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  • Silver's (SLV -0.6%) 9% plunge in the first minutes of trading overnight is being linked to hawkish talk from Japanese Economy Minister Akira Amari who warned the yen's (FXY +0.7%) fast decline may be hurting the economy. One fails to see the connection but dollar/yen did dive along with silver and Andrew Wilkinson suggests hedge funds short the yen were forced to raise cash by bailing on stale silver longs.  [View news story]
    Inflation is up in China. The rich are taking out their money to more attractive places like Australia. Yuan is dropping just like the Yen. Chinese and Indians have a big crave for the gold. Time for the metals to react.
    May 20, 2013. 05:36 PM | 1 Like Like |Link to Comment
  • Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%[View news story]
    The amount of gold that China and India is buying sounds to be abundant but price of gold is still dropping. I don't think that these buying can be anyway lower than others who are liquidating. Also it is hard to believe that the demand of the metal has dropped due to investors turning to stockmarket after liquidating the metal. Inflation in the US is down and the dollar has appreciated. But Japan and China are showing opposite datas. So looking at global market parameters like inflation,monetary situation, demand and supply there are no obvious global trend to justify the drop of gold and silver. Is it just speculation???
    May 20, 2013. 11:12 AM | Likes Like |Link to Comment
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