21 December 2011
Are You Ready for "Peak Silver"?
-- Tim Begany
We've all heard of peak oil -- the notion that, because there's a finite oil supply, production will one day begin to progressively diminish until there's no oil left. Well, a similar thing may be happening with silver, one of the world's most desired precious metals. That's why we at StreetAuthority think silver may be one of world's most coveted investments in the coming months and years.
Whether peak silver will actually come to pass is anyone's guess. It's just too difficult to predict these sorts of events with any kind of accuracy. But one thing seems certain: at this point, there isn't enough silver to go around, and it doesn't look like there's going to be any time soon. The chart below provides an excellent illustration of this.
As the chart shows, total demand for silver -- the amount demanded by investors and industry -- has long outstripped what mining companies have been able to produce. This year, the estimated shortfall is about 120 million ounces, the difference between the 900 million ounces demanded and the 780 million ounces the mining industry will be able to supply. In other words, according to the chart, silver has been scarce for more than a decade, even though miners ramped up production 30% during that time.
Sounds pretty dire, doesn't it? We could be facing an ongoing silver shortage or maybe even a peak-silver situation that plays out within a decade. It all depends on how you look at it. For investors, it could mean a long and profitable bull market in silver, since shortages typically mean higher prices in the long-term.
We've all heard of peak oil -- the notion that, because there's a finite oil supply, production will one day begin to progressively diminish until there's no oil left. Well, a similar thing may be happening with silver, one of the world's most desired precious metals. That's why we at StreetAuthority think silver may be one of world's most coveted investments in the coming months and years.
Investors have been flocking to this metal for safety, just like gold. But that's not the only thing behind the high demand, which has been so great some experts say supplies could actually run out completely in only nine years. Industry has been gobbling silver up, too. Think about it. Silver is a crucial component in so many items considered essential to modern life. It's in our flat panel TVs. It's in our iPhones. It's also in solar panels, the use of which has climbed by more than seven-fold in the past decade. All told, demand for silver in consumer electronics has more than doubled in the past 12 years. Total industrial demand is forecasted to rise to 666 million troy ounces per year by 2015, nearly a 40% jump from today's level of industrial use.
Whether peak silver will actually come to pass is anyone's guess. It's just too difficult to predict these sorts of events with any kind of accuracy. But one thing seems certain: at this point, there isn't enough silver to go around, and it doesn't look like there's going to be any time soon. The chart below provides an excellent illustration of this.
As the chart shows, total demand for silver -- the amount demanded by investors and industry -- has long outstripped what mining companies have been able to produce. This year, the estimated shortfall is about 120 million ounces, the difference between the 900 million ounces demanded and the 780 million ounces the mining industry will be able to supply. In other words, according to the chart, silver has been scarce for more than a decade, even though miners ramped up production 30% during that time.
Sounds pretty dire, doesn't it? We could be facing an ongoing silver shortage or maybe even a peak-silver situation that plays out within a decade. It all depends on how you look at it. For investors, it could mean a long and profitable bull market in silver, since shortages typically mean higher prices in the long-term.
Simple Math and $100,000 Gold
If I need to SHOCK you into attention, I will.
Given that I know gold is going, MUCH, MUCH higher, it doesn’t matter what number I put in the title. At current prices, PHYSICAL precious metals are the bargain of a lifetime, far more so than when gold was $250/ounce a decade ago, and silver just $4/ounce. The explosion of global MONEY PRINTING since 2000 will be remembered as the most insane financial experiment of all time, which unfortunately is just getting started. That $100,000/ounce gold projection is NOT a joke, as you will see at the end of this RANT.
Before I get started, I want to darken the mood a bit, as the world is a bit too giddy about the hype of the abbreviation du jour, the LTRO funding facility that emerged out of Central Bank ether to yet again enslave – er, save Europe with another massive dose of crack – er, free bank loans.
Beware the Coming Bailouts of Europe
I see no difference between the LTRO bailout and the November 30th Fed “swap facility,” only this time the ECB, which just two weeks ago said it wouldn’t print money, is the bank showering the world with paper. THAT’S how bad things are, and wouldn’t you know it, the LTRO emerged, yet again, just as Bank of America was about to break down through $5.00/share, creating a landslide of margin-based selling that could have kick-started the END GAME. Not to mention, right before the New Year, to ensure TBTF firms aren’t scrutinized for awarding gargantuan, taxpayer-funded bonuses to executives before the system collapses in the first half of 2012.
