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ARCHIVED DISCUSSION FROM 6/29/2006
All times are U.S. Mountain Time
(Yesterday's Discussion.)
The Invisible Hand
(6/29/06; 22:17:40MT - usagold.com msg#: 145686)
Dr. Abbas Bakhtiar: Cold War II
http://www.scoop.co.nz/stories/HL0606/S00348.htm
SNIP FROM THE END
The cold war II started in 1999 by expansion of NATO into the Eastern Europe.
SNIPS BEFORE THE END AND IN ORDER OF APPEARING
The history of the Neocons is well known. Neocons are a group of people bent on making the US the sole hegemon of the world.
+
[Their] first objective is to prevent the re-emergence of a new rival.
+
The election of George W. Bush gave these people real power but not the opportunity to implement their plans. The 9/11 attack on the US provided the perfect opportunity and excuse. Soon after, they set about trying to deal with the perceived future challenges to the US power.
+
In 2004 7 more countries: Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia joined NATO. NATO was now at the borders of the Russian Federation. As the new members were being welcomed into NATO, other countries were being "encouraged" to apply. This encouragement usually takes the form of encouraging civil unrest and if possible revolution in the target country, with the aim of installing a pro-American leadership. According to Guardian these colour revolutions are directly supported by the Western governments [3].
+
SCO [Shanghai Cooperation Organization} is evolving from a regional economic and security cooperation to something else. If the observer states were to actually join the SCO, it could become one of the most powerful organisations in the world. Russia and Iran combined would have more energy reserve and production capacity than any other nations on Earth. Population wise, the organisation would represent the over 2 billion people. Economically they would have the energy resources of Russia, Iran and caucuses plus the manufacturing might of the Chinese and burgeoning service industries of India. With the Russian space/military industrial complex behind them they would become a formidable world power.
Chris Powell
(6/29/06; 21:32:25MT - usagold.com msg#: 145685)
Paper silver likely next month on Shanghai exchange
http://english.people.com.cn/200606/30/eng20060630_278678.html
From China Daily, Beijing,
via People's Daily Online
Friday, June 30, 2006
SHANGHAI -- Shanghai Gold Exchange is about to introduce silver trading for the first time after months of planning.
The regulatory framework for trading silver contracts will be completed as early as next month, said Tong Gang, the exchange's spokesperson.
The launch underscores the rapid development of the silver market in China, which is widely regarded as potentially the most important consumer, producer and exporter of the metal.
The exchange, which currently deals with platinum as well as gold, is expected to trade silver spot and spot-deferred contracts.
Spot contracts are ones that require payment at the time of purchase; spot-deferred contracts require payment a few days after the contract has been made.
Silver futures contracts could also be traded on the exchange.
The country's silver consumption, mainly used by electronics and chemical firms, was estimated at 2,600 tons last year. This compares with only 900 tons two decades ago.
The country is also an important producer and exporter of the metal.
Silver production in China has been soaring at 10 per cent annually since 2000, when the State monopoly covering the purchase and marketing of the metal ended.
Last year production reached 6,000 tons.
The launch of silver trading may put the gold bourse in competition with the Shanghai White Platinum & Silver Exchange (WPSE), also known as the Huatong exchange, currently China's only official spot silver trading centre.
But WPSE's Liang Haifeng said, "The gold exchange will deal mainly in futures contracts which will attract more speculators than spot silver buyers."
Huatong's monthly silver transaction volume now stands at more than 30 tons.
The global price of silver has fallen by 30 per cent since April, when it hit a 22-year high.
At the WPSE yesterday the price of silver closed at 2,960 yuan (US$370) per gram, down from around 3,400 yuan (US$425) in mid-April.
In a separate development, it was reported that the New York Mercantile Exchange (Nymex) is hoping to begin trading gold futures contracts in China, possibly at Shanghai Gold Exchange.
John Hanemann, of Nymex's commodity exchange division, was quoted by the Wall Street Journal as saying his bourse had been in talks about launching gold futures contracts with Chinese exchanges.
Shanghai Gold Exchange spokesman Tong said he was not aware of any talk with Nymex.
