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bsiong
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21-Dec-2010 16:44
Yells: "The Greatest Wealth is Health" |
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Gold climbs further in Asia Published on: December 21, 2010 at 12:50 SINGAPORE (Commodity Online) : Gold climbed further in Asian trade Tuesday as its appeal as safe haven appeal improved on European debt concerns and Korean Peninsula tensions. Spot gold was seen trading at $1,387.18 an ounce at 1.00 pm Singapore time while February-delivery contract was little changed at $1,388 an ounce on the comex in New York. Gold also gained from uncertainties around the world that have dominated the market's sentiment, analysts said. The European Central Bank (ECB) recently expressed "serious concerns" that Ireland's bailout package could affect the institution's liquidity operations in the euro zone. The euro was on the defensive on simmering fears that some euro zone countries and banks could face more borrowing strains after Moody's said it may cut the ratings on Spanish banks. Speculation has also risen that France and Belgium may face cuts. Silver for immediate delivery was little changed at $29.3675 an ounce. Silver holdings in ETPs fell 0.7 percent to 15,073.22 tons as of yesterday. Spot palladium rose 0.4 percent to $745.50 an ounce, and immediate-delivery platinum was also little changed at $1,712.75 an ounce. On Monday the most active gold contract for February delivery hiked $6.9 or 0.5 percent, to close at 1,386.1 dollars per ounce in the day. Market traders noted that investors bought gold and other safe- haven investments, such as U.S. Treasury bonds, as a hedge against military tensions on the Korean Peninsula and ongoing concerns about European sovereign debt. Besides, U.S. envoy to the United Nations Susan Rice noted disagreements in the UN Security Council over the Korean Peninsula crisis are so severe that it is unlikely they can be resolved. Some analysts noted that physical demand from Christmas holiday shopping and the start of the Indian holiday season also provided support. The gold price fell 0.4 percent in the last week, but has gained 25 percent so far this year. Silver futures for March delivery rose 22.2 cents, or 0.76 percent, to $29.355 . January platinum also climbed $12.2 per ounce to $1,710.7 . |
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bsiong
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21-Dec-2010 14:53
Yells: "The Greatest Wealth is Health" |
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Gold gains on Europe debt fears, euro vulnerableSINGAPORE, Dec 21 (Reuters) - Gold firmed on Tuesday as fears of further ratings downgrades in Europe spurred buying from speculators, but demand from jewellers slowed to a trickle in Asia, with most orders already filled before the year-end holidays. The euro was on the defensive on simmering fears that some euro zone countries and banks could face more borrowing strains after Moody's said it may cut the ratings on Spanish banks. Speculation has also risen that France and Belgium may face cuts. Spot gold added $1.70 an ounce to $1,386.60 an ounce by 0320 GMT in thin trade, which means that prices are prone to sharp movements. Gold was well below a historical high of around $1,430 hit earlier this month. The euro zone worries were likely to be the main supporting factor for bullion after tensions in the Korean peninsula eased, with North Korea stepping back from confrontation over "reckless" military drills by South Korean military. ID:nL3E6NL01W] "The volume is light, so a little of buying will push up gold. There's not too much sale of scrap at these levels. Next year will be a good year again for gold," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "There are (ratings) downgrades in Europe, almost every day." Premiums for gold bars were at $1 an ounce to the spot London prices in Hong Kong, steady from last week. . U.S. gold futures for February rose $1.3 to
$1,387.4 an ounce.
