Gold Poised to Jump on Stimulus Hints

Gold and commodity prices soared Friday as European leaders announced they're going to recapitalize the banks in the region, although specifics of the deal weren't revealed.

In response, gold futures for August delivery climbed $53.80 to settle at $1,604.20 an ounce on the Comex division of the New York Mercantile Exchange. Silver prices also soared, jumping $1.32 to settle at $27.61.

While it help prop up the markets in general, it also did with gold as well, as it basically supports the premise there will be much more stimulus going forward; presumably with a big dose coming sometime soon in the euro zone.

The announcement by the Federal Reserve that it would keep interest rates low through 2014 and continue on with its "Operation Twist," also teases and sends a signal to the markets that there will inevitably be more stimulus from that source as well.

With the EU, euro and euro zone fighting for its very survival, there isn't even a question as to whether or not there will be a stimulus, it's only a matter of when and how much.

For the United States, it's pretty much the same situation in the sense of slowing growth, and the Federal Reserve has stated it's ready to act in response to negative economic conditions, which are in fact already upon us, as growth rate estimates in the U.S. have been recently lowered.

The central bank cut its estimate for the 2012 gross domestic product growth to 1.9 to 2.4 percent, from 2.4 to 2.9 percent in April. Estimates for 2013 were lowered to 2.2 to 2.8 percent, compared to 2.7 to 3.1 percent in the prior projection.

All of this refers to speculation by the market that more quantitative easing is coming, and that will continue to provide support for gold, which already got a boost with the news out of the EU.

One major result from all of this will be for the euro to strengthen against the U.S. dollar, which will also provide impetus for the price of gold and other commodities to rise.

Pressure is mounting for stimulus action, and for better or worse it's going to come. The market is ready to reward gold and silver when that happens, as evidenced by the huge price increase on just a little good news from that point of few. What's going to happen when full-fledged stimulus is put into action again; especially when more than one part of the world does it? Friday's response by gold and silver prices give us a glimpse into what that will be.

Barrick Gold (NYSE: ABX) closed Friday at $37.57, rising $1.34, or 3.70 percent. Goldcorp (NYSE: GG) ended the session at $37.58, up $1.48, or 4.10 percent. Newmont Mining rose $1.39, to close at $48.51, gaining $2.95 percent. SPDR Gold Trust (NYSEARCA:GLD) ended the day at $155.19, up $4.14, or 2.74 percent.

iShares Silver Trust (NYSEARCA:SLV) soared $1.02, gaining 3.98 percent to close at $26.65. Silver Wheaton (NYSE: SLW) exploded $1.35, jumping $5.30 percent, to end the day at $26.84. Endeavour Silver (NYSE: EXK) closed the day at $8.12, up $0.33, or 4.24 percent.

Miners (SVM) (MFN) (EXK) (AXU) (SLW) Trade Up as Silver Rebounds

Shares of Silvercorp Metals Inc. (NYSE:SVM), Minefinders Corp. Ltd. (AMEX:MFN), Endeavour Silver (AMEX: EXK), Alexco Resource (AMEX: AXU) and Silver Wheaton (NYSE:SLW) as silver, gold and the majority of other commodity prices climbed on the day.

The silver contract for May delivery gained $1.61, or 4.8 percent, to $35.10 a troy ounce.

June gold climbed $15.80 to $1,495.80 per troy ounce, a 1.1 percent gain on the Comex division of the New York Mercantile Exchange. The less traded May contract was up $15.80, or 1.1 percent, to $1,495.60 a troy ounce.

A weaker dollar was the major catalyst for gold and silver specifically, and commodities in general on Wednesday.

Benchmark West Texas Intermediate crude for June delivery was up $3.19, or 3.3 percent, to settle at $100.10 a barrel on the New York Mercantile Exchange.

Brent crude rose $2.31 in London, or 2.1 percent, to settle at $112.30 a barrel on the ICE Futures exchange.

The U.S. dollar index, which measures the dollar against a basket of six currencies, traded at 75.438, down a little from 75.441 late Tuesday. That was also a factor in gold and silver prices going up.

