American Silver Eagle Coins Hit Record

YESTERDAY IN GOLD AND SILVER

Gold didn't do much in Far East trading on Thursday, but began showing some signs of life shortly after London opened.  That rally lasted until almost lunchtime local time… and set the high price of the day, which was around $1,418 spot, before getting sold off right into the London p.m. gold fix at 3:00 p.m. local time… 10:00 a.m. Eastern.  The low around 10:30 a.m. Eastern was the low of the day… which was recorded at $1,396.40 spot.  From that low, gold struggled back and closed up about five bucks from Wednesday's closing price.


Silver's price path looked nearly identical to gold's… with the highs and lows of the day occurring at the same time as gold in both London and New York.  Silver gained 54 cents from its Wednesday close.

The world's reserve currency gained a net 75 basis points during the Thursday trading day… but there was no co-relation between what the dollar was doing and what the precious metals did.

The gold stocks pretty much followed the gold price, with the low in the HUI coming at the low for gold… which was between 10:00 and 10:30 a.m. Eastern time.  From there, the shares worked their way slowly higher… and by the time the equity markets closed, the HUI was in the plus column by 0.49%.  For the most part, silver stocks had another great day… comparatively speaking, that is.

The CME Delivery Report for Thursday showed nothing of importance.  The GLD ETF showed another minor withdrawal yesterday.  This time it was 29,299 ounces.  There was no report from SLV.  The U.S. Mint had no report, either… and over at the Comex-approved depositories there was a smallish silver withdrawal of 113,041 ounces on Wednesday.

I was over to see my bullion dealer yesterday afternoon… and he informed me that J&M had hiked their prices on 100 oz. silver bars to such an extent that it was cheaper to buy silver in smaller sizes such as ones and tens.  We speculated that rather than withdraw the product from the market and raise wild speculations about the availability of silver, they decided to increase their prices high enough so that nobody would buy them… which has the same effect.  The only other silver bar that J&M still makes is the 1,000 ounce good delivery bar, so it's obvious that every ounce of silver that J&M is getting, is going into that product.  No silver shortage here, folks… please move along.

Here's a nifty graph that's entitled "Transparent Silver Holdings" that is, as always, courtesy of Nick Laird at sharelynx.com.  It shows the total ounces held by repositories, mutual funds and ETFs, etc… around the world.  They comprise the transparent silver bullion inventories that are visible to the public.  I would guess that tens of thousands of investors such as us have many multiples of these total amounts squirreled away that are out of sight of everybody.  Keep up the good work!