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ECB Overnight Deposits Drop By More Than Half

|Includes:SPDR Gold Trust ETF (GLD), SLV, SPXL

As I already predicted in this article, the ECB overnight deposit dropped. It didn't drop by a bit, it dropped in HALF and it's not a glitch.

Now where will this 500 Billion Euro go, I wonder. I'll keep you posted, stay tuned.

They could go to: bonds, gold, real estate, land, overseas currencies.

500 billion euro is not a little bit of money, it is huge. The financial stimulus in 2008 was comparable to this 500 billion euro. You can buy a lot with this money. Deutsche Bank is only 20 billion euro in market cap. The whole silver market is only worth 20 billion euro. Even Citigroup is worth only 50 billion euro.

So I expect something big to happen in the equity markets and especially in the precious metals market.

Click to enlarge

Chart 1: ECB overnight deposits

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Disclosure: I am long GLD, SLV.

Stocks: GLD, SLV, SPXL