to $16.255 an ounce on Friday, and finished the week lower by $1.468, or 8.3 percent.
London silver was set to $16.65 an ounce, plunging $1.08, or 6.1 percent, on the week. The loss bites into the metal’s yearly performance, which is still up an impressive $5.78, or 53.6 percent from the $10.79 fixes price on Dec. 31, 2008. However, the gain was 63.6 percent just last Friday.
"A less-euphoric outlook to global growth may help explain why the price declines in silver and platinum have been more severe than gold over the past week," analysts at Deutsche Bank said on Bloomberg.com
London precious metal weekly prices follow:
Read the rest of Silver Prices Sink 8.3% in NY, 6.1% and London (592 words)
Ryzin talks about the issues the US Mint had with their ordering systems during initial hours of the Lincoln Chronicles release and an apology that the Mint issued over the matter. According to Ryzin, the Mint is searching for a new Chief Information Officer to oversee an upgrade to their online systems.
Doug Davis, Founder and President of the Numismatic Crime Information Center (NCIC), is interviewed by Editorial Director Debbie Bradley on the ‘Industry Insider’ segment. The recent theft of coin dealer Julian Leidman’s collection from his car after the Coinfest show in Connecticut has the two discussing ways to prevent such things from happening to other coin dealers and collectors.
Read the rest of Coin Chat Radio: Preventing Numismatic Crime, 2009 Lincoln Cents (388 words)
© Darrin Lee Unser for Coin News, 2009. |
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Precious metals retreated on the week as prices fell following a stronger US dollar. New York crude oil dropped the most in a month on Friday, yet still managed an October rise of 9 percent. US stocks also declined sharply Friday to mark their worst one-day slide since April. The Dow, S&P and Nasdaq registered respective weekly losses of 2.6 percent, 4.0 percent, and 5.1 percent. European stocks declined as well.
In London bullion weekly figures, gold fell 2.0 percent, silver shot down 6.1 percent and platinum retreated 3.8 percent. Friday precious metals prices follow:
London silver closed to $16.57 an ounce, plummeting $1.08 from last Friday’s close. New York December silver futures ended at $16.255 for a $1.47 weekly plunge.
London gold was fixed at $1,040.00 an ounce for a $21.75 loss on the week. New York gold for December delivery finished at $1,040.40 for a weekly decline of $16.00.
London platinum ended at $1,320.00 an ounce, falling $52.00 since last Friday’s close. New York platinum for January delivery ended at $1,326.30 for a $43.20 weekly retreat.
Read the rest of Bullion & Business Weekend Report – Oct. 31 (1,413 words)
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As we enter November and the days become shorter and colder, the pace of business at APMEX has been heating up! In recent weeks, Cull Silver Dollars have been a big seller, especially since the spot price of silver has dropped slightly, along with the temperature.
4:10p ET Saturday, October 31, 2009
Dear Friend of GATA and Gold (and Silver):
Silver market analyst Ted Butler was interviewed for 11 minutes Friday by Eric King of King World News. Butler reviewed data suggesting that the silver exchange-traded fund, SLV, has been subject to a large amount of naked short selling and that the shorts had much trouble coming up with real metal to cover the shorting. Butler also reported that the commitment of traders data continues as overwhelmingly negative to silver. A selloff in silver now, Butler said, would create a spectacular buying opportunity. You can listen to the interview at the King World News Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
By Eric deCarbonnel, Market Skeptics
Gold Market Reaching the Breaking point
Back in January, I wrote about the significance of gold breaking above $1000 again.
Rising demand for physical gold is a threat to the dollar because it signals a growing loss of confidence in the paper currency. It is also key to understand that gold prices aren’t rising because of the changing fundamentals of gold, but because of the changing fundamentals of the dollar. In other words, gold isn’t rallying, THE DOLLAR IS FALLING.
Gold is history’s oldest and most stable currency. Its utility is simply that it is rare, and for 5,000 years people have used it to store value for the future. All the gold that has ever been produced would fit in a solid cube of about 19 meters on each side, and this cube is only expanding by about 12 centimeters a year (2%). Since the value and supply of gold itself are fairly constant over long periods of time, the main driver of gold price fluctuations is the ebb and flow of confidence in paper currencies. Rising gold prices are, therefore, a signal of a weakening currency, which is why governments hate them and try to suppress them.
Right now, there is unprecedented worldwide demand for physical precious metals. As a result of this surging demand, gold futures have experiencing backwardation, a rare market condition where gold futures trade under spot prices. It is a signal that gold prices are headed higher and that confidence in our currency is fading quickly. When gold prices break above 1,000 again, the event should be recognized for what it is: the herald of a dollar collapse.
Gold is becoming money once again. The market for the standard gold one-ounce coin is no longer fragmented. Both the ugliest and the most beautiful gold coins are traded strictly by the quantity and quality of metal content, disregarding the outward appearance of the coin. Even Indian gold buyers, who, for years, considered buying jewellery to be the best investment option, are shifting from buying gold jewellery to gold coins.
