This is from my latest reading:
China’s Industrial and Commercial Bank(ICBC) reports that purchases of physical gold and gold-related investments are growing at record setting rates.
In January alone ICBC sold 7 tons of gold– almost half the 15 tons it sold in all of 2010. It also sold 13 tons of silver in January– almost half the 33 tons of silver it sold to clients during the past year.
Zhou Ming, deputy head of the precious metals department at ICBC believes that gold and silver purchases are replacing property speculation in China as the preferred investment.
Read article here.
The trend is clear. Gold and silver buying is strengthening and it is likely to get stronger for the rest of the year. Buying on any pull back is likely to be the mantra for as long as the spectre of stronger inflation remains.
Where are the supports for silver? Currently, the 14dMA is at US$29/ounce and the 200dMA is at US$23/ounce. Anyone who was waiting for the price to weaken further before buying in the last correction like I was would remember the experience. The next time silver corrects, expect buying to come in much earlier at supports. I will wait patiently to accumulate at supports.