Silver

The info below I borrowed/copied from LeMetropoleCafe (www.lemetropolecafe.com) a daily news information about Precious Metals with a lot of other useful information eg market manipulation, open interests, economic indicators and so on.

Quote, a cafe member commenting about a report re India's selling of Silver
"Buying was exacerbated by the Reserve Bank of India selling and delivering 26 million ounces of silver into the Indian market in 2006, partially to dispose of approximately 69 million ounces of long-held silver inventory. The Indian government had sold around 35 million ounces the year before. It also sold another 8 million ounces in 2006 that were not delivered into the market, but have been delivered in the first 4 months of 2007."
(this the part of info in a newspaper)

Following now the comment of the cafe member
Buying got "exacerbated" by intense selling? And India suddenly took leave of their senses and "disposed" of their ENTIRE 69 million ounce inventory of silver in 2 years and yet still the price tripled? And no mention of the incredibly bullish fact that apparently India HAS NO MORE SILVER? All this dumping by India and STILL they needed to import more silver? Lest we forget the 8 million ounces dumped on the market this year (2 million a month) and the price has barely flinched? Now that India no longer has silver to allegedly "dump" where will more come from? CPM couldn't find their -ss with both hands. What they do find is a reporter at Resource Investor willing to copy their drivel into another misinformation story

Unreal how they come up with such convoluted explanations to obscure a simple truth. Silver, like gold, is being severely suppressed.
http://www.resourceinvestor.com/pebble.asp?relid=31777

Unquote

Inflation

Looking at the historical low physical stockpiles of some base metals it seems that higher metal prices and therefore higher inflation is in the cards. China and India, where millions of farmers move from their farms to the cities, need to provide housing and infrastructure. In addition to that fact, the farmers desire to improve their live by buying TV's, motorbikes or even cars will certainly lead to a high demand of base metals or at least will keep up the existing demand. Therefore medium to long term we should see higher base metal prices even if China might have some hickups (eliminating existing bubbles) on the way to a developed country

Gold: THE BATTLE FOR $700

by James Turk

We have a battle on our hands. It’s the Battle for $700, and it is just the latest clash in a long war being fought between gold and its perennial antagonist – the gold cartel

Read
http://www.financialsense.com/editorials/turk/2007/0514.html