Silvercorp Metals Inc. (SVM) closed Wednesday at $10.38, gaining $0.36, or 3.59 percent.

Miners (SLW) (PAAS) (HL) (CDE) All Close Up Tuesday

Shares of Silver Wheaton (NYSE:SLW), Pan American Silver (NASDAQ:PAAS), Hecla Mining (NYSE:HL) and Coeur d'Alene Mines (NYSE:CDE) closed up on Tuesday, as silver prices were up slightly on the day.

Silver gained 0.7 percent to settle at $33.80 an ounce. Since the latter part of April it has fallen almost 33 percent from a record high of $49.51.

Gold futures for June delivery closed down $10.60, or 0.7 percent, at $1,480.00 per ounce in New York. Trade ranged from a low $1,471.10 to a high of $1,497.50.

Silver Wheaton (SLW) closed Tuesday at $34.32, gaining $0.57, or 1.69 percent.

Endeavor Silver (AMEX:EXK) closed the same as Monday, while First Majestic (NYSE:AG) and Silvercorp Metals Inc. (NYSE:SVM) both closed down.

Endeavour Silver (EXK) Plunges Along with Silver Prices

Endeavour Silver (AMEX: EXK) plummeted in Wednesday trading, as silver prices plunged again in the extremely volatile market.

The most-actively traded silver contract, for July delivery, settled down $2.971, or 7.7 percent, at $35.515 per troy ounce on the Comex division of the New York Mercantile Exchange. Silver for May delivery was down $2.971, or 7.7 per cent, at $35.509.

Gold for June delivery dropped $15.50 to settle at $1,501.40 at the Comex division of the New York Mercantile Exchange. The gold price Wednesday traded as high as $1,526.80 and as low as $1,495.40.

Gold lost 1 percent overall and silver plunged close to 8 percent on a broad commodity sell-off, as the U.S. dollar index climbed over 1 percent to $75.41, as the euro was weakened by the seemingly endless sovereign debt crisis in Europe that isn't going away.

Gold and silver also garnered no support from rising inflation data. China said prices dropped to 5.3 percent in April from 5.4 percent in March, but that number was higher than the 5.2 percent looked for.

Endeavour Silver Corp. participates in the evaluation, acquisition, exploration, development, and exploitation of precious metal properties, primarily silver in Mexico.

Endeavour Silver (EXK) closed Wednesday at $9.01, falling $1.02, or 10.17 percent.

Endeavour Silver (EXK) Plunges Along with Silver Prices

Endeavour Silver (AMEX: EXK) plummeted in Wednesday trading, as silver prices plunged again in the extremely volatile market.

The most-actively traded silver contract, for July delivery, settled down $2.971, or 7.7 percent, at $35.515 per troy ounce on the Comex division of the New York Mercantile Exchange. Silver for May delivery was down $2.971, or 7.7 per cent, at $35.509.

Gold for June delivery dropped $15.50 to settle at $1,501.40 at the Comex division of the New York Mercantile Exchange. The gold price Wednesday traded as high as $1,526.80 and as low as $1,495.40.

Gold lost 1 percent overall and silver plunged close to 8 percent on a broad commodity sell-off, as the U.S. dollar index climbed over 1 percent to $75.41, as the euro was weakened by the seemingly endless sovereign debt crisis in Europe that isn't going away.

Gold and silver also garnered no support from rising inflation data. China said prices dropped to 5.3 percent in April from 5.4 percent in March, but that number was higher than the 5.2 percent looked for.

Endeavour Silver Corp. participates in the evaluation, acquisition, exploration, development, and exploitation of precious metal properties, primarily silver in Mexico.

Endeavour Silver (EXK) closed Wednesday at $9.01, falling $1.02, or 10.17 percent.

Silvercorp (SVM) (CDE) (AXU) (FVITF) (EXK) Trade Down As Silver Rebounds

Silvercorp Metals Inc. (NYSE:SVM), Coeur d'Alene Mines (NYSE:CDE), Alexco Resource (AMEX:AXU), Fortuna (OTC:FVITF.PK) and Endeavour Silver (AMEX: EXK) trade down as silver climbed.

