A key highlight of March 2011 was the strong performance of DGCX Gold futures, which grew 51% year-on-year and 57% on February 2011 to reach 49,011 contracts. Silver futures also witnessed robust growth rising 84% year-on-year and 102 % from last month to reach 4,370 contracts. LINKTo me it's also indicative of the fact that OPEC countries are increasingly looking for ways to swap out of all of the dollars they take in from selling oil. The demand for physical gold being reported by these countries supports that premise.
On another note, I'm seeing a lot of signs that the banking gods are trying to reinflate the housing bubble. I heard an ad on the radio last week by some bank promoting low-interest home equity loans. And I just received this note in my email from one of the banks I with which I do business: HELOC promotion, and have a really good rate of 3.75 Variable APY, no points, no annual fees, no appraisal fee only $100 application fee.
I have to laugh at this. I've been meaning to do a blog post discussing the fact that credit standards in the banking system have collapsed again. There are all kinds of examples, but the coup de grace is the revival of home equity loans. Banks have capital available and risk-appetite for this because the Fed/Government inteferred with free market process by saving the big banks. Not only did they not have to suffer for their sins, but they survived and are taking our system down the same path that led to the 2008 banking system collapse. Twain was wrong, sort of, history rhymes AND repeats.