-- Posted Monday, 14 July 2008 | Digg This Article | Source: GoldSeek.com

INSIGNIA CONSULTANTS

Asian Metals Market Update for 14th July, 2008

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GENERAL MARKET CONDITIONS

First “Bear Sterns” now “Fannie Mae” and “Freddie Mac” and “Indy Mac”. How long will the Federal Reserve protectionism continue towards US housing mortgage companies? When things come out in the open it portrays a grim picture of the US housing sector and US financial services sector. We all know that the real picture has been suppressed by all global central banks in order to prevent a collapse of the global financial system. This is one of the first and concrete signals for the common man that this is the beginning of the collapse of paper money and paper assets which will continue for the time being. There is a limit to which things can be suppressed. If you have still not invested in hard assets then you have missed an opportunity. There will be more opportunities over the coming weeks which one should utilize.

Now I have my doubts whether the Federal Reserve will raise interest rates in 2008. Instead there could be a cut if more Freddie, Fannie and Indy come out in the open. Now US companies know that they need not worry on bankruptcy because big brother Fed is there to bail them out.

Last week’s rise in base metals reflects fund manager activity. Funds will chase everything. Unless new alternate sources of investment come up, investment interest in commodities will continue to rise. For commodity prices to fall global uncertainties should reduce and equity markets should rise. Till then the long term bull run in commodities will be there. If the US dollar collapses this week then there could be coordinated central bank intervention to stem the US dollar’s decline. Central banks could also increase the pace of diversification of their huge foreign exchange reserves away from the US dollar.

SILVER -- SEPTEMBER FUTURE

Silver targets $2202 and $2371 over the next few months as long as it holds $1680 and $1600.

HAPPY PROFITABLE TRADING

Disclaimer : Any opinions as to the commentary, market information, and future direction of

prices of specific currencies, precious metals, base metals, or equity indices reflect the views

of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability

for any losses incurred in connection with any decision made, action or inaction taken by any

party  in reliance upon the information provided in this material; or in any delays, inaccuracies,

errors in, or omissions of Information.

Nothing in this article is, or should be construed as, investment advice.

-- Posted Monday, 14 July 2008 | Digg This Article | Source: GoldSeek.com

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