Silver and gold prices went through a reversal Friday, as gold closed down and silver rebounded to close higher, putting pressure on .

Silver prices settled up 21 cents to $35.01 an ounce. Gold for June delivery fell $13.10 to close at $1,493.60 at the Comex division of the New York Mercantile Exchange. The spot gold price was down by about $13 an ounce.

The U.S. dollar index was up 0.74 percent to $75.75 as the euro continued to get hammered on the sovereign debt crises in Europe. The euro plunged 1.7 percent last week as Greece was again in the spotlight for the need to probably be bailed out again, as it appears the country refuses to implement austerity measures to deal with the situation, as it, along with numerous countries, has made progressive, socialists promises they aren't able to keep.

Besides the long-term collapse of the U.S. dollar and the European sovereign debt crises, other factors offering support to gold include tightening in China, inflation, and unrest in the middle east.

Hecla Mining (HL) closed Friday at $8.13, down $0.01, or 0.12 percent.

Miners (HL) (SLW) (SVM) (AXU) (EXK) Trade Down Even as Silver Jumps Again

Shares of silver firms Hecla Mining (NYSE:HL), Silver Wheaton (NYSE:SLW), Silvercorp Metals Inc. (NYSE:SVM), Alexco Resource (AMEX: AXU) and Endeavour Silver (AMEX: EXK) closed down Tuesday, even though silver closed in positive territory.

Silver also extended its rebound, with the July contract gaining $1.37, or 3.7 percent, to $38.47 an ounce.

Gold for June delivery added $13.70, or 0.9%, to $1,516.90 an ounce on the Comex division of the New York Mercantile Exchange.

Separately, HSBC Global Research boosted its average price estimate for gold, silver and platinum.

HSBC raised its gold price projection to $1,525 an ounce from $1,450 an ounce this year, and to from $1,300 $1,500 for 2012.

For silver, the bank sees it averaging $34 in 2011, up from a previous estimate of $26, and from $20 $29 in 2012.

Platinum is seen closing 2011 from $1,750 to $1,850, according to HSBC, and ending 2012 at $1,750 from $1,650.

For palladium, HSBC sees it averaging $825, from $750, in 2011, and $750 from $650 in 2012.

Endeavour Silver (EXK) closed at $10.03, down $0.08, or 0.79 percent.

Silver's (SLW) (FVITF) (ISVLF) (MFN) (EXK) Trade Up as Silver, Gold Rebound

Silver companies Silver Wheaton (NYSE:SLW), Fortuna (OTC:FVITF.PK), Impact Silver (OTC:ISVLF.PK), Minefinders Corp. Ltd. (AMEX:MFN) and Endeavour Silver (AMEX: EXK) closed up Monday as silver prices turned around on Monday.

Silver prices jumped $1.82 to close at $37.11 an ounce after plunging 27 percent last week.

According to research firm Lipper, last week almost $1 billion flowed out of silver exchange traded funds (ETFs).

Gold for June delivery increased $11.86 to settle at $1,503.20 at the Comex division of the New York Mercantile Exchange after dropping 4.8 percent in a week. The gold price Monday traded in a range as high as $1,512 and as low as $1,489.

The U.S. dollar fell to $1.434 against the euro and dropped against the Japanese yen to 80.24 yen.

Endeavour Silver (AMEX: EXK) closed Monday at $10.11, gaining $0.81, or 8.71 percent. Impact Silver (ISVLF) closed at $2.282, jumping $0.2595, or 12.83 percent.

Top AMEX Gainers (RIC) (EXK) (HDY) (MGH) (PZG) #1-5 on May 6

The top AMEX gainers (1-5) - as measured by percentages Friday on the American Stock Exchange - include Richmont Mines, Inc. (AMEX:RIC), Endeavour Silver Corporation (AMEX:EXK), HyperDynamics Corporation (AMEX:HDY), Minco Gold Corporation (AMEX:MGH) and Paramount Gold and Silver Corporation (AMEX:PZG).

Richmont Mines, Inc. (RIC) closed Friday at $7.72, up $0.57, or 7.97 percent.

Endeavour Silver Corporation (EXK) ended the day at $9.30, up $0.68, or 7.89 percent.

