Closing Gold & Silver Market Report – May 4, 2011

Peter LaTona

5/4/2011 4:51:00 PM

MEXICO’S CENTRAL BANK TRADES DOLLARS FOR GOLD – Mexico made a major play in the gold market during the first quarter 2011. They boosted their foreign reserves by trading $4 Billion worth of US Dollars for $4 Billion in gold. "They're probably thinking that getting out of dollars and into gold makes sense because we know that the dollar has some trend to depreciate in the near future at least," said Sergio Martin, Chief Economist at HSBC in Mexico City. "I don't think they're going to lose money with this."

There was nowhere to run and no place to hide today. Stocks fell, oil fell and precious metals fell as well. Long-term investors weren't all shaken by the day's downdraft. "The long-term trends in the markets are still favorable, still going up," said Mebane Faber, cofounder and portfolio manager at Cambria Investment Management. Cambridge runs an ETF Fund that trades in stocks, currencies, commodities, bonds and real estate.

The US Treasury told lawmakers (today), that the debt ceiling needs to be raised by $2 Trillion in order to meet government obligations into early 2013. The US Government is currently borrowing about $125 billion per month.

At 4PM (CT) the APMEX precious metal prices were:

• Gold price - $1,517.90 (down $24.00)
• Silver price - $39.47 (down $3.18)
• Platinum price  -$1,827.00 (down $34.50)
• Palladium price - $751.00 (down $33.40)

BUY SILVER AT 10 CENTS UNDER SPOT - $1000 or $500 Face value 90% silver coins (dimes, quarters, half dollars)