Compiled 01/21/11 6:00 AM (CT) Statistics: London Gold Fix $1344.00 -$20.50 LME Copper Stocks 381,300 tons +775 tons Shanghai Deliverable stocks were 130,364 tons -2,283 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With a downside breakout in March silver this morning taking silver prices down to the lowest level since November 30th, it would not appear that this week's downward bias in prices has been altered overnight. As in a number of physical commodity markets this week, silver is apparently fearful that recent growth and inflation readings from China are going to inspire additional tightening. One also got the sense yesterday morning that a broad based physical commodity selling wave was in motion again even though some markets have managed to recover from that wave down action overnight. Since the silver market hasn't paid that much attention to classic physical supply and demand stories lately, the silver trade probably won't garner much support from news overnight of an increase in Chinese silver imports. Chinese December 2010 silver imports rose by slightly more than 3% over the prior December and that left the yearly silver import gain just under 15%. With higher exchange margins for silver overnight it is possible that some weak handed longs might be forced out by the continued weakness on the charts. Comex Silver Stocks were 104.359 million ounces down 55,131 ounces. Silver stocks have declined 11 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally higher this morning. Early indications are for the US stock market to open near unchanged levels this morning. The Dollar is weaker against most of the major currencies during overnight trading, although posting a small gain versus the Pound. Spain is planning to nationalize several of their cajas savings banks if they are unable to find new investors. South Korea has agreed to high-level military talks with North Korea in order to diffuse tensions between the two nations. A private survey of German Business Climate during January was 110.3, higher than expectations and reaching a new record high level for the second month in a row. UK Retail Sales during December were down 0.8%, lower than forecasts. There are no major US economic numbers to be released this morning.