Chris Powell
(6/29/06; 20:54:00MT - usagold.com msg#: 145684)
No mention of 'strong dollar' policy from new Treasury secretary
http://today.reuters.com/business/newsArticle.aspx?type=ousiv&storyID=2006-06-29T195828Z_01_N29206701_RTRIDST_0_BUSINESSPRO-ECONOMY-DOLLAR-PAULSON-DC.XML
By Jamie McGeever
Reuters
Thursday, June 29, 2006
NEW YORK -- With an increasing focus on transparency
in financial markets, what policy-makers don't say is
often more telling than what they do.
When U.S. Treasury Secretary Henry Paulson failed to
mention the "strong dollar" policy at his Senate
confirmation hearing on Tuesday, it surprised many on
Wall Street.
The silence contrasts starkly with remarks by
Paulson's two immediate predecessors, Paul O'Neill and
John Snow. They used their hearings to stress,
unprompted, that they favored a strong dollar, which
they said was in the United States' interest.
Paulson's silence on the dollar will have no
discernible impact on currencies immediately. But for
many observers, it is another confirmation that the
U.S. government won't object to a weaker dollar over
time.
"I am confident we will hear Paulson utter the mantra
at some point," said David Gilmore, partner at FX
Analytics, a consultancy firm in Essex, Connecticut.
"But we should also stand back a bit and recognize
that this week's confirmation hearing and the silence
on the dollar speak volumes."
Although policy-makers in Asia and Europe might not
like it, "There is near unanimity in the belief that
markets will in time take the dollar lower," Gilmore
said.
At the same time, the absence of rhetoric may not
signal a seismic shift. The "strong dollar" policy
under Robert Rubin and Larry Summers in the 1990s has
been diluted over time.
Rubin and Summers used the mantra to influence the
external level of the dollar, while O'Neill and Snow
generally used it "out of legacy ... and to assure
investors that an 'invisible' safety net was in
place," Gilmore said.
Certainly, Snow's public support for a strong dollar
always carried the caveat that currency values are
best set in open markets, casting doubt on the
effectiveness of intervention.
Still, Paulson's silence was not without
reverberations.
"The failure to emphasize the rhetoric up front is
perhaps symptomatic of a further downgrading of the
policy," UBS currency strategists wrote in a note to
clients on Wednesday. "Paulson may be less inclined to
reflexively roll out the strong-dollar mantra of his
predecessors."
While the White House declined to comment on why
Paulson didn't mention the dollar in his remarks,
Treasury spokesman Tony Fratto said Paulson "wasn't
asked about currency policy. The administration's
views on currency policy are unchanged."
O'Neill, at his confirmation hearing in January 2001,
said he was "in favor of a strong dollar. I can't
imagine why anyone would think to the contrary."
Two years later his replacement and now outgoing
Treasury chief, John Snow, said in prepared remarks,
"I favor a strong dollar. A strong dollar is in the
national interest."
And when asked, Paulson will toe the party line, said
Ron Simpson, managing director of foreign-exchange
analysis at Action Economics in New York. If he
doesn't, the dollar could fall sharply on global
markets.
"I don't think there's a major shift here -- maybe
some nuances -- but these nuances have been building
for a while now, certainly since China came into the
picture," Simpson said. "I don't think it's a big
secret that the administration would be happy to see a
lower dollar."
Investors are particularly sensitive to Treasury's
policy because of the central role of the greenback
that many expect to play in fixing the so-called
global imbalances -- a term seen as code for the huge
U.S. current-account deficit.
A weaker dollar, many analysts say, would crimp
Americans' appetite for imports, make U.S. exports
cheaper on global markets, and therefore help shrink
the deficit.
The Group of Seven richest countries and the
International Monetary Fund promote the ideas that the
United States must cut its fiscal deficit, China must
let its currency trade more freely, Japan and the rest
of Asia must improve domestic demand, and Europe must
make its economy more flexible.
But both groups have been careful not to call for a
weaker dollar, for fear of triggering a run on the
greenback that would wreak havoc on world markets and
economies.
Meanwhile, Paulson is on record as welcoming an
"orderly" decline in the U.S. currency.
"I'm concerned about the current-account deficit, but
I would say by order of magnitude I'm more concerned
about the budget deficit ... because I really believe
that the decline in the dollar -- the orderly decline
in the dollar -- will lead to a natural adjustment,"
he said in an interview two years ago on U.S. public
television.
The dollar has lost around 30 percent of its value
against a basket of major currencies since the start
of 2002, its slide halted only in the last 18 months
as the Federal Reserve has pressed on with its
campaign of rate increases.
