Today at mid morning we saw the wind starting to change direction, after the high volume and busy day that I mention yesterday, I was almost expecting few changes: gold to hold 1200$ silver to stay at mid to high end of 18$… And that would have been enough to keep the argument for a solid $18~ support and bottom for silver and 1200$ for gold. But, with some short covering and bargain hunting featured today, we had a very nice input move to the upside, with silver ending at over 6% higher than yesterday and gold almost 3%… speaking of our crazy horse silver the other day! If today move is followed by silver over 20$, advancing maybe one or two trading session next week, then rest again back at around 20$ levels, we may just have made it out of the woods or close. Some will argue that this could be another death cat bounce, but it seemed too violent and stable to me, will see. If today is just a lucky Friday and we move back testing 17.50 or 18 $ support, then who knows anymore…
Getting physical: gold and silver moved all day steady, we are actually running low in 90% dimes and quarters again, as I was mentioning also the premium rise. Today we also find out that 1 oz rounds, ten oz bars are more expensive for wholesalers (only about 20 cents more, but I am referring to thousand’s oz…) and for now not as dramatic as in April or even close, but premiums are rising this time along with the demand. ASE, 90%,999 on the rise , Morgan, Peace and Cull dollars down, and so numismatic pre-1933 gold. Platinum also moving in some of our IRA’s roll overs in PM’s. So, the bear market does look running out of gas IMO, at least at these levels.
Europe is a big mess, and could support a summer of gold like it did a couple of years ago, we’ll see. Russia just declared the intention to open a PM’s exchange in rubles (for now only gold and silver, then also adding platinum and palladium) and this time may not end up like the Chinese one that was politically interrupted before starting not too long ago…
Enjoy the week-end, the fireworks are coming!