In my view, this ominous, apocalyptic cloud formation is more appropriate to the current financial situation than the horns and whistles of this morning’s BLATANT bank bailout, and accompanying stock market orgy, which will likely have the same decreasing HALF-LIFE of all previous salvation attempts.
US MORTGAGE MEMO: NY Fed Buys $7.55B MBS In Week Ended 12.14
NEW YORK (MNI) - The New York Federal Reserve said its gross purchases of agency mortgage backed securities in the week ended December 14 totalled $7.95 billion and, after adjusting for its dollar roll activity, its net purchases totalled $7.55 billion.
The largest purchases in the latest week were in Fannie Mae and Freddie Mac 30-year "to-be-announced" TBA securities with 4.00% coupons for January delivery. Those buys totalled $3.15 billion.
The next largest purchase was $2.60 billion Fannie Mae and Freddie Mac 30-year TBAs with 3.500% coupon for January delivery.
Risk on Trade/stock market rallies/Gold and silver rise/LTRO in full swing
Harvey Organ's:
Tuesday, December 20, 2011
Good evening Ladies and Gentlemen:
Today the risk trade was on and as such the stock markets around the globe rallied big time on no news whatsoever. Gold finished the comex session at $1615.60 up $21.38 on the day. Silver rebounded 73 cents to $29.50. We are not finished yet with all of our gold and silver bashing by our illustrious bankers.
Let us head over to the comex and see how trading fared, with inventory movements and delivery notices and amount of precious metals standing for delivery.
The total gold comex OI fell by 3217 contracts yesterday from 427,087 to 423,870 as we had a little mini raid by the bankers. The front delivery month of December continues to baffle many analysts. The Dec month saw its OI rise again from 361 to 387 for a gain of 26 contracts despite 15 deliveries yesterday.
Thus we gained 41 contracts or 4100 oz of gold oz standing and lost nothing to cash settlements. The next big delivery month for gold is February and here the OI dropped by 4610 contracts to 248,902. The estimated volume today was 101,511 which is on the low side. The confirmed volume yesterday registered 127,111.
The total silver comex OI rose by 1160 contracts to 102,054 despite the mini raid. It seems that the silver long holders are more resolute in their conviction. The front delivery month of December saw its OI fall from 231 to 74 for a loss of 157 contracts. We had 119 delivery notices so again we had cash settlements to the tune of 38 contracts or 190,000 oz of silver. The next big delivery month is March and here the OI rose from 55,356 to 56,532. The estimated volume was a very very anemic 22,775. The confirmed volume yesterday on the mini raid came it at 52,161.
Tuesday, December 20, 2011
Good evening Ladies and Gentlemen:
Today the risk trade was on and as such the stock markets around the globe rallied big time on no news whatsoever. Gold finished the comex session at $1615.60 up $21.38 on the day. Silver rebounded 73 cents to $29.50. We are not finished yet with all of our gold and silver bashing by our illustrious bankers.
Let us head over to the comex and see how trading fared, with inventory movements and delivery notices and amount of precious metals standing for delivery.
The total gold comex OI fell by 3217 contracts yesterday from 427,087 to 423,870 as we had a little mini raid by the bankers. The front delivery month of December continues to baffle many analysts. The Dec month saw its OI rise again from 361 to 387 for a gain of 26 contracts despite 15 deliveries yesterday.
Thus we gained 41 contracts or 4100 oz of gold oz standing and lost nothing to cash settlements. The next big delivery month for gold is February and here the OI dropped by 4610 contracts to 248,902. The estimated volume today was 101,511 which is on the low side. The confirmed volume yesterday registered 127,111.
The total silver comex OI rose by 1160 contracts to 102,054 despite the mini raid. It seems that the silver long holders are more resolute in their conviction. The front delivery month of December saw its OI fall from 231 to 74 for a loss of 157 contracts. We had 119 delivery notices so again we had cash settlements to the tune of 38 contracts or 190,000 oz of silver. The next big delivery month is March and here the OI rose from 55,356 to 56,532. The estimated volume was a very very anemic 22,775. The confirmed volume yesterday on the mini raid came it at 52,161.