Gold, which has gained by almost 30 percent this
year, is on track for a fifth successive month of gains. Greater inflows into bullion-backed, exchange-traded funds and increased open interest in U.S. futures have helped fuel gold's price rise this month. In equities, Japan's Nikkei average rose 0.7 percent on Tuesday as investors hunted for bargains in recent decliners, but volume was low due to an absence of foreign participants before the Christmas holidays. "We do see some physical demand out of Thailand. When the price came off last week, we did see buying from Indonesia, but other than that, people are waiting for Christmas and New Year," said a dealer in Singapore. "It will be too late to buy gold to stock up now. Towards the year-end, there are not many orders from jewellers." Premiums for gold bars were also steady at 70 cents in Singapore. Oil prices rose for the third straight session on Tuesday, supported by cold weather in the United States and Europe, seasonal gasoline demand, and an expected drop in U.S. crude stocks. |
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bsiong
Supreme |
20-Dec-2010 23:58
Yells: "The Greatest Wealth is Health" |
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Gold draws in safe-haven flows, up for second day* Gold rises on euro, watches Korea tensions * Silver, PGMs pare some gains * Coming Up: Euro zone consumer confidence Dec; 1500 GMT LONDON, Dec 20 (Reuters) - Gold rose for a second day on Monday, overcoming the weakness in the euro after a warning from the European Central Bank on the region's finances encouraged light safe-haven flows into the metal. Tensions on the Korean peninsula also fed the safe-haven bid for gold after an artillery firing drill by the South Korean military on a disputed island near the border with the North. Spot gold EAU= was last up 0.6 percent at $1,381.55 an ounce by 1145 GMT, having touched an intraday high of $1,388.05 earlier. U.S. gold futures for February GCG1 rose $3.0 an ounce to $1,382.20 an ounce. Gold, which has risen by over 25 percent so far this year, is on track for a fourth successive month of gains. Lending additional strength to the rise in the gold price this month has been an increase in the inflows into bullion-backed exchange-traded funds and an expansion in open interest in U.S. futures. "Being contrarian at this point in time is probably not going to pay off," said Saxo Bank senior manager Ole Hansen. "There seems to be an overwhelming belief that the market, as it is now, is pointing higher, but we need to see the third of January come first and see how it plays out," he said, adding that the approaching holiday period had cut liquidity, leaving the market prone to more volatile trading than usual. Holdings of gold in the world's largest gold-backed ETF, the
SPDR Gold Trust (GLD), rose for the first time since early
December, to 1,298.94 tonnes, reflecting investor demand for
bullion. UBS precious metals strategist Edel Tully said global ETF holdings are now at a record 69.2 million ounces and pointed to a pick-up in European coin demand late last week. "It's been quite a while since ETF and coin demand both increased at the same time: it occurred during the Greek crisis in Q2, but hasn't over the past six months," she said. "While one day of positive data does not suggest this tide is turning, we'll be keeping a close watch on the underlining appetite." On the currency markets, the euro slid to a two-week low on Monday, looking vulnerable to more losses against the dollar after breaching chart support on Friday after the ECB expressed "serious concerns" that Ireland's bailout package could affect the institution's liquidity operations in the euro zone. summit of EU leaders last week, the euro looked likely to encounter further pressure. "Last week's EU summit between policy makers did not address investor concerns aggressively enough and this was unable to really calm markets. Gold prices could be underpinned by persistent euro zone debt concerns," said On Yin Ling, investment analyst at Phillip Futures in Singapore. "Perhaps we could see a new high in gold prices in 2011. For this year, I think as we head towards the year-end, investors may unwind positions and trading volume is coming down." With the euro flagging, the dollar index .DXY hovered in positive territory, helped in part by the crisis on the Korean peninsula. The U.S. the U.S. envoy to the United Nations Susan Rice said disagreements on the U.N. Security Council over the crisis are so severe that it is unlikely they can be resolved. Local dealers reported a lack of activity in the physical bullion market in Japan despite escalating tensions in neighbouring South Korea. Gold bars remained at a discount of 75 U.S. cents to the spot London prices. Silver rallied for a third day, keeping its ratio to gold pegged at multi-year lows. The spot price XAG= was last up 0.1 percent at $29.12 an ounce, having risen by nearly 75 percent this year to its highest since early 1980. |
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bsiong
Supreme |
20-Dec-2010 23:54
Yells: "The Greatest Wealth is Health" |
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Morning Gold & Silver Market Report – 12/20/2010December 20, 2010At 8AM the APMEX precious metal prices were:
COMMENTARY: Gold spot price is up $6.70 in early morning trading – Silver price is up 14 cents – Platinum price is up $9.10 – Palladium price is up $10.30 Currency concerns and geopolitical tensions are driving precious metal prices up. Overseas, investors continue to move to gold as the euro continues to slump. Over the weekend, Adm Mike Mullen, Chairman of the Joint Chiefs of Staff, made it clear that the US takes their commitment to the security of the Middle East very seriously. The US is “very ready” to counter Iran on nukes. The Korean tensions had been building for several days, but did find some relief when North Korean backed down their threats to respond to weapons test by South Korea. The world waits to see what will happen during today’s tests. |
