Silver and Gold Will Run Up Again...

Market Nuggets: New Money Entering Metals – RBC

07 December 2010, 9:47 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Metals markets are seeing new money entering as they set record high prices for nearby contracts, along with record high volume and open interest. That creates “the perfect formula for momentum traders and funds,” says George Gero Vice president with RBC Capital Markets Global Futures, Vice President-precious metals strategist. “We now see new funds entering the markets for asset allocation to metals, namely retirement and endowment funds which actually carry more money and more holders than ever-clients at funds demanding funds managers to be in gold and the rush to show participation is evident,” he says.

By Debbie Carlson of Kitco News;

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Market Nuggets: Silver Rally Over $30/oz Accompanied By ETF Inflows - Commerzbank

07 December 2010, 9:03 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Silver “made easy work” with its move through $30 an ounce on Monday, says Commerzbank, with the price rise accompanied by high inflows into the silver exchange-traded funds. They note that the world’s largest silver ETF, iShares Silver Trust, reported inflows of 38 tons yesterday. As silver rallies, the gold/silver ratio has fallen to 47.2, the lowest level since February 2007. Commerzbank notes the next target could be ten-year low is around 43. “This shows that investors grant silver more price potential than gold,” they say.

By Debbie Carlson of Kitco News;

Market Nuggets: Metals Market Participants To Watch Irish Budget Vote, Tax Compromise Gives Lift

07 December 2010, 9:01 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- The Irish parliament is voting Tuesday on its budget of spending cuts, which is one of the bigger political events the precious metals market participants are watching. Ireland received a bailout of its banks recently in partial exchange for spending cuts. Commerzbank says a rejection of the budget could cause more turmoil in the eurozone. “Against this backdrop, gold should remain in demand,” they say. Also lending support to all markets is news that President Obama and the Republicans have reached a compromise on tax policy, says Ed Meir of MF Global. “It remains to be seen whether these cuts will have the desired impact of stimulating the economy, but they most certainly will grow the deficit and weaken the dollar, and this is perhaps what is behind the sizable advance we are seeing today,” he says.

By Debbie Carlson of Kitco News;