Silver And Gold Remain Near Record Highs As Greek And Portuguese Debt Hammered

Tyler Durden's picture

From GoldCore

Silver is higher against all currencies today and remains near
yesterday’s 31 year high of $36.75/oz. Gold is slightly higher against
most currencies, especially the Swiss franc and euro.

 

GoldCore

While most of the focus continues to be on North Africa and the Middle
East, the not inconsequential matters of the European sovereign debt
crisis and the US’ dire fiscal situation continue to bubble away
beneath the radar.

 

GoldCore

Greek and Portuguese bonds have taken another hammering this morning.
The Greek 10-Year yield has surged to 12.44% (TD: make that 12.764%), up another 35 basis
points today alone, and Portuguese 10-Year has surged to 7.58% (TD: make that 7.66%), another
22 basis points. The recent “bailouts” and failure to properly
restructure the debt shows that the sovereign debt crisis is far from
contained.

The US recorded its biggest monthly deficit in history yesterday
with a $223 billion deficit for February alone, the 29th straight month
of deficits – a modern record. This does not bode well for the
beleaguered dollar and could result in further sharp falls in the value
of the dollar.

 

GoldCore

The dollar is increasingly out of favour with traders and central
banks internationally and the real risk of a US debt crisis could see
the dollar’s reserve currency status challenged sooner than even the
more bearish dollar bears expect.

Lloyds TSB's Assetwatch survey finds gold and silver beat all other
assets in 2010 due to investors looking to “protect the value of their
investments amid the renewed uncertainty over the global economic
outlook including the debt concerns in the eurozone and rising
inflation.”

Gold

Gold is trading at $1,434.21/oz, €1,029.73/oz and £886.46/oz.

Silver

Silver is trading at $36.36/oz, €26.10/oz and £22.47/oz.

Platinum Group Metals

Platinum is trading at $1,800.95/oz, palladium at $780.00/oz and rhodium at $2,350/oz.

News

(Financial Times) -- Silver prices rise by 80% (Lloyds TSB Precious Metals ‘Top Investment’)
Precious metals were the top performing investment for the second
consecutive year, after their value jumped by 42 per cent as people
sought a safe haven from inflation, according to new research published
by Lloyds TSB on Monday.

It is the fourth time in the past five years that precious metals
have topped the tables for the best asset class, as continuing
uncertainty over the prospects for the global economy pushed people into
buying gold, silver and platinum.

The value of precious metals has risen by 365 per cent over the past
decade, nearly double the increase for the next best performing asset
during the same period - residential property, which made a gain of 198
per cent.

Silver outperformed the other precious metals in 2010 with prices
rising by 80 per cent, more than two and a half times the increase in
gold prices and four times the 20 per cent rise in the value of
platinum.

As well as being seen as a safe haven investment, pressures on the
supply side and high demand for industrial uses contributed to the
strong rise in the price of silver, said Lloyds TSB.

Commodities were the second best performing asset class during 2010
returning 30 per cent, while they were the third best during the past
decade, with a 176 per cent increase in value.

This outperformance has continued into 2011, driven by a 38 per cent
jump in the price of cotton since the start of the year, driven by a
combination of increasing demand from Asia and greater supply side
pressures as flooding affected some of the major cotton producing
countries.

All nine asset classes produced a positive return during the past
year, although people who held their money in cash would have seen it
rise by just 0.6 per cent, while residential property did little better
with a gain of 1.2 per cent.

UK shares and commercial property both returned 14.5 per cent, while
the value of international shares increased by 10.6 per cent.

Suren Thiru, economist at Lloyds TSB, said: “Going forward, the
level of demand from emerging economies, particularly from China and
India, is likely to remain an important determinant of many assets
prices as well as the pace at which the global economic recovery
continues.”

Asset Class Returns, Dec 2009-Dec 2010

(Press Association) -- Precious metals 'top investment'
Precious metals were the top performing investment for the second
consecutive year during 2010 with their value soaring by 42% as people
sought a safe haven from inflation, research indicates.

It is the fourth time in the past five years that precious metals
have topped the tables for the best asset class, as continuing
uncertainty over the prospects for the global economy caused investors
to flock to gold, silver and platinum, according to Lloyds TSB.

The value of precious metals has surged by 365% during the past 10
years, nearly double the increase for the next best performing asset
during the same period - residential property, which made a gain of
198%.

