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Impact on PMs? Unsure. Impact on Japan, Prognosis Negative.

MsMorrisineMsMorrisine Posts: 36,922 ✭✭✭✭✭
in Precious Metals
The wife's sister lives NNW of Tokyo and works in Tokyo.

It's now taking her 3-4 hours each way to commute into Tokyo.

This should be like an hour trip or so.

There's got to be economic spillover from this.


Current maintainer of Stone's Master List of Favorite Websites // My BST transactions

Comments

  • Coins101Coins101 Posts: 2,603 ✭✭✭
    Have you seen metal prices and the stock market the last couple days?
  • timcointimcoin Posts: 674 ✭
    What I'm trying to figure out is why did the Japanese currency get so strong vs. the dollar, and why have metals sank vs. the dollar. The only thing I can figure is that people want cash free and ready to invest.
  • MsMorrisineMsMorrisine Posts: 36,922 ✭✭✭✭✭


    << <i>Have you seen metal prices and the stock market the last couple days? >>




    Of course. But I don't think we've seen the full impact on the markets yet. This is going to strain even the strongest Japanese. Businesses will continue to see new impact into the near future at least.





    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • MsMorrisineMsMorrisine Posts: 36,922 ✭✭✭✭✭


    << <i>What I'm trying to figure out is why did the Japanese currency get so strong vs. the dollar, and why have metals sank vs. the dollar. The only thing I can figure is that people want cash free and ready to invest. >>



    I'm thinking that gold and silver were near or at highs and people saw that as a risk and rolled into treasuries.

    The yen is being bought up in anticipation and speculation that money will flow out of investments in the other countries and into Japan.

    Some of our money has already been sent to Japan.


    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • roadrunnerroadrunner Posts: 28,322 ✭✭✭✭✭
    Hedge funds around the world, as well as private investors, etc. are once again getting out of the once profitable yen carry trade where they borrowed on the cheap and invested in the world's equity markets over the past 1-2 yrs. With margin calls these guys have to unload and buy back Yen. PM's and commodities are being tossed as well to help fund those margin calls.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • JustacommemanJustacommeman Posts: 22,852 ✭✭✭✭✭
    RR,

    Reasonable and a lot of germs of truth in your assessment.

    Or you can blame it on speculators

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • derrybderryb Posts: 37,970 ✭✭✭✭✭


    << <i>What I'm trying to figure out is why did the Japanese currency get so strong vs. the dollar, >>


    Speculators (buyers of the yen) are betting heavily that Japaness insurers and investors will sell their overseas assets to pay for damages at home. Yen should continue to strengthen in the short term as currency players unwind their carry trades. If there is no BOJ intervention (but there's alway intervention) the upward balloon will continue just a bit longer before popping on its own.

    If you understand what is coming, then you can duck. If not, then you get sucker-punched. - Martin Armstrong

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