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Precious Metals Plunge And India's Industrial Production Crashes
The metals space has had a rather disconcerting start to the week this evening with Silver and Copper dropping almost 2% from their opening levels and then Gold following suit. All this as the USD inches very gradually up tracking almost perfectly with Crude for now. These moves seem very liquidation-like in their velocity but have for now stabilized at the lows. The last few minutes saw some of the ugliest macro data we have seen in a while come out of India as it's Industrial Production growth missed expectations by a mile falling to levels only seen in the middle of the global economic shutdown in Q1 2009. So another leg in the EM-will-save-us-all stool just got kicked out and still we are to believe the US will decouple and 'muddle-through'?
The metals are 'decoupling' from oil for now and it was interesting that the reaction in Gold was 'delayed' a few hours on the simultaneous drop in Copper and Silver. They are extending their losses now after the India IP print...
ES is leaking back from its highs but is trading in a narrow range so far and maybe 3-4pts rich to broad risk assets for now.
Charts: Bloomberg
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There´s probably a glut in both gold and silver.
Miner ETF´s GDX and SIL are flat to down for the year.
I am in India right now watching the tragic Industrial production numbers and the Anna Hazare anti-corruption campaign. Just 2 counterpoints 1) INdias economy is 70% agricultural 2) The ruling parties won elections in Anna Hazares backyards. SO both these events are non-issues. Everything is A-ok and the government is looking into ways to censor facebook twitter etc and start the cricket games. When all else fails clamp the press and start the gladiator games. Haha.
So, India is taking it on the chin. Is this financial tea bagging? Inquiring mind an all that.
I keep telling you guys the reason gold went down and continues to go down is that I bought a little at the recent intermediate top back in october.
Expect it to go much lower. I dont plan to capitulate for a while.
Theres no reason to capitulate if you're holding it in your hand.
Just tuck it away and fugitabout it, you'll sleep better knowing they can lock the bank doors and change their ink colors a thousand times.
It just doesn't matter to you now ;-)
watch unemployment hit 25% (and unofficial unemployment soar to 35%) as we creep in the Uber Deflationary Depression...
CBs need to print up about $60 trillion at this point...last time i read it was $27 trillion....
Oh well.
I am sick of work anyways. It sounds like a great idea to print more money and campout for a while. Enjoy the great outdoors.
Oil may be going up, but refined gasoline at the pump in the USA has been going down.
Think sucker punch.
Gold and Silver down with more chaos. Sure, that is exactly the way history went. The 5000 years of safe haven status has been rewritten by the paper fiat sytem, ...sure!!
good to see some balanced reporting. I was starting to think this was just an elaborate front for a gold shop.