Now that the Fed tightening is thought to be near an
end, markets' focus may shift back to global
imbalances, which highlight how much foreign capital
the U.S. must attract to plug its deficits, and
prevent an even steeper fall in the dollar and spike
up in interest rates.
Currency strategists at HSBC also noted Paulson's
silence on the dollar but put it in the context of his
pledge to help drive G7 initiatives to address global
imbalances.
"And we still view the effort to reduce global
imbalances and the U.S. current account deficit itself
as medium-term bearish factors for the dollar," HSBC
said.
The Invisible Hand
(6/29/06; 20:31:52MT - usagold.com msg#: 145683)
Pomonti last December – the weaving of a web
http://www.monde-diplomatique.fr/2005/12/POMONTI/12994
La Chine, menace ou atout ? « Son émergence est dans l’intérêt de tous, et, si elle n’est pas pacifique, ce sera le chaos et la violence », a estimé, en avril, M. Lee Kwan Yew l’influent patriarche singapourien.
+
Dans une région où la diaspora chinoise est bien implantée, le retour de la Chine est perçu comme le tissage d’une toile. La pénétration commerciale, illicite s’il le faut, fait le lit des investissements.
China, menace or trump? "The emergence of China is in everybody's interest. If it doesn't happen peacefully, there will be chaos and violence.", said Lee Kwan Yew, the influential Singaporean patriarch, in April 2005.
+
In a region where the Chinese diaspora is well implanted, the return of China is seen as the weaving of a web. Commercial penetration, illegal if it has to be illegal, gives way to investments.
The Invisible Hand
(6/29/06; 20:16:56MT - usagold.com msg#: 145682)
SCO, NATO, Iran and the Chinese diaspora
http://www.taipeitimes.com/News/editorials/archives/2006/06/29/2003316303
SNIPS
Iran was invited to the latest SCO [Shanghai Cooperation Organization] meeting as an observer, as was India, Pakistan and Mongolia. These countries might be candidates for full membership, which will make the SCO an even bigger affair, with China as the driving force. Russia, like China, is equally interested in keeping the US out of its geopolitical sphere.
+
The SCO is not an Eastern version of NATO, although it doesn't hurt China to be seen as pioneering an alternative global forum. It is not NATO-like because its constituents, particularly the four Central Asian countries, are small developing nations with nothing much to contribute except their oil reserves. Their oil riches, though, make them key pawns in big power rivalry.
+
The point is not whether the SCO will become a serious danger to US interests. The danger comes from China seeking to flex its political and economic muscles to create a larger than life image of an alternative power center. Indeed, even the so-called "strategic ingredient" of the China-Russia relationship lacks substantive foundation.
+
As [Jean-Claude] Pomonti sees it [in Le Monde Diplomatique}] "With the Chinese diaspora a strong presence across Southeast Asia, China is perceived as spinning a web across the region as it regains influence. Trading integration, illegal or not, prepared the terrain for investment. The pursuit of raw materials to feed China's growth is an imperative."
Sundeck
(6/29/06; 20:16:36MT - usagold.com msg#: 145681)
Fraud in hedge funds? Never! Regulation? Maybe...
http://www.heraldextra.com/content/view/184606/3/
Snip:
"...
At the same time, SEC regulators have seen an upswing in fraud among hedge funds, and the agency has been bringing more enforcement cases against them -- charging fund managers with defrauding investors of a total exceeding $1 billion in the last five years.
...:
Sundeck: Mmmm...$1B eh? Well you can bet THAT is the tip of the iceberg.
This article refers to the ongoing attempts to apply federal regulation to hedge funds against strong resistance from said funds (and others who stand to gain from a free-wheeling manipulative environment).
I can understand "wealthy" people consigning capital to hedge funds...they can probably afford to lose a few million here and there, but I think that Joe and Judy Sixpack would need their heads read if they even consider playing the same game. Returns from hedge funds have been less than spectacular in recent years...in many cases worse than traditional index funds. Added to that, is the opacity of process and the SURE knowledge that the "managers" of said funds will be in it for what they can lift from the pockets of the "investors", by fowl means or fowler. Why the heck don't Joe and Judy just buy a bit of gold and sit tight...no need for much regulation there...and no way to fiddle the funds.
