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      J. C.

    Gold Remains Quiet into the Thanksgiving Holiday

    Last updated 1 day 22 hours ago

    Commentary for Wednesday, Nov 26, 2014 (www.golddealer.com) – Just a note to remind everyone that this will be the last newsletter until Monday, Dec 1 – we will be closed Thursday and Friday for Thanksgiving. Gold closed down $0.50 at $1196.50 so little changed moving into the holiday but there seems to be a little upward bias as it has moved above $1200.00 a few times and could not hold the higher ground.

    If you are an optimist you will see some encouragement in the 30 day chart as gold seems to like the close to $1200.00 spot moving up from $1140.00 in early November. If you are a pessimist you will not like the idea that it can’t seem to push into higher territory – above $1200.00 even though this range amounts to a substantial discount to old highs.

    Gold has been trapped in a new higher range between $1180.00 and $1205.00 since November 14th – a pattern which should hold through year end.

    Most believe higher price moves for gold are not in the cards in the near term because of dollar strength. This is true – but I would counter the massive quantitative easing programs either already launched (Japan) or in the works (European Union) will help support gold prices even though gold presents a generally negative technical picture.

    So for holiday’s look for continued push and pull – perhaps the biggest short-term opportunity presented will be the physical gold market in India and China – but let’s wait and see how Europe deals with deflation.

    The US is doing surprisingly well relative to the rest of the world. There has been some talk that the EU might hurt the US recovery but I think this argument won’t hold water. Still keep in mind that while gold is range-bound relative to the dollar – it looks pretty good relative to the euro. And I think this in generally true with other currencies so safe haven buying will also help support current gold prices.

    If you are looking for a few Turkey wild cards consider the Swiss Referendum gold vote to be held on the November 30th – a yes vote is not likely but if the referendum passes it will be very gold friendly. Also watch the continued development of the Russian/Ukraine problem – this could turn into a very hot spot if aggression wins.

    Silver closed unchanged at $16.55.

    Platinum moved higher by $5.00 at $1228.00 and palladium was up $7.00 at $802.00.

    This is our usual ETF Wednesday information - Gold Exchange Traded Funds: Total as of 11-18-14 was 52,054,336. That number this week (11-25-14) was 51,956,180 ounces so over the last week we dropped 98,156 ounces of gold.

    It might also be interesting to note that in 2013 the record high for all gold ETF’s was 85,112,855 ounces. In 2014 the record high was 56,456,599 and the low for the month - 51,859,216 ounces.

    All Silver Exchange Traded Funds: Total as of 11-18-14 was 640,319,215. That number this week (11-25-14) was 639,362,349 ounces so over the last week we dropped 956,866 ounces of silver.

    All Platinum Exchange Traded Funds: Total as of 11-18-14 was 2,705,127 ounces. That number this week (11-25-14) was 2,684,522 ounces so over the last week we dropped 20,605 ounces of platinum.

    All Palladium Exchange Traded Funds: Total as of 11-18-14 was 3,008,445 ounces. That number this week (11-25-14) was 3,005,380 ounces so over the last week we dropped 4,065 ounces of palladium.

    This from Jeff Thomas – The Writing on the Wall - When you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you—when you see corruption being rewarded and honesty becoming a self-sacrifice—you may know that your society is doomed. - Ayn Rand; Atlas Shrugged, 1957

    Ayn Rand knew whereof she spoke. Born in St. Petersburg, Russia, in 1905, she became politically conscious while still a child and did not favour the existing concept of constitutional monarchy. So, it would not have been surprising if, when the Russian revolution broke out when she was twelve, she bought into the proselytising of Vladimir Lenin, as so many did at that time.

    Instead, she quickly surmised that the Bolsheviks’ claim to improve life for the average man was, in reality, a plan to diminish the quality of life for all of the people. In doing so, the Bolsheviks confiscated her father’s business and displaced her family. At one point they were nearly starving, but in 1925, she received permission to emigrate to the US. (She later attempted to get her parents and sisters out, but it proved to be too late.)