The steep increase in precious metal prices seen during 2010 was
driven by silver, with its value jumping by 80%, significantly
outstripping the 29% rise in the price of gold and the 20% increase for
platinum.

The group said the price of silver had been boosted by pressure on
the supply of the metal, as demand remained high from both investors
and industries which use it.

Commodities were the second best performing asset class during 2010,
offering returns of 30%, while they were the third best during the past
decade, with a 176% increase in value.

They were also the best performing asset during the first two months
of 2011, driven by a 38% jump in the price of cotton since the start
of the year, due to a combination of rising demand from Asia and
falling supply as some of the major cotton producing countries were hit
by flooding.

All nine asset classes produced a positive return during the past
year, although people who held their money in cash would have seen it
rise by just 0.6%, while residential property did little better with a
gain of 1.2%.

UK shares and commercial property both returned 14.5%, while the value of international shares increased by 10.6%.

Suren Thiru, economist at Lloyds TSB, said: "Going forward, the
level of demand from emerging economies, particularly from China and
India, is likely to remain an important determinant of many assets
prices as well as the pace at which the global economic recovery
continues."

(Telegraph) -- 'There Is a Danger That People Are Buying Gold Now When Prices Are Overheated'
Following a spectacular 10-year bull run, some say buying gold has become too risky for private investors.

Patrick Connolly, of the financial adviser AWD Chase de Vere, said:
"There continue to be bullish statements and bold predictions about gold
and the assumption that the returns seen over the past decade are now
the norm. There were similar sentiments in 1999 about technology
stocks, and the belief that the only way was up."

As he pointed out, there is a real danger that this could be a "gold
bubble", and when prices do fall – which they will at some point – the
correction could be far sharper and last longer than many people
expect. He added: "It's easy to forget that gold prices can go through
prolonged downturns. During the Eighties and Nineties, the price of gold
fell by 70pc."

Although gold is a good inflation hedge over the long term, this
isn't always the case over shorter, more realistic time frames over
which the typical investor is more likely to hold the asset. If you
bought gold in the Eighties, for example, it hasn't proved to be the
most effective hedge against inflation since then. If it had kept pace
with prices, it would now be worth about $2,600 an ounce.

Martin Bamford, a chartered financial planner with Informed Choice,
said: "Investors are understandably concerned about inflation at
present. But there is a real risk that those now buying gold are doing
so at the top of the market and will end up making losses when prices
fall."

He added that investors should remember that gold does not produce
any income, in terms of either interest or dividends, so returns are
based solely on capital growth. He said: "It can also be difficult to
access as an asset class: many people end up buying funds that are
largely invested in mining stocks, which don't always reflect gold
prices accurately."

Other options include buying gold bullion or coins, or investing in
an exchange-traded fund (ETF), which basically follows the price of
gold.

Mr Bamford said: "I'd be wary about getting into gold at present.
The price may still rise further, but the gains are unlikely to be so
significant. When prices fall, it is those who got in near the end who
will suffer the biggest losses."

He added that there were also investment costs to consider, such as
the cost of storing, trading and insuring bullion, or dealing charges
on ETFs. "A diversified investment portfolio, containing shares,
property and bonds, may be a better way to protect against inflation,"
Mr Bamford said.

"And about a third of the stocks in the FTSE 100 are
commodity-related stocks, whose performance will be correlated to gold
prices. There is a danger that people are buying now when prices are
overheated and becoming overexposed to one asset class."

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(Coin News) -- US Mint Reviews Product Pricing for Silver Coins and Sets
The United States Mint is reviewing the pricing of its products due to
soaring silver prices, according to a US Mint official. Sales of at
least one of its sets have been suspended until the review process is
complete.

The Mint currently has a pricing policy in place for its numismatic
gold coins. Based on it and the prevailing cost of gold, the US Mint
may adjust collector gold coin prices weekly. It does not have a
similar pricing system in place for its numismatic silver products.

"Recently, the market price of silver has risen substantially. As a
result, the United States Mint is reviewing the prices of current
products containing silver to make sure the market value of the silver
contained in them is not now higher than the cost of the products
themselves," US Mint spokesman Michael White said on Monday.

A recent CoinNews.net article noted how 31-year high silver prices
have resulted in exploding silver coin values. On Friday, coins like
the 1964 quarter had a melt value of $6.39. The 2010 America the
Beautiful Quarters Silver Proof Set was valued at $31.95, which was
only $1 less than its US Mint pricing.