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bsiong
Supreme |
20-Dec-2010 10:09
Yells: "The Greatest Wealth is Health" |
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Gold extends gains on euro woes, ETF rise SINGAPORE, Dec 20 (Reuters) - Gold rose more than half a percent on Monday with investors chasing the precious metal as the euro weakened against the dollar on concerns over euro zone debt and Ireland's bailout package. FUNDAMENTALS * Spot gold added $8.65 an ounce to $1,381.65 an ounce by 0042 GMT, but it was still well below an historical high around $1,430 hit earlier this month. * U.S. gold futures for February rose $3.4 an ounce to at $1,382.6 an ounce. * The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings rose to 1,298.940 tonnes by Dec 17 from 1,283.757 tonnes on Dec 16. The holdings hit a record at 1,320.436 tonnes on June 29. * The European Central Bank has expressed "serious concerns" that Ireland's bailout package could affect the institution's liquidity operations in the euro zone. * South Korea should not carry out military exercises including live-fire from an island near its border with North Korea at the present time, Russian U.N. envoy Vitaly Churkin said on Sunday. * iShares Silver Trust , the world's largest silver-backed exchange-traded fund, said its holdings dropped to 10,903.34 tonnes by Dec 17 from a record of 10,964.14 tonnes on Dec 14. For details of the ETF's silver holdings, click on: link.reuters.com/wux96h MARKET NEWS * Japan's Nikkei was flat for a fifth straight session on Monday, not far below a seven-month closing high hit last week, as investors lacked strong trading incentives and volume was set to edge lower as the year-end nears. * The euro is likely to struggle anew in the upcoming week as markets remain fearful about sovereign debt issues in the peripheral euro zone economies, and investors are well-advised to be short the currency going into 2011. (GMT) DATA/EVENTS 0700 Germany Producer prices Nov 0830 Spain Economy secretary Campa speaks 0900 EZ Current account Oct 1330 U.S. Chicago Fed Index Nov :: Japan BoJ starts two-day policy meeting RELATED NEWS > S.Korea unveils plan to levy foreign debt at banks > Budget freeze bid risks more EU wrangling > Ending US tax breaks for wealthy a 2012 goal-Biden > An inconvenient U.S. housing sector > Senate agreement over funding US gov't-McConnell > Congressman Paul says Fed transparency is his goal > NZ services sector marks time in November - survey > Irish divided on bailout; sovereignty lost -poll > France's Lagarde sees no debt restructurings-paper > France, Germany, UK, others urge EU budget freeze |
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bsiong
Supreme |
19-Dec-2010 11:34
Yells: "The Greatest Wealth is Health" |
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Precious Metals range-bound, Gold testing bottom December 19, 2010 at 06:40 (Kitco News) - With only two weeks left in 2010, analysts said precious metals could very well stay in a range next week, barring any unforeseen circumstances, but that gold could test the bottom of its recent range. “Gold is probably going to stay where it has been. It’s still attractive because people don’t know where else to go,” said Rich DeFalco, president West Cooper Asset Management. “It’s still a protector from inflation and we just don’t know what’s going to happen.” Being range-bound means prices can fluctuate in a band while the market awaits further impetus. February gold futures on the Comex division of the New York Mercantile Exchange settled at $1,376.30 an ounce, down 0.6% on the week. March silver settled at $29.133 an ounce, 1.8% on the week. It’s not uncommon for any market to hold in a range as it waits for the calendar to flip to January. It’s the holiday season in many parts of the world, it’s the end of the fourth quarter, and if money managers have made profits this year, it’s likely they’ve pocketed those to avoid losses on quirky actions. Gold has been in a modest downtrend since making a record high on Dec. 7, while silver has come off its highs and held in a range. Charles Nedoss, senior market strategist with Olympus Futures, said gold is getting “a bit more beat up” by investors than the other precious metals. “We’re seeing the equities hold up and we’re seeing investment demand leaving as things are not as scary,” he said, adding he still likes gold’s longer-term prospects. Mark Leibovit, publisher of the VR Gold Letter, said while long term he’s bullish on gold, in short-term trading, the decaying price and declining volume in gold has him cautious. He pointed to gold’s key reversal on Dec. 7 when it made an all-time high and closed under the previous day’s low, a sign of a short-term top in technical-chart analysis. Volume is also declining in futures and exchange-traded funds. While he’s not gotten short, he’s not buying either. He would rather buy it “under the market” and wait for a sign that a bottom is in. One of those signs would be if volume shifts. “Sometimes these little tops can become bigger signs, but you just don’t know that. I’d be a little nervous being long right here. But that doesn’t mean I’m selling the coins in my vault,” he said. Silver has been outperforming gold and part of that is because of silver’s industrial use. In fact, Nedoss said, silver has been tracking copper more than gold in the very near term because of the fabrication side. He said keep an eye on copper to get a sense of where silver might go. “Copper has been leading the way. There’s clear demand,” Nedoss said. LME copper prices have hit record prices and Comex values are near records on hopes of economic growth. New and pending exchange-traded funds have also spurred some excitement. March silver closed above the 20 day moving average, which came in Friday around $28.50, a move, Nedoss said, “that’s very friendly” for bulls. Both Nedoss and Lebovit note that gold is holding right at the 50-day moving average around $1,370. Nedoss said if it closes below, gold could fall another $20. Lebovit said if gold falls further, he would look for support at the November low around $1,328. Lebovit is also cautious about silver, noting that right now its holding in the $27-$28 area, but if it breaks support, the next move down could be to the mid-$20s. By Debbie Carlson of Kitco News |