    In establishing her now well-known beliefs in governmental systems, Ayn Rand had the benefit of having observed the entire progression from a relatively benign monarchical system to totalitarianism. As a result, she not only learned that political leaders can be deceitful in their claims for social improvement, she also learned, first hand, that those leaders (and/or hopeful leaders) who promise that they are going to change the system in such a way that everyone will “have all they need,” are the most deceitful of all.

    In my opinion, the greatest possible threat from the fanciful claims by politicians lies in the willingness of the populace to actually believe such claims. Sadly, it does seem as though the majority of people in any country tend to be extraordinarily gullible in this regard.

    The very idea that some method can be found that would make it possible to equalize all people is patently ludicrous. There will always be differences in intellect, talent, and ambition from one individual to the next. The idea that any government should somehow enforce the more gifted or more motivated to continually give up the fruits of their efforts, whilst giving those fruits to others who are less gifted and less motivated is, by definition, unworkable.

    Such an idea, whether we consider it laudable or not, cannot ultimately succeed. The most that can be expected is that the idea could successfully be enforced, which would result, eventually, in the gifted and motivated ceasing to make the necessary effort to excel. And, of course, in socialist countries, this is what, over time, we see take place.

    There is a direct relationship between the degree of “redistribution” by the government and the decline in effort by the gifted or motivated.

    Still, there will always exist those who are less gifted or less motivated who will want to believe that political leaders can somehow make this impossible concept a reality. And of course, these people can fully be expected to vote for, or otherwise support, those who make such empty promises.

    Therefore, the realization that should be taken away from this discussion is that, over time, it is perfectly predictable that a given government might ultimately go in a direction of self-destruction, as it will be likely to pander to the majority, who seek such largesse at the expense of others.

    What then, of the minority? What of those who are in that group of more gifted or more motivated people—the ones that do, historically, tend to push a society forward with their abilities and efforts?

    They have a choice. They can “go with the flow,” should the country in question go into social and political decline; they can accept it and try to muddle through, as did Ayn Rand’s parents after the revolution. Or they can vote with their feet, as did Rand herself.

    This from Neils Christensen (Kitco) - Gold Still Has Plenty Of Upside - Capital Economics - With gold hovering around $1,200 an ounce, commodity analysts at Capital Economics see plenty of long-term potential for the yellow metal as they stick with their call that prices will hit $1,400 an ounce by year-end 2016.

    “A rebound to US$1,400 would represent a sizeable 17% gain from current levels at a time when the valuations of many other assets, notably developed market equities and bonds, are looking increasingly stretched,” said Julian Jessop, head of commodity research at Capital Economics.

    That target is unchanged from their previous report in October when the analysts said they expect gold hit $1,300 an ounce by the end of next year. In the report, Jessop said gold still has plenty of upside potential as a lot of bad news is already priced in.

    “Indeed, given the unfavorable market conditions this year, gold has actually held up remarkably well,” he said in the research note published Monday. “The downside for the gold price from current levels is surely now limited.”

    Some of the negatives Jessop lists that have dampened gold recently include a strong U.S. dollar as the Federal Reserve exited its quantitative easing program, the collapse in crude oil prices, reducing inflation fears and stronger equity markets.

    “Despite all these negatives, the price of gold has repeatedly found strong support at, or slightly below, the US$1,200 level,” he said.

    Jessop said the big unknown and potentially bearish for the gold market is the first Federal Reserve interest rate hike. Capital Economics forecasts that the U.S. central bank could hike rates as early as March, which is much earlier than is currently priced into the market.

    However, he said even the first rate hike will have limited impact on the gold market as interest rates are expected to only rise gradually and remain below historical standards.

    “The peak in the next interest rate cycle could be less than 4%, a level which previously might have been thought of as a floor for rates. This is unlikely to be a game-changer for gold demand,” he said.

    Demand should strengthen among emerging economies as income increases, helping to support gold, Jessop said. Western investors could also jump back into the gold market as a safe-haven investment as geopolitical risks and global economic uncertainty rise, particularly within the Eurozone, he said.

    He added that they are also expecting central banks from developing country to continue to add the precious metal to their official foreign reserves. Jessop said that although unlikely he would not completely rule out buying from the ECB as part of its quantitative easing strategy or from the Swiss National Bank. Swiss voters will decide in a Nov. 30 referendum whether or not to force the SNB to increase its gold holdings to 20% of its official reserves within five years.