It has been more than 40 years since governments and individuals concerned themselves about physically holding gold, but confidence in the dollar is falling and investors are being“dragged kicking and screaming into the bullish camp” as gold continues to break to the upside.
Gold demand is exploding as Investors turn to gold
Investors around the world are investing in gold bars for their safety. Big investors like David Einhorn are also turning to gold as an attractive alternative to cash, as falling interest rates on savings reduce the opportunity cost of holding gold, a non-interest bearing asset. As Mr. Einhorn put it, “Picking these currencies is like choosing my favorite dental procedure. And I decided holding gold is better than holding cash, especially now that both offer no yield.” Finally, a chaotic scramble to secure physical gold has also been unleashed by negative real interest rates (below inflation) which have upset the gold “leasing” machinery in the gold industry, creating a sustained market squeeze.
Surging demand is spurring a rush at Swiss gold refiners, who cannot work fast enough to meet demand. Mints are seeing a sharp rise in sales this year due to interest so strong that dealers are reported a shortage of products such as Krugerrands and one-ounce bullion coins. One German firm is even planning gold ATMs to meet growing demand, with 500 “Gold-to-Go” ATMs to be set up in Germany, Switzerland and Austria this year.
The rush to buy gold is also filling Swiss bank vaults. Swiss gold ETFs (ZKB Gold ETF – SWX and Julius Baer Physical Gold – SWX) are moving large quantities of gold out of London and into Zurich (70 tons as of last may), and they are running out of secure vaulting space (Why doesn’t GLD ever have any storage issues? Think about it). This shortage of secure storage extends across Swiss bank system with even gold clearing providers like SIS Clear (who only deals with banking counterparties) running out of space.
China is now the driving force in gold market
China is now the fastest growing market for gold, with Beijing’s gold markets reporting record sales. As the Chinese economy rebounds from the global recession this year, China is overtaking India to become the world’s top gold consumer. The Chinese authorities are reinforcing this strong demand for precious metals by pushing their citizens to buy gold.
8:35p ET Friday, October 30, 2009
Dear Friend of GATA and Gold:
GATA board member Adrian Douglas, publisher of the Market Force Analysis letter (www.MarketForceAnalysis.com), was interviewed for 11 minutes today by Eric King of King World News. Douglas described how the creation of “imaginary” gold — paper claims to gold that doesn’t exist but is never called for delivery — has prevented the gold price from catching up with inflation in recent years. But, Douglas added, as the fraud increasingly is discovered and people who have purchased “imaginary” gold get suspicious and ask for delivery, the gold price will explode quite without any help from inflation or deflation. You can listen to the interview with Douglas at the King World News Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Przemyslaw Radomski submits:The precious metals market is correcting. In my previous essay, I summarized that it seems that gold, silver, and corresponding equities need to take a breather to correct their post-$1,000-breakout rally. This is what we’ve seen lately, so the question is how low can we go and what to look for as signs of a reversal.
Precious metals (PM) stocks have been hit particularly hard in the past several days, so this week I would like to cover the situation in this important sector.
Gold bullion products are investment-grade items that are used for wealth preservation and potential growth, and today’s global market trades with gold bullion products like one-ounce, and ten-ounce, 24-karat bars, or bullion coins that are minted in either 22, or 24-karat purity. Novice investors are initially more comfortable with gold bullion products, because their prices generally tend to hover just above the current gold spot price, which is the cost of one troy ounce of pure gold. 24-karat bullion bars’ prices are closest to the spot price, and these items are typically used for potential short-term gains, as less costly diversifications for rare coins like $20 Lady Liberty’s and $20 Saint Gaudens, or as long-term, government-approved, precious metal IRA contributions.
Bullion coins’ prices are only slightly higher than bar prices, but many people prefer their beauty and artistry to the uninspiring uniformity of lifeless, bullion bars. 22-karat South African Krugerrands, British Sovereigns, and American Eagles, are all globally popular short-term, and diversification investments, but American Eagles are the only 22-karat bullion coins that are permitted for gold-backed IRA storage. American investors can store 24-karat bullion bars in their IRA’s, and government-approved brand names include Engelhard, Johnson Matthey, Credit Suisse, and PAMP Suisse, for guarantied purity. Rare coins like the aforementioned Liberty, and Saint Gaudens are not permitted for IRA storage, so investors supplement their holdings with 24-karat bullion coins like American Buffalos, Canadian Maple Leafs, Chinese Pandas, Australian Kangaroos, Koalas, and Lunar coins, as well as Austrian Philharmonics. Investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on bullion bars and coins.
Investing in gold has become increasingly popular in recent months as people look for a hedge against a possible surge in inflation and a store for their wealth amid uncertain economic conditions.
Speaking to Stylish magazine, economist Kent Ninomiya said gold bullion should be the investment of choice for those looking to put their money into the precious metal for the first time.
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