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    JM Bullion Gold and Silver Market Update (10/8/13)

    Gold Spot Price Open: $1,325

    Gold Spot Price Close: $1,321

    Change in Gold Spot Price: -$4

    Silver Spot Price Open: $22.39

    Silver Spot Price Close: $22.39

    Change in Silver Spot Price: NO CHANGE

    Tuesday proved to be yet another day of few news stories as the focus of investors everywhere continues to be the US government shutdown, which is now in its 8th day. When all was said and done, gold lost a few dollars while silver closed the day in roughly the same position it was in when the day opened. All in all, both gold and silver did very little moving throughout the day on Tuesday.

    I hate to sound like a broken record, but on the 8th day of the partial government shutdown both Democrats and Republicans seem to be making no progress. The inordinate amount of stubbornness displayed by both sides of this shutdown is beginning to take its toll on the worldwide marketplace. Though investors have not begun to panic quite yet, their collective anxiety is undoubtedly growing.

    In a situation such as this, the common belief is that any government turmoil (especially a shutdown) will result in positive, safe-haven demand for precious metals, though this time is different. Because we have been anticipating the current budget problem and the upcoming borrowing limit for more than a year, the shock-factor usually associated with these situations simply doesn’t exist. Not only that, but most investors are convinced that this shutdown will be figured out and the debt ceiling will be raised before the US sees a decline in its credit rating or begins to default on loans.

    It must be noted, however, that if the budget isn’t figured out in the next 10 days and the US does, in fact, actually begin to default on its loans, we can expect some sort of rise in demand, and thus spot values, of both gold and silver.

    US government officials are saying that October 17th is the official day for when the US will begin to default on loan obligations. If the government shutdown and the debt ceiling problem overlap we could be staring straight at one of the biggest government problems the United States has had to face for quite some time.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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