Sprott Physical Gold Trust Buys 6 Tonnes of Gold

James Turk says $21 silver should be the trigger price for a price explosion.  Sprott buys 6 tonnes of gold.  US-China clash over yuan escalates, risking superpower stand-off. One-in-seven Americans living in poverty. Foreclosures Rise; Repossessions Set Record… plus much more.

The gold price in Far East trading meandered around unchanged yesterday.  But, about an hour after London opened for business, a tiny rally began that lasted until moments after 8:00 a.m. in New York… and took gold to a new high price of $1,278.30 spot.  At that point, someone appeared only too happy to sell the price down a bit… and then gold tracked sideways for the rest of the New York trading session.

Silver was a bit of different animal yesterday.  It sold off a bit in Far East trading… and its low price of the day [around $20.47 spot] came shortly before 4:00 p.m. Hong Kong time.  Then silver spent the next twelve hours working itself up to its high of the day [$20.84 spot] which came in electronic trading shortly after 2:00 p.m. in New York.  From there, silver traded sideways into the close.

Despite the best efforts of all the world's central banks over the last day or so, the dollar has fallen all the back to where it was before the interventions began.  Based on these failures… and the technical condition of the dollar at the moment… unless some other brave central banks wish to try their luck, I'd say the world's reserve currency has a long way to go to the downside.  Here's the 3-day chart.

Gold's volume yesterday was pretty decent… a hair over 100,000 contracts net of all roll-overs. Silver's volume was pretty robust as well… and the CME preliminary report from the wee hours of this morning shows that we are now down to 926 silver contracts still open in September that have to sold, rolled over… or delivered into by September 29th.

The HUI spent the entire day in positive territory yesterday… and even managed to close a hair above the 500 level… up 1.22%.  The large cap silver stocks were very strong yesterday… and I'm most encouraged by this.

The CME Daily Delivery report showed that the Comex posted 2 gold and 42 silver contracts for delivery on Monday.  Both JPMorgan and the Bank of Nova Scotia were trading for both their customer accounts and their proprietary trading accounts.  The link to what little action there was, is here.

There were no reports from either GLD or SLV… and the U.S. Mint sold another 2,000 ounces of gold in their gold eagle program.  Sales of bullion coins over at the mint have fallen off a cliff in the last six weeks.  Over at the Comex-approved depositories they received a net 269,825 ounces of silver on Wednesday… and the link to that report is here.