Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
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Submitted by Tyler Durden on 02/29/2012 07:55 -0500
From GoldCore
Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Gold’s London AM fix this morning was USD 1,788.00, EUR 1,329.96, and GBP 1,120.79 per ounce..
Yesterday's AM fix was USD 1,774.75, EUR 1,321.48, and GBP 1,120.42 per ounce.
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Cross Currency Table – (Bloomberg)
Gold rose 1% in New York yesterday and closed at $1,783.90/oz. Gold rose in Asia to a high of $1,790.16 it’s highest since mid November then edged down. Europe this morning saw sideways trading until unusually volatile trading around the London AM fix saw gold rise from $1785.oz to over $1790/oz at 1030 GMT and then fall quickly to $1783/oz.
Spot silver has gained another 0.5% to $37.05 an ounce, after surging 4.5% yesterday once it rose above resistance at $35.50/oz. Silver reached a 5 month high of $37.21 but remains more than 30% below its nominal high in of April last year of $48.44.
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Silver Spot $/oz – (Bloomberg)
Over 800 European banks have taken €529.5 billion from the ECB today after taking €489 billion euros at the first tender in December. The ECB’s 3 year lending is now near 1 trillion euros ($1.35 trillion) and the ECB’s balance sheet looks increasingly precarious.
Although the flood of paper has been credited with fuelling a rally on Europe’s distraught bond markets and safeguarding the region’s banks, it is another exercise in kicking the beer keg down the road as it fails to address the fundamental issue which is the insolvency of many European banks and many European nations and the obvious risk of contagion from that.
The continuation of ultra loose monetary policies increases the risk of inflation which will benefit gold which is an excellent inflation hedge. Extremely low yields on deposits and “risk free” sovereign debt means the opportunity cost of carrying non yielding bullion remains very low.
Spot silver gained 0.4% to $37.05 an ounce, after surging 4% and hitting a 5 month high of $37.21 in the previous session.
Silver as ever outperformed gold yesterday and traders attributed the surge to “massive fund buying” and to “panic” short covering. Some of the bullion banks with large concentrated short positions covered short positions after the technical level of $35.50/oz was breached easily.
Massive liquidity injections and ultra loose monetary policies make silver increasingly attractive for hedge funds, institutions and investors.
This time last year (February 28th 2011) silver was at $36.67/oz. Two months later on April 28th it had risen to $48.44/oz for a gain of 32% in 2 months.
There then came a very sharp correction and a period of consolidation in recent months. Silver’s fundamentals remain as bullish as ever and the technicals look increasingly bullish with strong gains seen in January and February.
Very bullish is the fact that silver also remains more than 30% below its record nominal high 32 years ago in 1980 and more than 75% below its inflation adjusted high of $140/oz in 1980.
The gold-silver ratio dropped to its lowest level in 5 months, after silver rose more than 12% so far this month and an enormous 34% this year, outperforming other precious metals.
Rising holdings of silver-backed ETF’s also indicated growing investor interest in the metal. The overall silver Exchange Traded Funds holdings rose to 491.079 million ounces, the highest since last May.
Spot platinum gained nearly 0.5% to $1,722.24, as investors await the latest in Impala Platinum's dealing with an illegal strike that has disrupted production at Rustenburg, the world's largest platinum mine.
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Yeah, yesterday was a very strong day for silver, 4% up in one day! In just one day it outperformed what most people's portfolios will do for an entire year!
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
I think the $40 mark is going to approach us very quickly. I don't think there will be as much fanfare about it this time around though.
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Hmmmmm where I buy my gold/silver is showing a massive slide. -3.52 % for gold and -3.58 % for silver
http://markets.gatewestcoin.com/index.html
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
steyr_m
Yes, blatant dumping by TPTB to suppress the metals. Frankly, members of GSUS should have bought a ticket on the silver and gold train a long time ago if they were paying attention. But, consider today sort of a sale price on silver and gold. Even yesterday's prices will seem a screaming bargain 6 months from now.
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
mamboni
Yes, blatant dumping by TPTB to suppress the metals. Frankly, members of GSUS should have bought a ticket on the silver and gold train a long time ago if they were paying attention. But, consider today sort of a sale price on silver and gold. Even yesterday's prices will seem a screaming bargain 6 months from now.
Yeah, I'm still adding to my stack even though it's a bit slower than it used to be. That being said, I've been waiting for it to "go to the moon" [like 10k Au and 1k Ag] for a long time now. As these "smack downs" continue, I wonder if it will ever happen....
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Did someone just get taken to the cleaners?
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
EE_
Did someone just get taken to the cleaners?
Bernanke had his sayan take gold and silver to the woodshead for a whoopin' before he made his announcement that more monopoly money will have to be printed so the poor slobs (that's us) can pay the rent next time we land on Boardwalk or Park Place, you savvy?
Attachment 2333
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Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Wow - I'm eating my words from this morning. What a smackdown!
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Elections = rigged
Metals (paper) market = rigged
American Idol = rigged
....
If it's American, it's rigged people. It's THEIR system... their design, their implementation. You (meaning me, et al) can't win.
(Cue Palani coming in to tell me again that I am the system's creator.)
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
the paper raids have multiple purposes, but one of them i think they succeed at - some investors are leery of such a volatile market.
so i think these violent price swings have the long term effect of scaring some investors away - a "worthwhile" goal if you are trying to slow the devaluation of the dollar.
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
gunDriller
the paper raids have multiple purposes, but one of them i think they succeed at - some investors are leery of such a volatile market.
so i think these violent price swings have the long term effect of scaring some investors away - a "worthwhile" goal if you are trying to slow the devaluation of the dollar.
The longer they keep their paper game alive the longer we have to accumulate physical!
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
Neuro
The longer they keep their paper game alive the longer we have to accumulate physical!
http://t1.gstatic.com/images?q=tbn:A...MeF9y9ZFRtZt9w
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
Quote:
Originally Posted by
Steal
That's excellent. That guy drinks more coffee than I do! LOL
Re: Silver Surges 4.5% To Over $37/Oz On "Massive Fund Buying"
