These are not pie-in-the-sky predictions, but real possibilities. For that reason, I intend to cover my existing short positions in oil, the euro, the S&P 500, and the Russell 2000 on the next serious dip, and tilt more aggressively to the long side.
According to the former special inspector general for the $700-billion US Troubled Asset Relief Program (Tarp) that bailed out the US banking system in 2008, another financial crisis is all but inevitable and the cost will be even higher than the 2008 financial crisis.
Commodities prices are yielding mixed results in European trade, with growth-geared crude oil and copper prices are ticking lower while gold and silver are little changed. Price action likely reflects positioning ahead of the day’s US economic data.
Will people pleeease stop incessantly nattering about the possibility of China dropping the dollar as a reserve currency? What else are they going to use? Monopoly money? Taiwanese dollars? Collectable postage stamps?
Silver’s channel top will lie up around $68 to $70 over the coming months which we believe will be reached in 2012. The next higher angled resistance bands for silver run from $112 to $115, and then up at the $123 area.
Gold bullion prices rallied to $1,789 per ounce Friday morning in London - down 3.6% from last week's close - following a sharp drop that began the previous day after key central banks announced they will begin US dollar liquidity operations.
Spot metals dealings started what could be a tumultuous session with (mostly) gains this morning. Gold commenced trading just above the $1,700 round figure (at $1,702.20 the ounce) showing a gain of $38.80 versus its Friday afternoon closing value.