While speculators in the West were selling paper silver, savers in the East were buying physical silver.
Gold (+4%) and silver (+9%) are ramping sharply this morning. as USD goes down a notch. The rumored and completely unsubstantiated mega bailout proposal from Europe has taken over the airwaves, even though Germans are denying it. Apparently European bailout is “fait accompli” as Steve Liesman at CNBC has quoted an unnamed source for the info.
Oversold conditions in the PM complex will help Gold and Silver move higher in the near future. My go to stocks remain RGLD, SLW, PZG, and RIC.
The quarter ending window dressing should be in full swing for the next couple of days. S&P 100 point range, from 1120-1220 remains intact as the elephants stomp this ground time and again.
Equity futures worldwide point to a sea of red in the morning today. European and Japanese equities are 2.5 years low.
The French banks are about to be downgraded any minute now. G7 emergency meeting had no soothing words for the market.
Greece is insolvent, and a default now is just a formality. And the market just does not know how to deal with it. The international banks will need another rescue because they all have exposure in some form or other to Greece. But this time around the contagion maybe so widespread that the rescue money is just now available.
So waiting and watching the slow train wreck from Greece, while the currency of US, with it own internal discords and record deficits, is perceived as a “safe haven” Go figure.
Equity markets are perking up in the morning and precious metals complex is under pressure.
The German constitutional court rejected the challenge against the Eurozone ‘bail outs’ but said that the ruling shouldn’t be seen as “blanket” approval for future bail outs.
Obama is seeking $300 billion for job creation. Hope this works.