We are seeing a new, 5-year low this morning. Base metals are down too, though lead is flat.

The good news in this, if one want's to call it that, is the lower it goes, the morely likely will be a quick and strong bounce off the bottom. That's because the more producers cut back, the harder it will be for them to meet demand when the market turns up, meaning supplies will suffer long into an improving market.

Some weeks ago I posted evidence that only a small handful of producers were able to make money in this environment. POG was higher then. I would guess that now only one or two are not in the red, and those have to be at breakeven. If so, none of the major or mid-tier producers are making money at this moment.

What kind of a world are we entering when markets have no taste for other than financial assets (i.e., paper money)? Historically, such conditions have bad endings, excepting for producers of "real" things. You can't eat worthless bonds, but gold is never worthless.

...oops! Here's another example of the kinds of OT? posts that would get me suspended from the "other" board. Hoping this goesn't generate compaints to Agoracom.

VP