HyperDynamics Corporation (HDY) closed at $3.58, gaining $0.26, or 7.83 percent.

Minco Gold Corporation (AMEX:MGH) closed at $2.16, rising $0.15, or 7.51 percent.

Paramount Gold and Silver Corporation (PZG) closed Friday at $2.83, climbing $0.16, or 5.99 percent.

Silver's (MFN) (AXU) (HL) (GPL) (EXK) After Metal Trades Down

Silver prices continued to be pressured Friday, as it has been weighed down by the investors takeing profits in recent trade, and increased margin requirements, which has dragged silver companies Alexco Resource (AMEX:AXU), Hecla Mining (NYSE:HL), Great Panther (AMEX:GPL), Minefinders Corp. Ltd. (AMEX:MFN) and Endeavour Silver (AMEX:EXK) down on the week, although most rebounded on Friday.

Silver for July delivery dropped 95.3 cents, or 2.6 percent, to $35.29 an ounce on the Comex division of the New York Mercantile Exchange. It had risen as high as $36.43 an ounce in Friday's trading.

The front-month silver contract had its worst week since late March 1980. Silver for May delivery fell 27 percent in the five-day period — its biggest percent drop since that date. The most-active July contract also was down 27 percent on the week.

Silver has lost 14 percent so far in 2011. On April 25, silver had reached as high as $49.845.

Gold for June delivery climbed $10.20, or 0.7 percent, to $1,491.60 an ounce. Gold lost 4.2 percent last week, as it had settled at a record $1,556.40 an ounce the Friday before. Gold fell 4.2 percent on the week.

Endeavour Silver (EXK) closed Friday at $9.30, gaining $0.68, or 7.89 percent.

Endeavour (EXK) (AXU) (GPL) (SSRI) (EXK) (MFN) Crushed as Silver Drops

Alexco Resource (AMEX:AXU), Great Panther (AMEX:GPL), Silver Standard Resources (NASDAQ:SSRI), Endeavour Silver (AMEX:EXK) and Minefinders Corp. Ltd. (AMEX:MFN) got hit hard Thursday as gold and silver prices continued their fall.

The silver contract for May delivery closed 8 percent lower, down $3.152, at $36.231 per troy ounce.

Since the Friday settlement price silver has plummeted 25 percent.

Gold for May delivery, the front-month contract, ended the trading session Thursday down $34, or 2.2 percent, at $1,480.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

The U.S. dollar was also up, adding pressure to the two precious metals, as it gained 2 percent against the euro. That came largely from European Central Bank President Jean-Claude Trichet who suggested there will no interest-rate boost in the near future.

Nothing has changed the underlying fundamentals for gold or silver though, and this is just a healthy correction before gold and silver prices begin moving up again.

As long as easy money policies continue by the Federal Reserve and interest rates remain near zero, there is nothing to stop gold and silver prices from continuing to rise.

Inflation, political unrest, sovereign debt crisis and the collapsing U.S. dollar will also play a major role over time for gold and silver prices.

Endeavor Silver (EXK) closed Thursday at $8.62, plummeting $1.37, or 13.71 percent.

Silver Firms (CDE) (FVITF) (MVG) (MFN) (EXK) Trade Mixed as Silver Takes Beating

Even though silver prices got pummeled again Wednesday, silver producers Coeur d'Alene Mines (NYSE:CDE), Fortuna (OTC:FVITF.PK), Mag Silver Corporation (AMEX:MVG), Minefinders Corp. Ltd. (AMEX:MFN) and Endeavour Silver (AMEX: EXK) closed the trading day mixed, rebounding from recent losses.

The ongoing plunge in silver prices pressured commodities one Wednesday as investors sold holdings to take money off the table after weeks of prices rising in the sector.

Silver dropped $3.197, or 7.5 percent, to settle at $39.388 an ounce. That's the third straight day of losses after silver approached the elusive $50 an ounce mark last week.

Silver for July delivery dropped $2.820, at $39.765 per troy ounce.

Despite silver's three-day fall, the price is still 27.3 percent higher on the year.

Gold for June delivery, the most actively traded contract, fell $25.10 to $1,515.30 an ounce.

