Daily Market Update 2/24/11

GOLD
It would be very healthy for the future of the Gold price if it could just stabilize in the $1,400 to $1,420 for a couple weeks. However, with the potential explosive developments in the Middle East and North Africa it may not be possible.  However, Gold did close today at $1,411.50 up $1.50 and the eighth day in a row gold closed higher. Many of my clients have purchased gold in the $500 to $1,200 an ounce range and are how reluctant to add to their holdings at current levels. I strongly recommend AVERAGING UP, as in my opinion the fundamentals as well as many domestic and global geopolitical issues will drive Gold & Silver prices much higher over the next couple years.

SILVER
Silver, closing at $32.80 was down 50 cents on the day. This is a normal market correction after a $5 increase in the past week. Physical Silver continues to have serious shortages of supply. Remember, unlike the 1980’s there are no major Silver stockpiles that exist. From 1986 until recently the US Mint would source their silver from the Government strategic stockpile or U.S. Defense stockpile.  Now the U.S. Mint has fully depleted the stockpile and needs to buy silver off the market.    

Today’s Important News:
The Labor Department reported Thursday that about 9.16 million Americans were getting some kind of state or federal unemployment benefits in the week ended Feb. 5, down 89,782 from the prior week.