Daily Market Update 6/27/11

GOLD
Gold was trading at $1,498.20 at 11am PDT today, down $5.70 per ounce.  Gold reached $1,493 in Asia before a major rally began taking the price over $1,500 again. The U.S. Dollar continued to be strong and Crude Oil was down sharply on news for Greece. The deterioration in the Greek Debt problem has driven Sovereign Credit-Default Swaps rates much higher and trading is at record levels, while we see Greek citizens withdrawing their savings from Greek banks and buying gold to pre-empt any possible bank run.

Investors in the US government bond market could face losses of up to $100bn if the United States loses its triple A rating, according to a research arm of McGraw-Hill, the parent of Standard & Poor’s. A deal on lifting the Debt Ceiling needs to be reached this week.

SILVER
Silver was down $1.15 at 11am PDT today, trading at $33.70 per ounce on active trading. Buying from Asia is increasing dramatically at this price level and $32.50 is a major support area.

Silver production in Peru, the world’s largest producer of that precious metal, fell 19.18% in April to 255,656 kilograms, compared to the prior year period. In addition to lower output at various mines, Peru just revoked the license of the Canadian mining firm Bear Creek. This reinforces my concern about all mining companies with production from third world countries like Peru, as a good silver investment..

More information is available in this week’s Weekly Market Report at  www.mintstategold.com/investor-education/cat/markets/.

If you are not receiving your free copy of these reports via email each week, please contact my office at 888-454-0444.

Barry