By Rick Ackerman, GoldSeek

The broad averages are not so much climbing a wall of worry as ascending a bunny slope of indifference. The result has been a bear rally so tedious that tape-watchers risk death by apnea if they should fail to jiggle jangle their limbs at regular intervals. However, the rally has been just about perfect for traders and investors who use covered writes, selling near- or out-of-the-money call options against stock they own. This strategy can be a loser if shares rise or fall precipitously. However, when they ascend a slope as gentle as the one that has unfolded since early autumn, it produces a continuous stream of option-premium income that can significantly boost the yield on a stock or portfolio of stocks.

The actual slope of the S&P rally since late mid-September implies annual gains of about 15 percent, but that yield could probably have been be doubled with well-timed shorting of call-options against stock. How long is this felicitous condition likely to last?  Probably long enough to lull covered-writers into thinking they’ve stumbled upon a money machine that can make back for them whatever they lost in devastating bear market of 2007-8.

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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.

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

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.

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

The United States Mint has sold 110,500 one-ounce American Buffalo $50 Gold Bullion Coins since they were released on Thursday, Oct. 15, 2009.

To place that in perspective, in less than two weeks bullion dealers have purchased 64.2 percent of the total (172,000) that was sold in all of 2008.

There appeared to a touch of dry spell in sales for several days. The US Mint generally updates bullion figures daily, but the Gold Buffalos remained at 86,000 from last Wednesday until Tuesday morning when the tally jumped to 106,500. By close of business Tuesday, numbers were at 110,500.

The Mint will begin selling the collector proof Buffalo coins this Thursday at noon ET. Demand is expected to be fierce. No order limits are in place.

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Chris Vermeulen submits:

Commodities and stocks almost look ready for a rally or at least a relief bounce. The market is down over 5% and the normal pullback this year has been 4%. Using technical analysis and inter-market analysis, we can see that the market is reaching extreme lows and this usually means we are only a couple days away from a rally.

I work with several market technicians as we all analyze the market a different way and share our work with each other to gain maximum insight on the broad market moves. We analyze momentum cycles, magnetic cycles, volatility levels, support & resistance levels, volume analysis and inter-market analysis.

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When strictly short-term investors buy gold bullion, many of them prefer the affordability of bullion bars, because their utter simplicity warrants the lowest possible investment- grade gold price. Short-term investors generally purchase one- ounce, and/or ten-ounce bars, whose prices usually hover slightly above the current gold spot price, which is the cost of one Troy-ounce of pure gold. Savvy short-term investors buy gold bullion when the spot price declines, and usually liquidate their metal within a fourteen-month span, during which time the gold spot price fluctuates in accordance with global demand. As of around noon today, the spot price was hovering around $1052 per-ounce. The all-time record high spot price is $1071, which was set only a few weeks ago. Many financial experts believe that gold will continue to surpass new all-time highs in coming months and years, and more investors are purchasing bullion bars with reputable brand names, to capitalize on these potential, short-term gains.

Long-term investors also buy gold bullion to diversify their holdings in far more costly rare coins. Rare coins command very high premiums, because their numismatic value generally tends to appreciate over time, so it’s logical to diversify with more affordable bullion bars, while more costly rare coins are left to appreciate. Reputable brand names for bullion bars include Credit Suisse, PAMP Suisse, Engelhard, and Johnson Matthey, and these bars are also U.S. government-approved for gold-backed, IRA storage. Certain bullion coins are also acceptable IRA contributions, which are 22-Karat, American Eagles, and the following 24-Karat bullion coins: Australian Kangaroos, Koalas, and Lunar coins, American Buffalos, Canadian Maple Leafs, Chinese Pandas, and Austrian Philharmonics. 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

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Steve Palmer, president and CEO of AlphaNorth Asset Management is expecting the U.S. dollar to rally in the short term and gold to sell off and is forecasting a bit of a pullback in the next month or so followed by another rally before year’s end. Interview with The Gold Report

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Spot Silver prices opened this week at $17.48. Silver reached a high of $17.97 on Friday, October 23rd. The low for silver occurred on Thursday, October 22nd at $17.38. Silver ended the week up $0.23 at $17.71. This week, investors concentrated on 2009 1 oz. Silver American Eagles, 2010 1 oz. Canadian Silver Maple Leafs and 1 oz. Sunshine Minting Silver Rounds.

Platinum:

Spot Palladium prices opened this week at $331.00, and ended the week up $7.00 at $338.00. 2009 1 oz. Palladium Maple Leafs, 1 oz. Pamp Suisse Palladium Bars and 10 oz. Pamp Suisse Palladium Bars are consistently popular palladium items.

Gold declined nearly $6 Thursday, breaking away from a four-day winning streak as the US dollar gained ground. Silver and platinum also fell, as did crude oil which retreated from a one-year high. US stocks rallied on positive news from several corporate earnings reports.

New York precious metals figures follow:

• Silver for December delivery fell 28 cents, or 1.6 percent, to $17.545 an ounce. It ranged from $17.365 to $17.790.

• Gold for December delivery declined $5.90, or 0.6 percent, to $1,058.60 an ounce. The yellow metal ranged from $1,052 to $1,062.40.

• January platinum edged lower by $4.50, or 0.3 percent, to $1,369.90 an ounce.

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Read the rest of Gold, Commodities Decline; Stocks Rally (468 words)

Gold trading was very active this morning, starting with profit taking by bullion owners, followed by a surge in demand which moved the gold spot price from the $1058 level down to $1047, and back up again to hovering $1057 levels. Novice investors are advised to familiarize themselves with spot price fluctuations, because gold bullion prices generally hover slightly above the current gold spot price, which is the cost of one Troy ounce of pure gold. Many first time household investors purchase gold bullion for its’ simplicity, and relative affordability compared to rare coin. Bullion possesses no numismatic value like rare coins do, so investors traditionally purchase bullion to potentially capitalize on short-term gains.

The last two trading weeks exhibited a fully functioning model for short-term profit seekers, as gold repeatedly surpassed its’ all-time record high on various consecutive trading days. Naturally, gold bullion prices followed the spot prices’ record-setting performances, and a great many investors either reaped handsome short-term gains, or upgraded their bullion holdings, and diversified into rare coins like $20 Lady Liberty’s and $20 Saint Gaudens, for greater long-term financial security.

For the time being, novice investors can purchase one-ounce, and/or ten-ounce, 24-Karat bullion bars with reputable brand names like Engelhard, PAMP Suisse, Credit Suisse, and Johnson Matthey. Bars carry the lowest gold bullion prices because of their simplicity. Bullion coins are only slightly more costly, and most household investors purchase 22-Karat, American Eagle $50, 1-ounce bullion coins for short-term gains, and as affordable rare coin diversifications. Investors can receive institutional discounts on their bullion and rare coins by contacting one of our friendly specialists, who offer these discounts to household investors like you.

Danny Burns

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