I wonder whether the Pequot is going to encounter another White Whale as it merrily sails the South Seas?
;-)
Goldilox
(6/29/06; 18:59:46MT - usagold.com msg#: 145680)
Paid in Euros?
Scottp999,
You probably need a residence in Euroland for that to wash, but our host will happily "change the color" of your paychack to something more tangible and shiny on a regular basis, if you give them a call.
Paper just plain lacks the chi-ching!
Goldilox
(6/29/06; 18:56:01MT - usagold.com msg#: 145679)
Dollar longs
@ Gandalf,
CNBC speculated that Europeans who were long US$, expecting a 1/2 point rate rise, were the major victims.
Rate disparity cost the Sawbuck about .8% in Euroland, and 1.0% in the Land of the rising Sun.
Gandalf the White
(6/29/06; 18:42:01MT - usagold.com msg#: 145678)
THANKS, Sir Goldie !!! THAT CLIFF chart for the US$ was -----
http://charts-d.quote.com:443/1002980432830?User=demo&Pswd=demo&DataType=GIF&Symbol=DX00Y&Interval=10&Ht=600&Wd=800&Display=2&Study=MA&Param1=13&Param2=0&Param3=&FontSize=10
FUNTASTIC !!!
Do you think that anyone got handed their head today ?
WOWSERS
Go YELLOW !!
<;-)
USAGOLD Daily Market Report
(6/29/06; 17:21:44MT - usagold.com msg#: 145677)
Page Update!
http://www.usagold.com/DailyQuotes.html
The Daily Gold Market Report has been
updated.
If you are considering investments in gold we invite you to
request our free
introductory information packet detailing the products and services offered
by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look
forward to working with you.
THURSDAY Market Excerpts
Gold surges, dollar falls on Fed statement
June 29 (from MarketWatch) -- Gold futures climbed back above $600 an ounce in electronic trade Thursday, after the Federal Reserve raised interest rates by a quarter percentage point as expected and came across as less hawkish than anticipated, sending the dollar sharply lower.
August gold contracts touched a high of $602.90 in late afternoon trade, breaking through $600 for the first time since June.
Earlier, it had closed official trade up $7.90 at $588.90 on the New York Mercantile Exchange.
The Federal Open Market Committee raised interest rates by 25 basis points to 5.25%, the highest level since March 2001.
"Some inflation risks remain," the committee said in a statement, which analysts viewed as less hawkish than expected. "The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information," the committee said.
The dollar plunged to one-week lows against the euro and yen right after the Federal Reserve decision, prompting speculations by analysts about a possible surge in gold prices.
"The quarter-point interest rate raise by the Fed and its softer-tone policy statement have removed any fears that gold would be strangled by sharply higher interest rates and the U.S. dollar," said Peter Grandich, editor of The Grandich Letter.
In another development that strengthened gold, crude oil futures hit a three-week high above $73 a barrel Thursday after Energy Department data indicated the largest weekly drop in crude supplies since last November.
---(see url for full news, 24-hr newswire)---
scottp999
(6/29/06; 17:10:47MT - usagold.com msg#: 145676)
@goldilox - below
That's a nice chart. How do I get my company to pay me in Euros?
Picked up a couple more buffalo's today. At $600 I think we are still way undervalued. I had convinced myself when we hit $700 earlier that I would dollar cost average all way up to $1000. But my attitude is, even if it gets hammered down by the paper markets I will keep a smile on my face and see it as a chance to buy more weight.
Goldilox
(6/29/06; 13:26:21MT - usagold.com msg#: 145675)
Look Out Below!
http://charts-d.quote.com:443/1002980432830?User=demo&Pswd=demo&DataType=GIF&Symbol=DX00Y&Interval=10&Ht=600&Wd=800&Display=2&Study=MA&Param1=13&Param2=0&Param3=&FontSize=10
Stocks, bonds, PMs all up.
Guess who's left to absorb the brunt.
Goldilox
(6/29/06; 12:38:40MT - usagold.com msg#: 145674)
FED statement
@ TC,
"By this we can see definitively that the guiding principle of the past many months, of a course of action that was foreseeably "measured", is absolutely a thing of the past. The future landscape is uncertain and the Fed is to be evaluating its best course one day at a time."
This is exactly the feeling I got from the release. While the CNBC talking heads are trying their best to convince me that this means a pause in August, I think it opens the door to more radical moves in either direction.
