We will see some real action Wednesday for sure, but today we can be happy to close the day with a 1% gain~ in both gold & silver. Some of this is the result of short covering, some bargain hunting in PM’s prices, and, with the Middle East instability especially in Egypt, the old role of gold as safe-haven seem to be rediscovered a bit. International data are showing sideways demand in China and India, not too bad to say the truth, in this time of the year. U.S silver coins sales up 50%~ so far this year. The Euro is also holding miraculously together, and the dollar is still headwind for the PM’s sector. Wednesday we may see a more significant move, the job data released Friday is very fresh and could be bad news for PM’s, however, the FED cannot fool everyone at all times, and we know well that all they can do is bluff & print, print more and bluff some more….
Bottom in gold & silver very possible at around those levels discussed a lot the past few weeks:1200$ and 18$ and change. This is a good chance for the forming of a nice base from which start a next big move up in the next weeks/months, if all the cards on the table are still the same.
Premiums also stable for 999: wholesalers are still paying 60-70 cents for 100 oz generic bars, about the same for 10 oz, rounds still pricey at about 1$, numismatic gained back 5-10$ but were down at the end of past week some 20-25$ in the pre-1933 gold $20 Saints, little less for Liberty Head.
We’ll touch base soon, on the physical note again, today I was able to trade some 10,000+ oz of silver (999), so much for a one day trading in the bearish silver market…
