Paper silver sellers meet Physical silver buyers

While speculators in the West were selling paper silver, savers in the East were buying physical silver.

Gold and Silver surge pre-market

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.

Gold sell-off perspective

Jim  Sinclair is looking for a huge bear trap for gold bears.

John Roque observes:

“For every year from 2002 to 2010 gold has, at least, corrected to its 40-week moving average and been down, peak to trough on average 15.6% (see table).”

David Banister has gold support at $1650 per Elliott Wave .

Junior golds index, GDXJ, at support.

Need to hold here.

A black swan monday in the making in the sea of red

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.


Pre Market Equities and Precious Metals

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.


Swiss National Bank makes a pledge, gold futures marks time at $1900.

The Swiss export sector is hurting since the Swiss franc has been rallying over the past weeks as a percieved safe haven. To increase exports, the fiat currency has to be devalued. This moves underlies the fact that the global race to the bottom in fiat currencies has taken an even more serious turn as even the strongest economies cannot survive without debasing their curreny. The Swiss National Bank has pledged to buy foreign currencies in unlimited quantities setting a minimum exchange rate of 1.20 francs per euro.

Investors now have only gold as a currency that cannot be devalued.  Gold is hovering around $1900 today as the big margin requirement hikes, placed just a couple of weeks back, get brushed aside.

Pe-market the US stock futures are lower again today with Dow Jones futures convincingly below the psycologically important level of 11000. The currently trade at 10974.

The unravelling of the trust in fiat currencies is in full swing. Keeping the principal intact is becoming crucial, hence the move by Central Banks worldwide to shore up their gold holdings, and for investors to move to the only assest that is not being devalued, that is precious metals.