I borrowed the following from the re-cap of today's Pfenning. We'll be bringing you more of the Pfenning as the days roll on, so stay tuned!
Manufacturing around the world is on an upswing, which is good news for the global growth campers. China, the U.S. and Canada all reported stronger than expected manufacturing index numbers. The Royal Bank of Australia left rates unchanged, but greased the tracks for future rate cuts. I still don't believe they are necessary, but the RBA seems to have an axe to grind here. Be careful of the Good Friday Jobs Jamboree this week.
Chuck Butler, The Daily Pfenning
http://www.dailypfennig.com/currentIssue.aspx?date=4/3/2012
We would also add that watching real interest rate numbers is a good indication for the direction that commodities like gold and silver will take. Why? Because Gold and silver tend to perform well in environments where money in the bank gets devalued over time ... and that's exactly the case now. Real interest rates for 5, 10, and 15 year treasuries are negative territory, and the FED has promised to keep their rates near zero until 2014. This means real interest rates of negative numbers are in the cards, almost indefinitely, for a while. This is extremely bullish for gold and silver. Click here to Read Jeff Clark of Casey Research explain the situation in more detail.
