Goldwas trading higher Tuesday as we witnessed another day of a weak dollar followed by gold and silver bargain hunters hitting the trails in search for low price deals before the yellow metal shoots back up toward the $1,800 per ounce price mark. This is expected later in November before heading even higher in 2013.

December gold last traded up $9.40 at $1,692.50 an ounce. Spot gold was last quoted up $7.40 at $1,692.75. December Comex silver last traded up $0.257 at $31.38 an ounce.

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As has been reported for several weeks now, many are waiting to see what happens in the election. There is some uncertainty here, as the race seems to be a dead heat and we will no know the outcome until tomorrow morning, barring any setbacks.

There is a general feeling that President Obama getting re-elected would be bullish for the raw commodity sector because of the likelihood of easy U.S. monetary policy being kept in place. A victory by Mitt Romney is seen by many as a bearish development for the commodity markets due to his proclamations that easy money policy in the U.S. needs to be curtailed. It could well be, and it is my bias, that the metals and most other markets produce no major reactions to the U.S. election results.

Europe got some good news overnight from the European Union, and the dollar remained weak. Both of these factors also played a part in gold jumping up and trying to make it past the $1,700 price point here in early November. U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports and the global services PMI.

Gold is still trying to recover from the huge fall it took last Friday, and while it has been jumping back up, it remains to be seen if the yellow metal can recover as fast as investors and traders want it to.

A four-week-old downtrend is in place on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above psychological resistance at $1,700.00. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,650.00. First resistance is seen at $1,700.00 and then at $1,710.00. First support is seen at the overnight low of $1,683.50 and then at Monday’s low of $1,672.50.

Original Article: http://www.forbes.com/sites/kitconews/2012/11/06/a-m-kitco-metals-roundup-gold-up-on-more-short-covering-bargain-hunting-weaker-u-s-dollar/

Published in World Economy

Most of us have been speculating what will happen to the precious metals market, particularly gold and silver, after the election results come in. While we still have to wait to see what will develop there, we are already aware of what is going on with gold, silver and other precious metals during this election Tuesday. Both the yellow metal and the white metal have jumped up on a day where millions of people will be heading to the polls to vote.

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This is a great sign heading into the election, as it shows that the precious metals market is not going to take a back seat to the election and that trading, buying and selling can still go on. Lets take a look at how all the major precious metals, especially gold and silver, have performed on this election Tuesday.

Gold: Gold for December delivery GCZ2 +2.02% jumped up by $15.40, or 0.9%, to come in at $1,698.60 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal is trying to inch itself back over the $1,700 per ounce price mark.

Silver: Silver for delivery in December SIZ2 +3.20% jumped up by 35 cents, or 1.1%, to come in at $31.48 an ounce.

Platinum: Platinum for January PLF3 +1.15% shot up by $4.10, or 0.3%, to come in at $1,548.80 an ounce.

Palladium: December palladium PAZ2 +2.78% was up by $16.75, or 2.8%, to come in at $619.75 an ounce.

Copper: Copper for December delivery HGZ2 +1.01% was up by 3 cents, or 0.9%, to come in at $3.50 a pound.

As you can see, all of the major precious metals enjoyed price hikes today and it will be interesting to see what they all do tomorrow after the election results are tallied and reported.

Also driving gold and silver up more today was the fact that the dollar remained weak. The dollar had gotten strong a few days ago, but then decided to take a nosedive and has lost ground for almost a weak straight now. While it is never a good sign that the dollar is weakening, it usually means good things for gold, silver, and other precious metal prices.

That being said, we still need to look for a good balance between precious metals and the dollar index. In a perfect world both would be strong at the same time.

Published in United States Economy

We are only one-day away from the general election, and with that many investors and collectors await to see who the next President will be. As with most of the country, the markets are waiting to see as well. That being said, gold did have a nice spike upwards today, as we head into tomorrow to see who our next president will be.

