Investment Guru Jim Rogers sees Gold hitting US$2,000/oz in the near future off the back of increased money printing. Also he rightly points out that even though Gold will go higher, Silver still at only 60% of its all time high is the better buy of the two.
Monday, October 25, 2010
Silver Exports From China May Slump by 40% This Year
Shipments may decline from about 3,500 metric tons in 2009, said Feng Juncong, chief analyst at the state-owned Antaike, without providing a specific forecast. Customs data show exports plunged almost 60 percent to 970 tons in the first eight months. Cancellation of an export rebate in 2008 is also hurting shipments, she said.
Reduced exports may bolster prices that are trading near a 30-year high on speculation that governments worldwide will take further steps to stimulate their economies, weakening currencies and increasing demand for assets that are a store of value. China, the third-largest producer after Peru and Mexico, revoked export rebates in August 2008 to curb use of natural resources.
“There is huge demand in China this year and that has affected exports, which were already hurt after the tax rebate was abolished,” said Ng Cheng Thye, head of bullion at Standard Bank Asia. “The demand is coming from all areas, including jewelry, investment and fabrication and this has resulted in a physical market shortage in the Far East.”
The metal for immediate delivery touched $24.92 an ounce on Oct. 14, the highest price since September 1980, and traded at $24.2750 at 2:28 p.m. in Singapore. Industrial applications for silver, including electrical conductors and batteries, represent about half global demand.
“There are Chinese investors now hoarding silver, along with other resources, amid anticipation of higher inflation,” Feng said. “China is short of resources so these investors believe the metals will be more valuable in the future.”........read in full
Sunday, October 24, 2010
Demand Side Fundamentals
From Gold-Eagle.com:
The precious metals space is poised for robust gains in the long term on the back of strong supply- and demand factors. Declining mine production for precious metals has resulted in a tight supply scenario over the past few years, triggering prices. Key producers including South Africa, the U.S., Australia and Russia are showing signs of a gradual shortfall in potential output, creating a global supply deficit. Two other reasons have coerced prices to attain present levels: the upturn in industrial activities post recession and the return of investors due to subside in volatility. With demand remaining strong, a flat to negative supply scenario augurs well for precious metals.....read on
Saturday, October 23, 2010
Silver for Life
From The Economist:
MORE than a billion people lack clean water—and in most cases the lack is just of cleanliness, rather than of the water itself. The result is disease, particularly diarrhoea. This kills millions of children a year and stunts the growth of millions more. Better water filters, then, could save many lives and improve many others, and Yi Cui of Stanford University thinks he has come up with one........The filter element he and his team have designed is a mesh of tiny carbon cylinders, known as nanotubes, and silver wires laid on top of a thin strip of cotton cloth. Silver is well known to kill bacteria, so Dr Cui conjectured that forcing bugs to pass close to the metal without actually trapping them might lead to their destruction......read in full
Gold, China and QE
Brian Hicks of US Global Investors interviewed by John Candy on Mineweb.com. Brian discusses the expected effect of QE on the Gold price and the tightening of fiscal policy in China......listen here
Meltup - The NIA tells is as it is
Every American should be grabbed by the scuff of the neck and forced to watch this video.
Insider Selling To Buying Surpasses 1,400-1
From ZeroHedge.com: 27 Sep 2010
For all those who thought last week's "dramatic" improvement in the ratio of insider selling to buying from 650:1 to "just" 290:1 was a sign things are turning and insiders may soon be selling only 100 or so times more stock per week than buying, we have some bad news. According to Bloomberg, the latest ratio of insider selling to buying was 1,411 to 1. Let us repeat: 1,411 to 1. Needless to say, corporate insiders are totally buying the Fed reflation story, and the economic recovery. Like, totally....read in full
The Incas were Right - Moon's Soil Contains Silver
It seems that the ancient Incas were correct in describing Silver as "the Tears of the Moon" as NASA has just found out that the lunar soil contains trace amounts of Silver.
From news.com.au:
LUNAR soil is richer than previously thought, with traces of silver among the complex mix of elements and compounds found within one of the moon's craters, according to a study published today.
Researchers at Brown University who analysed particles of lunar dust kicked up by a NASA-engineered collision last year found a surprisingly rich mixture that, in addition to the silver, included water and compounds such as hydroxyl, carbon monoxide, carbon dioxide, ammonia, and free sodium.....read on
Weekend Chill Out
This Weekend's Chill Out is dedicated to all those Smooth Operators out there who bought Gold under $1,000/oz and Silver under $500/kg. I hope you are closer to living the Diamond Life.
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