Monthly Archives: February 2011

11
Feb
2011

Silver Bullion Backwardation Suggests Supply Stress

Gold and silver are higher against all currencies (except the Canadian dollar) in the wake of the worse than expected trade deficit number ($40.6 billion). Sterling and euro are particularly weak against gold and the US dollar today. 

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10
Feb
2011

Silver Lease Rates Rise Sharply – Bond Yields in Portugal Rise to Record

Gold is down 0.32% against the US dollar which is higher against all major currencies today. Gold is marginally higher in euros, Swiss francs, and Aussie and Kiwi dollars. Silver is down 1% in US dollars and lower in all currencies.

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09
Feb
2011

Gold at EUR1,000/oz – Strong Physical Demand Leading to Illiquid Conditions

Gold and silver are marginally lower against most currencies after yesterday’s 1% and 3% rise respectively. Gold rose above €1,000/oz again yesterday and remains just below the €1,000/oz level today despite the euro being stronger versus other currencies. Silver is back above the important $30/oz psychological level and €22/oz.

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08
Feb
2011

Gold Bullion Considered as Collateral by International Clearing House – LCH.Clearnet

 Gold is higher in most currencies today except for the Aussie and Kiwi dollars; silver has risen by some 1% in US dollars and is higher against all currencies. Asian equities were mixed with the Nikkei higher (+0.41%) and the Hang Seng lower (-0.29%). European equities are mixed with tentative gains being seen in the BE 500 and the Stoxx 50.

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07
Feb
2011

JP Morgan Accepts Gold Bullion as Collateral – Silver Backwardation to Lead to Short Squeeze?

 Gold is marginally lower in euro, pound and dollar terms and marginally higher in Japanese yen and Swiss francs. Silver is higher in all currencies. With gold’s 0.51% higher close last week (first rise in 5 weeks) and silver’s 4% rally, the bears will be nervous that the recent downward trend may have reversed. 

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04
Feb
2011

Bernanke: “Catastrophic” Implications for U.S. Economy if $14.3 Trillion Debt Ceiling Not Raised

Gold and silver have given up a small bit of yesterday’s strong gains in all currencies (especially the euro – see chart below) but are up more than 1% and 3% respectively on the week. Asian equity indices were higher overnight and are higher for the week, except for India where there are growing concerns about surging inflation and interest rates. European indices are higher today and most are up by some 1.5% to 2% on the week – as are US indices.

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03
Feb
2011

Chinese Gold Demand ‘Enormous’ and ‘Unbelievable’ – Stuns Analysts and Dealers

 The Swiss franc and the euro are weaker today and marginally lower against gold. Asian equity markets were higher (except for a 0.25% fall in the Nikkei) but European indices are more hesitant this morning. Greek, Italian and Spanish debt markets have seen yields creep slightly higher this morning.

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02
Feb
2011

Gold Will Reach Unbelievable Price and Silver Will Outperform Gold – Jim Rogers

 Hopes of economic recovery swept stocks higher in New York yesterday and this confidence spread to Asian equity markets. European stocks are tentatively higher as concerns about Egypt and geopolitical risk may be hampering gains. Oil prices remain near recent record highs (brent rose above $102 a barrel) and there are hopes that geopolitical tensions will subside, markets will remain calm and there will not be panic buying of oil and a new oil crisis.

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01
Feb
2011

Geopolitical Instability in Middle East – Gold Today Like Gold in the 1970s?

Spot gold and silver fell 6% and 9% respectively in January. The January price fall looks very much like another price correction and consolidation and is to be expected after the 30% rise in dollar terms seen in 2010. Absolutely nothing has changed with regard to the fundamentals of the gold and silver market and investors should use this sell off as another opportunity to diversify into the precious metals. 

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