Analysis: BOE MPC Sticks To The Speed Limit On QE
LONDON (MNI) - The minutes of the December Monetary Policy Committee meeting showed that the MPC was united in sticking to its current pace of asset purchases, respecting a speed limit imposed by markets.
Analysts believe the MPC could step up the pace of quantitative easing a little, and the minutes support that view, but the committee cannot put its foot down hard on the policy accelerator. Sanctioning a three month round of Stg75 billion in QE in February is reckoned to be as fast as the BOE could go, and even that might prove uncomfortably fast.
The problem the MPC faces is it does not have complete freedom of choice over the size and pace of its quantitative easing policy, as it is curtailed by market participants' propensity to sell it gilts.
Analysts believe the MPC could step up the pace of quantitative easing a little, and the minutes support that view, but the committee cannot put its foot down hard on the policy accelerator. Sanctioning a three month round of Stg75 billion in QE in February is reckoned to be as fast as the BOE could go, and even that might prove uncomfortably fast.
The problem the MPC faces is it does not have complete freedom of choice over the size and pace of its quantitative easing policy, as it is curtailed by market participants' propensity to sell it gilts.
E-Mail Clues in Tracking MF Global Client Funds
Alex Wong/Getty Images: Jon S. Corzine, former chief of MF Global, testifying before a House financial services subcommittee about the firm’s collapse.
Federal authorities investigating the collapse of MF Global have uncovered e-mails that detail the transfers of money in the firm’s last days, including transfers that contained customer money, according to people close to the investigation.One e-mail chain refers to the transfer of roughly $200 million that MF Global owed JPMorgan Chase on Oct. 28 — the firm’s last business day before it filed for bankruptcy. In that chain, a senior official in the firm’s Chicago office was told to make the transfer, said the people close to the investigation who requested anonymity because the inquiry was still open.
Top US general: Iran's dangerous game could draw Mid East and US into conflict
Defense Secretary Leon Panetta told CBS that Iran could build a nuclear bomb in a year or less, Gen. Martin Dempsey, Chairman of the Joint US Chiefs of Staff issued a warning: "Iran is playing a dangerous game that could ensnare the Middle East, the Middle East and others into conflict and a renewed arms race." During a stop in Afghanistan, the general spoke to CNN of concerns about Iran's ambitions from Iraq to Afghanistan, Kuwait and Saudi Arabia.
He was described as quietly leading the ongoing military planning for an attack against Iran's nuclear weapons if the president gives the order to do so. "We are examining a range of options," said the US general. "Don't push it," he warned Iran.
debkafile's military and Washington sources say it should be noted that in the space of 24 hours, America's two top security figures have referred to war with Iran as a realistic and imminent possibility. This is a big step from the customary US references to a military option as being on the table as a last resort for halting Iran's march toward a nuclear bomb still calculated to be some years in the distant future.
He was described as quietly leading the ongoing military planning for an attack against Iran's nuclear weapons if the president gives the order to do so. "We are examining a range of options," said the US general. "Don't push it," he warned Iran.
debkafile's military and Washington sources say it should be noted that in the space of 24 hours, America's two top security figures have referred to war with Iran as a realistic and imminent possibility. This is a big step from the customary US references to a military option as being on the table as a last resort for halting Iran's march toward a nuclear bomb still calculated to be some years in the distant future.
ECB to Lend Greater-Than-Forecast $645 Billion as Banks Line Up for Funds
Barclays estimates today’s operation will inject 193 billion euros of new money into the system, with 296 billion euros accounted for by maturing loans. The ECB also lent banks $33 billion for 14 days in a regular dollar offering, up from $5.1 billion a week ago, and 29.7 billion euros for 98 days.
