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Commodities Briefing - Archive | April, 2011

Growth in the US economy slows to 1.8pct

Posted on 29 April 2011 by VRS  |  Email |Print

Ben BernankeUS economic growth slowed in the first three months of 2011 to an annualised rate of 1.8%, corresponding to a 0.4% quarterly increase. This compares with a revised annual growth rate of 3.1% in the previous quarter, official figures show.
US GDP is expressed as an annualised rate, or annual pace, which shows what the three months’ economic activity would mean if it carried on for a year……………………………………….Full Article: Source

Commodity price surge quickening, warns Unilever

Posted on 29 April 2011 by VRS  |  Email |Print

Unilever, the consumer goods company that makes everything from Dove soap to Ben & Jerry’s ice cream, warned yesterday that it would be hit by higher commodity costs during 2011, with vegetable oil and chemical prices rising particularly sharply.
Unilever warned it now expected its commodity costs to rise by 14 to 16 per cent this year rather than the 11 to 13 per cent it forecast in February……………………………………….Full Article: Source

The commodities boom: Is the best yet to come?

Posted on 29 April 2011 by VRS  |  Email |Print

If the oil price does make its expected recovery, then supply and demand pressures will flow on to alternative fuel sources, such as ethanol, leading to rising prices in sugar, corn and other ethanol sources.
Then there is food and other soft and agricultural commodities, such as cotton, which is reportedly hitting prices not reached since the American Civil War. In recent months, agricultural commodity prices have risen sharply in everything from coffee to natural rubber. These higher prices have had an impact on the margins of producers, who in turn will be passing them on to consumers……………………………………….Full Article: Source

The coming commodity price nightmare

Posted on 29 April 2011 by VRS  |  Email |Print

The commodity price boom we’ve all been bellyaching about for the past six months started not in August, when the Fed chief first started talking about quantitative easing, but a full eight years earlier – when Bernanke was but a Fed governor and the housing bubble was a mere gleam in Alan Greenspan’s eye.
So says Jeremy Grantham, the value manager who helped found the Boston-based GMO asset management firm……………………………………….Full Article: Source

Higher commodity prices for food and fuel a fact for the future

Posted on 29 April 2011 by VRS  |  Email |Print

Soaring commodity prices are wreaking havoc on consumer’s budgets here in the U.S., but experts say not to expect them to go down because the culprit is increased global demand for food and fuel.
Increased demand from population growth in developing nations is not only causing prices to increase but it is also causing a scarcity of resources, according to Jeremy Grantham, who helped found Boston-based GMO asset management firm……………………………………….Full Article: Source

Silver and gold near lifetime highs

Posted on 29 April 2011 by VRS  |  Email |Print

Silver and gold were within sight of historic highs on Friday and could resume an uptrend as the U.S. dollar held near three-year lows against a basket of currencies on hopes U.S. monetary policy would stay ultra loose, keeping inflationary price pressures high.
A fresh batch of U.S. economic data in the form of rising claims for jobless benefits failed to rescue the dollar, which had dropped to its weakest level since July 2008 against other currencies before recovering slightly……………………………………….Full Article: Source

Parabolic blowoff in silver, gold price steady

Posted on 29 April 2011 by VRS  |  Email |Print

The virtues of gold and silver are being addressed far and wide. My readers know the steady drumbeat of praise that is reaching a crescendo for the white metal scares the hell out of me. The driving forces behind silver’s price come from investors, industrial demand and a global shortage.
The world simply is using more silver than the mines produce and new silver discoveries are becoming difficult to find. These factors are becoming truisms for public consumption. A parabolic rise has formed in silver as gold advances on to our measured target of $1,600……………………………………….Full Article: Source

India: Gold soars but buyers bet on Akshaya Tritiya

Posted on 29 April 2011 by VRS  |  Email |Print

Despite soaring gold prices, jewellers are gearing up to meet the demand from consumers on Akshaya Tritiya (Hindu Festival), which falls on May 6. Though prices of 22 carat gold used in making jewellery have gone up by 30% year on year, jewellers , in expectation of good sales, have introduced new offers and schemes to attract consumers .
Some are offering advance booking to neutralise the impact of rising prices. Gold coin sales, which have picked up in the recent months, also earn good revenue for jewellers……………………………………….Full Article: Source

Gold myths, copper truths

Posted on 29 April 2011 by VRS  |  Email |Print

Does Barrick, the world’s biggest gold digger, need to be defensive about its CAD 7.3bn offer for Canada- and Australia-listed Equinox, a copper miner in Zambia and Saudi Arabia?
The record shows that “pure gold” players among big listed gold stocks are becoming increasingly scarce. During the first quarter of this year, Barrick itself produced 75 million pounds of copper……………………………………….Full Article: Source

Gold: A price bubble or a safe heaven asset?

