November 1 Morning Market Update

November 1st, 2012 by

Welcome to November, traditionally the most active month for gold!  This year seems to be no exception, especially with the economic factors we’re looking at. In addition to the Indian holiday season, which seems to be picking up after a weak rupee suppressed demand, and the normal Christmas season in the West, we’re seeing a unique confluence of factors that are putting pressure on gold: The German move to repatriate their gold reserves, which has sparked similar movements in other nations; the amazing amount of gold reserves being accumulated by Russia and China; and the continuing “allocated gold account” scandal.  As more and more people wonder if their allocated gold accounts actually have physical gold in them, and speculation that gold reserves in New York and London may not be accurately reported, the value of having actual possession of your gold investment grows even more apparent.

After a brief blip this morning that took spot gold over $1,725/oz, gold is down just slightly, bobbing around the $1,720 mark. Silver is trading slightly higher at 45 minutes after the bell, hitting the $32.50.oz mark and rising.
-by David Peterson