    Jessop appears to be market neutral on gold supply. With gold at $1,200 an ounce, he said that prices are not far above the costs of mining new gold; however, those costs could come down as energy prices start to drop and the industry finds new efficiency savings.

    The walk-in cash trade was just slow today and so were the phones. There is some buying action – but nothing large and very little selling of bullion. Selling usually picks up around the holidays as the physical market raises cash into Christmas. We have not seen that as yet and for the most part everything remains very quiet.  

    The GoldDealer.com Unscientific Activity Scale is a “3” for Wednesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Thursday – 4) (last Friday – 6) (Monday – 4) (Tuesday – 3). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be busy and see a low number – or be slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    We will be closed Thursday and Friday (Nov 27th and 28th). Happy Thanksgiving!

    Our holiday schedule this year will be as follows – Christmas (Closed Thursday the 25th and Friday the 26th) – New Year’s (Closed Jan 1st and 2nd).   

    Thanks for reading - your friends at GoldDealer.com. We appreciate your business – and we will talk again this coming Monday. And enjoy that second piece of Pumpkin Pie – it’s the holiday season!

    A gentle reminder – during the holiday season packages delivered to all 50 states will slow because Santa has control of air traffic. Ho! Ho! Ho!

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Continues to Unimpress in Holiday Trading

    Last updated 2 days 21 hours ago

    Commentary for Tuesday, Nov 25, 2014 (www.golddealer.com) – Gold closed up $1.60 at $1197.10 in typical holiday trading – a bit on the boring side but there was a sudden sell-off in early New York trading but the market quickly recovered. Perhaps this was some short-term testing to the downside by the short trade looking for weakness on thin volume.

    Still the quick recovery might indicate that while American traders are already on the Turkey Road the market in general remains defensive – with some tension in the air. I think the general feeling is not particularly bullish – the longer term technical picture being what it is but the trading floor may sense there are bigger moving parts especially in Europe and Russia.

    The Dollar Index came off its highs reacting to poorer than expected economic data. This helped support gold at the upper end of its current trading range. The Dollar Index closed yesterday at 88.15 and of this writing is trading at 87.96 - so somewhat weaker. When and if this trend will reverse is key to understanding the price movement in gold. But with other major currencies being inflated at a greater rate the rest of the story will have to be told at a later date.

    This from Market Watch - Economic data: The revised GDP report showed that the economy expanded even faster than previously reported; however, analysts warned that the growth rate is likely unsustainable. Weighing on sentiment was a surprise dip in consumer confidence index in November, as consumers were less optimistic about both current and upcoming conditions.

    U.S. home prices were just about unchanged in September, as annual growth cooled to the slowest year-over-year pace in two years, moving the market closer to sustainable gains, according to data released Tuesday.

    This from James Hyerczyk (FXEmpire) – Hedge Funds Increase Long Gold Positions - “One factor helping to underpin gold prices is the strong counter-trend buying by the hedge funds. So far their participation has only been strong enough to complete a 50% to 61.8% retracement of the break from the October 21 top at $1256.20 to the November 7 bottom at $1132.00. On any weakness, these buyers may show up to produce a potentially bearish secondary higher bottom. This is chart pattern that bullish traders should be waiting for. The first level to watch for buying is $1170.00.

    On Friday, the Commodity Futures Trading Commission reported that hedge funds and money managers boosted net long positions in gold futures and options to 60,307. This was the highest level since late October. Look for the rally to extend if the funds continue to liquidate shorts and increase longs.”

    Silver closed up $0.18 at $16.55. Holdings in silver ETF continue to expand. They currently stand at 19,885 tonnes – which is up about 140 tonnes in the past month. This supports the idea we hear across the physical counter – that silver seems cheap. I am reminded of course that silver just 10 years ago was $6.00 but considering we are in a new era of silver bullion awareness I expect bigger things as the world economy settles down. If silver doubles to $33.00 we are still well below 2011 peak so diversification here makes sense – especially if you have been waiting for a better deal.

