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Archive
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News Worth Lingering
(continued...)
Gold hits $1,000
on weak dollar
(AP 3/13)
Gold briefly pushed past the psychologically important $1,000
mark Thursday, as investors poured money into the metal to hedge
against a tumbling dollar, soaring crude prices and a shaky U.S.
economy.
Bundesbank
likely to hold on to gold reserves (Reuters
3/11)
Germany's Bundesbank will probably
hold on to the vast bulk of its gold reserves in the next year
of the central bank gold agreement, beginning in September, central
bank president Axel Weber said on Tuesday. The Bundesbank, which
is the second-largest holder of gold behind the U.S. Federal
Reserve, announced in October it would sell a maximum of 8 tonnes
of gold to the German finance ministry to mint coins in the fourth
year of the deal.
Demand high
even as gold nears $1,000
(Reuters 3/7)
Gold's near vertical climb to historic highs approaching the
key $1,000 mark shows no sign of abating as bullish forces such
as a sinking dollar and record high oil are not seen fading anytime
soon. "And, with the right confluence of economic and geopolitical
developments, we could see gold spike to $1,500 or even $2,000
in the next few years."
When gold breaks
$1,000, then what?
(Reuters 3/6)
"...fundamentals drive the market more than price targets."
Should the the price of gold burst through the $1,000-per-ounce
barrier, which it nearly did on Wednesday, experts predict
it could reach higher records and even double this year,
"...$1,500-$2,000 gold in the next 12 months is definitely
possible. ...The Euro is too expensive and the dollar is not
attractive, so gold is looking like the place to go for investors."
Gold will plough
through $1,000
(FT 3/4)
John Reade, precious metals analyst at UBS, expects gold to reach
$1,025 an ounce in one month's time and $1,075 in three months
... believes that investors and asset managers are turning to
the metal as a safe haven against financial market stress and
fears of stagflation -- evident from the very large volumes of
physical investment buying, together with some large-scale transactions.
Gold beats
financial assets
(Bloomberg 3/3)
Gold, silver, platinum and palladium may be the best-performing
financial assets this year as inflation and slowing growth erode
the value of the world's major currencies, bonds and stocks.
Precious metals have risen at least twice as fast as the euro
and yen in 2008 and returned six to 20 times as much as U.S.
Treasuries. The Standard & Poor's 500 Index and all other
major gauges of equities are down.
Gilded
Opinion
Value
of gold and dollar in the eye of the beholder
The markets can easily handle $3,000 - $5,000 oz. gold in the
near term horizon with minimal disturbance. It is when gold rises
too much over $5,000 too fast that we might start to worry about
global inflation panic. My take is that over the next few years
gold will establish a new equilibrium to fiat currencies, albeit
at much higher level than today's $950/oz.
Gold's Glittering:
investors making the metal precious (redOrbit
2/29)
"Wall Street has to start changing its opinion with the
way gold prices are going up," said Michael Kosares,
author of The ABCs of Gold Investing. "I think it
is the ultimate insurance policy or defensive mechanism against
currency depreciation," Kosares said. "I see gold as
a long-term portfolio item that protects you from local currency
depreciation. ... Put some gold away, and take it out as if it
was money you were taking out of your savings account. As long
as we're in a fiat money system, I feel gold needs to be a permanent
aspect of the portfolio."
Quantum's Jim
Rogers expects $3,500 gold
(TimesOnline 2/28)
Rogers told 750 global fund managers that America is "completely
out of control", there will be a 20-year bull market in
commodities, prices will be in turmoil, and that the price of
gold, which hit an all-time high of $964 an ounce yesterday,
will continue its surge to as much as $3,500 an ounce. The dollar
may have declined recently, he added, "but you ain't seen
nothing yet".
IMF gold sales -- a perspective (Mineweb
2/27)
It looks as though any sales by the IMF will be restricted to
400 tonnes used in a previous sale and repurchase agreement
and in any case would be made within the existing CBGA sales
Agreement. "...we have emphasized that the sale should
be undertaken in a very careful way in terms of their periodicity
amounts and manner of sale such as not to disturb the market."