As I have spoken on before, the results of the 2012 election may bring change to the Feds and the Fed chair, depending on who wins the seat. This has been speculated on for a while, but if Mitt Romney does win, then we can expect at least some things to change within the Fed system right now.

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Gold for December delivery was up by $8.60 to come in at $1,683.80 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,684.70 and as low as $1,672.50 an ounce, while the spot price of gold added $6.

"As far as trading in the metals, there hasn't been a lot, we haven't seen anything. We really didn't have any economic data, the dollar is a little stronger, but this is just coming back cause it was over sold on Friday," said Phil Streible, senior commodities broker at RJO Futures.

There really isn’t a way to determine what the yellow metal will do according to who is elected. A win by Obama leaves many of the same policies in place, policies that are obviously not working. However, a win by Romney may bring new policies, but who is to say that any of the new policies would be any better?

One thing we do know is that gold will still remain valuable no matter what happens, at least in the long run. The yellow metal will always serve as one of the most popular types of investments, no matter what the market does. Sure, they may be some price drops, but as history has taught us, gold will always bounce back. If you invest in it properly, then you are due a nice ROI in the long run. It also serves as a great way to build your portfolio and to protect your money against other poor investments.

The election is just one day away and excitement is building. No matter who gets elected, we should see gold do something one way or another.

Published in United States Economy

Coin sales have been really heating up lately, especially with collectors and investors wanting to buy something tangible. That being said, last week coin sales took a hit, which was probably due to Hurricane Sandy and other outside forces. Other factors involved include falling silver prices and the fact that no new coins have been introduced over the last week. That being said, gold coins didn’t take a hit, as a matter of fact, sales for gold coins actually went up.

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With coin sales down a bit, many people have been able to find better deals on certain coins. Most of those deals are on currently released gold coins. Below you will find a list of coins and what they did last week in sales compared to the week before. As you can see, gold coins were still actually moving very well. At these prices it is a great time to jump in and start buying.

  • 2011- and 2012-W Proof American Eagle gold coins with combined unit sales advancing 587 versus the prior week’s 523. The one-half ounce was the only under performer, gaining 140 against the prior 197.
  • 2012-W Uncirculated American Eagle gold coins with an increase of 113 compared to the previous week’s gain of 6.
  • 2012-W Proof American Buffalo gold coins with a pick-up of 145 against the prior 106.
  • Star-Spangled Banner $5 Gold Uncirculated Commemorative Coins with a weekly advance of 39 compared to the previous week’s gain of 1.
  • Infantry Silver Dollar Commemorative Coins with an increase of 526 as a group (proof, uncirculated and Defenders of Freedom Set) versus 341.

Here now are the top selling coin products overall last week. Many of these are still available at low prices, so take some time to inquire within and look around for a great deal.

Top Selling Numismatic Products of the Week

  1. 2012 Proof Set (+10,237 to 591,014)
  2. 2012-W Proof American Silver Eagles (+5,567 to 795,915)
  3. 2012 Mint Set (+4,142 to 312,224)
  4. 2012 Silver Proof Set (+3,789 to 318,374)
  5. 2012-W Uncirculated Silver Eagles (+1,537 to 151,041)
  6. 2012 Presidential $1 Coin Proof Set (+1,222 to 220,068)
  7. 2011-W 9/11 Medals (+995 to 106,745)
  8. 2012 America the Beautiful Quarters Proof Set (+854 to 116,052)
  9. 2011 Proof Set (+844 to 1,088,918)
  10. 2011 Mint Set (+641 to 529,506)

Hurricane Sandy is now over, and while people are still trying to get back to normal life, there is still a great opportunity available to invest in gold and silver coins at a lower than usual rate.

Published in Gold Investing

On the heels of one of the worst hurricanes in some time, Wall Street was finally able to open back up. As expected, gold jumped immediately, welcoming back traders and investors as over 6 million people try to get their normal lives back on track after the super storm.