Posted on 29 April 2011 by VRS  |  Email |Print

The mass panic caused by the debt and economic crises has made the price of gold rocket sky-high. The entire world is still concerned about whether gold prices turn out to create another price bubble.
Is the “gold collapse” possible in the near future? In summer 2005 a troy ounce of gold cost about$440.
Today the price is 3,4 times as big. Such an increase cannot but suggest: Maybe this is the best gold can do? Maybe the prices will start rapidly falling down? The similar picture could be seen in the crude oil market in 2008……………………………………….Full Article: Source

Silver hits record near $50, first time since 1980

Posted on 29 April 2011 by VRS  |  Email |Print

Silver soared to an all-time high on Thursday and gold rose to another record, as a falling dollar and signs that the Federal Reserve would maintain a loose monetary policy boosted precious metals’ appeal as a hedge against inflation and economic uncertainty.
Silver briefly climbed to within a whisker of $50 an ounce, eclipsing the peak hit when Texan brothers William Hebert and Nelson Bunker Hunt sought to corner the silver market three decades ago. The metal later pulled back on technical selling……………………………………….Full Article: Source

Will silver go above $50 … and stay there?

Posted on 29 April 2011 by VRS  |  Email |Print

Silver jumped 6 percent Thursday on the back of dollar weakness after Federal Reserve Chairman Ben Bernanke’s dovish remarks Wednesday, but some analysts doubt the price can hit and stay above the $50 mark.
Silver prices rebounded Wednesday before Bernanke’s news conference, following a 10.5 percent crash in Tuesday trading, but analysts were not convinced the rally would carry the metal much higher……………………………………….Full Article: Source

OPEC crude exports drop as slump nears end, Oil Movements says

Posted on 29 April 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will cut exports by 1.2 percent in the four weeks to May 14 because of a seasonal decline in demand, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global supplies, will ship 22.75 million barrels a day in the four weeks to May 14, down from 23.03 million barrels a day in the period to April 16, the consultant said today in a report. The data exclude Ecuador and Angola……………………………………….Full Article: Source

OPEC countries seek “developing nation” funds to capture CO2

Posted on 29 April 2011 by VRS  |  Email |Print

Oil giants are looking into CCS to cut greenhouse gases. good for them! But who should pay for it?
Well, now we know why Saudi Arabia held out for Carbon Capture & Storage to be eligible for CDM funding at Cancun. Sequestering CO2 in the ground is being looked at by three Middle Eastern countries, Kuwait, Saudi Arabia, and the UAE that lead the world in production of greenhouse gases from oil production……………………………………….Full Article: Source

All you need to know about commodity fund

Posted on 29 April 2011 by VRS  |  Email |Print

Commodities are an important investment area to consider for an individual and many are looking at the mutual fund route for the purpose of meeting their investment requirements.
There are a lot of choices that are present in this area but there is also a specific process that can be followed by the individual while investing so that he is able to get the most out of the situation. Here are a few factors that they need to consider in the entire matter……………………………………….Full Article: Source

Hong Kong plans new gold-futures platform

Posted on 29 April 2011 by VRS  |  Email |Print

Hong Kong is on track to kick off a new gold-futures trading platform with settlement in the physical metal next month, marking the emergence of a second exchange in the city offering leveraged bets on the metal’s rise.
The Hong Kong Mercantile Exchange, known as HKMEx, said it received regulatory clearance to launch gold-futures trading on May 18, according to a statement by the exchange Wednesday……………………………………….Full Article: Source

Is it time to overhaul Europe’s carbon trading scheme?

Posted on 29 April 2011 by VRS  |  Email |Print

When it was launched in 2005, the European Union’s Emissions Trading Scheme (EU ETS) was hailed as a major step forward in the fight against climate change. Covering 12,000 power plants, factories, and other industrial facilities — and nearly half of EU CO2 emissions — it was the world’s largest cap-and-trade project to date.
EU officials saw it as the first of many carbon-pricing schemes that would eventually cover the globe……………………………………….Full Article: Source

Warning: Are commodities about to crash?

