Daily Market Update 4/29/11

GOLD
Gold continues to set all times highs closing at $1,542, up $15.40 for the day on active trading.

SILVER
Silver increased $.30 today to $48.80 per ounce on volatile trading with heavy volume.

Over the past two weeks a trend is becoming clear, as gold and silver continues to set new highs, investors are running away from paper precious metal assets. Yes, gold and silver stocks and funds have been dropping as both metals trade at record highs, while physical demand is picking up. ’Why’ isn’t clear, but it could be about many countries where these mines are located and concerns that they could nationalize their natural resources or labor unions in these countries and could strike for higher wages and benefits.

It’s been two days since Ben Bernanke’s press conference and I’ve had an opportunity to think about the meaning of his many policy statements. I believe the Federal Reserve will continue to allow the U.S. Dollar to fall, and by leaving interest rates alone will permit inflation to continue until after the 2012 elections. Yes, this will result in seeing Gold and Silver prices much higher in terms of U.S. dollars.

Activity at the Chicago convention I’m currently attending has picked up substantially. The demand is focusing on low end numismatics (Coins under $1,000) and the high end rarities (Coins over $50,000). I was an aggressive buyer of the certified PCGS/NGC rare coins in the middle. I believe this is where the best buys are, and that these have an excellent potential for the highest appreciation within the next year or two.

Today’s Other Important News

CME Group hikes Silver Margins for second time this week. The margin requirements for a 5,000 oz Silver contract is now $14,513. Silver has experienced heavy volume and volatility as it moves toward $50 an ounce, so the rise in margin requirements isn’t a complete surprise.
The Royal Mint is accepting pre-orders for a commemorative Alderney Royal Wedding £1000 Gold Kilo coin. The unique gold kilo coin, struck at the facility in Llantrisant, South Wales, is one of the official Royal Wedding coins approved by the Royal Household and the Government. It carries a price tag of £40,000 (about $59,292.00 USD on Friday, April 29) and its mintage has been limited to just 40.

Tune in Sunday afternoon to my weekly radio show on Talk Radio 790 KABC in the Southern California area, or listen to www.kabc.com at 5pm PST to hear an extended program on Gold, Silver and precious metals. The show is live (not recorded), so you can call in with your comments or questions to (800) 222-5222.

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.