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January 25, 2006

Precious metals are aglitter, Wed., Jan. 25, 2006, 6:48 AM

It appears to traders that China will bring in their New Year this week with a policy change of the People's Bank of China. Mr. Joe will soon announce that Beijing has allowed the Yuan to be revalued by floating (more) freely against the USD. Consequently, the USD will drop further and precious metal pries will rise further.

The implications of the Renminbi revaluation are pervasive as China now is the fourth largest economy in the world " ahead of France. But nowhere more than precious metals is this policy change being felt.

Today there has been a continued rise in precious metal spot prices. I believe the buyers include many Chinese who are rushing to buy ahead of a time when gold priced in Yuan will be more costly. I believe the time is now to jump on the precious metals bandwagon before the global public sees what is happening.


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Posted by Posted by Bill Cara on January 25, 2006 06:48:30 AM | Category: Bullion , China

Discourse

Bill,
Compounding those factors is renewed speculation that the SEC will move forward with regulatory approval of a silver ETF:
http://www.resourceinvestor.com/pebble.asp?relid=16416

Posted by: josh [TypeKey Profile Page] at January 25, 2006 8:44 AM [link]

Bill-

The Kitco site shows gold moving down overnight in Hong Kong and the big move being made this morning in Europe (London market).

A chart of the dollar looks bleak. g034 has been following this and I would say that technically it looks like it has decisively broken the H&S formation he has been talking about. I pegged support at a point higher than it presently rests.

Posted by: MarkM [TypeKey Profile Page] at January 25, 2006 9:03 AM [link]