I have not been able to find the actual report by The Century Magazine that I have read updates on, but from what I have been seeing reported, the reason for the skyrocketing price of metals is out there.
That reason would be a possible influx of capital coming from China, directed at the energy and precious metals markets, amongst other investments as well.
According to released data, the PBOC has stated that FX reserves are pushing levels that are no longer reasonable. We are not talking about millions, or billions here. The amount of capital we are discussing is between $1.5 trillion and $3 trillion. With the possibility of this much capital entering the commodities markets, it’s no wonder the prices are flying to the levels they are currently trading at. Mix in some major markets absent today, LME being one of the biggest, and you have light trading volume. This is a perfect scenario for extreme volatility, which we have been witnessing in recent hours.
Today will be extremely exciting as we will be witness to some of the largest moves in silver that have happened in history. Near term support now lies at 46.91 for silver….. We could finally see the all time record for silver of $50.23 broken this week! Maybe even later today!
A lot can happen in a day!