RE: what's next?Margins are always the last tool to be used, they have nothing left after it.
If I had my way I would want no margins - you want it you pay for it but of course we all know they have every reason to stay paper. Every time they midnight raid the paper price value gets sucked out of US and Canadian resource firms/investors and the East simply take physical delivery of the metals and say thanks for the happy hour prices J P Morgan.
It's hardly surprising that the East are astounded by the Wests economic stupidity, it's almost child like.
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"The response [to the dip in global gold prices] is just overwhelming," says PC Jewellers' Group director Balram Garg in New Delhi, speaking to NDTV.
"We are catering to a huge rush at our showrooms across the country," says Garg, forecasting sales growth of 30-40% from the festival's already strong levels in 2010.
"Asian investors bought the dip [but] gold is now below $1500," notes Standard Bank's commodity team here in London today – "a level we’ve been targeting for some time.
"We see better value in a long gold position here [but] our bias still favours more downside...closer to $1450."
Another wholesale dealer reports "decent Chinese buying in silver overnight," with 25 million ounces being bought at Friday morning's "limit down"
drop of 8% – the maximum daily move allowed by the Shanghai precious metals exchange.
Adrian Ash
BullionVault