Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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

© 2005-2022 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