On Monday the precious metal surged as high as $36.75 an ounce,
bringing the 1964 quarter’s melt value to an astounding $6.98. The
set’s melt value went up to $33.23, which is above the original US Mint
pricing for the product. It is this set which the US Mint has
suspended, presumably to raise its price at some point. Customers who
visit its product page at http://www.usmint.gov/catalog will now see a Mint message saying "the product is temporarily unavailable."

As of this writing, all 2011-dated products are still available.
These products were already priced substantially higher than 2010-dated
issues in response to silver which soared nearly 84 percent last year.
Obviously, their prices could go higher if the metal continues its
streak of gains.

(Zero Hedge) -- No Silver? No Problem: US Mint Would Like To
Know If You Will Accept Brass, Steel, Iron Or Tungsten Coins Instead

United States Mint Seeks Public Comment on Factors to be Considered in
Research and Evaluation of Potential New Metallic Coinage Materials

WASHINGTON - The United States Mint today announced that it is
requesting public comment from all interested persons on factors to be
considered in conducting research for alternative metallic coinage
materials for the production of all circulating coins.

These factors include, but are not limited to, the effect of new
metallic coinage materials on the current suppliers of coinage
materials; the acceptability of new metallic coinage materials,
including physical, chemical, metallurgical and technical
characteristics; metallic material, fabrication, minting, and
distribution costs; metallic material availability and sources of raw
metals; coinability; durability; sorting, handling, packaging and
vending machines; appearance; risks to the environment and public
safety; resistance to counterfeiting; commercial and public acceptance;
and any other factors considered to be appropriate and in the public
interest.

The United States Mint is not soliciting suggestions or
recommendations on specific metallic coinage materials, and any such
suggestions or recommendations will not be considered at this time. The
United States Mint seeks public comment only on the factors to be
considered in the research and evaluation of potential new metallic
coinage materials.

The recently enacted Coin Modernization, Oversight, and Continuity
Act of 2010 (Public Law 111-302) gives the United States Mint research
and development authority to conduct studies for alternative metallic
coinage materials. Additionally, the new law requires the United States
Mint to consider certain factors in the conduct of research,
development, and solicitation of input or work in conjunction with
Federal and nonfederal entities, including factors that the public
believes the United States Mint should consider to be appropriate and
in the public interest.

(Bloomberg) -- Gartman Jumps Back Into Gold; Selling Was ’A Mistake’
Newsletter writer, fund manager Dennis Gartman reinstating gold positions he sold last week;

“Our little experiment on the sidelines did not work.”

Long again of gold in euro, yen and dollar terms.

Weaker dollar more supportive of commodity prices generally.

"We congratulate those who have the wisdom or the temerity to have
remained bullish of gold’’, sold when gold was ~$1,432, it’s at $1,442
today.

Says sold gold following his trading rules; would do so again.

 

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Sudden Debt's picture

just wait untill the UK get's back into the picture.

If they don't raise rates soon, they are going to be the first to have to hyperinflate their currency and if they do raise rates all their banks go bust.

 

RATES NEED TO GO TO 18.5% TO STOP THEIR INFLATION!!

 

Harmonious_Dissonance's picture

All paper currencies to zero! Big reset button PUSHED!

EscapeKey's picture

The (Deficit/Tax_Intake) picture for the UK is not too bad (150/550), when comparing to the US (1600/2200), but it is absolutely imperative that housing doesn't take a deep decline, or the UK is toast, hence the reason British monetary policy has been executed the way it has for the past few years.

Of course, at best it still only postpones the inevitable for a few months. Once realistic budget cuts are carried out, we can at best look forward to a repeat play of the wonderful socialist 70'es (strikes, 3-day workweek, shortages, electricity outages, garbage mountains everywhere...)

British inflation in the 70'es peaked at 24.9%. How far off is hyperinflation?

Sudden Debt's picture

I propose you read these 2 articles, and tell me if you still feel confident afterwards :

http://www.marketoracle.co.uk/Article26766.html

http://www.marketoracle.co.uk/Article26765.html

EscapeKey's picture

...eh, I'll report back to you when I've read linked book-sized articles.

As for feeling confident - no, I don't. Confidence in system doesn't resonate with physical precious metals investing. I was merely pointing out that the UK isn't in as tough a situation as other countries, notably the US.

Btw, SD, I notice you constantly get junked for just about anything you post. You seem to have your own personal troll!

Sudden Debt's picture

FANS!!

I SHOULD SELL MERCHANDISE!!

