Friday, January 21, 2011

Chinese Silver Demand Surges Four Fold in Just One Year


Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives. The fact that silver is again in backwardation at the front end of the curve suggests that tightness in the physical bullion market continues and may even be deepening. Indeed, the massive increase in silver bullion demand from China (confirmed overnight - see below) suggests that silver’s bull market remains very much intact despite becoming overvalued in the short term towards the end of 2010. 

David Tepper Presents The Core Tenets Of Bailoutism

 

Quote Of The Day: BOE's Adam Posen "U.K. Inflation Will Slow After Temporary Surge"

 

  • Peter Orszag: America must brace itself for turbulence (FT)
  • ECB Flags Risks of Higher Prices (WSJ)
  • Spain Plans Partial Nationalization of Savings Banks (Reuters)
  • BofA Reports Loss on Costs Tied to Bad Loans, Mortgage Unit (Bloomberg)
  • European Governments Weigh Bond Buybacks (WSJ)
  • Portugal Vote Imperils Accord (WSJ)
  • Obama Taps GE's Immelt to Head Economic Advisor Panel (Bloomberg)
  • Hu defends Beijing’s Currency Policy (FT)
  • GE Net Rises 31%, Tops Estimates Amid Finance, Health Gains (Bloomberg)
  • Nigeria oil fund fears hit bond issue (FT)
  • Ivory Coast's Gbagbo Faces Financial `Asphyxia' by EU (Bloomberg), bad news for bondholders



Bank of America Reps And Warranties Reserve Surges Five-Fold As Claims Rise Steadily

 

German IFO Business Survey Climbs To Fresh Records

 

Re: B of A – With Banks Being Forced To Admit The Inevitable Truth, How Long Will It Be Before Fundamentals Rule The Day Again?

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