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September 23, 2011 / Hal (GT)

Take two silver pills and call me next week.

After all, silver has some medical applications. I don’t mean to sound glib about the blood letting in the markets this week or the subsequent loss of in the precious metals, but this is a dynamic market folks, and sometimes things get hairy.

However, I don’t see the price take down and popping of any so called “gold bubbles”. If you start hearing the mainstream media bring that out than you can be assured that things are going to pop back up. Right now checking the widget (did I mention it’s free) on my desktop, I see gold is at $1,639.80 and silver is at $30.56. Quite a fall, yes, from where we were days ago, but I’ve been aware from people smarter than I who follow these markets that things were going to get volatile from here on out.

I had to do a bit of a reality check today and thought it might be nice to compare where the price of gold was on August 25, 2008, when I first started twittering as gold_tracker. It closed in New York that day at $821.40. Today, September 23, 2011, the spot price right now as I type is $1642.70. That is in increase of 100%.

I don’t know about you, but I don’t think any bubble has burst. Someone just took some much needed oxygen out of the so-called balloon to save themselves.

Looking at Google Finance, the S&P500 closed on August 22, 2008, at 1,292.20 and today has closed at 1,136.43. That is a decline of 12.05%.

So what are the people smarter than I doing right now?

KWN Exclusive – Gerald Celente Announces He’s Buying Silver

It’s That Time Again! Gold $1,689 Silver $32.34 and $100,000 Challenge

Rick Rule – What He is Buying With His Own Money & Why

Okay, so onto the news.

Gold and Silver Prices Hurt by Panic Selling <- via @DigGold


Nigel Farage – Financial Cataclysm & Gold Unimaginably Higher

Rob Arnott – “In Worst Depression Since The Great Depression”

Did Schaeuble Break The Precious Metals And Force Everyone To Raise Cash? <- on this note, I must say that early today I was thinking about this sell down in gold that we’ve been seeing and I have a suspicion that because the FED didn’t come out with more QE and because there has not been any government moves toward more bailouts I can’t help but think that banks needed cash. And so they sold their gold holdings, and everything else that wasn’t nailed down, to get get some liquidity. I had this suspicion of liquidity need yesterday when I twittered:

“You know what I think. Today’s market reaction is like a child throwing a tantrum after not getting what it wanted from daddy #Bernanke.”

Just got this tweet from Roger Vertes, @MonetaAdvisors:

@gold_tracker And there you have it: CME just hiked gold margins by 21%, silver by 16% and copper by 18%. Mystery solved.

Ain’t that just ducky. Sheesh. Keep in mind folks that next week, the 27th, is options expiration.

Market Violence Will Create Large Bear Trap <- Listen to Jim Sinclair. He knows of what he speaks.

Silver – Weekly Chart and annotations <- Dan Norcini is one of the finest analysts out there in my opinion.

India’s Gold Market: Consumers Are Turning into Investors <- India loves it’s gold.

Sprott Money Temporarily Runs Out of Physical Silver <- this is a must read (ht to @HedgehogTrader):

Larisa Sprott, President of Sprott Money told KWN, “It’s been pretty wild, especially the last three or four days because of the price drop.  People are trading in their paper money for gold and silver, but we are seeing more purchases of silver net.  In fact the buying has been really skewed in favor of silver, there is tremendous demand.”

Well, I think that is well worth ending on. I had been texting with a friend earlier today that I suspected that there would be a lot of physical buying going on now, and so that story confirms.

Until next week, keep tracking.




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