By Barry Stuppler - MintStateGold.com
At 11am PDT, Gold is trading at $1,776.60, down $5.50 per ounce on normal volume for a Wednesday.
This morning, Asian markets were selling off on record high rates for PIIGS country bond rates and fears that the Eurozone debt problem will spread and cause a serious financial crisis.
Major pro-gold hedge fund managers such as George Soros, David Einhorn and John Paulson are beginning to move away from Gold ETFs like SPDR Gold Trust (GLD) and are purchasing physical gold in allocated bullion accounts. Allocated gold bullion accounts offer many benefits over Gold ETFs for hedge fund managers; these benefits include lack of disclosure (no quarterly filings) and less counter party risk than a trust with many indemnifications.
Silver continues to trade in a narrow price range and is building an excellent base in the $33 to $35 per ounce price range. This is very bullish for long term appreciation. At 11am PDT Silver is down $0.60, trading at $34.07 per ounce.
I’m on my way to Baltimore to attend the last major coin convention of the year and to participate in a fund raiser for Senator Tom Carper. I’ll report on both in my Weekly Market Report next Monday.