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Spot Gold Prices Pause; Silver Dazzles

With no impending economic calamity apparent in the short-term period, New York spot gold prices have changed little.
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NEW YORK (TheStreet) -- With no impending economic calamity apparent in the short-term period, New York spot gold prices have changed little.

Meanwhile, spot silver prices rose because they aren't as dependent as other metals are on economic crises to experience a rally. "With no imminent crisis driving the metals, that perhaps explains silver's outperformance, since it's more reliant on industrial demand -- and right now, the data point to continued growth in Asia's emerging markets especially," BullionVault.com's Adrian Ash said.

Ash has been witnessing strong inflows of new money from buyers interested in both gold and silver, but they're far from the demand levels seen in late 2007 during the Northern Rock collapse in the UK, late 2008 during the Lehman collapse, Feb. 2009, when the S&P dropped to a 12-year low and quantitative easing commenced, and amid the Greek deficit crisis in April and May of this year.

The somewhat inconsequential uptick in gold Thursday didn't surprise GoldandEnergyAdvisor.com's James DiGeorgia either. He's been expecting sudden jumps and lackluster days as well at current gold levels -- all it is is consolidation he said. "We've seen the price in gold has risen very sharply in the past month. As we approach the $1,400 level we're sure to see some baking and filling ... a pause that keeps gold over $1,346 shouldn't be considered anything other than consolidation."

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DiGeorgia also thinks that demand for gold remains stronger, but could be stronger. "Demand for gold remains very strong, yet we are still not seeing a new record high in ETF gold holdings. That tells me we're going higher."

Currently DiGeorgia is seeing especially strong demand for U.S. rare gold coins and bullion coins like American Eagles. DiGeogia said investors he's been speaking with aren't speculating on higher gold prices for short-term profits. Rather, they're hedging their investment portfolio with gold, silver and platinum in order to protect the value of their entire portfolio against the erosion of the value of the U.S. Dollar.

New York spot gold prices were up by $4.90, or 0.4%, to $1,376.80 an ounce Thursday.

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New York

spot silver prices

were rising by 40 cents, or 1.7%, to $24.45.

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New York spot platinum prices were up by $2, or 0.1%, to $1,707 an ounce, while its sister metal inching higher.

New York spot palladium prices were higher by $5, or 0.8%, to $599 an ounce.

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A group of mining stocks and precious metals ETFs were trading in mixed territory Thursday afternoon. Mining stocks offer another form of exposure to precious metals.

Barrick Gold

(ABX)

was down 1.3% to $48.61, while

Kinross Gold

(KGC) - Get Report

was falling by 1.4% to $19.39.

Silvercorp Metals

(SVM) - Get Report

was jumping by 6.1% to $9.44.

Hecla Mining

(HL) - Get Report

was rising by 1.7% to $7.05.

SPDR Gold Trust

(GLD) - Get Report

was up by 0.3% to $134.52 and

ETFS Physical Palladium Shares

(PALL) - Get Report

1.3% higher to $59.87.

-- Written by Andrea Tse in New York.

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