TownCrier
(6/29/06; 12:27:55MT - usagold.com msg#: 145673)
FOMC raises rates quarter percent -- fed funds target rate now 5.25%
http://www.federalreserve.gov/boarddocs/press/monetary/2006/20060629/
PRESS RELEASE
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5-1/4 percent.
Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.
Readings on core inflation have been elevated in recent months. Ongoing productivity gains have held down the rise in unit labor costs, and inflation expectations remain contained. However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.
Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Jeffrey M. Lacker; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen.
In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 6-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, and Dallas.
^----------^
"The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
By this we can see definitively that the guiding principle of the past many months, of a course of action that was foreseeably "measured", is absolutely a thing of the past. The future landscape is uncertain and the Fed is to be evaluating its best course one day at a time.
What could, realistically, provide a better climate for gold ownership than this?
R.
TownCrier
(6/29/06; 12:13:06MT - usagold.com msg#: 145672)
HEADLINE: Would a gold standard work today?
http://www.mineweb.net/events/conferences/2006/lbma_2006_switz/629040.htm
LONDON (Mineweb.com) -- Professor Niall Ferguson is a highly eminent historian. Not yet 45, he is currently the Tisch Professor of history at Harvard University, a senior research Fellow at Jesus College, Oxford University and a Senior Fellow at the Hoover Institution, Stanford University. Not for him the incarceration of an ivory tower, however; he is also well versed in filmography. Quite apart from quoting from Goldfinger, he also told us how The Wonderful Wizard of Oz is actually an allegory about the Gold Standard. The book was published in September 1900 and in the dénouement, the Wonderful Wizard at the end of that famous Yellow Brick Road turns out to be a disappointing fraud.
[...]
The late 19th century saw a populist backlash in the United States against what was seen as a London-based monetary system, with contemporary cartoons depicting "quicksand" gold. There was at that stage a call for the remonetisation of silver in order to inject an element of inflation – and it was this that led to the book The Wonderful Wizard of Oz.
[...]
On stating that the international monetary system appears to have no need for gold, he asked whether that need could be revived. On the basis that there is a dollar crisis in the offing, the answer would appear to be yes...
...there is a possibility of the United States devaluing the dollar as a way of reducing its external liabilities. The United States is the world's largest debtor and Professor Ferguson argues that history shows how there is a temptation to debase a currency when large amounts of that currency are held by foreigners.
In 1959, there was $518 in circulation for every ounce of gold held by the United States. Today, that figure is $37,831 (73 times as much, an annual increase of 9.8%). Alternatively; in gold terms, the dollar is now worth 6% of what it was worth when England last won the World Cup, which was 40 years ago. Ferguson also argues, as do the majority of gold analysts, that it is less an inflation hedge that an asset that is negatively correlated against real returns on stocks and that, taking the position again from 1966 (which is perhaps not quite fair since gold was pegged at that stage), it has outperformed the returns on the Standard & Poor's 500 index and the US Consumer Price Index.
...Ferguson argues that there is a strong case to be made for a paper standard with floating rates. These allow movements in exchange rates to offset inflation and productivity differentials with less friction than would arise from the adjustments of nominal wages and prices. Price stability is possible on a paper system, provided Central Banks do not abuse it by printing money. It is arguable, therefore, that consistent inflation targeting is a proxy for a gold standard.
The comparison betweens late 19th century and the prevailing position is as follows:
19th Century: scarce money, plentiful energy
Now: there is plentiful money and energy is relatively scarce
19th Century: long-term consumer price stability
Now: long run currency depreciation
19th Century: Lower, more volatile growth
Now: Higher, less volatile growth
19th Century: Low social mobility, and a rentier elite (i.e. land-owners)
Now: a "money illusion" with multiple millionaires
19th Century: a creditor empire existed
Now: we have a debtor empire.
Psychologically, we quite like the world of inflating paper money – especially as we are land-owners and we do not want the money illusion to be shattered. We are, Ferguson argues, addicted to inflation, but all we have done is to relocate it from commodity markets in to asset markets. He finds it hard to believe that Americans regard the dollar as gold-backed and it is deeply paradoxical that the US, as the world's largest gold holder, is also the world's largest debtor. Getting rid of the US’ gold would send a enormous spasm through the market, but the US’ gold reserves "might as well not be there" for all the good it does to the system.
