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Metals With McGuirk: A Blow Up in the Copper Markets


We may see something similar in both gold and silver in the coming few years.

G'day. Pretty quiet day in Asia although the metals caught some bids in early Europe which sent both metals higher with gold again testing that $490 level. Silver nudged $8.15 but all has stalled again in New York. Again, we see paper sellers in control.

The following two articles are exactly what we've been suggesting the past few months. Declining production with increased consumption is not a bearish scenario for gold. This is a physical market issue, not anything that will inherently affect the cowboys playing futures in the short term. The London Gold Pool took a few years to implode so I guess there's plenty of time before this supply/demand imbalance works itself out.

S.Africa Q3 gold output down 15.4 pct to 72.4 tonnes

UAE Gold sales grow

It is interesting that there has been quite a "blow-up" in the copper markets. Noticeable to me is the fact that the paper markets are so "concerned" about physical delivery of said Chinese copper. I contend we will see something similar in both gold and silver in the coming few years, rogue trader or not. If everyone who thinks they "own" gold and silver via some future "promise" actually demanded delivery of said metal, well, there just ain't enough to go around. This is twice in a decade for copper!

An additional 100 Billion dollars in debt in just a month, someone's crackin' jokes, surely?? Hmmm.

Lots on the go down here and back a little later.

Gold likely capped at $490 and silver struggling at $8.15. Downside risk is gold $482 then 78 and silver at $7.95 then 85, not advice and just how it feels to me.

Enjoy the day
Position in gold/silver

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