Posted on 28 April 2011 by VRS  |  Email |Print

Copper is booming. Oil is booming. Cotton is near historic highs. Soaring raw-material costs are driving up prices for consumers, from the gas pumps to the grocery aisles. And speculators are taking record bets that prices are going to keep going up even higher.
Kasper Kierkegaard, an analyst at Danske Bank, reports from the futures markets that the speculative net bullish positions on many commodities are at, or near, record highs. When I walked past a TV earlier today someone on CNBC was asking if copper was “the new gold.” That’s funny — I thought silver was the new gold. Maybe silver is the new copper?………………………………………Full Article: Source

Top strategist predicts commodity crash on scale of financial collapse

Posted on 28 April 2011 by VRS  |  Email |Print

GMO’s self confessed perma-bear Jeremy Grantham has rung the alarm bell on rising commodity prices predicting a crash ‘not unlike the financial collapse’.
In his latest quarterly letter titled ‘Time to wake up: days of abundant resources and falling prices are over forever’, he argues that a combination of better than expected weather and a blip in the China’s ‘warp speed’ growth due to anything from wage increases, misappropriated capital in large, unnecessary projects, rising debt or a house price bubble, could drag commodity prices down dramatically……………………………………….Full Article: Source

Commodity paradigm shift

Posted on 28 April 2011 by VRS  |  Email |Print

Worried about ‘peak oil’? How about ‘peak everything’? A GMO analyst crunches the numbers to show why the structural shifts in the world’s consumption patterns will alter the way we view and invest in commodities.
The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value and we all need to adjust our behaviour to this new environment. It would help if we did it quickly, says Jeremy Grantham, co-founder of GMO, a global investment firm managing $107-billion in client assets……………………………………….Full Article: Source

Why commodity prices are soaring

Posted on 28 April 2011 by VRS  |  Email |Print

A 200-year-old trend may now be over… Is demand growth responsible for the recent surge in commodities? Or is it just a plain old inflationary increase in global money supply?
Right now, all roads lead to China, which is why it’s fitting that Australia’s Prime Minister Julia Gillard is there at the moment. Maybe she can advise the Chinese on whether Australia’s Foreign Investment Review Board will knock back Barrick Gold’s C$7.3 billion bid for the Perth-based Zambian copper play Equinox. Barrick’s recent bid trumps the offer made by Chinese-backed metals trader Minmetals Resources……………………………………….Full Article: Source

Commodities and short-term traders

Posted on 28 April 2011 by VRS  |  Email |Print

Commodities have long been a favourite market among short-term speculators. Because they’re often volatile, there are plenty of opportunities to grab a quick-fire profit. But as well as being prone to big moves, they often also behave repetitively at certain times of the year, making them popular among traders who follow seasonal strategies.
Think of Eddie Murphy short-selling Orange Juice futures in the classic 1980s film Trading Places – “Buy, Mortimer, buy!”……………………………………….Full Article: Source

How you can profit from gold and oil

Posted on 28 April 2011 by VRS  |  Email |Print

In a world often full of turmoil and instability, cautious investors flock to gold while traders are jumping on the oil bandwagon. Against a global backdrop of high inflation, economic turmoil and political instability, investors are turning to gold and oil as a way to profit from uncertainty.
Mike McCudden, head of retail derivatives at Interactive Investor, says: “When there’s any sort of market calamity you often see an uptick in gold as it’s regarded as a safe haven. This makes it an ideal tool for hedging against these events.”………………………………………Full Article: Source

Age of cheap fuel is over: IEA

Posted on 28 April 2011 by VRS  |  Email |Print

One major indicator of inflation is the price of petrol and the latest information from the International Energy Agency (IEA) shows it will only get more expensive. Oil is deeply embedded in the economy, with the cost reflected not only at the petrol bowser but in food and clothing products.
The IEA is an independent, multi-government agency formed out of the wake of the 1973 oil crisis. It forecasts oil production, monitors the international oil market and other energy sectors……………………………………….Full Article: Source

Gold and silver investors: Sell in May and go away

Posted on 28 April 2011 by VRS  |  Email |Print

Precious metals (read: gold and silver) are trading near their lifetime highs, and a number of analysts now believe that prices have gone up too far, too fast, and that a correction is imminent.
There is definitely volatility creeping into the bullion market as investors booked profits yesterday after the recent bull-run and ahead of US Federal Reserve’s upcoming decision on whether or not to continue the massive cash injections into the world’s largest economy via the quantitative easing programme……………………………………….Full Article: Source

Where next for gold and silver?

