According to Bloomberg, an “unusually large” order wiped out Rand Refinery’s inventory of South African gold coins called Krugerrands. Rand, the world’s largest refinery, said the order was from a buyer in Switzerland and was for 5,000 ounces. It will take until September 3rd for the inventories to be replenished.

Physical demand for precious metals has risen in the past few weeks. Recently the US Mint suspended sales of one-ounce “American Eagle” gold coins, and Johnson Matthey also stopped taking order for 100-ounce silver bars because of this heavy demand.

In today’s trading, gold rose 4.60 to 834.70 an ounce, while silver gained +0.185 to 13.65. Professor Lance Lewis spoke of this physical demand in his column Get Out Of Gold?

From the Bull Pen: Those bullish on the yellow metal can continue to play the upside using the gold ETF (GLD); sell-stops below $80 may be an option.

From the Bear Cave: As a technical play, bears might consider Goldcorp (GG) for a downside trade. Buy stops can be set above $35.