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Turkey & Syria Clash And Asians Take A Shine To Silver

Tyler Durden's picture





 

From GoldCore Gold Bullion

Turkey & Syria Clash And Asians Take A Shine To Silver

Today’s AM fix was USD 1,790.00, EUR 1,375.55, and GBP 1,105.69 per ounce.
Yesterday’s AM fix was USD 1,786.50, EUR 1,380.92 and GBP 1,109.01 per ounce.

Silver is trading at $34.91/oz, €26.95/oz and £21.65/oz. Platinum is trading at $1,714.00/oz, palladium at $664.99/oz and rhodium at $1,195/oz.

Gold rose $12.30 or 0.69% in New York yesterday and closed at $1,790.80. Gold pulled back after the Fed released Minutes from their September 12th meeting, but it still ended with a gain. Silver finished the day with a gain of 1.16%.  

Gold reached an 11 month high on Friday riding its 5th day of gains as quantitative easing from central banks continue to see the yellow metal shine as an inflation hedge while investors await the key US jobs data at 1230 GMT.

The European Central Bank left interest rates unchanged on Thursday and said it was ready to purchase government bonds of debt-laden nations, sending the euro upward and pushing gold near $1,800 - a level that has not been reached since last November.

Tensions in the Middle East are heated as Syria shelled a Turkish town and killed 5 civilians and this has propelled the two former allies into conflict. The United Nations condemned the attack, however yesterday Turkey's parliament gave legal authority to the military to launch cross-border raids into Syria at any time over the next year. The vote passed by 320 to 129. Turkish government officials stated they do not want war with Syria but they are prepared to protect their people and borders.

Certainly this geopolitical crisis is another boost to gold’s appeal in addition to investors who still feel central banks including China, will initiate more QE to stimulate their lacklustre economies.

The Fed minutes released show that the governing board may set up numerical thresholds for inflation and unemployment figures that would serve as a guideline for its monetary policy. The nonfarm payrolls number will indicate whether the Fed’s monetary policy is having the required effect on the labour market. A surprise on the upside could dampen the sentiment in gold, as it would show the monthly liquidity injection of $40 billion would not be needed.

Precious metals have all run up with the recent loose money policies enacted by various governments.  Clearly the market darling of late is silver which is now gaining favour in Asia for its value appeal.  Spot silver traded in New York has risen by 27% since the end of June, while the price of spot gold has increased by a meek 12%.

Analysts say future Indian demand is key for silver’s price to climb.

Futures contracts for silver at India's largest commodity exchange, the Multi Commodity Exchange, rocketed 30% in September compared with July, while volumes fell by 10% for gold futures contracts over the same period.

Indian rupee weakness sent gold prices in rupees to an all time high this year, while silver never exceeded the record it hit last April. Rupee-denominated silver is currently being quoted around 20% below the record.

Indian investors have ceased purchasing because the 2 weeks ending Oct. 15th is regarded as inauspicious.  The buying will commence and peak during the week ahead of the Hindu festival of Diwali on November 13th.

In China, on the Shanghai Futures Exchange silver futures were up 29% at the end of September verses the end of June, while gold climbed 13%, according to data from the exchange's website. 

Silver is used both as a precious-metal investment and in applications that use its conductivity like  smart phones and semiconductors, where consumption is continuing to grow at fever pitch.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS

Gold extends gains, stays near 11-month top; US data eyed - Reuters

Gold pushes higher after data, Draghi bond talk - MarketWatch

Gold hits 11-month high after ECB; $1,800 in sight - Reuters

COMMENTARY

Silver Steals the Glitter of Gold in India – Wall Street Journal

Gold Can Save Us From Disaster – Forbes

UN unanimously condemns Syrian shelling of Turkish town – The Guardian

 


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Fri, 10/05/2012 - 07:30 | Link to Comment SWRichmond
SWRichmond's picture

Gold is capital, silver is money.  Own both.

Fri, 10/05/2012 - 07:36 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Chickens and goats are capital, eggs and milk are money.

Well, not quite yet.

Fri, 10/05/2012 - 08:50 | Link to Comment pasco35
pasco35's picture

It's coming!

People should read Gaia's Garden it's a great book about sustainable agriculture.

 

-Frank
http://www.youtube.com/watch?v=_LFLVPmCe-U 

Fri, 10/05/2012 - 07:47 | Link to Comment Alpo for Granny
Alpo for Granny's picture

Silver has tested 35 this week about as many times as I tested my high school girlfriend's resolve in my 81' Ford Fairmont wagon. Even with me telling her I wanted to hold her long term and that all the other girls were fake (except her sister Goldie), my attempts always resulted in me getting smashed down. Eventually though, I broke through resistance and lemme tell you, we had a great run! Later, I found out why it was so tough to get her to let me cross that line...my buddy was naked shorting her the whole time! He wound up going to work for some big fancy investment bank called Bear Stearns. Funny thing..she liked being naked shorted so much she went to work for the bank that BOUGHT his bank...JP something or other. LOL crazy huh?  Blythe was her name....She was a real tomcat back in the day let me tell ya!  Wonder what ever happened to her?

