Daily Market Update 2/14/11

Precious Metal Market trading was very active today with Silver taking the lead up 53 cents to $30.53. Gold recovered from earlier lows closing at $1,365.10, up $4.70.  The news of continued Middle East protests in Algeria, Bahrain, and Yemen, plus the release of the Obama $3.7 Trillion budget, which forecasts deficits for 2011 at $1.6 trillion and $1.1 trillion for 2012, helped the demand for silver & gold.  

Today’s Important News:
High inflation rates are fueling demand for Gold and Silver in India and China. For 2010, Chinese inflation is running at 9.6%, and at 8.43% for India. Remember back in the 1940s... many Chinese lived through the hyper-inflation from Sept 1945 to May 1949 when the wholesale price index in Shanghai, China increased about 78% per month.  In 1945, 1,222 Chinese Yuan could buy one U.S. dollar; by May 1949, it took 23,280,000 Yuan to buy a single U.S. Dollar.  This is one of the many reason’s the Chinese are believers in Gold and Silver.