Hurricane Sandy recently swept through the east coast, causing major damage and shutting down thousands of businesses, as well as leaving millions without power. The hurricane was devastating enough that it even caused the east coast markets to shut down for the last couple of days. However, Wall Street was up and running again today, and gold responded, jumping double digits for the first time in almost two-weeks.

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Gold for December delivery GCZ2 +0.49% was up double digits to come in at $13.40, or 0.8%, to $1,725.70 an ounce on the Comex division of the New York Mercantile Exchange. This was both a great way to open the market back up, as well as a much-needed jump in the price of the yellow metal after it had dropped considerably over the last couple of weeks.

It felt good to be back to open trading, and while gold did respond with a nice double digit boost, the fact of the matter is that there are a couple of underlying issues that the yellow metal will have to face after the excitement of the east coast market reopening subsides.

There are of course the issues in Europe that are once again spinning their ugly head around. A fast bailout for Greece was on the table, but there were a couple of nations at odds over the structure, so that is in somewhat of a limbo while they figure out how to come to a compromise. Another issue facing gold is the fact that the current bailout program that was put in place by the Feds several weeks ago is starting to lose its luster. While the Feds will keep it in place, along with keeping interest rates low, this most current stimulus package is proving a point I have been driving home for some time now; these packages only work as a temporary fix.

While it remains to be seen what will happen in the long run with the current stimulus in place, right now we are seeing a roller coaster of emotions from traders and investors. The stimulus was able to drive gold prices to the brink of the $1,800 per ounce price mark before the yellow metal had a positive pullback and corrected itself.

Published in Gold Investing

If you’re hanging in for the perfect gold price, you’ll never find it.  Better to stop thinking of yourself as an investor and find something else to do.  And what is aperfect price anyway?  If gold goes up, you’ll be unhappy because you’ll think you missed a good thing on the way up.  If gold goes down, you’ll be unhappy because you’ll think the yellow metal has now turned bearish on you.

As we’ve stressed several times in the Investor’s Corner, if you buy the physical metal while the price of gold consolidates, you’ll be making a smart decision.Let me emphasize those words again:  “physical metal.”  Think about that for a second.  You won’t be buying on margin.  So there’s no interest attached to your purchase.  You won’t be buying shares in a gold mine.  So there’s no strike or management conflict inhibiting your purchase.  You won’t be buying a gold option.  So there’s no expiration date tied to your purchase.

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Instead, you’ll be buying the physical metal and holding for the long term.  Given this scenario, you shouldn’t despair over a small price move.  Ah! you say: but today gold closed at $1709.50, down $82.25 from its peak of 1791.75 just three weeks ago.  A move down of $82.25 is no small price move. 

At current prices, we beg to differ.  That move down represents a mere 4.59 per cent.  Once you take into account the big picture – 4.59 per cent is a miniscule number in this bull market.  Financial advisors routinely advise their clients to be able to withstand a market correction of 20 per cent.  By this benchmark, a 4.59 per cent move down in gold is extremely conservative.Under the circumstances, if you buy and wait rather than wait and buy, you’ll remove virtually all of the risk from your decision.

Right now gold is in a neutral mode awaiting big news to motivate a breakthrough to the upside.  A report from Reuters this morning points out that gold is staying “resilient” and holding its own in the wake of a downturn in corporate earnings.  Also, investors have turned away from big moves in the last few days while they prepare for a severe hurricane now ripping through the East Coast.  Analysts at Reuters also suggest investors may be stalling since we’re only one week away from the presidential election.  But as Jaimini Desai sagely points out in his Seeking Alpha newsletter article, it matters little which candidate wins.  While Mitt Romney has pledged to replace Ben Bernanke, “his most likely choices – N Gregory Mankiw and Glen Hubbard – have publicly pledged support for the Chairman’s policies.”  Little will change in the Fed’s commitment to quantitative easing in the face of a grim U.S. employment picture.  In other words, the Fed will keep printing money to jump start the economy.  And central banks throughout the world are similarly committed to keep the printing presses running.