Countdown to the End
By Greg Hunter’s USAWatchdog.com Today marks the official one year countdown to the end of the Mayan calendar. 365 days from today will be December 21, 2012. Some say it marks the end of the world, but others say it is really the end of an era. An Associated Press (AP) report, yesterday, about Mexican tourism said, “It’s selling the date, the Winter Solstice in the coming year, as a time of renewal. Many archeologists argue that the 2012 reference on a 1,300-year-old stone tablet only marks the end of a cycle in the Mayan calendar. “The world will not end. It is an era,” said Yeanet Zaldo, a tourism spokeswoman for the Caribbean state of Quintana Roo, home to Cancun. “For us, it is a message of hope.” (Click here for the complete AP story.)
I don’t know exactly what’s going to happen in 2012, but I am betting a dramatic change is coming. For most, life will be much harder and people will be much poorer. You’ve heard of peak oil? Well, peak credit is also topping out, and it looks like everything will hit the fan next year. Charles Hugh Smith has a similar 2012 economic outlook, and wrote an in-depth post yesterday where the title describes the entire story: “2011: The Last (Debt-Consumerist) Christmas In America.” Mr. Smith said, “A funny thing happens when you depend on expanding debt to fund your consumption: eventually the cost of servicing your rising debt reaches the limit of your income, and you can’t borrow any more, unless interest rates decline so you can leverage your income into higher debt. . . .Lowering interest rates extends the era of debt-based consumption, but it only puts off the inevitable crash when the ability to borrow runs out. Eventually the cost of servicing this lower-interest debt absorbs all your disposable income, and the borrowing skids to an abrupt stop.” (Click here to read the most excellent post from Charles Hugh Smith.)
Of course, when the borrowing stops, the money printing will begin. I think we are somewhere between borrowing and money printing with the emphasis on the printing part. $12 trillion are held outside the U.S. in liquid dollar assets. In the end, the world will face a currency crisis as dollar holders rush to cash out of an increasingly debased buck. Is 2012 the year? We will see.
Gold 'does not offer comfort in liquidity crunch', European banks could not refuse ECB's 'free money' offer
Silver bullion fell to $29.29 per ounce – having briefly passing the $30 mark – as the Euro fell against the Dollar following news that European banks borrowed a total of €489 billion at the ECB's 3-Year Longer Term Refinancing Operation, which settled Wednesday morning.
The LTRO – through which the ECB offered to lend to banks for three years against collateral that includes distressed Eurozone government debt – saw 523 bidders.
The ECB offered the loans at a rate of 1%.
"It was obviously an offer the banks could not refuse," says Laurent Fransolet, head of fixed income strategy at Barclays Capital in London.
The LTRO – through which the ECB offered to lend to banks for three years against collateral that includes distressed Eurozone government debt – saw 523 bidders.
The ECB offered the loans at a rate of 1%.
"It was obviously an offer the banks could not refuse," says Laurent Fransolet, head of fixed income strategy at Barclays Capital in London.
Banks gorge on ECB loans, market cheer short-lived
Euro coins are seen in this photo illustration taken in Rome, December 9, 2011.
Credit: Reuters/Tony Gentile
Following a string of failed attempts by euro zone leaders to thwart market attacks on the bloc's weaker members, hopes of crisis relief before the year-end had been pinned on a massive uptake of the ECB's ultra-long and ultra-cheap loans.
The near half a trillion euro take-up of ECB funds represented the most the bank has ever pumped into the financial system and exceeded almost all forecasts. A total of 523 banks borrowed with demand way above the 310 billion euros expected by traders polled by Reuters,
"The take-up was massive ... much higher than the expected 300 billion euros. Liquidity on the banking system has now increased considerably," said Annalisa Piazza at Newedge Strategy.
The funding should bolster banks' finances, ease the threat of a credit crunch and may tempt them to buy Italian and Spanish bonds, thereby easing the currency area's sovereign debt crisis.
Exclusive: Italian banks tap 116 billion euros of ECB loans
ROME/MILAN |
(Reuters) - More than a dozen Italian banks, including top lenders UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), tapped 116 billion euros ($143.52 billion) of new three-year loans offered by the European Central Bank, nearly a quarter of the total, three sources with direct knowledge of the matter told Reuters.The ECB's first ever offer of three-year loans on Wednesday drew demand for a massive 489 billion euros from 523 banks, raising hopes a credit crunch can be avoided and that the money could be used to buy Italian and Spanish bonds.
