Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Pre-COVID US Economy Wasn’t All That Great Either - 4th Dec 20
Bitcoin Breath Taking Surge - Crypto Trading Event - 4th Dec 20
Platinum Begins A New Rally – Gold & Silver Will Follow - 4th Dec 20
Don't Let the Silver (and Gold) Bull Shake You Off! - 4th Dec 20
Stronger Risk Appetite Sends Gold below $1,800 - 4th Dec 20
A new “miracle compound” is set to take over the biotech market - 4th Dec 20
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold and Silver Lower Again as U.S. $14.3 Trillion U.S. Debt Ceiling Threatened

Commodities / Gold and Silver 2011 May 16, 2011 - 08:07 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold and silver are lower this morning as the recent bout of weakness continues. Equities in Asia were lower on economic growth and inflation concerns and European indices are also lower as Greek debt talks are in disarray after the weekend arrest IMF’s Dominique Strauss-Kahn.


Cross Currency Rates

There are concerns that the IMF’s chiefs’ arrest may delay resolution of Europe’s deepening debt crisis and Greek bonds have fallen again seeing the 10 year yield rise to 15.58% - close to the record highs seen last week.

Greek Government Bond – 10 year (Daily)

Oil prices are lower again on growth concerns despite a significant increase in tensions in the Middle East with clashes on Israel’s borders with Syria, the Lebanon and Egypt.

Gold is likely to find support from geopolitical risk emanating from the tinderbox that is the Middle East.

NYMEX Crude Oil – 5 Year (Daily)

Gold and silver’s fundamentals remain very sound and yet the majority of the western public remain unaware of the fundamentals and unaware of the significant macroeconomic, monetary and geopolitical risk facing them today.

Tensions in the Middle East and North Africa, concerns that Japan is on the verge of a severe recession (due to its earthquake, tsunami and its worsening nuclear catastrophe), risk of sovereign debt contagion in Europe and the U.S. (the U.S. is set to reach its $14.3 trillion 'debt ceiling' this week) and ultra loose monetary policies, currency debasement and inflation are contributing to continuing safe haven demand.

This is especially the case in China and India where strong demand has continued after the recent sell off and where demand continues to surprise analysts and market participants.

The Financial Times reported on Saturday that “the sharp drop in gold and silver prices has stimulated a surge in buying from India in a sign that consumers in the world’s largest gold-buying country retain faith in the decade-long bull story for precious metals.”

Chhabil Jain, a Mumbai silver trader told the Financial Times that “demand for silver bars was going through the roof” and that “many vendors were starting to run low on stocks”.

“People are booking incredible amounts of silver as they see the current drop in prices as a great opportunity to buy more ... most are buying for pure investment,” he added.

Bloomberg reports this morning that silver was the most traded commodity in April.

Incredibly, the value of trading in silver futures in India was four-times greater than gold. Trading of silver futures on the Multi Commodity Exchange gained more than sevenfold to 4.1 trillion rupees in the April 16-30 period from a year earlier, regulator’s data showed.

Indians unlike their western counterparts still silver as an important store of value to protect against the declining purchasing power of paper currencies.

U.S. Debt Ceiling of $14.3 Trillion To Be Reached
While the media focuses on the weekend arrest IMF’s Dominique Strauss-Kahn, a more fundamental and important story is that of America’s debt ceiling of $14.3 trillion which is likely to be reached, possibly today or tomorrow. America’s budget deficit this year alone is set to be a record breaking $1.5 trillion.

These figures and America’s appalling fiscal state means that gold and silver remain important diversifications.

Should the US Congress fail to vote to increase the debt limit today or this week, the White House has warned that the country would default on its debt and spark a new financial crisis.

The US Treasury has threatened to implement "extraordinary measures" so America can keep paying its bills until August.

Federal Reserve Chairman Ben Bernanke told Congress last week that any delay in increasing the debt limit would result in higher interest rates and could have "extremely dire consequences for the US economy".

The reality is that the continuing imprudent and profligate fiscal and monetary policies in the U.S. are likely to lead to higher interest rates and have "extremely dire consequences for the US economy".

