Oddities & lost days

I am one lucky camper today. With the Chinese New Year sneaking up on me I lost Monday. Fortunately there is virtually no volatility at present as besides a small profit-taking blip, silver has traded sideways. Reporters are stating a number of odds and ends about the news that could effect PMs.

The automotive sector is reportedly near a 10-year cycle in the US that could see new orders boost PGM precious metals.

Reporters across Europe have called Euro-zone QE3 on CCTV finance report a 'stealth activity.' They must be reading my comments (joke) ... The expert stated that the ECB said they wouldn't interfere in monetary policies (I recall that being said too.) However, the expert stated that if you look at the market and the liquidity that was injected last month it is obvious QE3 is alive and very active. The call is again going out that more power of governance is the answer for the EU.

The FOMC are not expected to offer any radical objectives but to simply maintain the current 'fix-it' levels of interest rates and monetary easing policies. In some circles, Bernanke is being hailed as somewhat of s hero now as his controversial policies are having a small measure of success to steady the ship.

Physical demand is said to be very strong in metals and shortages are being witnessed which could impact supply-demand pressures to the upside. This leaves Gringich' calls for a return to a form of 'gold standard' as lame. It is obvious a full return is impossible but some hefty changes need to take place at some point in the future if the US is to be in budget surplus by 2025.

And now for the big news: Sprott fund has called for 300 million in silver bullion to kick off the 2012 campaign. It is a far cry short of the 1.5 billion dollar proposal before New Year. This will impact markets somewhat but Allen Sykora writes that Kodak is said to have 300 million in silver bullion sitting in a vault ready for off-loading. Interesting scenario indeed if it ends in the Sprott Fund.

All in all, the future still looks an each-way bet with factors supporting but potentially pressuring PMs as well. The best thing one can do is keep a close watch and follow the day by day trends as they ebb and flow with the tides.

Good luck to all in the Year of the Fire Dragon. Remember, paper can burn up in the furnace but silver and gold will be purified. I am calling this the Year of the Furnace - where strength will act as a shield and weakness will be revealed. Fire has an uncanny way of finding the weak points to fissure the crust and reach the core of the fuel cell.