 

 

ZakuKommander's picture

Junking for SD is largely a Fleming v. Walloon thing.

IQ 145's picture

 He, he, he,. that's a good one. it's going to go over most peoples head, tho.

Math Man's picture

"I'd be wary about getting into gold at present. The price may still rise further, but the gains are unlikely to be so significant. When prices fall, it is those who got in near the end who will suffer the biggest losses."

Have fun with your losses, bitchez!!!!!!

 

EscapeKey's picture

Well, then you must be a fool for not shorting, right?

Are you shorting?

Math Man's picture

Yes.  SLV, GLD and USO...

EscapeKey's picture

Well, excellent, then all we can do is wait, right?

tmosley's picture

You are the only loser here, then.

Enjoy your bloody stumps, knife catcher.

Math Man's picture

Last time I went short USO, I made enough to buy a new Ferrari....

 

EscapeKey's picture

Hahahahahahaha

That's about the most credible post I've ever seen of yours.

Sudden Debt's picture

HAHAHAHA!!

You sound like a 5 year old :)

 

 

tmosley's picture

lol, sure, so it worked once, it must ALWAYS work, right?  Nevermind that timing is everything, and if you are off by just a bit, you will get a margin call, and find yourself fucked.  You know, sort of like how you have been losing on your gold and silver shorts.

What kind of moron shorts ANYTHING in terms of dollars while QE is going on?  What kind of moron goes short oil when protests are spreading throughout the Middle East, including Saudi Arabia and Kuwait?

Oh yeah, your kind of idiot.  Enjoy your depreciating shit.

Math Man's picture

I'm buying puts, so my downside is capped.  All I can lose in the premium.

You can lose EVERYTHING holding 95% in one asset.

Have fun with your 95% silver allocation.

Just FYI, silver quickly hit $9 in 1981.

And then fell to $4.98 in June 1982.

 

tmosley's picture

Right, when interest rates rose to 20+%.  You think that is going to happen again?

Sorry, loser boy who does nothing but lose, but it looks like you are going to lose some more.

I've been long silver since $8.  My cost average is around $15-16.  I, unlike you, am a winner. 

Math Man's picture

But what was the RELATIVE increase in rates...  going to 20 from 10 is not as bad as going from 0.25% to 3%.

Watch out.

tmosley's picture

lol, you keep thinking that.

EscapeKey's picture

I liked your Ferrari joke better.

Strider52's picture

You have been Sheened. Not Junked, Sheened.

Harmonious_Dissonance's picture

but, but, how much does it cost to dig it out of the ground?

IQ 145's picture

 Are you shorting? yes, SLV, GLD. I don't believe you, nobody is that crazy. If that's for real, post the details, date and price and stops etc. so we can follow the trade.

bobby02's picture

Slightly off-topic, but do you (or anyone else) have a source for details on Green Light taking delivery on GLD? In the 2Q09 letter, Einhorn writes that he "switched" GLD for metal. I also took that to mean delivery, since selling shares and buying metal is costly and would defeat the purpose (i.e. so he would pay lower fees). However, it is less than definitive.

Math Man's picture

Here is a bloomberg article:

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a16aPkJLxw0w

You can also google search and find a copy of the quartely letter where he discloses the transaction.

He had an AP redeem the shares for the underlying physical on his behalf because he could store it for less than the 40bps in fees that GLD was charging.  Any large holder can do this with GLD or SLV because they are backed by ALLOCATED metal.

bobby02's picture

I have the letter. It says "switched," hence the quotation marks in my original post. Nothing else, no detail. And your Bloomberg article just quotes the same letter without adding any more information.

Don't get me wrong, I belive APs create/redeem baskets all the time (witness the changing amount of Au/Ag held), it's just the lack of detail is strange.

HoofHearted's picture

Those losses are just kicking my ass. Sorry to have bought gold at $1000 per and silver at more like $15 per. Sure, I've cost-averaged myself up to the $1100 and $20 per ounce range, but I'll just have to live with myself.

And we math people still want you to take away your ZH name. You obviously don't do any kind of math at all or else you'd realize what monetary inflation brings on. (Yes, some of us have degrees in both math and econ, which uses a lot of applied math. Which training is it that you are missing? Both?)

Temporalist's picture

Jeffery stop wasting your and everyone else's time here.

RogueFit's picture

Math Man, may I ask why you are so convinced that gold/silver will fall precipitously?  I have been meaning to ask you for a few days now.