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bsiong
Supreme |
19-Dec-2010 11:30
Yells: "The Greatest Wealth is Health" |
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Weekend Reading ... As Silver season ends, things to watch out for December 18, 2010 at 19:00By Dr Jeffrey Lewis Silver season is coming quickly to a close after one of the best five month rallies in silver history. From mid-August to early December, silver managed to rise more than 66% from top to bottom, a sign of silver's strength against what is normally a positive, but not nearly as pronounced, rise in silver prices. In moving forward, there are three main events on which silver investors need to focus. Chinese Monetary Policy China represents a growing portion of gold and silver demand, and the country is a popular investment destination for foreign investors. While Chinese citizens are stocking up on gold and silver as an inflation hedge to negative real interest rates, the Chinese central bank will soon be forced to act in order to keep inflation in check. Currently, one-year rates on the Chinese mainland are 2.5% while inflation rises toward highs at 5.1%. With these fundamentals at play, the Chinese can effectively borrow cash to store in gold and silver, pocketing the difference between the cost of borrowing and inflation. Investors are calling for an increase in the central bank's target interest rate, which could, at least for a short period of time, stifle domestic physical metal demand. This is a story that should be followed closely. Market Performance Those who purchased silver in the last 15 years are holding gains as large as 700% . Those who purchased before August have been rewarded with returns of at least 66%. That kind of impressive performance is the type that tends to attract profit taking interest. Should equities begin to lag in 2010, some will turn to their metal profits as an opportunity to even out their losers. The upside to this phenomenon is that the December effect for silver could be quite strong. Unless you're holding silver shorts, you've made money this year. It is likely that in the coming weeks, silver short positions will be closed out for a loss before tax time. As you're probably well aware, you can only close a short position by purchasing metals, which is good for the markets. Watch Gold's Lead Unlike silver, which tends to be more volatile at the start of the year, gold tends to start off with slow advances in the early months before picking up the pace late in the year. Since silver has already risen to reasonable level within the gold to silver ratio, an appropriate rise in gold may be necessary to bring silver higher in the spring months. A fast start for gold is unbelievably bullish for silver. As previously reported, large increases in gold have already prompted many jewelers to start diluting their gold with silver. Should the price rise even higher, more jewelers will do the same, only helping to further reduce the gold to silver ratio with higher silver prices. The first few months of the coming new year will really set the pace for the rest of 2011. If gold and silver are able to stay flat or rise slightly in the first few months of the year, late demand from India in the summer months and the typical explosion through 4Q open up the door for a repeat of 2010's surge in silver prices. Only time can tell. Dr. Jeffrey Lewis is a medical practitioner and editor of www.Silver-Coin-Investor.com |
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bsiong
Supreme |
19-Dec-2010 11:26
Yells: "The Greatest Wealth is Health" |
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WEEKEND READING ............ Keep an eye on gold, bonds in 2011 Published on: December 18 2010 23:15 GMT By Bill Fleckenstein In this, my final column for 2010, I wanted to compare and contrast two important markets that I think give us some indication about what to expect in 2011. As longtime readers may be able to guess, I am talking about gold and bonds. A demanding answer First, on Dec. 13, Dennis Gartman shared some gold data that I think tells an important story. Back in the early days of the gold bull market, I remember arguing with people that, in my view, gold prices would be driven by demand for the metal as an investment, not by interest in using it for jewelry. That was a novel thought in those days, as "analysts" used to focus only on what jewelry buyers were likely to do. In those days, that was deemed to be all one really needed to know about gold. In the wake of the tech-stock bubble bursting, I knew that, once it became clear the Federal Reserve was going to try to print money as a way out of that mess, the dollar would have problems and gold would be a beneficiary. Of course, as the real-estate bubble inflated, leading to an even larger disaster, there was no question that even more money-printing would follow. This bolstered the case for gold. Thus, my argument was always based on investors being the drivers of the gold bull market. From baubles . . . That, in fact, has been