"What the heck do I do with a 5kg block of silver???"... the better half (about 12 months ago).
Twelve months is a long time in the silver market these days, hey. Giddy-up.
Just when you thought it was safe to go back ..... sorry, someone else used that one a few years back. What's the deal with the Japanese?? (A case of The VAPOURS for the Fed maybe?? ..The young'uns mightn't remember the song). Didn't these guys run the yen back up to 112 a couple weeks ago? Someone's losing credibility out there. Seems like they've pulled the pin on backing the insane "printing press policy" of the Fed. Our own Prof. Succo nailed it in his musings this morning. Was it a blink or did they fill their strides? The Yen would be somewhere near 90 (or lower) if markets were free to find their own levels. Bear Stearns reckons 95 in 12 months. Further to that it makes the comments of Mr Tanagaki (?) the other week about gold in reserve allocations, look significantly more realistic.
We saw Tocom close as strong as a Mallee bull today. Someone was selling truckloads at $423. Whoever it was doing the buying had deeper pockets or a little more ticker or both! Who knows if there is anything in it but if I was sitting on a pile of depreciating bucks like Japan, I'd be getting some of it into other assets. Repeat after me..."the only financial asset that is not someone else's liability is Gold/Silver"... Maybe there's a Minyan at the MOF???
Gold looks bloody good no matter what time horizon chart you look at. Stoppies around at $426 and change, so we could well pop to $428 late in the day, but on the other hand we were only at $417 yesterday so we may need a breather after all that hard work. We traded at $388 only a couple weeks ago. Just my opinion as usual and remember that no one gets it right all the time. Show me someone who gets 90% of their trades right and I'll show you a liar (or a Central Banker with inside info!)
I see OPEC is gonna cut production and as a result crude kicked higher, until the API/DOE numbers came out as Toddo relayed in the Buzz. As mentioned previously, it's not crude that's gonna be the issue, rather the inability to refine it to stuff we can actually use. Watch the crack spreads.
Silver, silver, silver... well what can I say... $7.60 traded in Asia yesterday and now we are pushing $7.90+... good work if ya can get it. Fundamentals dictate higher prices in my opinion, but you just never know what lies around the corner. Certainly wouldn't get too cocky here.
The gold shares came off a little yesterday after the Comex close. Golden Star Resources (GSS) up some 4% at this stage (and coming back some) leads the way today but to my mind the HUI is a little disappointing compared to January. We are only a few bucks off January gold price yet the shares are well off their highs. Maybe some catch-up to come or do the shares know something the gold price doesn't? Iamgold and Wheaton River merged to form a big 1 million ounce company. Expect more consolidations going forward. Even a few Aussie miners are moving, notwithstanding the strength of our dollar. I think there are some "under appreciated" Aussie miners around that will soon be well loved.
The Kiwi dollar and Aussie dollar are having a ball lately, rising some 3% in the last 48 hrs and the Rand has gone higher again than when I said I didn't it like the other day. Oh well, it happens. I still don't like it.
Gotta fly... 65 mins to go in Comex and I reckon this could be a great spectator sport for those not involved and for those rolling the dice, hang on! Something's gonna give, one way or the other in the coming weeks.
Enjoy the rest of your day....
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