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Summer season seems strong

Gold after crossing the $950 barrier and silver over $14 settled back on lower oil. Gold bounced off the mid $920s strongly and silver off the $13.20 mark. After trading well above $1,200, platinum settled back where it was last week, although the premium on platinum proof Eagles has firmed up somewhat and there is quiet but very strong wholesale demand. Speaking of premiums: proof gold Eagles of all denominations have taken another 5 percent jump. U.S. type gold remains in good demand with low-to-mid grade showing minor increases and high grade very slightly softer.

I consider this to be a pretty strong market for this time of year, especially with the news of a major gold dealer in Florida declaring bankruptcy after his bank called in a $35 million credit line. Sources tell me this is a shock to the market, but it is really not a market-related issue. It is one of poor judgment and questionable business practices. Will this affect the market? Probably not. If it does, the big players were suspicious months ago and were positioning themselves for a problem, although several are on the hook for $100,000 or more.

The proof and mint set market is very stable with only minor adjustments over the past few weeks, and several mint sets appear on dealer want lists to add strength.


E-mail harrymkrause@optonline.net.

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