asia and the metals - monday

Good morning all,

Well, right now it looks like a great start to the week.

Asia was pretty much up across the board with Japan gaining 1.52%,
Korea gaining 1.19%, Taiwan up .34% and India up 1.32%. Only HongKong
and China lost -.44% and -.34%, resp.

Metals are also holding their own. As you may recall, last week saw a
breakout for silver and gold again approaching its recent highs. Friday
saw a little consolidation, but it was relatively minor compared to the
outsized gains.

Right now spot gold is at 567.10 +1.30 and Silver is 10.21 +.03.
Platinum is 1046 -3 and palladium is 299 -1. As mentioned, Friday saw
some backing and filling, so XAU closed down 1.94 at 137.15.

It's apparent that silver's being carried higher in anticipation of the
new silver ETF . . . even though it's not a sure thing. And while you'd
think perhaps, 'buy the news - sell the fact', that shouldn't hold sway
in this situation as this ETF is going to have to buy a LOT of silver.
That will have a direct impact on the bullion price of silver, and an
indirect impact on the silver miners [read: lag]. The silver users
assoc has been lobbying against this ETF as they claim it will suck up
so much of the available metal as to drive up the price.

Well, duh! Ya think?

However, be that as it may, it will simply cause the miners to further
ramp up production as best they can in the shorter term. I just don't
have a clear picture of how fast these bullion gains will translate
into silver mining stock gains.

Oh well, should it be approved, it will drastically impact the silver
market.

and so it goes,

rono

Re: asia and the metals - monday

Re: asia and the metals - monday

Sanjay wrote,

"
Evojeesus <> wrote:
> And what if it isn't approved? Some analysts claim that a negative
> result would also be bullish for silver as it would prove how little
> above ground silver actually exists.


Are there different tax rules with the silver etf? Apparently 28%. "

>From what I know, 28% is the rate on collectables. In this situation,
an ETF is a STOCK and not a collectable. There for it would be subject
to the same rules as any stock - cap gains dependent upon how long you
held it.

best,

rono