Daily Market Report 4/21/16

GOLD

Gold reached $1,243 in early Asian trading, then rallied up to $1,270 as the bulls took control of the Gold/Silver markets in late trading. The $1,250 per ounce level continues to be a bull/bear war for Gold. With the recent strength in the Silver price, I really need to see Gold break above the $1,265 level and stay there for a while.

The U.S. Mint released the 1/10 ounce, 100-year Mercury Dime 2016 Centennial Gold coin. The mint sold all 125,000 coins in 45 minutes at $205 each. Due to the high initial demand, we expect to see dealers offering them for around $400-$600 a coin in MS70. For this reason, we don’t recommend the purchase of this new issue now. Based on history and the lack of an active secondary market, we believe the price will be coming down after the initial demand dissipates. However, because we know that some clients would still like to have the coin, we do plan to offer the 3 pc. set of the 100-year 2016 Mercury Dime, Standing Quarter, and Walking Half Dollar later this year when prices reflect a fair market value for our collector clientele, as this is not something we believe has investment potential.

At 11am PDT Today, Gold is trading at $1.251 per ounce, down $2 on excellent volume.

SILVER

Wow, Silver hit $17.71 per ounce in late Asian trading this morning. The Silver bears took control of the market in early Asian trading and got the price down to $16.74. At that price major buying appeared and drove the price up to $17.71 before seeing some short term profit taking. At 11am PDT today, Silver is down $0.10 per ounce, trading at $17.02 on heavy volume.