"It's a 116 billion euros," one senior banking source told Reuters. Two other sources confirmed that amount.
The Italian figure includes 40.4 billion euros of state-backed bank bonds which were used as collateral for the loans. But banks could also offer other types of collateral for the ECB loans, such as government bonds for example.
A document from Italy's stock exchange Borsa Italiana showed 14 banks had listed state-guaranteed bank bonds on the MOT regulated bond market, a pre-requisite for those bonds to be accepted as collateral for the ECB new loans.
The biggest amount, 12 billion euros, of state-backed bonds was taken up by Intesa Sanpaolo (ISP.MI), which confirmed it had used them as collateral for the loans, and said that these would help it complete pre-funding for its wholesale medium and long term maturities for 2012.
The stock exchange document showed Banca Monte dei Paschi di Siena (BMPS.MI) has listed bonds for 10 billion euros, while UniCredit has floated 7.5 billion euros of bonds.
Among the other 14 banks are Banco Popolare (BAPO.MI) with bonds worth 3 billion euros, Banca Popolare di Sondrio (BPSI.MI), Banca Etruria (PEL.MI), Banca Popolare dell'Emilia Romagna (EMII.MI) and Credito Emiliano (EMBI.MI).
Gold the protector as democracies move towards totalitarianism Gold, and perhaps silver, are still in a bull market phase which is likely to continue as governments print money, spin figures, manipulate markets and erode basic liberties.
Author: Lawrence Williams
Let's look at the realities. Governments can release trillions of dollars into the markets to try, mostly unsuccessfully so far, to stimulate growth, mitigate unemployment and keep the general population's ‘feel-good' factor short of being suicidal. In this context it is hardly beyond likelihood that the relatively tiny sums (in comparison with all the money being printed under quantitative easing programmes) needed to keep stock markets appearing at least reasonably healthy - on the grounds that a healthy stock market gives the impression that the economy in general remains sound - may be being deployed. Likewise dollar, or other currency, strength - or weakness - is indeed often manipulated by governments as perhaps can be the price of gold (effectively a currency in its own right) where a rising gold price is a flag that all is not well with the mighty dollar or, indeed, with the global economy in general.
Overall, the writer views gold at the moment in a positive light and as remaining in a bull market phase as the global economy continues to collapse around us. The Eurozone crisis is not played out yet and debt levels within and outside the common currency area, and in the USA, continue to cause major concerns and it is difficult to see any certain way out of the current crisis. Maybe we will muddle through, but living standards are set to fall - drastically in some areas. Gold, and by association silver, have tended to stand the test of time as offering at least some wealth protection. History, which does tend to repeat itself over and over, is on their side.
Organisations such as GATA have been suggesting that gold and silver prices are manipulated by governments and banks - and the way the silver price was hit back in May does certainly suggest that the huge fall in a matter of minutes at a time virtually no-one would have been at work has to be suspicious to say the least. If gold and silver might be subject to external manipulation then it is not beyond the bounds of possibility that stock markets can be too with concerted buying or selling at key moments. Certainly inflation figures are massaged to protect confidence and the suspicion is that many other government statistics are too.
This is, of course, pure conjecture, but with so-called democracies seemingly moving ever further into totalitarian territory as basic liberties are taken away from us, in the name of counter-terrorism or economic necessity, it is difficult to judge to what purpose some of the huge, and ever-growing, debt may be being applied.
Likewise, the long-held GATA view that the gold price has been suppressed, if that has been happening, is also clearly unable to keep the price down, although GATA would argue that without suppression the price would be far higher.
The writer reiterates his view that all the drivers which have been responsible for gold hitting its highs are still intact and there is likely further upside ahead.
Silver is still suffering even more than gold from the even bigger fallout (in percentage terms) in May, and then again in September, which dented investor confidence - and with signs that the global economy is not pulling out of recession, and that any future growth will be strictly limited for years to come as austerity programmes make their impact, silver's industrial demand element may hold back rises. However, overall, we would still expect it to track gold and the thinness of the market could lead to some considerable volatility.
But bear in mind also that dollar strength is relative - and illusory. It is just doing better on the way down than many other recession hit currencies - notably the Euro. It will inevitably be hit by rising inflation from the printing of all that additional money from QE and other stimulus programmes.
