PRECIOUS METALS REVIEW - NOVEMBER 6, 2009

In the precious metals markets this week . . .

GOLD:
Monex spot gold prices opened the week at $1,056 . . . traded as high as $1,101 on Friday and as low as $1,054 on Monday . . . and the Monex AM settlement price on Friday was $1,095, up $35 for the week. Gold support is now anticipated at $1,087, then $1,065, and then $1,038 . . . with resistance anticipated at $1,102, then $1,120, and then ''blue sky'' resistance from there.

SILVER:
Monex spot silver prices opened the week at $16.50 . . . traded as high as $17.62 on Wednesday and as low as $16.26 on Tuesday . . . and the Monex AM settlement price on Friday was $17.34, up $.84 for the week. Silver support is now anticipated at $17.18, then $16.70, and then $16.25 . . . and resistance anticipated at $17.40, then $17.73, and then $18.20.

PLATINUM:
Monex spot platinum prices opened the week at $1,337. . . traded as high as $1,362 on Wednesday and as low as $1,324 on Tuesday . . . and the Monex AM settlement price on Friday was $1,344, up $7 for the week. Platinum support is now anticipated at $1,338, then $1,306, and then $1,278 . . . and resistance anticipated at $1,367, then $1,385, and then $1,408.

PALLADIUM:
Monex spot palladium prices opened the week at $325 . . . traded as high as $333 on Wednesday and Friday and as low as $318 on Tuesday . . . and the Monex AM settlement price on Friday was $331, up $6 for the week. Palladium support is now anticipated at $326, then $317.50, and then $306 . . . and resistance anticipated at $341, then $355, and then $378.

QUOTES OF THE WEEK:

From Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on November 3rd:

''A major shocker! Without any haggling India took the gold [purchasing 200 tonnes of gold from the IMF for $6.7 billion] at a near-record price. This could be the beginning of a panic for gold 'at any price.' China, Russia and Brazil are rumored to be eager to buy the rest of the IMF that's gold for sale. How long can it be before the world follows in India's and China's footsteps? Do you want to know where the wealth and the power are heading for? Then follow the real money, and the real money is, and always has been -- gold. Note that Dec. gold closed just three dollars off it's high. There was very little profit taking on today's dramatic surge -- bullish action.''

''Question -- Is it too late to buy gold?

Answer -- For those of us who, years ago, were buying one-ounce gold coins at $350 a piece, the current record gold price probably seems dangerously high. But to India and China the current price of gold doesn't appear high. I can't tell whether gold has entered its speculative third phase yet, but often buyers in the third phase make greater profits in a shorter time than the early buyers made while accumulating gold during the first and second 'bargain' phases. With US national debt climbing into the trillions of dollars, who knows where gold is going?

In the US, 'nobody' (and this includes most funds) owns gold. Somewhere ahead it will be considered mandatory to own some gold. When that happens, 'Katie bar the door.' I've often said that one of the most difficult things to do in investing is to sit through the greatest part of a primary bull market. To subscribers who bought gold early and still have their gold -- my congratulations.''

. . . and from Trader Dan Norcini, in a posting on Jim Sinclair's website, jsmineset.com, on November 3rd:

''What makes the surge higher in gold even more impressive is that it came in the face of a weaker Euro, a stronger Dollar, and most particularly, a dropping equity market. The net result of such occurrences is that gold moves higher in terms of nearly all of the major foreign currencies. Gold priced in terms of Euros is at its best level since March of this year with British Pound priced gold back near the 650 level.

Based on today's price action, one would have to say that the price of gold has consolidated long enough above $1,000 that the market has now come to terms with a permanently higher gold price of 4 figures. Without wanting to be premature, gold under $1,000 would undoubtedly be viewed now as a bargain. That is why markets that move higher, consolidate, move higher, consolidate, etc, are sustainable bull runs. The run and pause effect gives the industry TIME to become acclimated to the new, higher price level whereas markets that launch into parabolic type blow offs, while spectacular, are generally unsustainable and short lived in the broader scheme of things. They come crashing back to earth as quickly, if not faster, than they went up.''

. . . and from an article posted on CoinNews.net on November 2nd:

''October was explosive for US bullion coins. Unprecedented demand for gold and silver coins elevated the month with US Mint recorded sales levels that are either at or near the top of the all-time high charts.

Bullion American Gold Buffalo and American Silver Eagle coins enjoyed their best October ever.

For the Silver Eagles, more than double the amount were sold last month at 2,939,000, than in any previous October. The month also stands out as the time when 2009 became the best selling year ever for eagles -- dating all the way back to their launch in 1986. The latest numbers pad the tally further with 23,406,500 delivered in the first 10 months of this year.''