Daily Bullion Market Update 11/11/11
By Barry Stuppler – MintStateGold.com
Another Friday and Gold continues its rally, up three weeks in a row. In the past three weeks in spite of a stronger U.S. Dollar, gold is up $140 per ounce. Gold did it hit $1,804 per ounce earlier this week before we saw gold liquidations caused by equity margin calls. At 11am PDT today at $1,786.20 per ounce up $24.20 on light holiday trading.
Gold traders and analysts are the most bullish they’ve been in at least seven years, as investors worldwide accumulate gold at the fastest pace since August to protect their wealth from a widening European debt crisis. Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase. Holdings in exchange-traded products backed by gold rose 27.5 metric tons this week.
Silver followed gold’s increases today with a $0.74 per ounce increase, trading at $34.68 at 11am PDT.
Yesterday, the Silver Institute released a report entitled, The Silver Investment Market. This update forecasts world silver investment will reach a record high of $10 billion in 2011, representing a 66 percent increase over the $6 billion posted in 2010.
The outlook for silver prices is bullish for the remainder of 2011 and into 2012. Silver investment has become a key area of the global silver supply/demand balance. The report forecasts that the U.S. Mint will sell 41 million American Eagle one ounce silver bullion coin, eclipsing last year’s record of 34 million coins.