And again, this nonsense that QE2 is that last of the money-printing is complete and utter bullshit and spin. By some estimates, your FED now controls up to 73% of the treasury market. SEVENTY THREE FREAKING PERCENT! As Ruprecht would say, "that's a lot". If 73% of the buyers are removed from any market, the price is going to drop. If bond prices fall, rates skyrocket and if rates skyrocket, The Great Ponzi comes to a rapid and spectacular close. So, turn off your TV today. It will be full of lies and garbage (like any other day, really) that will all be refuted by tomorrow. If/when the metals are mercilessly sold off today, look for a dip to buy. Be patient and you will be rewarded.
On to the metals, conveniently we have some very nice prospective support levels to utilize. First take a look at gold. They're whacking it pretty good today on "good economic news", global peace and general profit-taking. All three reasons will soon be reversed so I'm looking to buy anywhere under 1420.
Silver looks about the same, though the selloff hasn't been of the same magnitude as gold. IF I get an opportunity to buy some in the area between 33.80 and 34, I'll be all over it.
The writer contends that the Chinese have a plan to, eventually, back the renminbi with gold and other hard assets. Really? No shit! I've been saying this for about two years now and every time I bring it up, people look at me like I'm some kind of boob who has no idea how international finance works. Well, I'm telling you, this is The Plan. At some point in the future, the Chicoms will want the luxury of reserve currency status if only to be able to export their inflation in the same manner the U.S. has enjoyed for over 40 years now. It won't happen tomorrow, nothing in China ever does. However, you can bet your ass that by 2025, at the latest, this WILL happen.
More later. Watch those support levels closely. Look to buy a dip if it presents itself. TF
11:50 EST UPDATE:
The PMs are mainly trading sideways today. This means that they aren't moving UP but it also means that they aren't moving any lower, either, which is encouraging. The last 90 minutes will be very interesting as they will set us up for the overnight and into tomorrow.
When you have a moment, please take some time to read this article. It plays right into today's discussion regarding the collapsing dollar and the implications of said collapse. Btw, I've got about 76.60 on the March USDX. The area around 76.15 to 76.20 is critical support. Watch this very closely.
Take a look at this, too. I'm not adding yet. Still waiting for 34 or so.