Amidst all this talk in the metals blog space about unsubstantiated claims of LBMA defaults, clients unable to get allocated gold (unsubstantiated) and Comex defaults, let’s try to stick the underlying fundaments that are proving to be the real headwinds for the precious/industrial metals at the current time. Growth, or lack thereof.
It started with China last night as their PMI coming in at 50.5 down from an expected 51.5 number. This news then spread to the Euro Zone where German business activity showed further contraction in Europe. Europe cannot affords to have its biggest player slow down. These numbers continue to show that the biggest risk short term is deflation … not inflation.
I wonder if any of our soap box friends will emphasize the economic data or simply continue to promote unfounded stories about who was unable to obtain gold from banks un-named. I make the latter statement because “legendary” Jim Sinclair told, you guessed it, KWN that an “unnamed friend was unable to obtain his gold from an “unnamed” Swiss bank and was told he would need to cash settle. Name the Bank! Simple. Prove the story, prove the central part of the current theme and FORCE that unnamed back to respond.
