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Rock and a hard place

Andy Hoffman
|
Tuesday, May 13th
SilverSeek.com Comment Wire

 

Each day, my belief that the Fed is actually supporting interest rates - specifically, the 10-year yield at multi-month support at 2.6% - grows stronger, via the "most damning proof yet of QE failure."  Today's abysmal retail sales number clearly has them under pressure again; not to mention, the horrific Chinese industrial data and German ZEW investor confidence numbers.  The ECB again leaked its leaning toward launching QE at next month's meeting; and pretty soon, it will be the Fed's turn as well - as they are stuck in the ultimate "rock and a hard place."

 

Signs of PHYSICAL PM market strain are everywhere - from plunging Chinese silver inventories, to widespread gold and silver backwardation.  And oh yeah, by week's end, a new pro-gold regime will likely be in charge in India; which may well cause an end to last year's suicidal PM tariff increases in the near-term.

 

Andrew C. Hoffman, CFA

Marketing Director

Miles Franklin Ltd.


 

ahoffman@milesfranklin.com

www.milesfranklin.com

 

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