Another day with metals holding the ground: Gold closing at 1290$ and silver just at 20$ mark. With an US$ index lower and oil slightly positive, the metals did not move much but ended positive again. Also, the CPI index at 0.5% increase, above expectations, added a little tailwind to gold and silver. Overnight news reinforcing the good levels of PM’s purchases from India and Asia are the other ingredient that added a little flavor to this long-awaited bottom in PM’s. Maybe I was right when over a month ago or so I called 18-19 $ bottom for silver and 1200$~ for gold! Let’s hope. Tomorrow, as many other Wednesdays, we are impatiently waiting for US policy direction from Captain Ben B. In the past,many times, Ben would come up and change the cards on the table last-minute and say the opposite, or just about, of what the earlier statement was: he just did it last time! The guy is more mutable, inconsistent and skittish than Paris Hilton on drugs trying to pick her high heels! He just can’t make up his mind. So, he could come out and change his mind again, and trow the bad card “TAPER” in the mix to stir things up, and shock-waves could be felt in PM’s, just for short time, very short time. Is possible but not my best guess. I think he will keep QE infinity card <> as the market and WS gang like: we could very well test the 1300$ gold and ~21$ silver, maybe 20.50$. Some junior mining companies will soon get some fresh interest if we keep going like this, also, in the physical market, as we’ll pass 21$ the road to 25 is very short and the euphoria that could be triggered can move silver very fast, don’t forget, SGR will start reversing toward 50:1 soon as well…
Average day in bullion market today: I did sold over 1000 ASE and some gold, but I also took some 20-30+ Krugerrands that 2 companies were selling us today. The recovery in numismatic gold is continuing: $20 up 10 bucks all around, tomorrow is an interesting day, watch out for volatility and maybe a reverse intra-day action, we’ll talk in a minute!