^---(full article at url)---^
It takes a keen mind to filter what might at first blush seem to be an anti-gold tirade. In the final analysis, however, this cozies up nicely with the premise of the free-floating metallic "property standard" (not "money standard") as previously set down in writings by the likes of principally ANOTHER/FOA/Aristotle/Miner49er/Belgian and a team of less frequent contributers too numerous to recall.
R.
TownCrier
(6/29/06; 11:44:25MT - usagold.com msg#: 145671)
...and here's the 'Doldrums' report directly.
http://www.usagold.com/analysis/doldrums.html
(sample) -- "One of the more intriguing curiosities of the current bull market in gold has to do with the annual buying opportunity which seems to crop up in the depths of the summer doldrums.
"To make a long story short, gold purchases made in June and July proved very profitable by Christmastime, as shown in the annual price charts (see right) and explained by our following evaluation..."
R.
TownCrier
(6/29/06; 11:42:45MT - usagold.com msg#: 145670)
As previously mentioned... the 'Summer Doldrums'
http://www.usagold.com/analysis/dow-jones-summer.html
Here's a copy of the article Dow Jones International News provided as a follow-on to our 'Summer Doldrums' report.
R.
TownCrier
(6/29/06; 11:38:45MT - usagold.com msg#: 145669)
Gold price 'to rise despite rate hikes'
http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10389003
Friday June 30, 2006
SYDNEY - Gold prices were likely to rise further this year on solid investor demand, despite the negative pressure being applied by expectations of rising US interest rates, Australia's largest bank by assets said yesterday.
National Australia Bank has revised its forecast gold price upward by 11 per cent to an average US$633 an ounce in 2006 from US$568.3 previously.
The bank pegs gold at US$752.50 an ounce in 2007, up 24 per cent from its earlier forecast of US$607.50.
For the first five months of 2006 gold averaged US$590 an once, a year-on-year increase of 38 per cent.
...Investors tend to shy away from gold when [interest] rates are rising because they can get better returns elsewhere.
"Despite these factors, gold investment demand should remain the key driving factor in coming months, supported by geo-political tensions, high energy prices and incentives to diversify away from US dollar assets," National Australia Bank sector economist Gerard Burg said in a report.
The US Federal Reserve was expected to lift its key funds rate for a 17th straight time overnight to 5.25 per cent from 5 per cent.
^---(from url)---^
Have you seen our 'Summer Doldrums' study? You just might be very well served to have a look at it and use this seasonal occasion to confidently add gold coins and bullion to your portfolio.
Show your appreciation for the insights and assistance being provided to you via this website by supporting its host -- choose USAGOLD-Centennial Precious Metals Inc as your gold provider. Serving well-heeled clientele for over 33 years!
TOLL FREE
1-800-869-5115
R.
TownCrier
(6/29/06; 11:22:20MT - usagold.com msg#: 145668)
Gold Hill,
http://www.usagold.com/amk/news-group.html
Thanks for your kind mention yesterday of MK's appearance in the USA TODAY newspaper.
I think if you look back into the forum archives for the day of issue (June 22nd) you'll be pleased to see that at least one other, Chris Powell, also took kindly notice of the article -- and posted it in full.
Readers can also find the article cited and hyperlinked on our NewsGroups page (see link above) where it currently resides third down from the top with the title, "Beaten up dollar unsettles investors in USA and abroad".
We gave it 4 stars.
R.
Clink!
(6/29/06; 11:08:49MT - usagold.com msg#: 145667)
The energy crisis has arrived
http://www.321energy.com/editorials/simmons/simmons063006.html#
Interesting slide show, notably its source - the DoD Energy Conversation Series.
Knallgold
(6/29/06; 09:41:53MT - usagold.com msg#: 145666)
M3
M3 in Europe grew again in May by a whopping 8.9% (adjusted), April was 8.8% (now corrected to 8.7%),March was 8.6%,February 8.0%.This is again put on teletext of N-TV (germans CNBC analog),contrary to the feds "delete bad news" policy.
Sundeck
(6/29/06; 05:31:35MT - usagold.com msg#: 145665)
Russian government lifts barriers on way to convertible ruble
http://en.rian.ru/russia/20060629/50667775.html
Snip:
"...