Recent and continuing unsustainable fiscal and monetary policy have led to safe haven demand for gold and silver and the continuation of the bull markets in the precious metals.

Until fiscal and monetary discipline and sanity returns to America and the world, gold and silver will continue to be bought in order to hedge the continuing debasement of fiat currencies.

Gold
Gold is trading at $1,491.30/oz, €1,056.98/oz and £921.69oz.

Silver
Silver is trading at $34.09/oz, €24.16/oz and £21.07/oz.

Platinum Group Metals
Platinum is trading at $1,755.50oz, palladium at $703/oz and rhodium at $2,025/oz.

News
(Bloomberg)-- Commodity Futures Turnover in India Jumps on Silver Trade
Turnover on commodity futures exchanges in India, the biggest consumer of gold, surged 73 percent in April as silver’s rally to a record and price volatility spurred trading in the metal.

Turnover on the Multi Commodity Exchange of India Ltd., the nation’s biggest bourse and rivals, jumped to 12.9 trillion rupees ($286 billion) last month from 7.5 trillion a year ago, the Forward Markets Commission said today on its website. Turnover gained to 7.02 trillion rupees in the fortnight ended April 30, from 4.4 trillion rupees, the regulator said.

Bullion trade, comprising silver and gold, almost tripled in April, the commission said. Silver futures rallied to a record 73,600 rupees per kilogram in India on April 25, before slumping 28 percent through today. The value of trading in silver futures in India, the most traded commodity in April, was four-times greater than gold, data from the regulator showed.

“The large swings have resulted in large trading volumes,” Kishore Narne, head of research at Anand Rathi Commodities Ltd., said from Mumbai. “Speculators, especially the intra-day traders, have shifted from gold to silver because it appeared to them it’s a good way to make a quick buck.”

Trading of silver futures on the Multi Commodity Exchange gained more than sevenfold to 4.1 trillion rupees in the April 16-30 period from a year earlier, regulator’s data showed.

Silver futures for July-delivery on the exchange fell 1.6 percent to 52,860 rupees per kilogram at 12:21 p.m. in Mumbai. The metal has added 80 percent in the past year.

Trade in metals other than bullion dropped 38 percent in April, the regulator said. Trade in agricultural commodities rose 23 percent in the period and energy gained 14 percent.

(Bloomberg) -- Shanghai Gold Exchange May Cut Silver Daily Trading Limit to 10%
The Shanghai Gold Exchange may cut the trading band for silver contracts to 10 percent from 13 percent, the bourse said on its website.

The band will be reduced if the metal doesn’t rise or fall by the current 13 percent limit today, according to the statement. If reduced, the new 10 percent limit will be effective from tomorrow, it said.

The exchange will also reduce the margin requirement for silver contracts by 3 percentage points to 15 percent if the metal doesn’t rise or fall by the daily limit today, it said. The change in margin requirements would be effective from today, according to the statement.

(US Mint) -- 2011 American Buffalo Gold Proof Coin Available May 19
The United States Mint will begin accepting orders for the 2011 American Buffalo Gold Proof Coin on May 19 at noon Eastern Time (ET). There is no mintage or household order limit for this product.

The designs on the obverse (heads side) and reverse (tails side) of the 24-karat one-ounce gold coin are based on the original 1913 Type I Buffalo nickel by James Earle Fraser. The obverse features the profile of a Native American and the inscriptions LIBERTY, 2011, the initial F for Fraser and the W mint mark for the United States Mint at West Point. The coin's reverse features the revered American Buffalo-also known as the bison-along with the inscriptions UNITED STATES OF AMERICA, E PLURIBUS UNUM, IN GOD WE TRUST, $50, 1OZ. and .9999 FINE GOLD.

Each American Buffalo Gold Proof Coin is presented in an elegant hardwood box with a matte finish and a faux leather inset. The coin is exhibited on a platform which can stand at an angle for display when the box is open. A Certificate of Authenticity is also included.

GOLDNOMICS - CASH OR GOLD BULLION?



'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules