Waves of money at his highest level inflation hedge, use of the industry

April 25, 2011, 2: 56 pm EDT by Glenys Sim and Kyoungwha Kim

April 25 (Bloomberg) - Silver rallied to a record level investors seeking to protect their wealth against the acceleration of inflation and a weakening of the dollar with holdings in a metal benefiting also from economic growth. Spot Gold has also reached a record.

Delivery immediate silver soared up to 5.4% to $49.79 per ounce, beating the previous peak, which, according to research, GFMS Ltd. was of $49.45 in 1980. The metal was $49.0788 to 2 h 40, at Singapore, for a ninth day and together win longest run since a gain of 11 days in March 2008.Precious metals are magnet to the investor concern that Central Bank programs to boost economic growth with extremely low interest rates and increase of the offer of money will boost inflation and hurt currencies including the dollar. Silver is the best performer last year on the Standard & Poor GSCI Index of raw 24, before cotton, coffee and sugar. "The increase has been dramatically fast, Peter Hickson, an analyst at UBS AG in Hong Kong, said before the prize money record of today has been reached. The metal for immediate delivery takes end of March to $37.665. "The momentum of the request is clearly with it."Cash has more than doubled last year, exceeding the gains gold and copper, on speculation that the currency will be degraded and inflation if will accelerate after that Governments spend $ 2 trillion to stimulate their economies from the worst recession since the second world war.The dollar has fallen close to a minimum of 16 months against the euro on speculation that the Federal Reserve will continue to borrow fresh near zero while officials of the European Central Bank of the signal further rate increases. Fed Chairman s., Ben Bernanke held a press conference after the Declaration of the Federal open market Committee on 27 April, after a two-day meeting in Washington. "Market where he likes '"Silver long term really will end up in a blood bath, but in the short-term the market loves,"Dominic Schnider, Director of research at UBS AG wealth management, said in an interview with Bloomberg Television today. What is called the relative strength of the commodity index, which can point to a decline when it is over 70, was at 90.711 today, according to data from Bloomberg.Demande of money investment climbed 40 percent to a record high in 2010 and the use of manufacturing jumped to a maximum of 10 yearsGFMS said in an April report published by the Silver Institute based in Washington. Assets held in products exchanged-traded pink to a record 15,509.54 tonnes on 12 April, data compiled by Bloomberg shows four providers.Silver July-delivery on the Comex in New York jumped as much as 8.2% to $49.845 per ounce today, before the Exchange at $48.925. The record price is $ 50,35 ounces, also set in January 1980, according to the Exchange. Gold for immediate delivery climbed up to 0.7% at $1,517.98 per ounce. "Investment Haven'"Silver definitely benefits from the application of overflow of gold as an investment haven,"said Li Ning, analyst of the future International of China (Shanghai) Co. An ounce of gold bought as few as 30.5121 ounces of silver today, the lowest level since September 1980.Silver is the precious metal that is used in industry and found in products of solar panels for plasma displays and chemical catalysts. In India, future of money also reached a record 73,600 ($1,655) rupees per kilogram on the Multi Commodity Exchange of India Ltd. today. "It is mainly driven by speculative buying, with investors considering the record for some time now," Yang Shandan, a trader at Cinda Futures Co., said of Zhejiang in China. " "We could do a bit of profit-taking now that we pushed passed the top".Consumer prices are accelerating China in India as oil climbed to a two-and-half year high after that violence in the Middle East and Africa threatened to disrupt supplies. China consumer prices, the fastest in the world major economic growth, could reach between 5.2% and 5.5% in April, according to a report on April 24 from wave of China International Capital Corp.After silver in 1980, Nelson and William Hunt of Dallas have been recognized guilty in 1988 of conspiracy for trying to manipulate prices and has been ordered to pay $ 130 million.Among other precious metals, platinum acquired for a fourth day, the increase of 0.8% to $1,836.75 an ounce, the highest price since March 7, and palladium has increased as much as from 1% to $775 an ounce.

-With the help of Madelene Pearson in Mumbai. Editors: Jake Lloyd-Smith, Jarrett banks

To contact the reporters on this story: Glenys Sim to Singapore to gsim4@bloomberg.net; Kyoungwha Kim at Singapore to the kkim19@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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In the United States budget cuts hit cities short of money, federal transit

April 12, 2011, 1: 26 pm EDT by William Selway

April 12 (Bloomberg) - U U.S. cited and local governments will lose funds for community redevelopment projects, transport, transit and police and firefighters under the agreement on the budget which has avoided a closure of the Federal Government.

The agreement signed between President Barack Obama and leaders of the Congress to reduce funding for the Department of housing and urban development of the community development by 942 million dollars Fund 3.5 billion dollars, according to a published list today. It eliminates also public transport grants $ 680 million, more than 700 million from the low income housing and 786 million of grants to local organizations to respond to emergency situations. "It will certainly have an impact at the level of local,", said Greg Minchak, a spokesman for the National League of cities, in Washington." "This will means projects won't go forward, cities will have to readjust that they worked, and we will see layoffs because of this.".The cuts affecting cities are among those required to produce the $ 38 billion that Obama and the heads of the Congress agreed to for the rest of the fiscal year 2011. Cuts solved a confrontation between the White House and Republican leaders last week threatened to force the closure of Federal Government first in 15 years.Legislation 1.049 billion dollars is set for a vote of the Assembly later this week, with a vote of the Senate to follow, as legislators push to bring the budget fight to an end.UrgedCity Congress leaders had urged Congress not to cut the community development program, saying doing so threatened to deal a blow to their already struggling economies. Housing and urban development program provides federal grants to States and localities of affordable housing, the improvement of infrastructure, economic development and other projects.Cities have little place to compensate for the lost funds. Local governments have eliminated 416,000 jobs because their payroll peaked in September 2008, before the financial crisis has worsened, and State and local tax collections have yet to recover the peak hit more than two years.Also, the agreement on the budget eliminates funding for high-speed rail projects and cancels the 400 million in funding in previous budgets. The blows save 2.9 billion dollars, according to the list.Robert Healy, a lobbyist for the American Public Transportation Association, said that cuts come at a time when the rise in the price of gasoline are illustrating the need for investments in public transit. "" We are very concerned about the impact of the agreement on transit and rail transport high speed ", he said. "It is short-sighted."

-With the help of Brian Faler at Washington. Publisher: Walid El-Gabry.

To contact the reporter on this story: William Selway in Washington to wselway@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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