The government's decision came as part of a plan to fulfill President Vladimir Putin's instructions to lift the remaining currency restrictions and make the ruble fully convertible by July 1, outlined in his state of the nation address to parliament on May 10.
..."
Sundeck: No fears of a capital exit rout...Russia is home to vast unexplored resource provinces with all the World's majors hungry for a piece of the action...and with a new "business friendly" administration (so long as oil and gas is closely held!!).
:-)
Sundeck
(6/29/06; 05:19:24MT - usagold.com msg#: 145664)
Oops...
http://inhome.rediff.com/money/2006/jun/29faber.htm
...here is the link...
Sundeck
(6/29/06; 05:18:23MT - usagold.com msg#: 145663)
Faber on the world economy
Snips:
"...
There is an absolute tightening [of liquidity] in Japan, in the sense the monetary base that doubled between 1999 and 2005 is now contracting.
...
So I think we have a shift back into the so-called "safe haven", the United States, but it may not prove to be very safe.
...
...I would rather be in Sinagapore REITs for the next 30 years than a US government 30 year treasury bonds.
...
...since year 2000 the Dow Jones has lost half its value compared to gold. The US dollar has lost more than half its value against gold and I think that trend will continue, so if the question is how do you maintain your purchasing power then I think it is quite a desirable investment to hold some gold.
..."
Sundeck: Dr Gloom and Doom offers a few more comments on things...
:-)
Sundeck
(6/29/06; 04:29:49MT - usagold.com msg#: 145662)
Yellow gold is back
Snip:
"...
Yellow gold, once thought of as what 'your grandmother bought you,' is back
By OLIVIA BARKER
Gannett News Service
....
Credit the trend not only to the cycle of fashion but also to the influence of the East, says Kay Wicks, the designer behind Manhattan-based Shimmer & Stone. Though she launched her line in 2001, she started feeling the warmth two years ago when Indian-inspired tunic tops crossed into the mainstream, accompanied by gold bangles. Today, half of her line is gold, and by the year's end, "we will definitely have sold more gold than silver."
..."
Sundeck: Looks like a return to the yellow is catching on...
:-)
Sundeck
(6/29/06; 04:18:53MT - usagold.com msg#: 145661)
National Australia Bank raises gold price forecasts
http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=1D7A061B-17A4-1130-F515ED97AE9605BF
They have increased their forecast for 2006 from $568 to $633 and their 2007 forecast from $608 to $753 (for what they are worth).
They argue that the gold bull is far from over.
(NAB is Australia's largest bank.)
:-)
Chris Powell
(6/29/06; 00:22:18MT - usagold.com msg#: 145660)
Nymex wants to replace real metal with paper gold in China
Nymex Looks to China
For Trade in Gold Futures
By Helen Sun
The Wall Street Journal
Thursday, June 29, 2006
BEIJING -- The New York Mercantile Exchange is hoping to begin the trading of gold futures contracts in China, a senior official said.
In an interview, John Hanemann, vice chairman of the governors committee of Nymex's Comex Division, said the exchange has been in talks about launching its gold futures contracts with Chinese exchanges. China, meanwhile, has been looking to further develop its local derivatives markets.
"We have been seeking opportunities to cooperate with Shanghai Gold Exchange to launch gold futures, perhaps as a joint product," Mr. Hanemann said.
The plan, if it goes through, will not only see the first gold futures contracts being traded in China, but would also be the first joint derivatives product between a Chinese bourse and an overseas exchange.
Currently, trading of gold bullion, gold bars and platinum on the Shanghai Gold Exchange is limited to spot transactions. Chinese investors aren't allowed to trade futures on overseas exchanges. This also applies to state-controlled institutions, except those that have special licenses from the government. China's futures markets are off-limits to foreign investors, too.
The idea of gold futures trading in China isn't new. When the Shanghai Gold Exchange was set up in late 2002, the government said futures trading would eventually happen, but only when "the time is ripe," according to Dai Xianglong, the then-governor of the country's central bank.
Mr. Hanemann didn't provide a timeframe for the launch of such a product, which is still being deliberated by the China Securities Regulatory Commission. The regulators are likely concerned about the risks of derivatives trading.
Since China is the world's fourth-largest gold producer and consumer, "local enterprises have been calling for the launch of gold futures as soon as possible for a long time," said Yang Yijun, the head of Chengdu Gold & Silver Ltd.'s research center. "It will come, sooner or later."
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