Commentary for Tuesday Oct 15, 2013 – Gold finally closed down $3.40 at $1273.00 after watching the Congressional debt talks. Prospects for a government settlement helped the dollar and pushed gold as low as $1250.00 and then after the domestic market close a stall in Senate talks pushed the aftermarket up another $10.00.
I still think most people believe these talks are political theater designed to hurt the President’s health care program but the longer we wait for settlement the more nervous everyone becomes.
Silver closed down $0.17 at $21.14 but in following gold all over the map it did touch lows of $20.50. The real buzz is out of the physical market in silver but any number approaching $20.00 and the phones ring so the public is looking for value.
Platinum was unchanged at $1382.00 with some trades of gold bullion into platinum bullion. And palladium was down $9.00 at $705.00.
Our friend (actually we don’t even know the man) Peter Hug (Kitco) thinks A Deal Is Now Priced In, Back To Fundamentals – “The markets continue to confirm the optimism of a deal being reached imminently. Gold traded to our target of last week, touching the $1,255 level. The market is now at a serious pivot point. A breach of the $1,255 level will bring in this year’s low of $1,180. Physical demand continues to be robust from China, but has dropped sharply in Europe and North America, and ETF outflows continue to add supply to a weak bid. We may get a ‘sell the rumor buy the news’ bounce on the metals, as a deal will refocus the market on the continued global easing policies of the central banks. This will come down to a fight for capital inflows between the equity and commodity markets, with the edge still in the corner of stocks.”
The latest from Rumor Dave (a pseudonym I could not pass up): “Hi Richard, If you are going to post my rumor mongering I will make an effort to edit my stuff more carefully in the future. If JP Morgan has been allegedly manipulating Libor, Credit Derivatives, Electricity, Aluminum, Equities and we can now add FX to that, it wouldn’t make sense for them to ignore the precious metals would it? Don’t give up on your almost famous and useful but largely ignored Business Number, although I confess I was one that thought it was a summary of that day and not the one proceeding. It sounds like some of the big boys are getting nervous. It is smart to remember that gold is only worth what someone else is willing to pay for it though it seems to me it would be prudent to have your money in gold rather than FRNs. As usual, no response necessary.”
Like my wife is fond of saying: “It’s too late now”. How can it be too late when you have been married to the same beautiful woman for 40 years? My Almost Famous activity number is being completely reworked into something which will be based on open and closed invoices, daily volume numbers and our hedge book.
CNI is representative of what all large physical dealers do each day because this business is closed among leaders. Everyone watches everyone else like a hawk to make sure their prices are competitive. Believe me coin dealers are the biggest gossips in the world (and some of the best story-tellers): so this new number should work nicely in determining what your local dealer is really doing.
Both the walk in cash trade and call in telephone business were just average today. Anytime we are talking about lunch at 10:30 AM there is not much going on in the way of big action.
Phase One of our new golddealer.com web site will soon be complete (Oct 28th best guess) 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 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 (gold, silver, platinum and palladium). Bullion products are programmed with premium spreads so your choices are easier. As usual cash is always available. 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. Notice our Daily Gold Newsletter archive has been moved and enlarged (30 days) to our Facebook page. For those asking the new website will also include a direct daily newsletter. Remember our best price guarantee (call Kenny 1-800-225-7531 before you decide and save some 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).