Let's look at the realities. Governments can release trillions of dollars into the markets to try, mostly unsuccessfully so far, to stimulate growth, mitigate unemployment and keep the general population's ‘feel-good' factor short of being suicidal. In this context it is hardly beyond likelihood that the relatively tiny sums (in comparison with all the money being printed under quantitative easing programmes) needed to keep stock markets appearing at least reasonably healthy - on the grounds that a healthy stock market gives the impression that the economy in general remains sound - may be being deployed. Likewise dollar, or other currency, strength - or weakness - is indeed often manipulated by governments as perhaps can be the price of gold (effectively a currency in its own right) where a rising gold price is a flag that all is not well with the mighty dollar or, indeed, with the global economy in general.
Overall, the writer views gold at the moment in a positive light and as remaining in a bull market phase as the global economy continues to collapse around us. The Eurozone crisis is not played out yet and debt levels within and outside the common currency area, and in the USA, continue to cause major concerns and it is difficult to see any certain way out of the current crisis. Maybe we will muddle through, but living standards are set to fall - drastically in some areas. Gold, and by association silver, have tended to stand the test of time as offering at least some wealth protection. History, which does tend to repeat itself over and over, is on their side.
Organisations such as GATA have been suggesting that gold and silver prices are manipulated by governments and banks - and the way the silver price was hit back in May does certainly suggest that the huge fall in a matter of minutes at a time virtually no-one would have been at work has to be suspicious to say the least. If gold and silver might be subject to external manipulation then it is not beyond the bounds of possibility that stock markets can be too with concerted buying or selling at key moments. Certainly inflation figures are massaged to protect confidence and the suspicion is that many other government statistics are too.
This is, of course, pure conjecture, but with so-called democracies seemingly moving ever further into totalitarian territory as basic liberties are taken away from us, in the name of counter-terrorism or economic necessity, it is difficult to judge to what purpose some of the huge, and ever-growing, debt may be being applied.
Likewise, the long-held GATA view that the gold price has been suppressed, if that has been happening, is also clearly unable to keep the price down, although GATA would argue that without suppression the price would be far higher.
The writer reiterates his view that all the drivers which have been responsible for gold hitting its highs are still intact and there is likely further upside ahead.
Silver is still suffering even more than gold from the even bigger fallout (in percentage terms) in May, and then again in September, which dented investor confidence - and with signs that the global economy is not pulling out of recession, and that any future growth will be strictly limited for years to come as austerity programmes make their impact, silver's industrial demand element may hold back rises. However, overall, we would still expect it to track gold and the thinness of the market could lead to some considerable volatility.
But bear in mind also that dollar strength is relative - and illusory. It is just doing better on the way down than many other recession hit currencies - notably the Euro. It will inevitably be hit by rising inflation from the printing of all that additional money from QE and other stimulus programmes.
This Is How Much Money The Eurozone And Its Banks Need To Stay Afloat Next Year
As 2011 draws to a close, everyone's wondering if the eurozone will be able to make it through 2012 in one piece.
Downside risks menace from two sides.
On one hand, banks have to raise their ratios of core assets to liabilities in order to meet new banking regulations set forward by the European Banking Authority. That threatens to tighten credit and lending even further.
On the other, the cost of funding sovereign debt—the yield on sovereign bonds—has been elevated all year, despite some easing recently.
Downside risks menace from two sides.
On one hand, banks have to raise their ratios of core assets to liabilities in order to meet new banking regulations set forward by the European Banking Authority. That threatens to tighten credit and lending even further.
On the other, the cost of funding sovereign debt—the yield on sovereign bonds—has been elevated all year, despite some easing recently.
BofA/Countrywide To Pay $335 Million For Predatory Lending Practices Against African American And Latino Borrowers
Here is what the Department of Justice found at Countrywide: From 2004 to 2008, the height of the housing bubble, Countrywide purposely charged over 200,000 black and Latino qualified borrowers more for their mortgage loans than similarly qualified white borrowers.
The short story is that Countrywide steered those black and Latino borrowers toward riskier sub-prime loans, even when they qualified for prime loans, or simply charged them higher rates. These borrowers paid an average of tens of thousands of dollars more than they should have, that includes costs up front and throughout their mortgage.
