Gold Price Pounded by Dollar

Publish on TheStreet.com by Alix Steel
December 23, 2010 8:55am EST

The US dollar index hit a 3.5 month high on Tuesday. This pushed Gold prices under $1.100/oz. Currently the US dollar is losing some ground, falling .25% to $78.11, while Gold was flat at $1,087/oz, but volatility is expected to continue into 2010 on light volume and more long selling. James Moore, analyst at thebulliondesk.com was quoted as stating "In the run-up to year end, we expect Gold to see further pockets of long liquidation, potentially pulling back to the $1,050 area", To read the entire article go here. Check out TheStreet for the latest stock market news and finacial investment headlines.

We Pay $$$ for Silver and Gold

We Pay $$$ for Silver and Gold

This Ad is posted on Corkin.com. Never heard of them before today but apparently an new online community.

We Pay $$$ for Silver and Gold (Baton Rouge, Louisiana)

We Pay $$$ for Silver and Gold (Baton Rouge, Louisiana)

Is it Sterling?

The most common questions asked by a seller when I am buying scrap silver:

Is it Sterling?
Is my silver Sterling or silver plated?
What is the difference between Sterling silver and silver plate?

Most Sterling made in the US is marked either Sterling, .925, or 925/1000. If your silver was made in the US and does not have one of these three marks, most likely it is silver plated.

Sterling produced in Great Britain usually have makers marks such as a lion crest or dragon crest. I will have to look up some photos of these makers marks to post.

The Golden Truth: A London Silver Trader Challenges The CFTC

On Friday, November 27, 2009 the following letter written by a London-based silver trader to CFTC Commissioner Bart Chilton appeared in Friday's Midas report. The Golden Truth posted this account for those who do not subscribe to the Midas Report.

Anyone who follows the gold and silver markets knows about the severe imbalance which has occurred for several years between the size of the short interest in gold and silver futures vs. the amount of physical gold and silver sitting in Comex warehouses. As an example, JP Morgan and HSBC combined (and it's mostly JPM's short) have a short position which represents 199 million ounces. This is nearly 4 times the amount of silver currently listed as "registered," or available for delivery.

In any other instance,with any other commodity, the CFTC (Commidity Futures Trading Commission), which is the Governmental body which regulates commodities trading, has always enforced "market concentration" regulations and restricted the size of the long or short position which can be held by any firm in that specific commodity. There is usually a standard applied which measures the amount of short/long interest in a given commodity vs. its available supply on the exchange.

To read the whole article go to:

The Golden Truth: A London Silver Trader Challenges The CFTC

New 52 Week High

Silver hit a new 52 week high today at $19.47 an troy ounce. I also have stock in SIVR, an ETF that tracks the spot price of silver. Both stock price and physical silver price was at a 52 week high today before dropping down to around $19.28. I am not selling but I like to see the price go up on any investment.

Prediction: Silver at $35/oz. within 2 years

Dr. Michael Berry, former Wheat First Professor of Investments at James Madison University and an Assistant Professor of Business Administration at The University of Virginia, wrote an article on gold prices published on Forbes.com November 21, 2009. The article was primarily about the price of gold; however, he had some interesting things to say about the price of silver. Silver interests me more because I can afford to buy silver and I think it is undervalued compared to gold.

Dr. Berry has been a strong advocate of holding both gold and silver during times of economic turmoil, and that is why you must still hold core positions in gold and silver now. He stated n the piece, "The steep decline in the dollar after March 2009 appears likely to continue under the lavish spending plans of this Administration and Congress. As long as Washington attempts to print its way out of its debt-induced predicament and the Obama Administration and Speaker Pelosi’s House are determined to run multi-trillion-dollar deficits for universal health care, these scenarios are likely":

"Gold will appreciate over the next two years toward the $1500 mark.

Silver, which in his view, is particularly undervalued will appreciate toward $35.

The current eight-month bear market equity rally will stall, and

Asia, and particularly Chinese citizens, will seek safety in a dollar-for-gold and silver trade."

To read the entire article go to: http://www.forbes.com/2009/10/21/gold-bull-run-markets-commodities-michael-berry.html?

Gold Is Not Just An Inflation Hedge

In an article on Forbes.com written by Heather Struck, she postulates that that the market for the gold has changed of late. Although, much of the recent rise in the price of gold is a response to the weak dollar and to investor as well as public concerns about long-term inflation; central banks around the world are adding gold to their reserves. .

In her opinion, the bull market in gold could endure even if inflation never emerges and even if the dollar strengthens, because central banks around the world are using gold as a back-up reserve currency. She cites Daniel Brebner, a research analyst at Deutsche Bank, who concurs. He believes that the more gold the central banks accumulate, the more they will support its price. According to Brebner, Central banks are looking at gold differently. Primarily due to fears over the repayment of U.S. debt to foreign bondholders with an increasingly devalued dollar.

Read the entire article at http://www.forbes.com/2009/11/18/gold-dollar-euro-markets-commodities-inflation.

Silver

I became interested in silver because I thought it was a good investment and a hedge when if the stock market crashes or we have a W shaped recession. I started buying silver coins like US silver eagles because they are easily recognizable as one Troy ounce of .999 silver. As I was shopping and buying, really not knowing anything about the spot price or a premium, I discovered that there are all kinds of pure silver coins and bars. Well, if buying just for silver content I thought why not buy whatever is cheaper. For instance If i came across a generic silver round that was 1 Troy ounce of .999 silver and it was a good price I bought it. But, then I discovered a whole world of coins some I buy just for silver content, some I collect as commemorative, and some are from other countries. So to sum it up, I started hording silver but know I am a hoarder and collector.