By September 13, 2011 0 Comments Read More →

Daily Bullion Market Update 9/13/11

By Barry Stuppler – MintStateGold.com

GOLD

At 11am PDT gold is trading at $1,823.40 up $13.20 per ounce on active trading in a narrow $24 range. Gold tested the $1,800 support level Monday, and today it held, then rallied back to $1,830. Last night the euro rallied against the USD because of a successful Italian bond auction and China investing €7bn in long-term Italian bonds. That news caused gold to sell off overnight to hit the $1,800 levels. Yesterday, we saw the price of gold down 50 U.S. dollars, while European investors pushed the gold price to a record high of €1375 this morning, before settling back to €1350. The problems in Europe continue to drive investors to the safety of gold for protection.

As gold/silver mining stocks and funds continue to under-perform the physical metal, Morgan Stanley released a 79-page report on Gold equities.  Basically, they are saying that these mining stocks are valuing the below ground gold reserves at only $1,500 per ounce and with gold at $1,850 they are undervalued. I hate to disagree with such a prestigious financial institution, but I do.  As I have previously stated numerous times, I believe the problem with mining shares and funds not tracking the increases in Gold and Silver are problems unique to mining companies with properties in third world countries; increasing local taxes and royalties

SILVER

In late trading yesterday, silver broke below $40 for about 30 minutes, and then quickly bounced back. Silver is trading at $41.02 at 11am PDT up $0.87 per ounce. The volume of Silver trading picks up dramatically as it approaches the low end of the price range.  I continue to believe that Silver will stay in the $40 to $42.75 trading range for a while, which I believe is bullish for the long term upside.

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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