Daily Bullion Market Update 8/24/11
By Barry Stuppler – MintStateGold.com
Wow, another exciting day for gold investors. From July 22nd when gold closed at $1,602 until August 22nd when gold hit $1,912, gold increased $310 or 19.35%. At 11am PDT today gold is trading $1,765, down $147 per ounce from August 22nd highs, or 6.6%. Remember at today’s price, gold is still up $343, or 24% for the year.
Today is one of those emotional days for gold investors; I have lived through many days like this over the past ten years. I will hear from gold owners who have seen the $150 correction in the past two days and are concerned it will continue to drop. I also will hear from gold owners that understand the long term trend and know that fundamentals for gold are still in place and see this as a great opportunity to add to their holdings.
Every time we have had a correction like this in the past ten years it has turned out to be an extraordinary buying opportunity, and I think this is the same.
Kazakhstan Central Bank joins other World’s Central Banks replacing U.S. dollars with gold in their national reserves. Today Kazakhstan announced it would buy all domestic gold production to build up gold reserves. Kazakhstan is ranked 20th in world gold productions.
Silver’s price volatility was much greater than gold. Silver hit a high of $44.27 early yesterday, and is trading at $39.47 per ounce at 11am PDT today, that’s an 11% correction. Volume of trading is heavy and technical analysts shorted Silver after breaking the $40 resistance level. Falling back below the $40 support line does concern me, however Fed Chairman Bernanke’s August 26th statement from Jackson Hole could make or break silver for the balance of the year.