You could share a little more of that Bangkok evening too!
Its like a giant crawling creeping swelling contraption this economy, with many operators, valves, cooling and heating systems, leaking foul ooze as it grinds up countries and maybe civilizations. I respect Louise Yamada, and when she says, 'oil $140 in 2011', I listen up. The reason USD is sinking is simply because the fed is printing too much of it. CAD and AUD are increasing for the same reason. CAD has climbed 10% against USD in the last 24 months. That only happens when the buck plummets in value. We do our best to keep it below USD, well below. I don't think the fed is going to raise interest rates any time soon. They can't,the deficit would blossom. They are between a rock, and a hard place, and they are out of bullets. Inflation will continue, in spite of what the captain says.
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Aye, wish I could share some Bangkok as is truly so fine, sweat running down my back as I type from my self chosen sweat shop both from the sultry heat and just got in from some chili rich love that my lips are still tingling from
Anyway, I am by no means saying that the prices will not continue to go up, was just questioning the reason with oil:-) I think longterm, it makes sense that oil prices will continue to climb as supply is used up more and more each year coupled with the likelihood that demand will increase exponentially as economic conditions around the world improve(me forever the optimist). In the case of the recent spike, I am inclined to blame it on the wacky Middle East mayhem instead of the recent devaluation of the greenback, which I reckon has been repeatedly bludgeoned, flayed and hacked at since October of '08. True though, USD is sinking against the other English speaking dollars because a healthy amount of money is going into those countries, be it from relatively huge per capita natural resource stores and/or Oz interest rates making it a nice investment for foreign govts. Oh yeah, as you said, also the Fed's printing machines' Niagaric outflow of USD dough:-)
Of course, this is just my opinion and luckily, I rarely if ever trade based upon my opinion about the fundamentals that move markets;-)
On silver, I think it may well continue to move on up but then, when it falls, expect it to be like Mola Ram (bad guy from Indiana Jones and Temple of Doom), when he bounced off the cliff wall on his descent, taking off a piece of his skull cap off only to quickly be eaten by crocodiles. Again, just an opinion but for your viewing pleasure of a time much different than ours today but from a fear perspective, kinda similar, i.e. high inflation, energy crisis and all that jazz...anyway, see attached chart.
KWN’s London source has updated King World News on the massive Asian buyers which have been accumulating gold and silver. The London source stated, “$3 to $4 dollar days in silver will become common, from now on $2 days will be considered slow. There will be a great deal of volatility going forward, but more often than not silver will close near the highs.”
April 25, 2011
The London Source continues:
“Right now the silver shorts are being flushed out in Asian trading on light volume and we have options expiration ahead of us. 38,000 silver contracts are in the money and the question is how many will ask for delivery?
As I mentioned to you previously, the Asians have also been taking delivery of silver out of SLV and will continue to do so. You have to understand that these Asian buyers are planning to take delivery of all of the available physical silver they can get their hands on and will continue doing so for the foreseeable future.”
When asked at what price the Chinese will stop buying silver the London source replied, “The Chinese want out of dollars and they will continue aggressively purchasing both gold and silver in order to diversify. They don’t care whether silver is $50, $60 or $100, they will just continue accumulating. The Chinese may be patient buyers, accumulating on weakness, but you can bet that their relentless purchases of physical silver will eventually push the price well over $100 an ounce.”
April 26, 2011, 2:20 p.m. EDT
Silver futures see record trading volume
SAN FRANCISCO (MarketWatch) -- Silver futures saw record trading volume on Monday, the CME Group said in a press release Tuesday. On Monday, trading of silver futures reached 319,204 contracts, surpassing the prior record of 201,216 contracts set on Nov. 9, 2010, the CME said. Open interest in silver options also reached a record of 240,344 contracts, versus the prior record of 235,992 contracts set on April 21, 2011. "Silver futures have demonstrated rapid growth during the month of April," with month-to-date average daily volume for silver futures increasing 218% from this point last year, the CME said in a statement. May silver /quotes/comstock/21e!f1:si\k11 SIK11 +1.17% closed at $45.05 an ounce, down $2.10 on Comex Tuesday.