Posted on 28 April 2011 by VRS  |  Email |Print

Gold closed on April 27 at an all-time high of $1,517.10 an ounce. But despite all the buzz about bullion recently, that represents an increase of only 6.8 per cent from the 2010 year-end price of $1,420.78.
Silver finished at $45.96 an ounce. That’s not an all-time high – silver hit US$55 an ounce in 1980 when the Hunt brothers tried to corner the market. But it’s a huge jump of 49.6 per cent from the price of $30.72 that prevailed as we entered this year. Gold may have the glamor but silver has the momentum right now……………………………………….Full Article: Source

Demand for gold and silver rises in emerging markets

Posted on 28 April 2011 by VRS  |  Email |Print

Ved Prakash, director of MMTC, the largest bullion importer in India, said silver imports improved this year. The company’s silver imports increased +20% to 360 tons in the first 4 months of the year. Yet, the growth of gold imports, at +38%, is even higher. Indeed, the outlook for both gold and silver remains robust despite elevated price levels.
Prakash said price is ‘no more an obstacle’ as buyers expect ‘further rise’. Bombay Bullion Association said earlier that it forecast silver price to reach Rs100 000/kg this year……………………………………….Full Article: Source

The danger for gold miners in associating with other commodities

Posted on 28 April 2011 by VRS  |  Email |Print

While shares in Equinox Minerals jumped on the news of impending takeover by the world’s largest gold stock, Barrick shareholders met the announcement with somewhat less enthusiasm.
One of the main reasons for the lukewarm reception given to the announcement by shareholders has to do with the premiums generally assigned to ‘pure’ gold stocks and, what the longer term implications of this deal are for Barrick……………………………………….Full Article: Source

Expect volatility in the silver price to persist

Posted on 28 April 2011 by VRS  |  Email |Print

It was a mixed day here in St. Louis as the clouds and rain finally gave way to sunshine as I left the office last night. The same can be said about the markets, with currencies rising on the day while commodities traded lower.
All of the currencies, except for the pound sterling (GBP), ended the day in the positive column, but gold and silver just couldn’t shake the fog. The up and down trading Chuck talked about yesterday stayed with us, but silver had the most volatility……………………………………….Full Article: Source

No sign of the top in silver

Posted on 28 April 2011 by VRS  |  Email |Print

Silver is finally getting some attention in the 10th year of its bull market run – mostly top callers who are calling the recent move to nearly $50 an ounce a sign that it has already peaked. Interestingly, these same analysts were nowhere to be found when we made the logical argument that it would reach $50 an ounce this year.
There have been many excuses in the past 10 years why investing in silver was a horrible idea, but the most recent is that it has already went through its “parabolic” spike phase……………………………………….Full Article: Source

Scotiabank’s Mohr says LME copper could re-test record highs in 2011

Posted on 28 April 2011 by VRS  |  Email |Print

With Barrick’s bid for Equinox Minerals, Scotiabank economist Patricia Mohr suggested Tuesday LME copper prices “could well re-test previous record highs as 2011 unfolds.”
In the Scotiabank Commodity Price Index report for April, Mohr advised China’s copper demands will likely strengthen seasonally again in the second quarter of this year as reconstruction in Japan will eventually lift copper demand……………………………………….Full Article: Source

Bernanke’s ‘curveball’ gives yet another boost to commodity ETFs

Posted on 28 April 2011 by VRS  |  Email |Print

The Fed left interest rates alone again. Of course, as we all know, this was not the main story. The fact that Chairman Bernanke would address the central bank’s monetary policy in a 45-minute Q&A session was the actual headliner.
Granted, everyone in the world of finance will have their own interpretation of the historical event. For me, though, the “big moment” came when Bernanke endeavored to explain why inflation is a good thing……………………………………….Full Article: Source

Hong Kong Mercantile Exchange wins SFC approval

Posted on 28 April 2011 by VRS  |  Email |Print

More than two years after it was first promised, the Hong Kong Mercantile Exchange (HKMEx) is finally set to start trading after winning authorisation from the SFC. The first gold futures contracts will change hands on May 18, 2011.
The authorisation gives HKMEx approval to set up as an automated trading services provider through 16 broker members. “We are very excited about this historic day,” said Barry Cheung, the exchange’s chairman, in a prepared statement……………………………………….Full Article: Source