Why Bernanke's
recession will last 'til 2001 (MrktWatch
2/25)
Forget paper money and IOUs. Commodities are the world's new
"currency:" Hard stuff like oil, grains, metals, gold.
The ultimate
sell signal for stocks
(MrktWatch 2/25)
The resignation of America's unheeded and under-funded chief
accountant and watchdog, along with the billion-dollar bullhorn
he's been given, are the ultimate sell signals for America's
stock investors. This is an once-in-a-lifetime opportunity, both
for the foundation to work toward solutions and for you to invest
accordingly as they progress. That means sell domestic stocks
short as the crisis expands, invest in commodities and foreign-stock
ETFs that take advantage of a weakened U.S. dollar and economy,
and build your retirement reserves with open-minded investing.
This is the time to review your entire portfolio and invest decisively.
America's economy
risks mother of all meltdowns (M.Wolf
2/25)
Nouriel Roubini of New York University's Stern School of Business
states that there is "a rising probability of a 'catastrophic'
financial and economic outcome". The risks are high and
the ability of the authorities to deal with them more limited
than most people hope.
Junk-grade Fed? (NTSun
2/21)
The new Term Auction Facility's
purpose is to lend to banks under stress in the sub-prime credit
crisis. The banks front collateral against which the Fed advances
money. "The rub," Grant's writes, "is the quality
of the collateral." It quotes a Financial Times interview
with one financial strategist, Christopher Wood, as saying that
banks "are increasingly giving the Fed the garbage collateral
nobody else wants." ...if the salvation of the Fed is all
the gold it has in its basement, what does that tell us about
the monetary system on which the rest of the world is relying?
Markets assess
costs of monoline meltdown
(FT 2/21)
An analyst at Barclays Capital likens current events to nothing
less than the "demise of the shadow banking system"
that has sprung up in recent years around the structured world.
Policymakers pray that this chain reaction of financial implosions
can still be contained without sending the economy into a tailspin...
however, there are now rising fears that problems that have already
unfolded in relation to mortgages could be replayed in the corporate
debt world, with potentially painful implications for growth.
Citigroup forecasts
gold at $1000
(Platts 2/13)
The latest Citigroup North America
Mining & Precious Metals report: "We remain positive
on gold, based on a mix of macro and supply-demand drivers; the
forces that have propelled gold for the past five years are in place, and intensifying," said the report. "Corrections
are expected along the way, and buying on weakness is recommended,
which seems to be the central lesson of the past five years.
... Coordinated Fed and central bank action to thaw credit markets
and boost liquidity should be positive for hard assets and gold."
Gold has been attracting new groups of powerful investors, institutional
asset allocations to commodities, and Citi expects this trend
to continue.
Depression
risk might force U.S. to buy assets (Reuters
2/12)
Fear that a hobbled banking sector may set off another Great
Depression could force the U.S. government and Federal Reserve
to take the unprecedented step of buying a broad range of assets.
That would be reminiscent of some steps the U.S. government took
in the 1930s when the economy was mired in deflation and high
unemployment. One turning point came when agricultural prices
were restored to their pre-slump levels. Such measures were among
the New Deal programs that President Franklin D. Roosevelt launched
to bolster the economy.
G7 approves IMF gold sales (Reuters 2/9)
The Group of Seven rich nations on Saturday approved the sale
of gold by the International Monetary Fund from April as part
of a broad reform of its budget... that resources should be raised
by selling gold. "The IMF is rich, if it wants to be."
G7 can't stop
freight train of unwinding risk (Reuters 2/7)
"Risk is being reassessed
globally." Investors have become skittish about having risk
in their portfolios as a credit crisis and fears of a U.S. recession
have lopped off $5.3 trillion, or 10 percent, of value from global
stock markets.
