The last month or so has been very interesting for gold and silver. Seeing almost a $100 difference between the high of $1365 and the low of $1273, gold has really been moving. Silver has seen a high of $23.09 in the last 30 days, and a low of $21.16. We are Friday trading at $1316 gold and $22 silver.
Obviously, the US government partial shutdown and the down- to- the- line debt increase debate were catalysts for movement in commodities, but gold demand in Asia is something to consider when looking at gold longer term. In India, for example, demand has far outstripped supply–creating a $100 premium over the regular selling price. Demand is up 16.5% from last month, and going into the festival season, will likely yield even higher gains. Even more telling—Asia amounts to 60% of the global consumption of gold so far in 2013, compared to only 35% in 2004.
Many banks have upwardly revised their gold outlook for 2014, including BMO Research of Canada (from 1181 to 1275).
Domestically, The US Mint website has shown gold sales running up to levels not seen since July. Only halfway through October there have been 20,500 gold eagles sold by the mint. The whole of September only saw 8,500 sold, August 9,000.
Also domestically, Chase Bank has limited cash transactions per cycle to $50,000 for businesses. The bank will also prohibit international wire transfers by businesses after November 17th:
Many people are noting this action as similar to past actions taken by countries with a devaluing currency, worried that citizens would move private wealth overseas en masse to avoid the degradation of the domestic currency.
It will continue to be an interesting time for the precious metals markets, and we are certainly in for a ride the next 6 months to a year. As always, Alexandria Gold and Silver is paying 90% on jewelry and karat gold and spot + premiums on many gold and silver coins and bullion. We continue to be Northern Virginia’s main buyer of gold and gold jewelry.
Feel free to contact us at firstname.lastname@example.org or me directly at email@example.com. You can also reach us at 703-672-0422 or 703-765-2408. We are open M-F 9am-5pm and Saturday 10am-2pm.
Thank you and see you soon–
Saif and AGS
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