Daily Market Update 4/28/11

GOLD
Gold closed at $1,529.80, up $13.60 on very active trading, reaching $1,539.50 at one point today.

Yesterday’s Bernanke press conference gave more fuel for higher asset prices, leading to a rally in the US stock markets and a new 16 month low for the U.S. Dollar. After the conference, Silver rallied $2.00 and we saw a new record high for Gold, even as the US Federal Reserve said it would end its $600bn “QE2” quantitative easing program. The Fed held rates steady at 0 to 0.25 per cent but tweaked its statement on growth, providing a weaker outlook from a “firmer footing” for the recovery to a “moderate” pace of growth.

SILVER
Silver closed up $2.50 for the day at $48.60 on heavy volume, hitting $49.57 for the high of the day.

I have been attending Major Coin Conventions within the U.S. for almost 50 years and they are always interesting and give me a sense of what my friends feel about the coin and bullion market. Most of the dealers I speak with are professionals with 30 or more years of experience. What did I learn? Well, my business activity isn’t unique; everyone has been seeing extraordinary demand, particularly for U.S. Morgan and Peace Silver Dollars. As Silver continues to move higher Brilliant Uncirculated 80 to 120 year old American Silver Dollars at just a few dollars over the spot silver price represent an excellent investment vehicle.

Today’s Other Important News
The National Association of Realtors’ index of pending home sales rose 5.1% to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4% below March 2010 levels but 24% above June’s reading.

For many of my clients and friends who are Gold & Silver addicts, I am now posting on Twitter multiple times during the day and night.