The U.S. dollar indexlost 0.15 percent to $73.01.

Fortuna Silver Mines closed Wednesday at $5.20, gaining $0.27, or 5.48 percent.

Endeavour Silver (EXK) Trades Down as Silver Prices Fall

Endeavour Silver (AMEX: EXK) traded down as silver prices fell on Thursday.

Silver prices ended the session down. July delivery for silver fell 16.5 cents, or 0.5 percent, to $34.932 a troy ounce.

Gold for June delivery closed down $3.40, or 0.2 percent, at $1,492.40 a troy ounce on the Comex division of the New York Mercantile Exchange.

The ICE Futures' dollar index was down 0.5 percent at 75.106. The U.S. dollar was down against most of its major peers at the end of trading Thursday.

Extremely bad news on Obama's economy pressured the commodity sector.

July contracts had copper falling 5.25 cents to settle at $4.0525 a pound and platinum dropped $10.90 to $1,769 an ounce. June palladium settled down $9.05 at $728.15 an ounce.

Housing sales and manufacturing data revealed an ongoing weak and fragile American economy.

Endeavour Silver Corp. participates in the evaluation, acquisition, exploration and development of precious metal properties, mostly silver in Mexico.

Endeavour Silver (EXK) closed Thursday at $9.47, gaining $0.02, or 0.21 percent.

Pain for (SVM) (ISVLF) (MGN) (SSRI) (EXK) As Silver Plummets

Shares of silver miners Silvercorp Metals Inc. (NYSE:SVM), Impact Silver (OTC:ISVLF.PK), Mines Management (AMEX:MGN), Silver Standard Resources (NASDAQ:SSRI) and Endeavour Silver (AMEX: EXK) were suffering again as prices plunged again in Tuesday trading.

Silver plunged another $3.49 Tuesday to settle at $42.576 per troy ounce on the Comex division of the Nymex. In after hours trading the price almost dropped below $40 an ounce.

Much of this has been the result of the decision by the CME Group to raise margin requirements by 11.6 percent, starting at the close of market on Tuesday.

To buy a 5,000 ounce contract, silver traders will now have to put up $16,200.

Leverage traders got rid of their silver positions over the last couple of days, driving the price of silver down. Expectations are silver could bottom out as about $38 if there's more leverage leaving the market.

Other than some speculation, other reasons for the boost in silver prices include the collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake. India also raised its interest rates unexpectedly on Tuesday, putting some downward pressure on gold and silver as well.

Of the silver companies in the article, Endeavour was down the most, closing Tuesday at $9.92, falling $0.69, or 6.50 percent.

Silver Bubble for (SLW) (SLV) (SVM) (EXK) (AG)?

With the soaring price of silver, the question is increasingly being asked if silver has now reached bubble proportions and if it's time to sell companies and ETFs like Silver Wheaton Corp., (NYSE:SLW), First Majestic Silver Corp. (NYSE:AG), Silvercorp Metals Inc. (NYSE:SVM), iShares Silver Trust (NYSE:SLV) and Endeavour Silver Corp. (NYSE:EXK).

Some have pointed out the positive media coverage concerning investing in silver as a reason to believe it has reached bubble proportions. While that is one possible indicator, it's somewhat weak, because you could pick out any company or sector and make the same conclusion if it's garnering positive comments. Look at Apple (NASDAQ:AAPL) as an example.

That's not to say there won't be a correction with silver, as it's a given in light of the recent rise in silver prices.

But a bubble implies a price that's not in line with realities, and I can't see that with silver, at least over the long term, as it's an alternative to gold in the investment realm as a hedge against inflation and a place of safety. Add to that growing industrial demand and you have an excellent long-term investment.

In the short term, it is definitely going to correct. With the history of silver being extremely volatile, we'll see some big price swings going forward, but that's simply part of the experience of investing in silver.

As for the silver stocks listed above, they've had a nice boost in share price, but recently have been pulling back. That appears to imply there is some disbelief by investors over the near term concerning the sustainability of of silver prices. They're probably correct.