FMC in a bind as brokers connect to foreign commexes

Posted on 28 April 2011 by VRS  |  Email |Print

Poor regulatory oversight, technology that renders boundaries meaningless and significant arbitrage opportunities yielding 4-5 per cent profits a month, have led to a situation where a whopping Rs 20,000 crore to Rs 25,000 crore of daily turnover in commodities comes from online trading in foreign commodity exchanges, according to industry players.
Such trading, though, illegal seems to be escaping the scrutiny of the commodities regulator, Forward Markets Commission……………………………………….Full Article: Source

CFTC proposes capital rules for swaps dealers

Posted on 28 April 2011 by VRS  |  Email |Print

The Commodity Futures Trading Commission voted Wednesday to propose rules for capital requirements for non-bank swaps dealers.
The proposal would require that swaps dealers and major swaps participants maintain $20 million in capital, though the rules for the type of capital are different depending on whether or not the dealer is part of a bank-holding company……………………………………….Full Article: Source

Asian currencies rise as Fed’s monetary stance spurs inflows

Posted on 28 April 2011 by VRS  |  Email |Print

Asian currencies strengthened, led by South Korea’s won, after the Federal Reserve renewed a pledge to keep U.S. interest rates low, supporting a global economic recovery and spurring demand for higher-yielding assets.
All of the region’s 10 most-used currencies excluding the yen gained this year as the world’s fastest economic growth and interest-rate increases helped attract funds……………………………………….Full Article: Source

Commodities and currencies

Posted on 28 April 2011 by VRS  |  Email |Print

What’s the biggest factor driving commodity prices? Chinese demand? Unrest in North Africa? Or supply shortages? These are all relevant, but you can trace the current boom in commodity prices to the words of one man: Ben Bernanke.
When the Federal Reserve chairman spoke at the Fed’s Jackson Hole gathering last August, he effectively signalled that another bout of quantitative easing (known as QE2) was on the way. At the time, the Fed was worried about deflation and Mr Bernanke, a keen student of Depression-era economics, was determined to reflate the US economy……………………………………….Full Article: Source

Commodities retreat on hints of tighter US policy

Posted on 27 April 2011 by VRS  |  Email |Print

Khalid al-FalihCommodities snapped a four-day winning streak, led by declines in silver and copper, on speculation the Federal Reserve may end its bond-buying program and as China was said to be tightening its credit policy .
The Standard & Poor’s GSCI Index of 24 raw materials lost as much as 0.9% to 745.49, the biggest intraday loss since April 19. The index was 0.2% lower at 751.12. Silver fell as much as 5.4% and copper slumped 2.5%………………………………………Full Article: Source

Commodities: No bubble here

Posted on 27 April 2011 by VRS  |  Email |Print

Jeremy GranthamWith commodity prices up so much over the past several years, you can forgive long-term value investors for giving them a miss. Who wants to risk exposure to another asset bubble so soon after the dot-com implosion and the U.S. housing mess?
Step forward, Jeremy Grantham. The chairman of global asset manager GMO LLC is a much-admired value investor whose firm manages more than $100-billion (U.S.) in assets for corporations, endowments and foundations. As such, he’s not the sort of guy to chase the latest trend……………………………………….Full Article: Source

‘Alarming’ commodity use spurs permanent shift, Grantham says

Posted on 27 April 2011 by VRS  |  Email |Print

Global demand for energy, metals and crops is outpacing supplies “at an alarming rate,” spurring a “permanent shift” in values of natural resources, said Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co.
The rising global population, growing consumption in China and smaller supplies of available land are slashing reserves of finite commodities, said Grantham, a co-founder of Boston-based GMO, an investment-management firm……………………………………….Full Article: Source

GMO’s Grantham: Missing commodities boom is missing the big picture

Posted on 27 April 2011 by VRS  |  Email |Print

Investors avoiding commodities are missing the bigger picture, warns GMO Chief Investment Officer Jeremy Grantham in his latest commentary. “Statistically, most commodities are now so far away from their former downward trend that it makes it very probable that the old trend has changed – that there is in fact a Paradigm Shift – perhaps the most important economic event since the Industrial Revolution,” he writes.
Grantham was an early bull on emerging markets, and, Morningstar has called his forecasts “spot-on” over the years……………………………………….Full Article: Source

Scotiabank sees commodity prices being ‘mid-cycle’

