GDP: Great Day to Play

Good Day,

Friday’s market sessions in precious metals started off on a tamer note, following the best gains in gold in three weeks. Explanations follow. The recapture of the $1045 area is noteworthy, although analysts we polled during the wee hours overseas are trying to define the move as everything from a ‘one-hit wonder’ to the ‘re-ignition of what we saw during most of October.’

The Bloomberg weekly survey foresees weaker gold prices come next week - not by a large margin (57% bearish)- but still focusing on a potential comeback by the US currency, the early signs of which became visible this past Monday. Demand for the yellow metal once again slipped away in India, following signs of life during the earlier part of the week when values came close to $1025 per ounce. The country recorded its sixth straight month of declining gold imports, despite a decent gain during September – in anticipation of festival-related sales.

New York spot dealings opened with a $2.60 loss in gold bullion, which was quoted at $1043.20 bid, as against a euro-dollar seen at $1.4798 and the USD index steady-to-higher, at 76.05, with little in the way of fresh news thus far this morning. Oil prices gave back about 50 cents of their whopper-sized Thursday gains, slipping to $79.32 per barrel. Risk traders took a latte break this morning, and this gave the dollar a moment to try to re-group.

(…)
Read the rest of Gold, Silver, Metal Prices: Commentary – 10/30/2009 (2,324 words)

Gold and other precious metals spiked Thursday, as did crude oil and US stocks following a report by the Commerce Department saying the economy expanded at a 3.5 percent annualized pace in the third quarter. Gold’s rise broke a losing streak that had extended to five days. The Dow and S&P enjoyed their best one-day jumps in three months.

New York bullion figures follow:

• Silver for December delivery jumped 41.5 cents, or 2.6 percent, to $16.655 an ounce. It ranged from $16.12 to $16.71.

• Gold for December delivery advanced $16.60, or 1.6 percent, to $1,047.10 an ounce. The yellow metal ranged from $1,048.40 to $1,026.90.

• January platinum surged $31.30, or 2.4 percent, to $1,338.20 an ounce.

(…)
Read the rest of Gold, Silver and US Stocks Rally (2,395 words)

Even though multitudes of American investors have lost faith in Wall Street and our nation’s banking system, they can still show their patriotism by purchasing American gold bullion, as they convert their wealth into precious metal diversification. Traditional investments in stocks and bonds have had their overextended course of contrived prosperity, now it’s time to pay the piper. As we all prepare for the treacheries of an indeterminate inflationary period, many investors are claiming financial independence from our banks and brokers by diversifying with American gold bullion like Engelhard brand, one-ounce, and ten-ounce bars, and American gold bullion coins like 22-karat American Eagles, or 24-karat American Buffalos.

Engelhard 24-karat bars are manufactured in New Jersey, and make great items for personal possession, as well as short-term diversifications for rare coins like $20 Lady Liberty’s, or $20 Saint Gaudens, which are traditionally used for long-term stability. Bullion prices usually hover just above the current spot price, and investors can also use this affordability for long-term financial safety, as government approved, gold-backed IRA contributions. Rare coins are not permitted for precious metal IRA storage, but the aforementioned American Eagles, and Buffalo coins are permissible, along with proof, and “Ultra-High” proof versions of the modern American Eagle bullion coin. Investors may also wish to round off their budgets with fractional denominations of the $50 American Eagle, which include ½-ounce, ¼-ounce, and 1/10-ounce coins. These investors are encouraged to complete their research, and then to contact one of our friendly specialists, who offer institutional discounts on bullion, and rare coin.

Danny Burns

Read more….

Gold buying is still at high levels in India as jewellers look to stock up on the precious metal for the wedding season.
Indian weddings traditionally call for gold gifts to be made to the bride and with the festival season seen as an auspicious time to get married, purchases are still going strong in the aftermath of Diwali.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Read more….

The Duluth complex in Minnesota, U.S. hosts one of the world’s great polymetallic metals deposits and one of the key players is Canadian junior, Duluth Metals, which has just announced updated precious metals resource figures.

Read more….

Gold ended slightly lower Wednesday, marking the fifth consecutive day the yellow metal has declined. Again cited as the catalyst for the loses was a rallying US dollar. Silver and platinum also fell, as did crude oil which plunged 2.6 percent. US stocks followed along, with the three major indexes tumbling between 1.2 percent and 2.7 percent.

New York precious metals figures follow:

• Silver for December delivery fell 30 cents, or 1.8 percent, to $16.240 an ounce. It ranged from $16.155 to $16.77.

