Original Mineral Veil

Gold got sold off about five bucks by lunchtime in Hong Kong on Monday morning… and then basically hugged the $1,390 spot price level until the London p.m. gold fix was in at 10:00 a.m. Eastern time.  From that point, the price moved briskly to the upside, closing almost on its high of the day, which was $1,411.60 spot.  Not a big move, but the price closed above $1,400 for the first time ever.


Silver was, once again, the star of the day… up 3.74% by the time the New York close was in at 5:15 p.m. Eastern time.  Silver's price path was similar to gold's… with the price not straying too far from the $26.75 spot level during Far East and most of London trading.  Then, like gold, silver began moving sharply higher once the gold fix was in… and by the time the smoke cleared, silver was up about a buck on the day.  It's high tick was $27.78 spot.

The dollar dropped 20 basis points in early Far East trading on Monday.  Then, out of the blue, it jumped up about 60 basis points to 77.00… and hovered around that valuation for the rest of the trading day.  Only during early Far East trading was there any noticeable impact on the prices of either gold or silver.  The dollar certainly wasn't a factor in New York trading yesterday.

Here's the U.S. dollar chart going back about four years.  It certainly doesn't look very healthy… despite the fact that it's oversold… it's also breaking through support to the downside.  The graph is courtesy of Nick Laird over at sharelynx.com.

It was another terrific day for the precious metal stocks.  Just about everything was well into positive territory… with the silver stocks once again leading the way by a wide margin.  As you know, I'm of the opinion that silver and its shares will vastly outperform gold going forward… and as you also know, my portfolio is 60/40 silver/gold… and that ratio is increasing daily in favor of silver, as this metal [and its shares] continue to outperform their golden cousins.

The HUI finished up 3.27% to another record high.

The CME Delivery Report was a non-event on Monday, with only 29 gold and 5 silver contracts posted for delivery tomorrow.

For a change, the GLD ETF showed an addition yesterday… up 78,133 ounces.  SLV also reported another inflow.  This time it was a rather large 1,857,934 troy ounces.  As I mentioned in my Saturday column, it's my bet that both ETFs are owed huge amounts of metal… especially SLV.

Over at Switzerland's Zürcher Kantonalbank for the week that was, there was a net decline of 575,113 ounces in their silver ETF… but their gold ETF was up 14,994 troy ounces.  One has to wonder who might be withdrawing silver from an ETF under the current price circumstance.  I thank Carl Loeb for those numbers.

The Comex-approved depositories reported a smallish net decline in their silver stocks last Friday… 19,056 ounces, which is hardly worth the effort to report it.

The U.S. Mint had another sales report on Monday.  They sold another 5,000 ounces in their gold eagle program… plus another 225,000 silver eagles.  Month-to-date, the mint has reported selling 12,500 ounces of gold eagles, plus 480,000 silver eagles.  These are not big numbers considering the fact that the bullion dealers that I keep in touch with are doing a roaring business… especially in all things silver.  I bought some more yesterday myself