Yesterday in Japan a famed Japanese Banker Takeshi Fuiimaki said that current policies will lead to hyperinflation.

Yesterday in Japan a famed Japanese Banker Takeshi Fuiimaki said that current policies will lead to hyperinflation. This certainly has been supporting gold overnight. Meanwhile in the background and apparently starting to get some traction is the Fed’s Kaskari speaking about splitting up the banks to avoid too big to fail, which makes investors wonder about the future. More importantly today was the big decline in Consumer Confidence at 92.2 which is significantly lower than expectations. After the string of poor manufacturing numbers yesterday and the follow through today with a weak Richmond Fed Manufacturing Index the combined news looks supportive of the bull environment we find the market in. Gold may continue to try higher as many are hoping for it to take us out of the doldrums of the current range and break the 1230 but don’t hold your breath. I suggest to keep your eyes open, you never know what may happen next to change the landscape of the current environment.

Stock market and currency turmoil continues to drive safe haven investment

Stock market and currency turmoil continues to drive safe haven investment with a further 250 k oz of gold added to ETF holdings yesterday, bringing the global total to 50.5 mm oz.  Silver and platinum are benefiting from gold’s stellar performance but  the gold silver ratio has moved out to 79 and platinum continues to trade at a $272 discount to gold.   Palladium remains the laggard with only a 1% rally from yesterday’s close.