    Platinum closed up $16.00 at $1223.00 and palladium was also higher by $6.00 at $795.00. I like the platinum bullion play here because its premium is cheap ($26.00) relative to gold.

    With many countries in the world inflating – including our own (even as quantitative easing has been stopped) it is a wonderment why we are not seeing rising gold prices pushed by rising inflation. But enough of that for now – let’s look at the critical reason monetary debasement is now essential. No government wants to be truthful with their citizens regarding real debt or entitlements. Of course disclosure would be a good idea because it would allow Americans to understand – be frightful – come to their senses and finally do something about this growing debt time-bomb.

    The only reason our debt-hand has not been forced is because all money worldwide is cheap. And as long as interest rates are near zero this monetary expansion works to the benefit of the inflation government. But what do they do when interest rates rise and the cost of finance places all these wonderful programs on the griddle?  

    As far as who should move first - it should be us because the Europeans have completely abrogated their responsibility. The IMF has done some talking along these lines but scant progress has been made because most of the countries they can pressure are already dead broke.

    This from Lance Roberts (X-Factor / Contra Corner) - Go Figure - 86 Million Full-Time Workers, 148 Million Govt. Beneficiaries – “The market rallied sharply on Friday on the back of announcements that China was cutting its overnight lending rate and Mario Draghi promising to buy more bonds if necessary to ensure the return of inflation.

    Here is a question for you: “Since stocks are supposed to be a reflection of economic growth, then why are stocks rallying on the back of news that clearly show deteriorating economic conditions?”

    The reason that stocks are rallying is obvious: Liquidity.

    What should be surprising is that despite globally low interest rates, massive liquidity by Central Banks and complete support for the banking system – inflation remains virtually non-existent. Such realities are not going to stop the Eurozone and Japan from doing more but therein lies Einstein’s definition of insanity.

    Meanwhile, back in the U.S., the Federal Reserve has stopped their latest rounds of bond buying and are now starting to discuss the immediacy of increasing interest rates. This, of course, is based on the “hopes” that the economy has started to grow organically as headline unemployment rates have fallen to just 5.9%. If such activity were real then both inflation and wage pressures should be rising – they are not.

    The Dismal Economy - According to the Congressional Budget Office study that was just released, approximately 60 percent of all U.S. households get more in transfer payments from the government than they pay in taxes.

    Roughly 70 percent of all government spending now goes toward dependence-creating programs. From 2009 through 2013, the U.S. government spent an astounding 3.7 trillion dollars on welfare programs. In fact, today, the percentage of the U.S. population that gets money from the federal government grew by an astounding 62 percent between 1988 and 2011.

    Recent analysis of U.S. government numbers conducted by Terrence P. Jeffrey, shows that there are 86 million full-time private sector workers in the United States paying taxes to support the government, and nearly 148 million Americans that are receiving benefits from the government each month.

    Yet Janet Yellen, and most other mainstream economists suggest that employment is booming in the U.S. Okay, if we assume that this is indeed the case then why, according to the Survey of Income and Program Participation conducted by the U.S. Census, are well over 100 million Americans are enrolled in at least one welfare program run by the federal government.  Importantly, that figure does not even include Social Security or Medicare.”

    (Here are the numbers for Social Security, Medicaid and Medicare: More than 64 million are receiving Social Security benefits, more than 54 million Americans are enrolled in Medicare and more than 70 million Americans are enrolled in Medicaid.)”

    The above information should scare the average American citizen. It should be a wakeup call regarding government largess and its eventual outcome. But this has been going on for so long that it’s being ignored because there is no apparent victim.

    Of course the victim is the American way of life but for now the “free lunch” crowd is winning. And the American state of affairs is actually not so bad when compared with many countries in Europe. So if the American window for turning this debt spiral around is getting smaller – what about everyone else? Is it possible that the Keynesian economic theory model is broken?

    The most obvious result to be expected from this “create more fiat paper to pay current and future debts” is inflation. But if you wave the inflation flag today you might be deemed unstable in the current economic environment especially with the profits being made on Wall Street.

    During this admittedly slow holiday season it might be time to reconsider the consequences of a debt model which has been adopted worldwide. And the importance of gold bullion as an insurance ticket against an increasing debt model which is sure to go bankrupt.

