Monday, November 16, 2009

Economic Reports Taken Bullishly by Metals Traders

Meanwhile, while it may be slightly ancient news, the Commerce Dept. reported today that manufacturing and trade shipments for Sept. were $988 B, down 0.3% from August and down 13.1% from the year earlier. The inventory/sales ratio was stable month on month at 1.32.

Thought you might like to know. End of recession/depression turning point? Could well be. But we must be careful in watching large percentage moves off of a low base.

And for all the excitement about retail sales and the moves in stocks, these moves are matched by gold once again.

More to the point: platinum, palladium and silver are screaming to the upside.

More and more to the point: Longer-dated Treasuries are up in price.

Money is chasing all sorts of financial assets. In times like this, the safest short-term strategy is to go with the flow. And so prices of metals are being bid up. Louise Yamada had spied strength in silver as she stated in a recent interview. Great call! And breaking out silver is, attracting new buying as it does so.

Its back to the reflationary '30s for now

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