Well M. Pennington Sr. seems to be right on the bullion when he mentions in his previous blog post that China, India and the Middle East is investing in precious metals. Reuters posted this today:

“NEW YORK, Aug 15 (Reuters) - Global gold demand in the second quarter jumped 19 percent year-on-year to 922 tonnes as less volatile prices spurred jewelry buying in India and around the world, industry-sponsored World Gold Council (WGC) said Wednesday.Total jewelry demand for the second quarter rose 29 percent year-on-year to 675.1 tonnes, propelled by a 89-percent gain in top consumer India, as well as China and the Middle East, WGC said in its quarterly “Gold Demand Trends.” … India was by far the largest consumer of gold with 240 tonnes in the second quarter, up sharply from 166.4 tonnes in the year-ago quarter. China and the Middle East also posted sharp gains, while jewelry demand in the United States slipped 4 percent.”

Personally I went and bought some jewelry recently and was suprised to see the major jewelry retailer not selling platinum anymore (or just a small percentage). The general manager said the price is too high for the consumer so they are primarily selling gold and silver inventory.

I think this demonstrates that consumer and industrial purchasing of gold and silver are increasing… this should excite the precious metal investment community.

At the same time that the middle east and asia are buying up gold and silver there have been many reports that the Fed is printing money left and right in hopes to end the fears of a slowing economy.

“The US Federal Reserve said Wednesday it may pump more money into the jittery financial system when the stock markets open for trading to meet increased liquidity demands.
The Federal Reserve Bank of New York said that market conditions suggest that an injection will be needed in the federal funds market “to accommodate heightened reserve needs.” The operation would be conducted at the bank’s desk opening at 9:30 am (1330 GMT), it said in a statement. The Wall Street markets open at that time.