Your purchase of physical gold during this lag time could be the smartest investment you ever made.  That said, procrastination could be harmful to your wealth.

Published in From The CEO

As the price of gold fluctuates, it’s useful to step back occasionallyand look at the big picture with respect to its price movement and how supplies are distributed throughout the central banks of the world.  We need to remind ourselves that paper money remains plentiful in our era of monetary easing, and that gold remains rare.  As financial writer Philip Coggan points out, all the gold that’s ever been mined in the world can fill a cube with sides the size of a tennis court.

A good way to take this larger perspective just now is to review The World Gold Council’s 3rd Quarter Report.  The report is revealing, and makes it clear that central bank activity in the United States and Europe are fueling demand for the yellow metal.

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It’s also sobering to realize that gold returned 11.1% in the third quarter and, year to date, is up 16%.  And, as 24/7wallst.com observes from the WGC report, “gold still outperformed almost all the major equity markets in the largest gold-holding nations in 2012.”  It’s striking too that no longer is gold merely a financial hedge: it serves as protection against a world imperative to debase currency.  Since bonds now pay historically low rates, and investors are increasingly fearful of volatility in stocks, gold is more important than ever as a safe haven.

Again though, while concern over inflation through monetary easing is still the major factor driving the price of gold, central bank purchases play a greater role than in the past.  In fact it’s safe to say that, based on the numbers, gold is becoming the world’s largest reserve currency. In looking at the WGC report’s list of the ten largest nations that control the world’s gold, some of the countries like the US (1), China (5), Japan (8) and Russia (7) are predictable.  Still there are a few surprises.  The Netherlands, with gold reserves of 612.5 metric tons, ranks number 9 on the list.  Switzerland ranks number 6.  While it’s understandable that the country that plays largest private banker to the world would want to stock up on gold, Switzerland’s relatively high rank is amazing when you consider the country ranks 95th in world population at 7.9 million.

An amazing surprise is Italy as number 3 with 2,451 metric tons.  As observed in 24/7wallst.com, the bitter irony for this nation is that, even with its abysmal economy, it can’t afford to sell off its gold to improve conditions, because it would have no cushion if the euro failed.

What the officials of the central banks of the world understand is what bond king, Bill Gross of PIMCO, has been warning us about all along.  When hard assets rise in price through inflation, nations that store large amounts of gold will be much better off.

Which brings us back to you.  Armed with the knowledge of what central banks are doing, doesn’t it make sense to become your own central bank?  On the one hand governments create inflation through monetary easing; on the other hand they look to gold for a monetary cushion.  What are you doing for your own cushion?  With its current correction, gold is providing you with an excellent opportunity to accumulate.  At gold’s current price, can you really afford to ignore this opportunity?

Published in From The CEO

Gold remained steady today despite the fact that Hurricane Sandy is still wreaking havoc on the east coast and has forced the New York market to stay closed for a second straight day. The dollar weakened and the market rose overall, but gold was down just barely as traders and investors also wait on a jobs report that is due later this week.

Gold was able to take some support from strength in European shares, which were boosted by well-received company reports from BP and UBS, and the euro, after data showed the Spanish economy contracted at a slightly slower rate than forecast in September. This was a bit of good news for the yellow metal, especially since it is still trying to wait out Hurricane Sandy.

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Spot gold dropped slightly by 0.31 or (-0.02%) to come in at $1,710, up 0.1 percent, while U.S. gold futures were up by 0.80 or (+0.05%) to come in at $1,709 per ounce. As you can see, no big gains for the yellow metal, but no significant losses either.

The yellow metal still does however remain on track for its biggest monthly loss since this past May of 2012 right before the Feds went ahead with their latest stimulus announcement. October has actually been an interesting month for gold, as the yellow metal hit an 11-month high above $1,795 earlier in the month after the Fed's stimulus plan but retreated after failing to break $1,800. Now, in the same month the yellow metal will end up taking a loss. However, the month of November is right around the corner, and since November has traditionally been strong for gold it should be interesting to see how much of an upswing gold takes during November of 2012.