Beau Tox's picture

"Cast not thine keyboard strokes toward ignorant fools."

 

Snidley Whipsnae's picture

++++++++++++++++++++++++++++++

LOL

bullionbaron's picture

I hope the ZH article on the link between Silver sales and US Mint calling for suggestions on circulating coin materials is simply tongue in cheek.

There is no correlation between the two bits of infomration. Seems ludicrous to keep pumping it. It's not news, it's misinformation.

Snidley Whipsnae's picture

You are misinformation if you truly believe what you posted.

bullionbaron's picture

You honestly believe that there is a link between the American Silver Eagle sales and a press release for suggestions on metal types for CIRCULATING coins?

Last I checked the ASE is a bullion product, not a circulating coin.

I thought the post by TD might have been a parody/tongue in cheek, but the repost in this thread makes me wonder...

Seriously, anyone who believes the lack of Silver sales posted has something to do with a completely unrelated press release has rocks in their head.

johnQpublic's picture

so you therefore posit that the US has sold no silver eagles this month because there is no demand?

and who has rocks in their head?

you didnt happen to see the new commemorative bronze coin did you?

 

leave the bullion to us and stick with the baroning

dummy

bullionbaron's picture

I would suggest they have sold ASEs however the figures are yet to be updated.

They are updated intermittenly from my monitoring of the site over the last several months.

Here's another unrelated event: Sheen got fired from Two and a Half Men, maybe that also has something to do with the US Mint ASE Sales page not being up to date!! /rolleyes

Bay of Pigs's picture

Hey smartass, maybe you should verify some facts before you open that pie hole of yours?

mrgneiss's picture

Give the guy a break, he's busy monitoring the site between mittens?

traderjoe's picture

Really, you don't see any connection at all? Needing to have to find alternative metals or methodologies because inflation has made the coins too expensive to make? No relation at all to the silver supply issues? The fact that the fiat has devalued to toilet paper? Yes, no correlation at all...

bullionbaron's picture

wow if that's the connection talk about drawing a long bow

Oops I see the US Mint has updated their site and they've now sold 668,500 in March... guess the next thing everyone here is going to tell me that is 1 days sales??

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sal...

Ganja Jane's picture

 I wish I could 'Double-Junk' this.

baby_BLYTHE's picture

So it is totally impossible to grow our way out of this? (Serious here folks)

We really only have two choices?

(A) Deflationary Depression or (B) Hyper-Inflationary Destruction

Ratscam's picture

(C) haircut i.e. after Easter

highly unlikely, I prefer B then C on all global currencies

cswjr's picture

Barring unprecendented cooperation and coordination between the U.S. and China (think Marshall Plan, in reverse, and bigger), I'd say yes.  We might have had a fighting chance had we just let the financial crisis play out, but I think we've crossed the Rubicon now.

Snidley Whipsnae's picture

"Barring unprecendented cooperation and coordination between the U.S. and China (think Marshall Plan, in reverse, and bigger), I'd say yes."

Posted on ZH yesterday... China sending trade delegations to all parts of the world.

China might spend as much a $17 Billion on US products. (probably those products that they have yet to reverse engineer)

The US is running deficits of $223 Billion per month.

Does this sound like a 'Marshall Plan in reverse'?

EscapeKey's picture

Well, the UK grew out of a comparable situation when industrialization kicked in. And the US coupled growth with inflation to eliminate WW2 debts. Except for that, inflation has practically always been the weapon of choice to combat this situation.

Of course, this stuff isn't taught in school, because it it was, we wouldn't be sitting ducks waiting for the coming onslaught of inflation heading our way, and the government programs would be less efficient.

Anyway, I guess it comes down to us discovering a new, highly potent energy source. If someone could find a way to tap the vast potential of the highly potent bullshit government official information releases, I guess we're saved.

Snidley Whipsnae's picture

Yes, after WW2 the US opened up many US markets to British products and the Brits were not allowed to buy many products that they produced because all were destined for foreign shores...trade.

What really killed the Brit Empire was the loss of the Indian market, especially textiles. The Brits were importing cotton from India/Egypt and selling back to them finished textiles and clothing. In addition India was a market for Brit locomotives, railway rolling stock, autos, bicycles, motorcycles, etc...also India paid for Brit administration and engineering expertise. India sold the Brits tea that was raised on farms in India owned mostly by Brits. India was called 'the crown jewel in the British Empire' for good reasons.

Ghandi threw a monkey wrench in that one.