Posted on 27 April 2011 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index, which measures price trends in 32 of Canada’s main exports, rose for the ninth consecutive month in March, the group said on Tuesday. The index rose by 1,3% month over month, to a level 50,9% above an April 2009 low.
However, Scotia’s metal and mineral index actually inched down in March by 0,1% month-on-month, as slightly lower copper, zinc, nickel and uranium prices just offset a further gain in fertilisers and stronger precious metal prices……………………………………….Full Article: Source

Global run on commodities a $20bln ‘gift’

Posted on 27 April 2011 by VRS  |  Email |Print

The global run on commodities over the past three months will help secure Australia’s fortunes for the next year, lifting national income by $20 billion in 2011-12.
Deloitte Access Economics’ business outlook has revised upwards its expectations for the terms of trade — already at record highs — by 6 per cent on the back of stellar commodity price rises since January……………………………………….Full Article: Source

South Africa not profiting from gold and commodities boom

Posted on 27 April 2011 by VRS  |  Email |Print

In spite of record commodity prices, South Africa´s mining industry is experiencing serious difficulties. Infrastructure development in what was once the world’s leading gold-producing nation has been neglected by the country´s politicians, and production stops because of power outages repeatedly occur.
In addition, South Africa´s transport infrastructure urgently needs major investment to ensure that the country´s mining companies can remain internationally competitive……………………………………….Full Article: Source

Commodities that Jim Rogers prefers to invest in

Posted on 27 April 2011 by VRS  |  Email |Print

Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers expects the US to lose its AAA credit rating after Standard & Poor’s revised its outlook on US sovereign debt to “negative” from “stable”.
S&P said last week the United States had until 2013 to come up with a credible plan for addressing its financial problems. Speaking to Investment Week, Rogers said: “Eventually it will happen. Not this month, or this quarter, but it is certainly going to happen”……………………………………….Full Article: Source

OPEC likely to expand role in oil markets

Posted on 27 April 2011 by VRS  |  Email |Print

With oil prices once again having breached $100 per barrel, the debate over future oil supply and demand balances is growing ever more intense.
On one side are warnings of an oil price spike by 2015, and on the other a belief that the markets are currently, and will remain, well supplied. Amid a wealth of analysis, both sides agree on one thing: OPEC’s role in supplying world oil markets will increase as non-OPEC oil supplies peak in coming years……………………………………….Full Article: Source

Where were the experts when gold was $255/oz.

Posted on 27 April 2011 by VRS  |  Email |Print

Gold is in a bubble and Silver has gone parabolic! This is some of the commentary I am seeing and hearing as both metals breach all-time highs. Notice, this occurred over a long holiday weekend when U.S. traders were inactive.
It’s as though someone was saying, “Now watch! When those stupid Americans see both metals reached record levels, the experts will tell them it’s time to sell. Then we can buy more! Hahahahaaaa!………………………………………Full Article: Source

What’s changed now that gold’s at $1500…?

Posted on 27 April 2011 by VRS  |  Email |Print

So what’s different about gold at $1500 per ounce…? Nothing. Absolutely nothing. There’s no more or less of it in the world today than there was a day or a week ago, and very little more than a month ago. There’s barely 15% more today, in fact, than there was a decade ago at $270.
Gold still has very few industrial uses - only 11% of 2010 global demand - and the stuff remains indestructible. It never changes or does anything. Hell, it won’t even rust……………………………………….Full Article: Source

Gold bubble fears prompted by 52pct rise in bullion trading

Posted on 27 April 2011 by VRS  |  Email |Print

Trading in gold at BullionVault, Britain’s biggest retail investment service specialising in the precious metal, soared by an eye-stretching 52pc last year. Audited accounts show 21,000 registered users bought and sold bullion worth £381m as prices hit new peaks.
But a trend is only a trend until it stops and some fear a bubble is forming which must burst soon. Is the recent influx of new investors a sign of trouble ahead?………………………………………Full Article: Source

Nothing to fear from a gold price pullback - it’s still a bull market - Holmes

Posted on 27 April 2011 by VRS  |  Email |Print

The S&P credit agency sent shockwaves through the global financial system on Monday when it issued a warning on U.S. debt and changed its outlook on the U.S. sovereign credit rating from “stable” to “negative.” This sent markets lower and the prices of commodities such as oil rocketing back above $110 per barrel and both gold and silver to new highs.
It should be clear the S&P announcement was just a warning, not a lowering of the U.S. debt rating, which was affirmed at AAA (the highest level possible)……………………………………….Full Article: Source

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