Thursday, April 14, 2011

Asia's Clamor to Buy Silver "Unheard of...Dysfunctional"

The price of gold fell against a rising US Dollar in London on Thursday, dropping back to $1454 per ounce but rising for Euro and Sterling buyers as world stock markets fell alongside commodities.

Major-economy government bond price rose, nudging 10-year US Treasury yields down to 3.44%.

The price to Buy Silver also fell back Thursday morning, dropping 2.0% after coming within 50c of Monday's new 31-year highs.

"The interbank silver market [in Asia] is dysfunctional" says one Hong Kong dealer's note. "Liquidity is getting worse while the price action is getting more exaggerated as a result."

With ever-more money looking to Buy Silver, "The furiousness of such moves has been increasing in the past two weeks...[and] the flow in/out of silver is excessive with respect to the capacity of the market." (read more)