Precious Metals Market 2013
The precious metals sector fell yesterday, not appearing too precious….
Here’s a recap of the past weeks events inside precious metals.
Last Monday – Feb. 10th, 2013 marked the beginning of the Chinese New Year celebration, the year of the snake. This took Chinese traders attention away from the markets for the entire week to follow.
Markets got bit by the snake and took a step lower below the $31 range to open Tuesday at $30.84 for silver.
CME’s lower contract requirements for gold, silver, platinum and copper will go in to effect this week
Read the official advisory notice here;
Tuesday – New contract requirments go in to effect at the close of business today
Wednesday – New contract requirements now available
Friday – Futures expiration going in to a holiday weekend
Monday – US Federal holiday Presidents Day in honor of George Washington – US markets are closed
Tuesday – Transactions in futures markets of paper silver totaling over two years worth of silver production in one day. Over 1.8 million ounces
Wednesday – FOMC minutes from the January meeting realeased by the Federal Reserve. Read them in entirety here;
Now we can not forget the fact that Germany has chosen to repatriate their gold, putting in motion the movement of over twenty one million ounces by 2020 back within their borders.
Sequestration is the next bombshell that could potentially drop on the American financial system. These automatic spending cuts will go in to effect by the first of March, 2013 if there is no agreement made by America’s executive management.
And this whole time copper has not taken part in the move that has gotten markets to record highs since 2006 and 2007….when our home values were high, dollar was strong, everyone had a job and it seemed like the average income in America was just breaking six figures. Copper is declining today as well.
America has added roughly half a trillion dollars to her debt since the election in November of last year…
Is this transition structural or cyclical? Who cares?, or is that the question of the day?
Post updated 2-21-13