GOLDJuly remains a remarkably profitable month for Gold investors, now up $126.10 (8.47%) since July 1st. Gold is trading at $1,613.80 this morning after reaching $1,623.40 per ounce (an All-Time high) overnight in Asia. The main factor affecting variances gold the 2009 week was Debt, both U.S. and European. The Eurozone countries were successfully endure the short term debt problems, although the U.S. debt ceiling problems worsened. A lot of an amount happen whenever the debt limit isn't raised is actually relating unwanted watches prices is below.A week ago, life Gold Council shared three insightful facts. First, that inside of the first 3 months of 2011, India and China now be the reason for 58% of global physical gold demand. Second, that setting a brand-new All-Time high worth of Gold in July surprised traders because the gold publication rack usually quiet in July. India Gold buyers have traditionally bought gold in seasonal patterns, dictated by festivals like for example Akshaya Tritiya in May and Diwali in September, and also wedding season, which runs from September to December. Third, where the total central banks' net purchases of Gold year-to-date have already surpassed the particular level found in a comprehensive of 2010. Emerging markets and banks evermore ! the primary driving force for Gold, led this quarter by Mexico's 100-tons popularity of its reservesSILVER If Gold owners are pleased with July's return on investments, then Silver owners are ecstatic. Silver closed across the critical $40 per ounce value at $40.12 per ounce on Friday, up $6.41 (19.01%) since July 1st. Staying above the important $40 psychological level can be described as major step for Silver's journey in to the recent April 25th a lot of $49.84.On Friday, July 22nd, the Hong Kong Mercantile Exchange (HKME) started trading Dollar-denominated silver futures contracts for Chinese citizens. This development grants Asian investors direct access to the metal and should blunt the U.S. dominance in silver-bullion trading. This is certainly in direct competition in direction of the Chicago Mercantile Exchange (CME), currently the largest Silver trading exchange. Eat the motivation with the Dollar-denominated Silver futures trading about the HKME originated what of CME, which unilaterally raised margin requirements on silver by nearly 100% within a mere eight days in April 2011 - after silver prices had increased roughly 150% between late August also, the end of April. The CME action helped cause silver prices to plunge by 30% from the recent highs.LEGAL UPDATE ON THE 1933 $20 SAINTSThe government on Wednesday won one round of one's battle over the ownership of ten 1933 $20 Gold Saint Gaudens, now worth a predicted $75 million. A U.S. District Court jury decided, after five hours of deliberation, where the U.S. Treasury had properly taken having the $20 double eagles, which a Philadelphia family had forfeited after discovering them through the safe deposit box of one's deceased pet.This Week's recommended commitment and diversification:Silver commitment: A minimum of 33 1/3% of investible capital (increased on account of the Debt Ceiling issue) Diversification: Gold 60%, Silver 40% Diversification includes long-term investment quality rare coins and cash advance bullion products. RARE COINS REPORTThe next major numismatic event is considered the American Numismatic Association's World's Fair of Money Convention in Chicago from August 15th to 20th. This is actually largest coin and silver coins exhibition and convention of year. Soon we will be flying to Chicago on August 11th to look at some possible purchases, making more food . haven't already updated your rare coin Want List to me, please it soon as it can be and email me a copy by August 5th. I'm hoping to purchasing two large collections of U.S. Gold and Silver Dollars while I'm in Chicago.What happens if Congress doesn't necessarily increase the U.S. Debt Ceiling by August 2nd? Before I give my educated guess at likely to happen if for example the Congress doesn't increase the U.S. Debt Ceiling by August 2nd, enable me to produce following information:First, the numbers...A study by its Bipartisan Policy Center (BPC) found out that usa most probably will hit the debt limit sometime between August 2 and August 9. The BPC study projects that there will probably be $172.4 billion in federal revenues in August, and $306.7 billion in authorized expenditures, leaving a deficit of $134.3 Billion.The following is a dysfunction among the $306.7 Billion in authorized Federal Expenditures:$29B Interest on Federal Debt$49.2B Social Security$50B Medicare & Medicaid$12.8B Unemployment Insurance Benefits$2.9B Active Duty Troop payThe BPC believes a above grow a highest priority, leaving $28.5 Billion for the following..