• Gold for December delivery declined $4.90, or 0.5 percent, to $1,030.50 an ounce. The yellow metal ranged from $1,042.60 to $1,027.10, which is the lowest price since Oct. 6.

• January platinum ended down $12.10, or 0.9 percent, to $1,306.90 an ounce.

(…)
Read the rest of Gold Continues Decline for Day Five, Stocks Tumble (2,367 words)

New York gold futures ended lower Tuesday for the fourth straight day as the US dollar advanced on news of a decline in consumer confidence. Silver was hit exceptionally hard for the second straight day, falling more than 3 percent. Platinum declined as well. In other markets, crude oil finished 1 percent higher and US stocks ended mixed.

New York precious metals figures follow:

• Silver for December delivery plummeted 55.5 cents, or 3.2 percent, to $16.540 an ounce. It ranged from $17.250 to $16.500.

• Gold for December delivery declined $7.40, or 0.7 percent, to $1,035.40 an ounce. The yellow metal ranged from $1,044.30 to $1,032.90, which was the lowest level since Oct. 6.

• January platinum fell $26.80, or 2.0 percent, to $1,319.00 an ounce.

(…)
Read the rest of Gold Drops for Fourth Day, Silver Plunges, Stocks Mixed (2,493 words)

Clive Corcoran submits:

The following are some musings on the U.K. economy, prompted by an adage that seems quite appropriate for our times of thinking the unthinkable.

1. The U.K. public finances are in dire straits with a likely deficit this year well in excess of £200 billion and with red ink as far as the eye can see. It seems highly likely that within the next three or four years outstanding public debt will exceed 100% of GDP.
2. The U.K. is still in recession with a -0.4% GDP reading for Q3, 2009
3. The fact that the U.K. faces a national election within the next nine months means that there is no immediate political will to address the problem or even to spell it out to the electorate.
4. The markets are expected to fund the deficit through the continued purchase of gilts despite the fact that the Bank of England has indicated that it is winding down its Quantitative Easing program.
5. Sterling recently has exhibited as its default mode a tendency for sudden plunges against other major currencies.
6. A recent posting here reveals that the price of gold as expressed in terms of a variety of currencies showed that holders of the U.K. currency had lost the most purchasing power vis a vis the precious metal over the last five years. The real point of this is to highlight that the U.K. economy has historically been more inflation prone than many others.
7. Could the U.K. government – whatever flavor it takes after June 2010 – be faced with the awkward choice of having to approach the IMF for an emergency loan to bail out the gilts market and prevent a collapse in sterling, or to adopt the euro to seek some safety under the umbrella of a more globally acceptable currency?
8. Will Tony Blair, as the possible new President of the European Union, find that he has been provided with the unique destiny of rescuing the U.K. economy by facilitating the early adoption of the euro in place of sterling?

Read more »

Many short-term investors prefer the liquidity of gold American Eagle bullion, since our government backs these modern coins for weight, and precious metal content. These 22-karat coins contain a full Troy ounce of pure gold, and their obverse design is among the most exquisite in existence. The obverse design on gold American Eagle bullion coins are near replicas of the legendary, rare, $20 Saint Gaudens Double Eagle gold coin, minted from 1907 to 1933. The original Saint Gaudens rare coins are vastly more expensive than the modern Eagles, which carry a face value of $50, so bullion investors can enjoy the artistry of a valuable, rare coin at prices that are only slightly higher than the spot price of gold.

The classic design that modern, gold American Eagle bullion coins share with their rare coin counterparts is the image of Lady Liberty walking into view, wearing a long, flowing gown. She is carrying a torch in her right hand, and an olive branch in her left, with the capital building in the background. The reverse designs on both coins portray American Eagles, but are completely different designs from two different artists.

Many household investors are making long-term investments in rare coins like the aforementioned $20 Saint Gaudens, or the $20 Lady Liberty, which is the original Double Eagle gold coin. These investors are diversifying their rare, Double Eagle holdings with gold American Eagle bullion, to capitalize on short-term gains while their rare coins appreciate over time. Investors can receive institutional discounts on their bullion, and rare coins by contacting one of our friendly specialists, who offer these institutional discounts to household investors like you.

Danny Burns

Read more….

A recent national gold panning contest in New Zealand saw participants search for flakes of the precious metal under conditions experienced by miners a century ago.
The championships – organised by the Otago Goldfields Heritage Trust – saw some 60 panners try to find as much gold as possible in the space of ten minutes in rainy and windy conditions, the Otago Daily Times reports.
The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Read more….