Subject: WEEKLY METALS REPORT

Gold Continues To Shine... This week has produced another all-time high for Gold. The Gold traded as high as $1123.40 on the Globex as news of world wide production is decreasing. This tells me producers are expecting higher prices. (been down that road before)... Also the U.S Dollar has been under siege most of the week trading at 15 month lows versus the basket of rival currencies. The Chinese Government announced factory output surged to a 19 month high in October. This coupled with the reality of U.S Interest Rates remaining low have kept the U.S Dollar from sustaining any kind of momentum. Recent comments from the Federal Reserve Central Bank expects the U.S economy to recover at a sluggish pace certainly makes the Dollar less appealing.

This week India's jewelers revealed their insatiable appetite for Gold was only being curtailed by the price of the yellow metal. However, they have a very strong interest between the $1060.00 and $1050.00 levels as they look for a correction to re-enter. Vietnam's central bank said on Wednesday it would allow imports of Gold to stabilize the market, combat speculation and prevent an impact on the interests of the people it reported in a statement.

*THERE HAS BEEN A BAN ON GOLD IMPORTS SINCE 5/2008 IN VIETNAM*...

The Gold continues to be over bought technically. However , as long as the U.S Dollar remains the worlds punching bag the Gold market will continue setting records. Silver has also benefited from the rallying Gold market. Many experts are predicting $20.00 Silver (sooner than later).... Although Silver is relatively scarce, it is the most plentiful and least expensive of the precious metals. Silver has more upside potential than Gold due its precious metal / industrial metal duo status.

The Following are just a sample of Silvers value...

(1) Coinage
(2) Jewelry
(3) Photography
(4) Batteries
(5) Electronics
(6) Medical Applications
(7) Mirrors
(8) Solar Energy
(9) Water Purification
(10) Catalysts

Soaring Gold prices have certainly put a huge dent in the Jewelry industry.The Gold has gained over 25% for the year. However it has turned out to be very good for pawn shops and estate jewelry store s as people are filing in to cash in on their Gold.... (Jewelry, etc)... it has also forced customers who normally buy gold to buy a smaller ticket item or choose Silver as an alternative.

Mike Daly / Gold Specialists

PFG BEST