    The walk-in cash trade really slowed down today and so did the phones. This is holiday trading at its best – slow and boring but who can argue with Thanksgiving – which reminds me the store will be closed this Thursday and Friday.   

    The GoldDealer.com Unscientific Activity Scale is a “3” for Tuesday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Wednesday – 5) (last Thursday – 4) (last Friday – 6) (Monday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be busy and see a low number – or be slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    We will be closed Thursday and Friday (Nov 27th and 28th) for Thanksgiving. 

    Thanks for reading - your friends at GoldDealer.com. Enjoy your evening and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

    Gold Hovers - Still Technically Weak Long Term

    Last updated 3 days ago

    Commentary for Monday, Nov 24, 2014 (www.golddealer.com) – Gold closed down $2.00 at $1195.50 and trading remained quiet overnight in London and Hong Kong. This being the Thanksgiving week here in the US I would not expect much in the way of pricing.

    Gold is still trying to get traction near term so the bulls are not totally sad but in the longer term the bears still have all the cards. And the roaring stock market is difficult to fade.  

    The bigger picture is still in place as China, Japan and the European Union move forward on the quantitative easing front – hoping to help with more fiat money. But gold seems to be ignoring this and the problems posed by the Russian/Ukraine conflict.

    Gold is also not worried about any Russian/China deal which would preclude trading in dollars and also does not seem happy that the Russians continue to add to their gold reserves.

    Gold is however very attentive to dollar movement and is carefully watching the price of oil. As of this writing the Dollar Index is trading at 88.15 – that makes for a weekly high and also creates tough going for the gold market. WTI Crude seems steady around $76.00 a barrel which while relatively cheap and not good for gold – at least the price has stabilized.

    Again I would suspect a quiet Thanksgiving market – not much happening but ignore sudden moves either higher or lower as trading is thin and subject to “pushing”.

    The upcoming Swiss Gold Referendum in now a non-event – it sounds like good news for the bulls but the nonsense handed the Swiss voters about stability problems will win the day.

    Silver closed down and equally unimpressive $0.02 at $16.37 – also in quiet trading.

    Platinum was down $20.00 at $1207.00 and palladium was down $5.00 at $789.00. The JM forecast indicates a 2014 platinum deficit of 1.3 million ounces. The South African mining strike which ended in June was the main cause cited coupled with increased use of platinum in Europe. Platinum today is only about $12.00 more than gold which makes for an excellent diversification play either by directly buying or trading gold bullion for platinum bullion.      

    My previous comments on $1000 face 90% silver bags brought a few questions. As most readers know the premium or amount of money you pay over melt for a particular bullion product is a combination of public demand and the percentage world mints charge distributors for making their bullion products.

    Because 90% silver coins for circulation have not been made since 1964 the only thing that drives 90% bags is public demand. Premiums on this usually common silver bullion product can vary from minus 10% - meaning they are selling for less than melt to more than 30% over melt if they are being promoted by telemarketers to “end of the world” buyers.

    I also mentioned that today the premium on 90% bags was rather high rivaling that of US American Silver Eagle Monster Boxes.

    This is neither good nor bad – in this business the phrase “it is what it is” is common. But I did mention that the supply of 90% bags was getting “thin”. This is akin to throwing the cat among pigeons for the conspiracy group.

    My definition of “thin” means no large dealer is sitting on a large position of 90% bags. Any dealer of national size would take your order for say 5 or even 10 bags of 90% but after that number most honest players would pass. This does not mean you could not buy say 50 bags of 90% - you could but you would most certainly pay more the last 25 bags (premium wise) than you did for the first group.

    This is what I mean by using the terminology “thin”. And keep in mind that 20 or 30 years ago an order of 25 or even 50 bags of 90% was no big deal.

    So is the amount of 90% silver coins shrinking? Probably not - but there are not as many 90% silver bags as people believe – and certainly not enough to go around if there was a surge in demand.

    Why? First of all a great deal of 90% silver coins were melted in the 1980 Bunker Hunt silver debacle. These bags were melted because the only way you could get “spot” was by selling 1000 ounce bars into the Comex. The second reason supply is not nearly as handy is because the hardcore silver movement has developed and matured.

