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Is The Gold And Silver Bear Dying ?
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The outcome of this action in the District Court of Massachusetts will
be worth watching. It has major impact potential to the prices of the metals and the world financial markets.
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We have spoken regularly on this precious metals update about the structural deficits in both silver and gold. It has been our position that you can not going on consuming more of something than you produce without the price eventually rising. As we enter the year 2001, the risk/reward for both silver and gold have never been better. Will this mean the end of the bear market in these metals and higher prices this year? Time will tell, but the bullish continues to grow by the day.
January has seen strong small investor interest in silver and gold. Meanwhile gold spot has continues to soften. Silver has firmed a little in recent days trading, up for 4 days in a row, from $4.47 to $4.80, unusual market action these days.
The article "2001’s Silver Lining" was recently posted on www.gold-eagle.com (a very good website, well worth a regular visit). Nothing like a bullish article on silver to bring the silver bears out of the forest. I received several e-mails from people strongly objecting to silver demand factors sited in the report. Most of these centered around the photographic demand for silver.
The bearish case goes like this; digital photography will rapidly kill silver demand used in traditional silver halide photography.
The bullish case suggests that digital photography will continue to grow, but will not rival traditional photograph for many years, meanwhile developing markets continue to embrace traditional photography for the first time, pushing up annual demand for silver used in this process. This has been the case for the last 2 –3 years. More details on this in next week’s update.
GOLD ANTI TRUST ACTIONWe have spoken about market manipulation on this website for two years, so none of this is new. Mr. Howe’s action is against the Bank of International Settlements, US Federal Reserve Chairman Alan Greenspan, US Treasury Secretary Lawrence Summers and several leading investment banks including Goldman, Deutsche Bank and JP Morgan.
The action is based on the US Sherman Act, a statute that forbids the fixing of prices in the international market. Mr. Howe (rightly) claims that this "cartel" are responsible for one of the biggest financial scandals in economic history. "This cartel has fraudulently suppressed the price of the precious metals to an artificially low level" claims the Plaintiff.
The document prepared by Mr. Howe and GATA is brilliantly researched and prepared, and well worth reading. LINK
The outcome of this action in the District Court of Massachusetts will be worth watching. It has major impact potential to the prices of the metals and the world financial markets.
BACK TO THE LIBRARY