Here's National Numismatics' Tom Cloud with a quick dealer-level view of gold
and silver:
DollarCollapse: Hey Tom, it's been an eventful few weeks. Precious
metals pierced your worse-case downside targets and then bounced a bit. What's
going on out there?
Tom Cloud: Once gold broke the $1,320 it didn't stop till $1,180, which
I did not think it would do. It went all the way down to our long-term support
line. Looking forward, July is usually a neutral month and August is when things
pick up. Gold and silver usually make about 2/3 of their profits during the
last four months of the year, but this time gold should start moving in July
because the correction was so severe. The worst-case scenario is that it bounces
off of $1,180 again, but it looks very oversold at these levels; the charts
have turned extremely bullish.
DC: How tight are supplies?
TC: For gold, there's pretty good availability right now. We've got
some gold coins that can lock in and ship today.
DC: Silver premiums remain high though. What's different about that
market?
TC: When silver goes down the costs of buying and producing it make
the premium go up in percentage terms. They usually change the premiums every
two or three months. So the high premiums can be explained in part by the continued
shortage of popular coins and in part by unchanging production costs.
DC: So silver supplies remain tight?
TC: May broke all records for silver eagle sales, and you're still
looking at 2-4 week delays for eagles, maple leafs and even buffaloes. Comex
silver bars are really hard to get. Johnson Matthey is six weeks behind. In
normal times, it would take 3-5 days for delivery. The Royal Canadian Mint
is keeping up, though, so we can get those bars.
DC: What about the recent central bank gold buying?
TC: The bounce was facilitated by a 580-ton purchase by European central
banks on Friday. The rumor is that they're going to buy another 500 next week.
There's only 2200 tons a year mined on average, so that would be remarkable.
For more information or to place an order, call 800-247-2812
or email Tom Cloud at tgcloud@bellsouth.net.
Mention DollarCollapse.com for
free shipping and insurance.