    Remember that before the advent of modern bullion legal tender if you wanted a real silver coin which was also legal tender - 90% was the only choice. And silver coins minted in 1964 or earlier are still the number one choice of “preppers” who believe that all fiat paper money will be replaced by the biblical gold and silver. Real US 90% silver coins have no equal worldwide when it comes to actual everyday barter – not that this is a likely outcome – but it is a radical outcome adopted by a small minority. 

    I don’t want to argue that point one way or the other but simply want to point out that there are real supply dynamics working on 90% silver bags which will continue to move premiums up and down. And in the process make the reader aware that an order of say 50 or 100 bags of 90% silver coins would send a “red flag” alert to all large bullion traders in the United States.  

    The walk-in cash trade was slow today and the phones were average to slow – everyone may be getting ready for Thanksgiving. 

    The GoldDealer.com Unscientific Activity Scale is a “4” for Monday. The CNI Activity Scale takes into consideration volume and the hedge book: (last Tuesday – 4) (last Wednesday – 5) (last Thursday – 4) (last Friday – 6). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be busy and see a low number – or be slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    We will be closed Thursday and Friday (Nov 27th and 28th) for Thanksgiving. 

    Thanks for reading - your friends at GoldDealer.com. Enjoy your evening and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

     

    Gold Firms on Bank of China and Draghi News

    Last updated 6 days ago

    Commentary for Friday, Nov 21, 2014 (www.golddealer.com) – Gold closed up $6.80 to at $1197.00 on additional quantitative easing news from both the Bank of China and the European Union. This was the third day this week that gold has moved above the important $1200.00 mark – today’s high being $1207.00. On the week however gold only managed a $12.00 increase in light of a raging stock market.

    Gold’s push to the upside today was created by ECB President Draghi’s confirmation that Europe might soon be in the bond buying business. And it was helped along when the Bank of China also decided to lower interest rates in another accommodative financial move. But there are more moving parts pushing the price of gold today including resumed dollar strength – the Dollar Index today trended higher at 88.28 which capped gold’s early gains.   

    War and sanctions create a volatile gold mix - this from FXEmpire – “Selling by gold funds resumed after a brief pause this week. The world’s largest gold-backed exchange-traded fund, SPDR Gold Shares, said its holdings fell 0.3 percent to 720.91 tonnes on Wednesday. Reuter’s reported that Ukraine slashed its gold reserves by more than a third in October, data from the International Monetary Fund showed, as the near-bankrupt country reels from fighting a pro-Russian separatist movement in the east.  The reserves data from IMF also showed Russia raised its gold holdings for a seventh straight month in the same period – the country’s longest such buying spree in more than a year. Ukraine ended last month with 26 tonnes of gold, down by 14 tonnes from September, while Russia added another 18.9 tonnes, taking its total to 1,168 tonnes – still the fifth biggest holding by a central bank.”

    And cheap money is the elixir of life when it comes to the US stock market. As long as interest rates stay near zero there is no stopping that machine. This raging market has to draw down money which would otherwise be attracted to the physical gold market.

    How long record setting stocks will last is a crap shoot – but there is always the chance that in 2015 our economy will actually get more traction so this can’t be good for gold.

    The latest inflation numbers show some activity but not enough to get the Fed’s attention. So for the time being everyone is guessing about when they will raise interest rates. The college guys claim sometime mid-2015 is in the cards. Higher interest rates will also not be good for gold. But before you decide immediate interest rate hikes are already baked into the cake consider Europe.

    Central Banks around the world are committed to a loose money policy. And the coming interest rate hike in the US will not play well with the rest of the world. The US is the mother of all QE – it owns the show so to speak and it cannot easily back away from this monster by unilaterally raising interest rates – it would have dangerous consequences for Europe. Getting into this universal QE mentality was easy enough – but getting out may pose big problems - remember central banks of the world are now trying to create inflation.   

    Flat to lower oil – a recovering economy – a negative long term technical picture for gold – a raging stock market – the end of US quantitative easing – negative ETF interest and gold is still holding the lower end of its current trading range. Even showing some life if today is any measure – but being defensive can’t hurt the long-term plan.

