Well the $1,000 mark certainly did stop the gold rally. The $900 support level is important if we ever expect to see a significant breakout over $1,000 per troy ounce.
There is a tremendous amount of scrap entering the market worldwide and it is having an impact on supply. Here is a very brief insight into that market.
Rarely is scrap gold plumb, meaning the exact purity indicated. Below are practical formulas per DWT (pennyweight) that work, which I have used and tested for over 40 years: 10 karat = spot gold x .01975, 14 karat = spot gold x .02812, 18 karat = spot gold x .3625. If you wish to convert to grams just divide by 1.55. Most legitimate dealers will pay you 75 to 85 percent of these values. Beware of home jewelry parties where you can get ripped off. Also watch out for the mail and “deal direct with the refiner” scams. Legitimate refineries do not deal with the public. The biggest TV advertiser for dealing direct has the most negative online complaints I’ve ever seen.
Older traditional commemoratives have been very quiet and cheap in the wholesale markets, yet at last week’s Las Vegas show I saw a great deal of retail interest. Type coins remain strong, with the 1796 quarter reaching new highs in the three lowest grades. Minor weakness is in higher Mint State common Barber dimes and quarters.