It's probably not a good time to enter silver, and possibly time to take some profits off the table. But over the long term, taking into account the policies of the Federal Reserve and weak economy, silver should have some way to go before topping off, although it'll be a pretty wild ride.

The bottom line is whether the underlying fundamentals support the price of equities or commodities, and in the case of silver, there's nothing to suggest at this time the fundamentals have changed.

Mag Silver (MVG) (PAAS) (SVM) (EXK) (FVITF) Crushed as Silver Drops

Shares of Mag Silver Corporation (AMEX:MVG), Pan American Silver (NASDAQ:PAAS), Fortuna (OTC:FVITF.PK), Silvercorp Metals Inc. (NYSE:SVM) and Endeavour Silver (AMEX: EXK) got hammered as silver prices plunged Monday.

Gold for June delivery jumped 70 cents Monday to settle at $1,557.10 an ounce at the Comex division of the New York Mercantile Exchange. After losing 2.5 percent to drop to $1,540.30, the yellow metal rebounded to $1,577 an ounce.

Silver prices for July lost $2.51 to settle at $46.08 an ounce, after getting crushed 13 percent, as it fell as low as $42.20.

The U.S. dollar index changed directions after an rally early in the trading session Monday and was down 0.09 percent at $72.96. The U.S. dollar index was fell almost 4 percent in April and is struggling to keep from breaking below its record low of $71.

It is surprising to see gold and silver be pressured, as in April gold was up 8.92 percent and silver a whopping 28.72 percent.

One piece of financial information somewhat ignored Monday because of the hoopla surrounding the death of Osama bin Laden, was the manufacturing report concerning China in April which showed production had slowed down during the month. That should help the price of gold and silver going forward.

Silvercorp Metals closed at $12.30, falling $1.29, or 9.49 percent.

Mag (MVG) (FVITF) (HL) (AMEX: EXK) Close Down as Silver, Gold Break Records

Mag Silver Corporation (AMEX:MVG), Fortuna (OTC:FVITF.PK), Hecla Mining (NYSE:HL) and Endeavour Silver (AMEX: EXK) all closed down Thursday even as gold and silver prices broke all-time records. It appears investors are taking some profits off the top.

Silver prices for July moved up $1.55 to settle at $47.54 an ounce.

Spot silver jumped almost 4 percent Thursday to an all time high at $49.51 an ounce, surpassing the previous record set in 1980.

Gold prices soared while silver prices climbed Thursday as investors bought the metals against a weak dollar and higher inflation expectations.

Gold for June delivery settled $14.10 higher at $1,531.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price soared to a record intra-day level of $1,538.80 an ounce while the spot gold price rose $6.90.

The ICE Futures U.S. Dollar Index was down 0.4 percent. The collapsing greenback aided dollar-denominated gold and silver by making them less expensive for foreign buyers, generating more demand.

Endeavour (EXK) (AXU) (SLW) (PAAS) Close Up as Silver Jumps, Gold Prices Soar to New Records

Endeavour Silver (AMEX: EXK), Alexco Resource (AMEX: AXU), Silver Wheaton (NYSE:SLW) and Pan American Silver (NASDAQ:PAAS) close up as gold prices post new records again and silver soars.

Gold prices Wednesday soared to another record, reaching as high as $1,529.20 on the Comex division of the New York Mercantile Exchange, before ending the session at $1,517.10 an ounce for June at the Comex.

At the close of regular trading on Comex, silver for May delivery jumped 91 cents, or 2 percent, to end at $45.96 an ounce. Gold and silver were pushing higher in after-hours trading.

Some of this was the result of Federal Reserve chairman Ben Bernanke saying he won't be doing anything soon to combat the soaring inflation.

Bernanke likes to use the so-called core inflation numbers, which exclude food and fuel, which are part of the surging increase in inflation, but aren't officially counted. Which is why Bernanke can say core inflation will rise 1.3%-1.6%, below its 2% inflation mandate.

As to economic growth, Bernanke admitted it was slowing down in the U.S. in 2011, somewhere in the range of 3.1%-3.3%.

The non-action by the Fed concerning interest rates is a very bullish factor for gold and silver, and will continue to offer support and impetus to the precious metals.