$93.8B Gov departments (Department of Justice, Labor, Education, Commerce, EPA, HHS, etc)$31.7B Defense Vendors$14.2B Federal Salaries + Benefits$ 9.3B Food Stamps and Welfare$ 6.7B Housing and Urban Development$ 3.9B IRS Refunds$ 2.9B Veterans affairs programs$ 0.3B Company AdministrationSecond, the political background...Any legislation to improve the government Debt Ceiling must pass home of Representatives along with the Senate grow to be signed from the President before becoming law. The House of Representatives has 433 members, 240 are Republicans and 193 are Democrats. 217 Congressmen must vote to opt for the legislation for passage. With the Senate there are certainly 51 Democrats, 47 Republicans and a couple of Independents, therefore 51 Senators need to vote yes for passage. The most effective wing of this Republican Party (Termed as a Tea Party) has 63 Congressmen and 4 Senators that members of the Tea Party Caucus or supporters. The Tea Party members could be most vocal associated with advantages of not supporting the lifting belonging to the Federal Debt Ceiling. Third, whatever i believe the particular problem is facts about...Throughout the last so often, the legitimate differences between The president's and Republican leadership happen to be a moving target. It is my opinion that agreement on increased revenue and spending cuts happens to be reached; both deal-breaking issues now are centered throughout the next election, without having it the next generation.
Several of the 60+ Tea Party Republican Legislators are putting political pressure on Speaker Boehner to never improve the debt ceiling
The timing: Obama wants a $2.4 Trillion escalate in the debt ceiling to shoot us past the 2012 Elections, and Speaker Boehner wants a $1 Trillion increase which may take us within the middle of 2012 making this an election issue.
Fourth, Things i believe will happen if for example the Debt Ceiling isn't really lifted by August 2nd1st Initially believe will occur as we approach the August 2nd deadline:
Value of the Dollar will drop relating to the world's currencies markets
The U.S. Currency markets will drop a growing number by coming week.
The Senate as well as House will propose Ceiling raising legislation for political reasons.
Both Barack obama and Speaker Boehner will likely to be across the media playing at fault game.
Very high quality triple A rated Corporate Bonds will rally (IBM, Exxon, etc.)
Gold & Silver prices continue to do everything higher as we approach the deadline.
Whether the President signs a bill lifting the debt ceiling before Aug. 2nd we will have a correction in Precious metals.
2nd What could happen on August 2nd and beyond in cases where the debt ceiling deadline is missed:
Unless the U.S. Treasury starts selling assets to help with making in the August deficit, our government will quickly shut down. Federal employees are going to be dress yourself in furlough; only vital employees will still be paid.
The government Reserve will offer to buy assets with the U.S. Treasury for you to counterbalance the deficit.
The Treasury will probably pay the eye on U.S. securities to stop default
The Treasury send out Social Security, Medicare, Medicaid and Active Duty Troop checks
Moody's and Standard and Poor's will downgrade U.S. debt
Precious metals would continue to keep increase like a safe haven investment
One or two additional comments in case the debt ceiling is not actually increased...The longer the crisis drags on, the worse the condition will get.For the outcome of your debt Ceiling issue, will be able to do or die the Tea Party movement.All statements, opinions, pricing, and ideas herein are believed to be getting reliable, truthful and accurate for that greatest of the Stuppler & Company's knowledge at this point. Stuppler & Company disclaims and isn't accountable for any claims or losses that is definitely suffered by any other companies while hoping on information published herein. Individuals will not see this publication as giving finance or investment advice or information regarding their individual suitability. All readers have got to independently verify all representations made herein or by its representatives to use in your individual suitability prior to ignore the or collecting decisions