    I happen to like gold and I like cheaper gold better. Sorry for the phraseology but so does the consistent world accumulation of both India and China. And many of the world’s central banks continue to add to their gold reserves - so while there are a number of reasons to be negative on gold there are still many hard core proponents.

    Finally don’t overlook the physical US gold investor. Yes big gold money in this country has been absent but we are seeing signs that “big boy” buys are coming back to test the waters. To qualify here the order has to be several hundred thousand dollars or more and while these size orders have been dry for months they are once again showing up.

    Whether these early birds sense a bottom or not remains to be seen but one thing is sure – they remain interested in taking physical possession of gold bullion.

    This from Associated Press - Dutch Move 122 Tons of Gold out of U.S. - Gold, valued at $5 billion, is moved from New York to Amsterdam - The Dutch Central Bank says it has recently shipped 122.5 tons of gold worth around 4 billion euros ($5 billion) from safekeeping in New York back to its headquarters in Amsterdam.

    In a statement Friday morning the bank said that its 612.5-ton national gold reserve is now divided 31 percent in Amsterdam, 31 percent in New York, 20 percent in Ottawa, Canada and 18 percent in London.

    "With this adjustment the Dutch Central Bank joins other banks that are keeping a larger share of their gold supply in their own country," the bank said in a statement. "In addition to a more balanced division of the gold reserves...this may also contribute to a positive confidence effect with the public."

    Silver closed up $0.26 at $16.39 and the steady grind of smaller sales continues – something interesting is happening with $1000.00 face 90% silver bags. Premiums are relatively high because supply seems to be thinning. I don’t see this continuing because when premiums on 90% approach those on American Silver Eagle Monster boxes – the boxes usually win. Also note that silver’s close at $16.39 today is a $1.00 higher than the most recent low close on Nov 6th.

    Platinum closed higher by $23.00 today at $1227.00 and palladium was also higher by $27.00 at $794.00. 

      Precious Metal Closes & Dollar Strength – Nov. 17 through Nov. 21 – 2014

                   Gold             Silver             Platinum                   Dollar Index     

    Mon     $1183.00        $16.05              $1201.00                     $88.01

    Tues    $1196.70        $16.17              $1204.00                     $87.64

    Wed     $1193.60        $16.29              $1198.00                     $87.71      

    Thurs  $1190.70        $16.13              $1204.00                     $87.67      

    Fri       $1197.50        $16.39              $1227.00                     $88.42                   

               Palladium       Rhodium    

    Mon    $768.00           $1230.00      

    Tues   $776.00          $1230.00      

    Wed    $770.00           $1210.00

    Thurs  $767.00           $1210.00

    Fri       $794.00           $1210.00              

    Our Patented Employee Survey - Gold's Direction Next Week?

    Of course it’s not really patented but we do have some fun along the way. This is what the GoldDealer.com employees think – 5 believe gold will be higher next week – 3 think gold will be lower and 2 believes it will be unchanged.

    Our Patented Customer Survey - Gold's Direction Next Week?

    Like the employees our actual customers were given three choices – up – down – unchanged. We limited the survey to a random sampling of 100 transactions – unscientific yes but worth considering because these people actually took action: 41 people thought the price of gold would increase next week – 33 believe the price of gold will decrease next week and 26 think prices will remain the same.

    This from Kira Brecht (Kitco) – Lessons From Babylon: Build Wealth One Day At A Time -  The rules that govern wealth building are the same in today's fast-paced modern world driven by technology as in the times of prosperous Babylon, a famous ancient city, which was the capital of southern Mesopotamia six thousand years ago.

    Building wealth is a process, and you need a plan. Sure a lucky few have a windfall —maybe a big life-changing inheritance, stellar profits in the stock market, a big profit from a home sale or yes, maybe even winning the lottery.

    But, for most of us, wealth building is a slow and steady process, one day, one month, one year at a time. You remember the tortoise and the hare? Slow and steady wins the race.

    The Richest Man In Babylon by George S. Clason, first published in 1926, holds many nuggets of wisdom that were true then and are still true today.