The euro climbed to $1.4782 from Tuesday's $1.464. The U.S. dollar rose against the yen, up to 82.11 yen from Tuesday's 81.53 yen.

Pan American Silver closed Wednesday at $36.99, gaining $1.40, or 3.93 percent. Silver Wheaton ended the day at $42.01, rising $2.84, or 7.25 percent. Alexco Resource closed at $10.00, up $0.65, or 6.95 percent. Endeavour Silver closed the session at $11.95, climbing $1.29, or 12.10 percent.

Mag Silver (MVG) (GPL) (SSRI) (EXK) Close Down as Silver, Gold Routed

Silver took a beating Tuesday. After setting records for seven out of the last eight trading sessions. Silver closed Tuesday almost 10 percent below Monday's intraday record $49.820, with Mag Silver Corporation (AMEX:MVG), Great Panther (AMEX:GPL), Silver Standard Resources (NASDAQ:SSRI) and Endeavour Silver (AMEX: EXK) closed down.

Gold prices closed down Tuesday from records set the previous trading session, temporarily falling below the important $1,500 level at one point, but the losses in the yellow metal were subdued.

On the other hand, silver futures plunged Tuesday as investors took profits from record prices as uncertainty over the Federal Reserve policy decision coming up could have an adverse effect on the metals' unprecedented rally.

There is some wariness by some on how the Federal Reserve might respond in light of recent signs of higher food and energy prices.

Silver took a beating Tuesday. After setting records for seven out of the last eight trading sessions. Silver closed Tuesday almost 10 percent below Monday's intraday record $49.820.

The most actively traded silver contract, for May delivery, fell $2.099, or 4.5%, to settle at $45.050 a troy ounce on the Comex division of the New York Mercantile Exchange. Front-month April silver lost $2.093, or 4.4 percent, to finish at $45.058.

Most-active Comex June gold was down $5.60, or 0.4 percent, to settle at $1,503.50 a troy ounce while the nearby April contract fell $5.60, or 0.4 percent, to end at $1,503.00.

Gold trading near $1,500 an ounce has increased buying in silver as a less expensive alternative.

Endeavour Silver closed at $10.66, falling $0.67, or 5.91 percent. Silver Standard Resources closed at $32.86, down $1.98, or 5.68 percent. Great Panther ended the trading session at $3.28, falling $0.32, or 8.89 percent. Mag Silver Corporation closed at $12.46, dropping $0.27, or 2.12 percent.

Endeavour (EXK) (SSRI) (AG) (CDE) Close Down as Silver Closes in on All-Time Record

Silver and gold prices are continuing their upward move, even as silver miners First Majestic (NYSE:AG), Coeur d'Alene Mines (NYSE:CDE), Silver Standard Resources (NASDAQ:SSRI) and Endeavour Silver (AMEX:EXK) all closed down, as investors took some profits as the white metal continued its upward run.

Investors all also getting increasingly nervous at the rate the precious metals are rising, giving pause as prices continue to hit all-time highs in the case of gold, and 31-year highs in the case of silver, as silver continues to push toward breaking its all-time high of just over $50 an ounce.

Gold closed at a new high, jumping $5.30 to settle at $1,509.10 an ounce at the Comex division of the New York Mercantile Exchange. Gold had ended the session above $1,500 for the first time last Thursday.

Today's Gold trading had the Globex June Gold contract trading at $1519.20 before a profit taking sell-off mid to latter part of the trading session.

Silver prices soared to a 31-year high again, settling at $47.15, up $1.09 for the day, or 2.4 percent. April silver futures in New York traded as high as $49.10 an ounce but dropped to close at $47.15 mark.

The more active May silver contract jumped just shy of the $50 level, trading as high as $49.82 before falling back.

An incredible number of silver and gold contracts were sold Monday, reaching 109,000 for gold and 199,000 for silver. Silver prices were volatile, moving in a $4.18 range.

Most of this is because of the collapsing U.S. dollar, tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake.

The DXY index of the U.S. dollar's value against a basket six other major currencies fell 0.2 percent to 73.99, its lowest level since August 2008. It's down 6.4 percent so far in 2011.