Daily Bullion Market Update 8/18/11
By Barry Stuppler – MintStateGold.com
Wow, another new all-time high in gold and the U.S. Stock is down 500 points. I am beginning to sound like a broken record. Gold hit $1,827.80 today and at 11am PDT was trading at $1,819.80, up $27.80 per ounce for the day. The headline news is Venezuela, but Eurozone banking issues have added to the gold buying.
Venezuelan President Hugo Chavez said on state television that he plans to nationalize Venezuela’s Gold production and ordered the central bank to repatriate $11 billion of gold reserves held in developed nations. The country’s gold reserves now stand at 365.8 tonnes, which makes it the 15th-largest holder of gold in the world, according to the World Gold Council. Venezuela is a wild card, but the real concern is possible nationalization of South African gold mines. If that happens, $2,000 gold will sound cheap
Elsewhere in Europe, comments from German Chancellor Merkel and French President Nicholas Sarkozy at the conclusion of their emergency summit Tuesday, disappointed the markets, which only boosted gold’s flight-to-quality appeal
This is the fifth up day in a row for silver, starting last Thursday at $38.66 per ounce. Silver is trading $40.53, up $0.31 per ounce on average volume. Demand is constant be not overwhelming, considering the Gold increase. If Silver closes above $40 per ounce today it will be the third day in a row.
I am still attending the World’s Fair of Money convention in Chicago and the activity has been extraordinary. I will be writing a full account of what is happening over the weekend and send it out on Monday in my Weekly Market Report. I have lots of exciting news to share on rare coin, precious metal and legislative issues. Some of my conversations with my Chinese and Indian dealer friend were highly informative. I just need a few hours to write everything down.
Other Important news that affects precious metal prices:
Sales of existing homes fell 3.5% in July to an eight-month low. A high cancellation rate is again taking its toll on an already troubled housing market, according to data released Thursday.