Fri, 10/05/2012 - 07:50 | Link to Comment francis_sawyer
francis_sawyer's picture

I can see Paradise by the Dashboard Light

~~~

http://www.youtube.com/watch?v=SmPMMitJDYg

Fri, 10/05/2012 - 08:08 | Link to Comment new game
new game's picture

blythe is not my type, don't ya know, but up nort here we just like tings simple, like choppen wood and splitten da stuff.  but if she comes around we will put her to work helpen with da chores, don't ya know? she has a job, don't ya know, but we know she is kinda like dat bigfoot thing we see in da woods, like every now and then she keeps us wondering...

Fri, 10/05/2012 - 09:02 | Link to Comment Sweet Chicken
Sweet Chicken's picture

Wow easily post of the month Alpo!!! I need to go rub my Pm's over my cock now that was so good!

Fri, 10/05/2012 - 08:04 | Link to Comment _underscore
_underscore's picture

Sheeese! That's an incredible co-incidence, I mean with the names and everything & that 'shorting' thing (yeah geddit: shorts, shorting.. haha!). Funny old world.

Fri, 10/05/2012 - 08:19 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

A for G just wrote Brian Adams' next hit.  He still alive?

Fri, 10/05/2012 - 08:56 | Link to Comment RacerX
RacerX's picture

That is the best response I've read all week! How insightful..

Fri, 10/05/2012 - 10:02 | Link to Comment SilverRhino
SilverRhino's picture

I keep wondering ... you have what looks like two flash crashes just after 0800 for the last two days in silver.

http://www.kitco.com/images/live/silver.gif 

Just how large a sell order is required to drop silver this hard and this fast?  

 

Fri, 10/05/2012 - 10:50 | Link to Comment VulpisVulpis
VulpisVulpis's picture

great post. such rich 'istory

Fri, 10/05/2012 - 07:53 | Link to Comment somecallmetimmah
somecallmetimmah's picture

Just watched, 'The End Game' this morning with Pete Schiff, Jimmy Turk, et al.

Recommend all take a gander over the long weekend.

 

And 'yes', gold *is* capital, silver *is* money.  Own both.

Fri, 10/05/2012 - 07:42 | Link to Comment BeetleBailey
BeetleBailey's picture

Here...I'll get this out of the way..

 

SILVER BITCHEZZZZ!!!

Fri, 10/05/2012 - 07:46 | Link to Comment SilverIsKing
SilverIsKing's picture

In looking at the COT report for silver, me thinks there will be some bullshit catalyst and associated raid on silver soon. We'll see later today the commercial short position as of Tuesday and whether it has changed much from last week but if history is any indication, I expect a tightening of margin requirements and a rumor of some sort with silver dropping $2 in a matter of minutes.

Any such drop will be bought heavily by many including myself.

Fri, 10/05/2012 - 07:46 | Link to Comment zilverreiger
zilverreiger's picture

OBAMA SILVER KEEP OBAMA IN PRESIDENT Y'KNOW

Fri, 10/05/2012 - 07:49 | Link to Comment booboo
booboo's picture

The rest of the world must see the writing on the wall. Turn in your PM now to beat the long lines marked PM Confiscation Check Point at your local FEMA camp. Don't want to miss the welcome Breakfast Buffet do ya?

Fri, 10/05/2012 - 08:25 | Link to Comment sessinpo
sessinpo's picture

Americans are a different breed then the rest of the world and for that I am grateful. Come take my PMs and force me into a FEMA camp. In that process, you'll meet some 308 winchester shells.

We are already slaves to a corrupt government colluding with large corporations. The only difference is we don't wear orange jumpsuits which may be required in a FEMA camp.

This is what the 2nd Amendment was really for. Not to attack the government such as OKC bombing. But to defend when they come knocking on your door to attack you.

Fri, 10/05/2012 - 09:06 | Link to Comment cynicalskeptic
cynicalskeptic's picture

The FEMA camps are for the people that will be rioting in the streets - starving, jobless and homeless.  

If you're a good productive citizen and behave yourself you'll be left alone.     Not worth the battles to go after the small holders and hoarders (who are likely to have as much lead as gold).  Far more logical to go after the big fish.  

Seems like most of the gold and silver held by the masses has already been extracted via 'We Buy Gold and SIlver' and the desperation of those in debt.   That's been refined into London Good Delivery Bars and fed into the system where the hedge fund and wealthy - and the big banks - are holders.

If anything gets confiscated it'll be the gold and silver sitting in vaults in NY and elsewhere.  Given the efforts being made to go after Swiss accounts, I doubt that most overseas venues will be safe from the long reach of government - US or other.  The 1% that see their holdings nationalized will be compensated and be happy about it - better than going to jail for their ill gotten gains (or finding out that what they THINK they own doesn't exist).  

You see if government 'confiscates' all the gold held in all those bank vaults it'll never come to light that the stuff is owned 100 times over - and half of it is imaginary.   Can't have THAT knowledge made public for all to see.

A lot easier to claim possession of tons of gold than actually having it - and who's going to audit the Fed or Treasury?  ....and the can gets kicked for a field goal.....

Fri, 10/05/2012 - 09:49 | Link to Comment GlobalCtzn
GlobalCtzn's picture

My gut says you are very much on the right track. With a number of 'i never saw that coming' actions thrown in the mix. 

Fri, 10/05/2012 - 08:00 | Link to Comment new game
new game's picture

gold and silver are making headlines - ah ya, wonder the fuck why.  anyways real simple, as is should be; when your sheeple neighbors tells you they bought some gold or silver sell at least 50 percent! that will be north of 2500 and north of 75. what you do with the windfall is where the problem truely lies....IMHFO

Fri, 10/05/2012 - 08:07 | Link to Comment Biosci
Biosci's picture

Nonsense. Sell your calls, not your gold.

Fri, 10/05/2012 - 10:19 | Link to Comment Sandmann
Sandmann's picture

Not long ago ZH wrote about Iran using gold to circumvent EU and US bank sanctions yet Turkey is dependent upon Iranian energy supplies yet seeks to antagonise  Iran's ally Syria at the same time Israel faces problems with gas supplies through Sinai and Qatar wants to build pipelines through Jordan and Syria into Turkey.

Quite an interesting tangle. I am not sure Hillary is the one to make sense of this chaos

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