Daily Market Report 4/16/13

GOLD

On Monday the volume on the most actively traded CME 100 contract (June 2013) was 701,498. This is an all-time record high volume; over 74.6 million ounces of 2013 Gold CME contracts changed hands on Monday. History has shown me that for Gold to bottom out and change direction it needs to shake out the weak hands and that’s what I saw on Monday. The past three days of trading have confirmed my belief that the only way to own precious metals is in the physical form, not contracts, options, stocks, or ETF’s.

This morning Gold bottomed out at $1,321 per ounce in Asia, and in Europe and the U.S. we are seeing Gold consolidate in the $1,360 to $1,400 per ounce price range on excellent volume. Physical demand for Gold and silver investment products is extraordinary; I am seeing 10 buyers for every seller. Unlike in 1980 when I saw panic selling, today we are seeing panic buying. At 11am PDT, Gold is trading at $1,385 per ounce, up $35 per ounce on heavy volume.

I read an interesting article by Kenneth Schortgen called “Massive drop in Gold prices give precursor to next major economic crash”. The article stated that history shows that hyperinflation is always preceded by massive asset deflation, pushing central banks and sovereign governments to monetize far above desired risks. Please read this short article at: http://www.mintstategold.com/investor-education/gold_price_drop_precursor_to_economic_crash/

SILVER

Silver bottomed out in Asia at $22 per ounce, than rallied in Europe and the U.S. testing $24 per ounce earlier this morning. Today, Silver has been consolidating in the $22.80 to $23.75 per ounce level. At 11am PDT today, Silver is up $0.65 per ounce, trading at $23.65 per ounce.