Daily Market Update 5/2/11

Last night we saw demonstrations reacting to the killing of Osama Bin Laden. They were cheering USA, USA, USA in front of the White House and Ground Zero, while World Government leaders were concerned about the backlash and counter protests

Within minutes of the news announcement, the market received orders to BUY USA DOLLARS AND SELL PRECIOUS METALS. This extraordinary emotional overreaction caused a $37 drop in the Gold price (to $1,540/oz) and Silver dropped almost $6 (to $42.20/oz) WOW... it took a few hours for common sense and fundamental logic to work its way back into the thinking of investors and financial companies.

Although we are happy we finally killed the head of al-Qaeda who was responsible for the 3,000+ 9/11 deaths, nothing has changed in the current macroeconomic and geopolitical environment and we do not feel safer. All global markets are back to normal and the Dollar continues to drop, while Gold and Silver have recovered from the lows and are moving higher.

Based on the information provided above, both Gold and Silver had extraordinary heavy trading in Asia, London, and the U.S, and both metals traded with wide price ranges.

Gold closed up $16.50 to $1,557.50 on the day after reaching a high of $1,577.40 and a low of $1,540 an ounce.
Silver closed down $2.90 to $45.90 on the day after reaching a high of $48.16 and a low of $42.20 an ounce.

Today’s Other Important News

Silver demand in China and India is set to rise 30% in 2011. In 2010 India consumed about 2,800 tonnes of Silver and consumption is expected to rise to 5,000 tonnes in 2011.

See the complete article at www.mintstategold.com/investor-education/rising_silver_demand/

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.