October 11th Weekly Silver Market Update | Silver.com
Gold: $1892.98 -18.54
Silver: $23.67 -0.91
October 11th Weekly Silver Market Update
Article By: Kyle Wanchalk on October 11th, 2013

Gold and silver have both lost a good bit of value this week as the main headline all week long was the ongoing government shutdown. Now in its 11th day, the partial government shutdown is showing no signs that it will be concluded any time soon. Both Democrat and Republicans have dug their heels in, a surefire sign of inaction.

Shutdown Continues, Worries Linger

It’s interesting to see the partial government shutdown continue, seeing as investors and political experts were sure it would last only a few days, maximum. During this shutdown many investors have been curious as to why gold and silver haven’t seen an increase in safe-haven demand. The answer to this is fairly simple, and can be attributed to the fact that investors and lawmakers alike knew about the possibility of a government shutdown for well over a year, meaning that neither party was shocked when the calendar was flipped to October 1st and a budget was yet to be agreed upon.

Though the shutdown was stealing most major news headlines all week long, another story has begun to creep its way onto the minds of investors everywhere. This story is that of the impending debt limit being reached by the United States. If the US advances to October 17th without raising its debt ceiling further, the nation will begin to default on its loan obligations. This event stands the chance to turn investor anxiety into panic as well as possibly lower the United States’ credit rating. Though these two events may be catastrophic in regards to the worldwide economy’s stability, safe-haven demand for gold and silver might finally increase.

Even though there is no sign of a conclusion to the government shutdown, and the chances of the debt ceiling being reached while the shutdown rages on increases by the hour, investors are convinced that some sort of budget deal will be struck a