Rocket
School of Economics --
The
Financial Equivalent of Faulty Towers
by Professor von Braun, February
6th
Investors rush
to gold... (Wall
Street Journal 1/31)
...in places like India, where banks aren't always trusted and
currencies can be unstable. Today, a different class entirely
is powering gold's rise: mainstream investors and money managers
who once shunned it. They hope adding gold to their portfolios
will help soften the blows of inflation, possible recession,
the sagging dollar and gyrating stock prices. What we have seen
in the last few years is a fundamental shift in attitudes toward
the gold markets by Western investors.
When governments
print money, buy gold
(The Business 1/18)
The price of gold tells us a lot about ourselves. It holds up
a mirror to the way we are governed, our economy and its prospects.
In that sense, the gold price's journey towards $1,000 is a resounding
vote of no confidence in authority. It's the market flashing
a red light. Currencies come and go, but gold has been a store
of value for more than 5,000 years. Gold is rare, but, thanks
to Gutenberg, paper money is not. Presented with an opportunity
to churn out extra cash at little expense, it takes a special
kind of government to resist. Few seem able to do so.
Gold at $1,250
possible in 2008
(The Independent 1/13)
In 2007, a gold investor would have enjoyed a 32 per cent gain
on top of the 20 per cent-plus increases seen for most of the
previous five years. So what does this year have in store? The
gold chart up to mid-2007 was "constructive" before
going exponential. The-BullionDesk forecasts an average price
of $976 in 2008 with a possible high of $1,250.
Turkish appetite
for gold unfazed by record prices (Reuters 1/14)
People want a guarantee for their savings because of the problems
in the world economy and they have found this guarantee in gold
now. ... Given the problems in the world economy I believe gold's
appeal will continue, and since the habit of always investing
in the dollar has been broken, and consumers have started to
think of it [gold] as an indispensable part of their portfolio,
it is not that price-sensitive anymore.
Gold's Next
Hurdle Of $1,000 Puts Inflation Risks In Sharp Focus (DJ 1/14)
Global inflation, stock volatility, the upcoming Chinese New
Year holiday - you name it, there's a reason out there for gold's
rapid rise and the likelihood it will hit a new eyeball-popping
level of $1,000 an ounce.
BlackRock says
gold a better 2008 bet than oil (Reuters 1/14)
Gold is likely to prove a better bet than oil in 2008 given the
prospect of falling U.S. interest rates and further U.S. dollar
weakness, the head of asset allocation at BlackRock Inc said.
Bully
for bullion (FT
1/11)
Fundamental changes in the gold market have taken hold that suggest
higher prices might last a lot longer. The dynamics have begun
to change "inexorably towards a diminishing supply of gold
and increasing investment demand, which will ultimately impact
on the gold price". Among the factors that experts cite
are rising global inflation, concerns about the health of the
financial system - and the weakness of the dollar, which could
be aggravated by further Federal Reserve interest rate cuts to
cushion the American economy against the impact of the credit
squeeze.
China launches
gold futures (CSC
1/10)
The official debut of China's
gold futures ignited the new frenzy of speculation that may stir
up international gold price. By 9 o'clock on January 9th,
gold futures contracts for June were finally offered in the Shanghai
Futures Exchange (SFE). Minutes after their official debut, 7
contracts purchased climbed to the daily 10 percent limit before
dropping back down a bit. Taking the dollar-yuan exchange rate
of 8th of January at 7.2791, the benchmark price of Chinese gold
futures would be $897.28 per ounce, with an upper limit of $987.02.
This benchmark price was the highest price in the international
market. By contrast, on the same day, the price of gold in London
reached $876.8 and COMEX gold futures reached $892.
Gold
breaks 28-year record high, oil hits $100 (AFP 1/2)
Unrest in Pakistan, a faltering dollar and surging oil futures
sent the price of gold soaring to a record high on Wednesday,
beating its previous highest level set 28 years ago. The precious
metal rose to $859.20 an ounce, smashing its peak of $850 reached
on January 21, 1980. ...The price of crude hit 100 dollars per
barrel in New York for the first time in history...
Older (2007) Gold News, Archives .
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