The Dow Jones Industrial Average ended the week down 15 points and the S&P remained unchanged, while the NASDAQ was slightly higher at +28. While the stocks held their ground during the week, Gold and Silver and the rest of the metals complex gained substantially during the week with increases of $20.92 for Gold, $1.25 for Silver, $16.00 for Platinum and $48.00 for Palladium.

The week was dominated by speculation about the upcoming U.S. Federal Reserve Bank meeting early next week and the impending decisions of the Fed relating to “quantitative easing,” an academic way of stating that there would be an increase in the money supply (also called QE or QE2 in the market, since QE was implemented about 1 year ago). QE2 would have the effect of increasing money supply in an attempt to spur economic activity, specifically seeking increasing employment. However, traders believe that increased money supply would be highly inflationary, meaning bad news to the Dollar resulting in increases in the value of Gold and related precious metals.

Later in the week, economic data from the 3^rd Quarter GDP (Gross Domestic Product) Report suggested to traders that the Fed action would be more substantive and accordingly, Gold rose along with the other metals complex. Also under consideration by traders are the upcoming national elections in the U.S. next Tuesday. Speculation is that an increased turnover of both the House of Representatives and the Senate would provide an improved economic scene, while any other outcome would likely produce an economic outcome similar to the last year.

Barron’s held its Art of Successful Investing conference and there were many of the professional investors who expressed an asset allocation of investment that would favor the metals complex given their expectation of inflation in the future. One participant, Marc Faber, was interviewed for a brief online video in which he stated that he was “bullish” on Gold and Silver. 

Gold:
Gold was up $20.92 this week to $1,359.80, or 1.56%. The highlight of the week in Gold is the one ounce coin that started the Gold revolution worldwide, especially in the United States, the Krugerrand. 

Silver:
Spot silver prices were up $1.25, or 5.3%, to $24.75. One of the most popular ways to own Silver is through the 100 ounce Silver bar. 

Platinum:
Spot platinum prices finished this week at $1,700, up $16.00, or 0.95%. Platinum continues to be well below expectations in the relationship with Gold, currently at a ratio of 1.25 when historically, that relationship has been 1.8. One ounce Platinum Bars are convenient way to purchase and hold this rarest of metals. 

Palladium:
Spot palladium prices zoomed higher this week by $48 to $646, an increase of 8%. One of the most popular and convenient way to own Palladium is with the one ounce bar.