A Reuter’s poll shows the economy is expected to have added 125,000 jobs last month, though the unemployment rate is seen at 7.9 percent, against 7.8 percent the previous month. I don’t think that data will be too much of a factor for the price of gold, as the 8 percent unemployment level is somewhat of a constant number.

Peter Fertig, a consultant with Quantitative Commodity Research, said the stubbornly high rate of unemployment in the United States suggested that monetary easing was not likely to end soon, signaling well-supported gold prices.

"The level of unemployment is still at a level where the Fed does not feel comfortable with it," he said.

Published in United States Economy

Hurricane Sandy is currently dominating just about every part of the news, and it is also affecting everything around it. The effects of Hurricane Sandy are being felt in just about every sector; and that includes the gold market. The Hurricane has brought trading to almost a complete halt and will more than likely keep the markets closed until at least Wednesday.

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While the yellow metal didn’t drop too badly, as it is still above the $1,700 price mark, the fact of the matter is that no one is going to be trading or buying it for a few days, as all eyes are focused on Hurricane Sandy. December gold was down by $1.50 to come in at $1,710.40 an ounce on the Comex division of the New York Mercantile Exchange. This was the price the yellow metal settled on after a range of $1,709.20-$1,717.80 earlier today. Electronic trading is still open, but with the markets closed things really get more narrow on the trading market for gold and all other precious metals.

“We don’t expect much with many New York based traders staying home, the floor of Comex closed, and the NYSE also closed,” said TD Securities in a research note.

The effects of Hurricane Sandy are so deep that even Barack Obama and Mitt Romney have cancelled campaign trips for the next several days.

Of course, while Hurricane Sandy is the driving force behind the market shutdown and slow trading of gold, there are other factors still in play that are causing the yellow metal to drop some.

Most U.S. markets are once again focused on Europe, where the euro-working group is due to meet Monday to discuss Greece’s request for a two-year extension for the implementation of austerity measures. It seems like the IMF (International Monetary Fun) wants to reduce Greece’s debt right away and Germany is not on board with this at all. TDS (TD Securities) said it best with the following quote:

“Some reports suggest that there is a division on how best to address the issues between the IMF (International Monetary Fund) and the European officials. The IMF wants to immediately reduce Greece’s debt burden though ‘haircuts’, a notion Germany will not accept,” TDS added“In Greece, the government will vote on Wednesday and again later in the week on the new austerity measures. They are expected to pass, but as ever, with Greece the expected cannot be taken for granted.”

We will see how the rest of this week plays out. Between Hurricane Sandy shutting markets down and the most recent issues in Europe, the rest of the week should be very interesting for gold and other precious metals. With a traditionally strong month for gold coming up (November), it should be very interesting to see how the gold market responds to all of this.

Published in Gold Investing

Gold may gain for the second time in three sessions amid signs of improving demand in India, the world’s biggest consumer.

Physical dealers in India cited a “notable pickup” in purchases during the past few sessions amid lower domestic prices, Barclays Plc said today in a report. Indians tend to buy more at this time of year because of jewelry demand for the wedding season and festivals. Holdings in exchange-traded products backed by the metal rose to a record 2,585.418 metric tons on Oct. 26, data tracked by Bloomberg show. As of Oct. 26, prices fell 3.5 percent this month.

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“Indian demand is showing some strength,” Lance Roberts, the chief executive officer of Streettalk Advisors LLC in Houston, said in a telephone interview. “We are definitely seeing some value-based buying.”

Gold futures for December delivery rose 0.1 percent to $1,712.90 an ounce at 9:48 a.m. on the Comex in New York. Prices gained 9.3 percent this year through Oct. 26.

CME Group Inc., the owner of Comex, said the New York trading floor will be closed today as Hurricane Sandy headed toward the city.

Silver futures for December delivery dropped 0.3 percent to $31.945 an ounce on the Comex.

Published in Gold Investing