Daily Bullion Market Update 7/25/11

By Barry Stuppler – MintStateGold.com

GOLD

Sometimes I feel I’m sounding like a broken record saying again “Gold continues to set a new All-Time High”, trading at $1,613.80 per ounce at 11am PDT.  Last night in Asia gold did reach $1,623.40 in active trading. Gold is at all-time highs; the gold mining stocks are down for the day; and many of the popular stocks and funds are trading at 20-30% off the highs. If you are holding gold mining stocks or funds (which are under-performing the precious metal markets)  I recommend switching into physical gold coins since I continue to believe we will see $1800 an ounce Gold by year end.

What is driving Gold up today? It’s the on-going problem in Washington D.C. on lifting the Federal Debt Ceiling. For more information on this see my Weekly Market Report at www.mintstategold.com/investor-education/cat/markets/

SILVER

Silver is a little disappointing today, with Gold at record highs the silver price should be higher. Silver is trading at $40.38 at 11am PDT, up $0.19 for the day. Silver may need to firm up the resistances level above $40 for a while before making an attempt to breakout over the previous $49 highs.

On Friday, July 22nd, the Hong Kong Mercantile Exchange (HKME) started trading Dollar-denominated silver futures contracts for Chinese citizens. This development grants Asian investors direct access to the metal and will blunt the U.S. dominance in silver-bullion trading. This is in direct competition to the Chicago Mercantile Exchange (CME), currently the largest Silver trading exchange. Much of the motivation for the Dollar-denominated Silver futures trading at the HKME came from the actions of CME unilaterally raising margin requirements on silver by nearly 100% in a mere eight days in April 2011 — after silver prices had increased roughly 150% between late August and the end of April. The CME action helped cause silver prices to plunge by 30% from its recent highs.

In a July 15th report by Citigroup’s analyst Tom Fitzpatrick on the future of the Silver price, he stated. “If the final rally in the last bull market repeated then we can expect $100 over the long term.”

“Silver’s going to go much, much higher” legendary commodity investor and Quantum Fund co-founder Jim Rogers said In an interview with CNBC. “The world is having shortages develop of nearly every metal.”  Calling for a long term bull market in Silver, Rogers predicts Silver prices are likely to go up substantially over the next decade and says he will be buying any dips that are yet to arrive.

Posted in: Bullion & Metals

About the Author:

Barry Stuppler & Co. offers a great selection of gold and silver, rare and investment quality coins to our valued clients. As the current elected president of the 30,000 member American Numismatic Association (ANA) and the president of the California Coin and Bullion Merchants Association (CCBMA), Barry Stuppler brings expertise and integrity to the numismatic trade.

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