This is more of a silver thing ...
International Forecaster August 2006 (#1) - Gold, Silver, Economy + More
By: Bob Chapman, The International Forecaster
-- Posted Monday, 7 August 2006
SEVERE EDIT
GOLD, SILVER, PLATINUM, PALADIUM AND DIAMONDS
In the first half of the year Dubai gold sales fell 30% due to higher gold prices. 52% of retail jewelry sales are to tourists almost all from Asia.
Indian gold sales in July fell 15% due to bomb blasts. People stayed home. As well, high prices entered into the equation.
It looks like silver is the leader again, at least temporarily. It roared on Wednesday, up $0.51 to $12.17.
We’ll feel better when we see it plow through $13.50.
Gold was up strongly early on. They had it down to a plus $3, but it came back like a champion and held above $650 to close at $651.80, up $5.00. Gold and silver are the investments of a lifetime and interest stays flaccid.
The dollar helped today by not staging a recovery rally and hanging at 84.83, unchanged. It won’t be long before we are at $730, and we can just short of guarantee you they won’t have another 500 tons for sale to smash the market with.
One of the exciting things about silver is the drawdown in inventory, which is accelerating. On Wednesday another 838,801 ounces were withdrawn, leaving 99 million ounces.
Dealers in the registered category gave up 631,727 from the registered category as 207,074 left the eligible stocks.
Over the past two months 9 million ounces have disappeared.
At the present rate of withdrawal Comex will be out of inventory by May 2007.
Then there is no more.
Gold open interest rose 2,051 contracts to 304,907. That is still a low figure.
Silver open interest fell again, which denotes short covering on a price increase. It was off 457 contracts to 98,685. That is off 45,000 contracts from its high.
Silver shorts are going to again have their heads handed to them.
Finally overnight at Tocom open interest rose 1,078 contracts. Lots of short covering is going on in gold on Tocom, but even more so on the Comex. Tocom gold shorts added 2,727 contracts to 132,122 and in silver they reduced shorts 68 contracts to 4,046...
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