Daily Market Report 05/16/12

GOLD
Concerns about the ill-liquidity of Greek banks and the possibility of Greece leaving the Euro-Zone and going back to the Drachma is driving depositors to line up to withdraw their money in the form of Euro or U.S. Dollars. Many of the Greek banks are selling their Gold reserves to acquire needed U.S. Dollars and this is causing the price of Gold and the Euro to drop. The Wall Street Journal is reporting that Greek Depositors withdrew $898 Million from Banks Monday, and the situation is getting worse. We have major historical and physical support for the Gold price at $1,500 per ounce. I believe we are very near the end of this short term decline in Gold/Silver. Right now at 11am PDT, Gold is trading at $1,539.60, down $17.60 per ounce on active volume.

SILVER
Silver actually reached $26.68 per ounce early this morning before we saw heavy demand. At 11am PDT, Silver is down $0.90, at $27.22 per ounce on very active trading.