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Central Banks Leasing Gold, seems to come to an end. http://seekingalpha.com/a/afin $GLD $PHYS Apr 9, 2012
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Bitcoin Hits All Time High
Just to remind you that the bitcoin price has hit new all time highs at $35.
With the high correlation between bitcoin and gold, there is no way that gold won't go higher.
As a matter of fact, Shanghai silver premiums hit a high of 4.36% today.
And even better, lease rates are hitting new highs.
While stress is still building up with record low GOFO rates.
People say I try to time the market, I say knowledge is power.
Disclosure: I am long AGQ.
Correlation: Margin Balance Vs. Stock Valuation
I came across an interesting correlation: Margin Lending Vs. S&P.
Margin loans are programs that allow investors to borrow money to buy equities. So if you think through it: the higher the margin balance in the market, the higher the S&P will go, because people will have more borrowed money to put in the stock market. Today, the total margin balance is at $350 billion for NYSE member firms.
The evidence is presented on Chart 1. You can see that there is no lag between the two charts, so it's a rather useless correlation to time the market.
Although fairly useless, sometimes there are discrepancies that can be spotted. For example, the rising Australian stock market could be overvalued at this moment when you look at their declining margin lending rate (Chart 2). So it can be interesting to watch this correlation.
Update: Precious Metals Premiums In Uptrend
Just wanted to give a status update on the premiums.
The trend in premiums is still in an upward phase. A little side note, the bitcoin price has skyrocketed and continues to do so.
(click to enlarge)
Chart 1: Silver Premium First Majestic Silver Bullion Premium
(click to enlarge)
Chart 2: APMEX Silver Premium
(click to enlarge)
Chart 3: Shanghai to London Silver Premium
(click to enlarge)
Chart 4: Shanghai to London Gold Premium
Disclosure: I am long AGQ.