Daily Market Report 4/15/13

GOLD & SILVER

Although reports from the Middle East and Asia over the weekend showed extraordinary physical demand for Gold and Silver, retailers reported that the current bargain prices increased their sales from five to ten times normal. However, today’s margin and panic selling in Europe and the U.S. drove the Gold price down below $1,400 per ounce. Additional fears of an increase in margin requirements on the commodity exchanges also accentuated the selling, driving Gold down to $1,350 per ounce and Silver to $23 per ounce.

I think that the Chinese, Indians, and many Central Banks, are buying forklifts so that they can load up on Gold this week, as they love to buy cheap Gold. I believe Gold and Silver at these ridiculously low prices are easily the opportunity of a lifetime.

“I love the fact that gold is finally breaking down because that will offer an excellent buying opportunity,” Marc Faber, publisher of the Gloom, Boom & Doom report, said on Bloomberg Television’s “Street Smart” on April 12. “The bull market in Gold is not completed.”

Will history repeat itself?

We have seen similar price corrections in the Gold market before, only to rally back to set new record highs. In October of 2008, Gold dropped from $1,011.25 to $712.50, based on news that the IMF would be selling major tonnage of Gold into the market. After the sale was completed, Gold rallied back to over $1,016 per ounce in 2009. Now it’s the Eurozone talking about Gold sales and the markets are reacting in a similar matter. There is major long term price support at the 2011 lows of $1,309.00 per ounce, and being able to buy Gold at today’s price is truly an opportunity of a lifetime.