Countrywide also illegally required spouses to surrender their claim to a mortgage as a condition of approval. So: in order for a man to qualify for a mortgage (for example) his wife would have to sign away her right to that mortgage.
The short story is that Countrywide steered those black and Latino borrowers toward riskier sub-prime loans, even when they qualified for prime loans, or simply charged them higher rates. These borrowers paid an average of tens of thousands of dollars more than they should have, that includes costs up front and throughout their mortgage.
Countrywide also illegally required spouses to surrender their claim to a mortgage as a condition of approval. So: in order for a man to qualify for a mortgage (for example) his wife would have to sign away her right to that mortgage.
Reasons why silver, gold, platinum looks bullish in 2012: BofAML
Why gold looks bullish for 2012
Gold may be bullish in 2012 as Central banks by and large are expected to maintain loose monetary policies, with scope for more aggressive balance sheet use in the US and Europe; negative real rates are positive for gold and they should persist through 2012 in the US. Investors will likely remain net gold buyers. Reserve diversification into gold is set to continue, for instance by central banks. Gold demand from countries like China looks set to increase.
Why Silver looks bullish for 2012
BofAML also forecast $37/oz for silver in 2013 while $30/oz for the moment. There is a good upside potential in 2012 silver prices because of continued interest in the metal. Silver fundamentals have been improving in recent years for a host of reasons, including increased demand from emerging markets, somewhat reduced drag from the photography sector and higher usage from new applications. This suggests that gradual increases of silver quotations were justified.
Gold may be bullish in 2012 as Central banks by and large are expected to maintain loose monetary policies, with scope for more aggressive balance sheet use in the US and Europe; negative real rates are positive for gold and they should persist through 2012 in the US. Investors will likely remain net gold buyers. Reserve diversification into gold is set to continue, for instance by central banks. Gold demand from countries like China looks set to increase.
Why Silver looks bullish for 2012
BofAML also forecast $37/oz for silver in 2013 while $30/oz for the moment. There is a good upside potential in 2012 silver prices because of continued interest in the metal. Silver fundamentals have been improving in recent years for a host of reasons, including increased demand from emerging markets, somewhat reduced drag from the photography sector and higher usage from new applications. This suggests that gradual increases of silver quotations were justified.
European credit crunch: Another excuse for silver downdraft?
By Dr Jeffrey Lewis
It's clear that Europe's debt problems can now be wrapped up into the term credit crunch. In light of operations by the Federal Reserve, the amount of money available for credit appears to be shrinking, while risk premiums demanded by banks are thickening.
It remains to be seen whether a drop in the monetary base from $2.7 trillion to just under $2.5 trillion will warrant a future round of quantitative easing. Assuming the Fed holds up with its promises to Europe, the central bank could easily inflate the US dollar by export, allowing for far more liquidity than might be politically possible in the United States.
It's clear that Europe's debt problems can now be wrapped up into the term credit crunch. In light of operations by the Federal Reserve, the amount of money available for credit appears to be shrinking, while risk premiums demanded by banks are thickening.
It remains to be seen whether a drop in the monetary base from $2.7 trillion to just under $2.5 trillion will warrant a future round of quantitative easing. Assuming the Fed holds up with its promises to Europe, the central bank could easily inflate the US dollar by export, allowing for far more liquidity than might be politically possible in the United States.
US military 'ready to engage in a conflict with Iran'
Tensions have been growing in the region following international condemnation over Tehran's growing nuclear ambitions.
Last month, Britain's ambassador to Iran was expelled from the country following attacks on the British Embassy. The US is also involved in a standoff over a downed spy drone, which President Mahmoud Ahmadinejad has refused to return despite America's requests.
General Martin Dempsey, chairman of the US joint chiefs of staff, said that the US military had reached a point where they were ready to execute force against Iran if necessary.
SilverDoctors: Why Gold Has Lost its Luster- Daily Dose of MSM Pr...
SilverDoctors: Why Gold Has Lost its Luster- Daily Dose of MSM Pr...: CNN Money's Nin-Hai Tseng (previously a reporter covering development and land-use policy... obviously an expert on gold! ) today released a...
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