Fed Decision Sends Gold Up Sharply|
September 23, 2013
Since last week, fear indeed did affect precious metals, causing a sharp decline. After gold tested and traded just below the $1,300 barrier along came the Fed deciding the economy is not strong enough to withstand a cutback in its $85 billion monthly bond purchasing. Immediately precious metals jumped with gold rallying from being down nearly $10 on the day to up almost $60. Did I say “Immediately”? Well let me state that differently. Three minutes before the official release of the sealed statement, gold jumped $11 on unusual volume in the December futures contract (the most active month).
We all know there is no such thing as market manipulation or insider info on the part of the major bullion banks. The number of contracts traded in those three minutes was 4,600; half were of questionable origin. That means 2,300 contracts times 100 ounces with a $70 gain after the announcement. If you do the math, someone made over $16 million in less than an hour, and that was just on one exchange. Silver still appears to be the sleeper here now at 59.4 to 1 versus gold.
Both Morgan and Peace dollars have become more active in the generic market with gains in MS-63 through MS-66. We have strong activity in most Carson City issues with the 1885-CC leading with gains in VG-8 through AU-50. Most other CC issues are steady or up in various Mint State grades.
Other gainers in MS-63 are 1881, 1886-S, 1889-O & S, 1891-O, 1899, 1901-S and 1904. The only non-generic Peace dollar to gain is the 1921 in MS-64. Half the series went up in MS-66.
Mint and proof sets are firm with 2011 and 2012 Presidential sets very strong.
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