Larry Edelson , PM Guru, is forecasting that gold can drop to the $1100--$1200 area and silver to the $15-17 level before going up again. Lost a bit of money on this stock and decided to sell all my shares which I did today. If he is correct in his forecast, where do you think this stock will be?
Market Nuggets: Deutsche Bank Sees More Gains For Base Metals After Chinese Data
Monday August 12, 2013 8:59 AM
Deutsche Bank says industrial base metals may rise further. They were supported late last week first by Chinese trade data for July, then a stronger-than-forecast year-on-year increase of 9.7% in industrial production reported on Friday. "The better-than-expected July China IP number has pushed industrial metals meaningfully higher across the board," Deutsche Bank says. "We expect the rally could continue, driven by further short covering.
Physical demand supports gold, even as exchange-traded fund net outflows continue, says Commerzbank. The physical demand is keeping prices supported and so far “appears able to compensate for the lower level of investment interest,” they say. Chinese demand for the first six months was 706.3 metric tons, versus 832.2 tons in 2012, Commerzbank says, citing data from the China Gold Association. “If China’s gold production of around 193 tons is factored into the equation, Chinese demand was met almost exclusively by net gold imports from Hong Kong, which amounted to 518 tons in the first six months of the year. Comparing this import pull with the outflows from gold ETFs, which totaled some 586 tons in the first half of the year, also portrays the situation very vividly. These figures are impressive evidence of the transfer from ‘weak’ to ‘strong hands’ and from the West to the East,” they say.