The Metals: Gold climbed $5.13 to as high as $1218.23 in Asia before it fell back in London to as low as $1205.60 by about 8:30AM EST and then rallied back higher for most of the morning in New York, but it then fell back off in the last couple of hours of trade and ended with a loss of 0.05%. Silver climbed to as high as $18.548 by about 11:15AM EST before it also fell back off into the close, but it still ended with a gain of 0.82%. Euro gold fell to about €979, platinum gained $25 to $1550, and copper rose 8 cents to about $3.15. Gold and silver equities rose over 2% by midmorning and remained near their highs into the close. The Economy: Report For Reading Expected Previous GDP Q1 3.0% 3.3% 3.2% GDP Deflator Q1 1.0% 0.9% 0.9% Initial Claims 5/22 460K 455K 474K Mortgage rates sink to lowest this year Yahoo Tomorrow at 8:30AM EST brings Personal Income for April expected at 0.4%, Personal Spending expected at 0.3%, and Core PCE Prices expected at 0.1%. At 9:45 is Chicago PMI for May expected at 60.0, and at 9:55 is Michigan Sentiment for May expected at 73.2. The Markets: Oil rose another 4% as the U.S. dollar index and treasuries fell markedly on China’s reaffirmed confidence in Europe that eased worries over the ongoing debt crisis and sent the Dow, Nasdaq, and S&P roughly 3% higher. Today’s $31 billion 7-year note auction drew a yield of 2.815% with a bid to cover of 2.88. Among the big names making news in the market today were Costco, Big Lots, Lehman Brothers, Tiffany’s, and Mirion Technologies. The Commentary: “Dear CIGAs, Whatever OTC derivatives do not do to the investment banks, litigation will. Litigation is both civil and criminal. No civil suit based on derivatives can ever go to judgment by jury because it will be a stone cold loser. Even a bench trial would present significant risk to the defendant. OTC derivatives are the basic problem about which nothing has been done and nothing will be done. That secures the final end which is gold as the only standard, measure and storehouse of value functioning as a medium exchange. By definition that is what money is. Gold is the only money that can be trusted as debt is being added to debt in a ridiculous plan to cure a problem. The fiat system is cooked, and there is simply no good paper currency. The face of this world is about to change. Sir Richard Russell is correct. Please protect yourselves because you must. I can point you in the right direction. It is you must take action.”- Jim Sinclair, JSMineset.com

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