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Yes, I suppose it could be coincidental and people could trade like this, but isn’t it more likely that you are seeing programmed trading and this is the dirty work of the bullion banks and the hedge funds?  These red and green lines look awfully similar to me.

24 Hour Spot Gold Bid 4-1-2014 1847

Trader David R says gold should bottom in May in the $1200-$1250 range.  The next month or two is a good time to cost-average your purchases.  Although the hedge funds and JPMorgan seem to have the upper hand for the moment, it should not be overlooked that this is the month that China updates its gold holdings, and it’s been five years since they last made an announcement.  If they come forth with a number of six or seven tonnes, it could set off a stampede of gold buying and you would not want to be on the sidelines if this happens.

The bearish scenario, which really isn’t that bearish, is that the bottom will be reached in the next few months and then it’s off to the races.

Andy Hoffman sent me the following below… Just incredible to see such U.S. Mint Silver Eagle sales numbers!

25% above last year’s record level – WITH rationing!”

Silver Eagle Chart

“The Cartel WILL eventually cause a product shortage, you can bank on it.”

According to an article in SRSrocco Report below:

Record Silver Eagle Buying As Industry Analysts Mislead The Public

April 1, 2014

“If we look at the chart below, we can see how much heavier the buying was this FEB-MAR compared to previous years:

SRS Rocco Report

Continue reading on SRSRoccoReport.com.

It makes one wonder who are taking delivery?  Are the Silver Eagles being shipped off to India or China?  Is there a behind-the-scenes domestic buyer with deep pockets?  It’s unlikely it’s the hedge funds because they prefer to buy the 1000 oz. bars, which is the cheapest way to buy physical silver.

Personally, I don’t care because what is important is the WHAT not the WHO.

Just try and picture this – the March total is the equivalent of 53,540 mint boxes.  Do you understand how much storage space that represents?  And that’s just for the month of March.  Add another 85,250 mint boxes from January and February.  Annualized, that’s over half a million-mint boxes of silver.

Not only is silver outselling gold by the very large rate of 65 ounces to 1, silver is also outselling gold in DOLLARS as well.  I don’t ever recall this happening, not since I’ve been in the business, maybe never.  I’m sure I’ll hear from some of you if I am wrong on this.

What are the conclusions one can draw from this?  Well, either silver is a very bad investment without a strong future – or silver is ridiculously undervalued (relative to gold and the dollar) and is the buy of your lifetime.  I tend to go with view number two.  And so, apparently are the buyers of all those Silver Eagles (and Maples and bags of junk silver and bars and off-brand rounds).