Commentary for Wed Oct 30, 2013 (www.golddealer.com) – Gold closed up $3.80 at $1349.00 trading as high as $1360.00 on the day which is impressive given the strength in the dollar. So the Fed will not change the quantitative easing policy until they have more economic information (?). A decision which was expected but the CPI today was up 0.2% or annualized at 2.4% which is at the upper limit already prescribed by the Federal Reserve and according to their numbers employment is moving lower (?).
Silver was also higher by $0.49 at $22.94 so holding the upper end of its current range but still not producing any talk which might be considered buzz. Silver Eagle sales remain strong and the US Mint will almost certainly hit the 40 million mark this year as our sales of the US Silver Eagle are up 39% from last year. Our sales of the cheaper 1 ounce silver bullion coins are up even more (147%) in the same time frame and 10 ounce silver bars are up 85%. These numbers present a conundrum in that with physical sales very strong why aren’t paper prices moving higher? Perhaps there is something to this silver price suppression theory?
And if you are looking for conspiracy how about this: the Dow yesterday hit an all time record high. Since the end of 2007 the Dow is up 20%, during the same period gold up 62% and silver up 55% but for some reason this is lost to the press.
This from a reader is interesting: Good evening Richard, Harvey Organ referenced an article tonight written by Dave Kranzler of Golden Truth. This article rebuts the recent article in the WSJ downplaying gold and in so doing Dave does an excellent job of summarizing the current gold market, the real market underneath all the paper. I realize your time is limited and recommend this one highly. http://truthingold.blogspot.com/ No response required unless you can tell me why China is buying so much gold, Dave.
I think the answer as to why the Chinese are buying so much gold might have little to do with globalization plans or new currency ideas. Owning gold is a huge part of their culture and they are sitting on a pile of US fiat money so why not follow a natural instinct?
Kranzler’s article is long with graphs so the quote below is really his finish but you should read the entire piece if you think all is well with new Wall Street records, the possibility that quantitative easing might turn into a way of life, and continued bad press about gold ownership (for now). “So there you have the facts about global demand and supply. The truth is that China, and other countries, are buying gold hand-over-fist and there’s not really much that western Governments can do to stop it. The price of gold has been contained by the U.S. Fed, the Bank of England and ECB through the use of paper derivative gold contracts – futures and forwards. It is also highly suspected that the Bank of England released 1300 tonnes of physical gold from its vaults as described above to help keep a lid on the price of gold. I think it’s now becoming somewhat generally accepted that western banks and Central Banks are actively manipulating the price of gold and silver via the paper derivatives markets. At some point, and I have no idea when but I suspect the time is not far off, these entities are going to lose control of their ability to keep the price of down. Although this will be a huge gain for those of us who are positioned to take advantage of what we see coming, I truly fear the ramifications of this event for the U.S. dollar and U.S. economic/political system.”
After I finished Kranzler’s comments I read this sidebar which I printed and pasted on cardboard and it is now hanging from the library shelf over my desk:”The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title.” – Anonymous – Isn’t it just amazing that you can still run into a common sense jewel like this in the most unlikely place.
The walk in cash trade was a mess today not because we were real busy but because Phase Two of the live bullion boards (live graphs of the daily price action) ran into technical problems which seemed to drop out of the sky.
Our phone buying and selling was typical busy at times and completely absent at others so the public remains underwhelmed at the present even though gold seems to be holding up pretty well considering the stock market continues to make records.
The CNI Activity Scale was a big “3” today so I am once again looking into a popcorn machine for the downstairs. Our new CNI Activity Scale will take into consideration volume, open and closed orders (buying and selling), the cash trade, and the hedge book: (last Thursday – 3) (last Friday – 3) (last Monday – 4) (last Tuesday – 3) (Wed – 3). The scale is 1 through 10 (5 being relatively busy and this approach considers today’s business so it will be more intuitive). We believe this is a reliable way to give you an idea of what a real bullion business is doing without the sales pitch.
Phase One of our new golddealer.com website has been delayed a week (November 4th) and includes a new look along with live pricing. It will also include Live Chat, you will be able to set up your own customer account, and you will receive automatic email confirmation on buying or selling. Look for further improvements before year end which makes accounting, shipping and tracking easier (check to see if we have your email address in the new system).
We now offer the choice of USPS or FedEx Ground.
Our new flat screens within the CNI Building are up and operational and the cash trade loves this idea. The feed and graphs are live and bullion products are programmed with premium spreads so your choices are easier. There is nothing like this on the West Coast and visitors enjoy complete transparency when buying or selling.
Like us on Facebook and follow us on Twitter @CNI_golddealer. Our Daily Gold Newsletter archive has been moved and enlarged (30 days) to our Facebook page and the new website will include a direct daily newsletter. Remember our best price guarantee (call Kenny 1-800-225-7531 and save money). Thanks for reading and enjoy your evening.These markets are volatile and involve risk: Please Read Before Investing
Written by California Numismatic Investments (www.golddealer.com).