    The same advice given to chariot builders six thousand years ago still applies to anyone seeking to build wealth in today's modern society. The principles of wealth building don't change. The book is well worth a read as you plan out your path to wealth.

    Building wealth doesn't generally happen without a plan. It takes foresight, discipline and commitment to following through on the plan.

    A few tried and true guidelines include:

    · Pay yourself first

    · Live below your means

    · Limit debt to "good" debt (ie. an mortgage), avoid "bad" debt (ie. credit cards)

    · Dollar-cost average your investments

    · Diversify, don't put all your eggs in one basket

    · Use time to your advantage —every month of savings adds up handsomely over years of time

    "The First Law Of Gold: Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family."
                                                          - The Richest Man In Babylon.

    Wealth building starts with saving. Saving and then investing. For those who choose to diversify their portfolios with non-correlated assets, such as physical precious metals, regular dollar-cost averaging could be a strategy to consider.

    While dollar cost-averaging is often thought of in relation to investing sums into the stock market—the same principles apply to building up a physical gold portfolio. Dollar cost averaging is designed to reduce overall market risk (think price fluctuations) by employing systematic purchases of specific amounts at regular intervals.  For example, while the men of Babylon were taught to save one coin out of every ten earned. The same type of principle could apply to dollar cost averaging into physical gold positions. Whether one aims to hold 5%, 10%, or less or more of their overall portfolio in precious metals, the time honored rules of wealth building apply. Save more, spend less and invest regularly.

    The walk-in cash trade today was busy – mostly small to mid-size buyers with a nice mix between gold and silver bullion. The phones were just average but there has been a jump in the percentage of new visitors to our website (golddealer.com) – this may indicate new potential business.  

    The GoldDealer.com Unscientific Activity Scale is a “6” for Friday. The CNI Activity Scale takes into consideration volume and the hedge book: (Monday – 4) (Tuesday – 4) (Wednesday – 5) (Thursday – 4). The scale (1 through 10) is a reliable way to understand our volume numbers. The Activity Scale is weighted and is not necessarily real time – meaning we could be busy and see a low number – or be slow and see a high number. This is true because of the way our computer runs what we call the “book”. Our “activity” is better understood from a wider point of view. If the numbers are generally increasing – it would indicate things are busier – decreasing numbers over a longer period would indicate volume is moving lower.  

    Email confirmation using a PDF File when buying or selling is functional. It also includes the various forms of payment and includes bank wire instructions. And you can now see your actual invoice or purchase order on your computer screen.

    When you buy or sell please check to see if we have your current email on file and that your computer will accept our email (no spam).

    About shipping information – when buying or selling your rep will walk you through your current mailing information. Thanks for keeping us up to date if you have moved.

    Our four flat screens downstairs with live independent pricing (BullionDesk.com) are a big hit with the cash trade. Live pricing moves all the buy/sell product prices on a real time basis. Yes - you can visit the store with cash and walk away with your product. Or you can bring product to the store and walk away with cash. When buying from us remember if you exceed $10,000 in cash (the real green kind) a Federal Form is necessary.

    In addition to our freshly ground organic coffee offered visitors throughout the day we have added cold bottled water, cokes and Snapple. We have also added fresh fruit in a transparent attempt to disguise our regular junk food habits.

    Like us on Facebook and follow us on Twitter @CNI_golddealer.

    We will be closed Thursday and Friday (Nov 27th and 28th) for Thanksgiving. 

    Thanks for reading - your friends at GoldDealer.com. Enjoy your weekend and we appreciate your business.

    Disclaimer – The content in this newsletter and on the GoldDealer.com website is provided for informational purposes only and our employees are not registered financial advisers. The precious metals and rare coin market is random and highly volatile so it may not be suitable for some individuals. We suggest before deciding on a course of action that you talk with an independent financial professional. While due care has been exercised in development and dissemination of our web site, the Almost Famous Gold Newsletter, or other promotional material, there is no guarantee of correctness so this corporation and its employees shall be held harmless in all cases. GoldDealer.com (California Numismatic Investments, Inc.) and its employees do not render legal, tax, or investment advice.

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