“We are finally getting the strength in gold and silver that everybody has been watching and waiting for, Eric. Both gold and silver are breaking out from their downtrends. We’ve had a couple of false starts because, until recently, $1,300 has been impenetrable. But that has changed…
Gold has now blown through $1,300. Silver is still below critical overhead resistance at $15, so we need to watch that level. If silver hurdles $15, it will be important confirmation that both metals are turning higher.
Both gold and silver are acting well today in London’s market for physical metal – not paper, the real thing. The accumulation of physical metal is actually a continuation of a major trend. So the demand for physical metal has been strong. Buyers want a tangible asset. They know that paper gold only gives them exposure to the gold price.
So you get two things by owning physical metal – exposure to the gold price and safety. There is no counterparty risk when you own physical gold, which is of growing importance given all the shaky banks around the world.
Here is a current chart of gold’s spot price in London for physical metal. It’s been a mini-rocket launch."
- Source, King World News