the case. But I was still surprised to see just how potent investment demand has become. According to Gartman (the data likely originated with the World Gold Council), in 2000, investment demand accounted for approximately 2% of demand for gold, while about 80% of demand came from the market for gold jewelry. By 2005, the jewelry share had declined to about 60%, while investment demand had risen to about 20%. Nowadays, jewelry usage is about 40% and investment demand is just over 40%. (Gold also has industrial and other uses, which accounts for the remainder of demand.) As Gartman notes, "The ETFs are having their very real impact." However, that is not quite accurate. The gold-based exchange-traded funds themselves aren't what made such an impact. It is the investment demand that has had the impact; the ETFs are merely the conduit by which much of that demand is expressed. What is really remarkable is that with investment demand at 40% of gold production, the number of gold bulls with any substantial allocation is still minute. . . . to bubbles? Perhaps by the time this bull market has run its course, investment demand will approach 100% of annual gold production, though we can never forget that nearly all the gold that has ever been produced (enough to fill just two Olympic-size swimming pools) is still in existence. So it's not just the gold that gets dug out of the ground each year that is available for sale, but potentially almost all the gold in the world. Of course, someone who has bought gold would need a reason to sell it, with some sort of financial prudence on the part of governments and central banks being the most likely catalyst. But as readers of my column (at least) should know, we are still millions of miles away from that. It can't be bad news, so it must be good As a lead-in to my second point, I wanted to comment a bit on Best Buy (BBY, news, msgs), which announced its results Dec. 14. Not only did the electronics retailer miss estimates, but it was also forced to lower guidance prospectively, as demand has not materialized the way the company had hoped. As a consequence, its stock price was smacked for 15%, although the market itself impressively fought off more rising bond interest rates to close about even (the Dow Jones Industrial Average ($INDU) closed with a 0.4% gain). Normally, I would have expected the major indexes to take a bit of a licking on that news, as Best Buy has always been deemed to be a well-run retailer and a good barometer of business (especially at this time of year). However, the denial currently runs so deep regarding what is next for the economy and the stock market that, apparently, the bulls were able to convince themselves that somehow Best Buy's results were company-specific. Thus, businesses associated with Best Buy, which in the past would also have been sold in sympathy, were given a pass. It is quite similar to the treatment we saw when Cisco Systems (CSCO, news, msgs) reported its results Nov. 10. I mention those two companies because they, as well as others, illustrate a consequence of government money-printing. The additional liquidity goes where it goes (usually into stocks, since the Fed's low-interest-rate policies make more conservative alternatives less attractive), psychology gets deranged and nonsense passes for knowledge. The net effect is to increase the riskiness of stocks generically, as "normal" market reactions become suppressed, creating an unhealthy environment. Treasury misery loves company A variation of that same theme seems to be what has stopped the bond-market rout from being regarded as bad news. Apparently, a school of thought has "evolved" that the decline in the bond market is not about the Fed losing control of the printing press, as I have maintained, but about economic activity surging. Thus, the weakness in bonds is (supposedly) good news. How anyone can conclude that, given the data, I don't know. But even if you agree, you can't escape the reality of higher rates. So if you really think that bond weakness is linked to the economy catching fire, and you extend that argument out, then you should be expecting even higher rates and more inflation, though the latter is certainly not on the radar of any such Pollyannas. Bond market bravery: 'It's only a flesh wound!' Recently, I headlined a column at FleckensteinCapital.com (subscription required), "Party Like It's 1999, Part III," and that is how the equity market landscape looks to me. After living through the stock and real estate bubbles, you'd think it would be impossible to be surprised by how foolishly people can act. But with the amount of machismo, bravado and downright cluelessness that I see on display, I must admit I am dumbfonded. Sadly, it seems that the vast majority of Wall Street types have learned almost nothing from the near-death experience they had only two years ago. My guess, though, is that 2011 will reacquaint them (again) with the fact that financial assets can cost you a lot of money. Courtesy: MSN Money |
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bsiong
Supreme |
19-Dec-2010 11:22
Yells: "The Greatest Wealth is Health" |
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Silver wins bullion race in 2010 Published on: December 18, 2010 at 17:15 LONDON (Commodity Online): Even though gold has won the race in 2010 as far as price is concerned but the real winner is silver with the highest returns it gave to investors. In normal circumstances, gold is the most sought after commodity for investors during crisis period as the yellow metal is considered a safe haven among the investors. But this year, silver, which is always ready to climb high despite being pulled down several times, has shown that it is the leader in bullion market. According to analysts, silver could rise to $31 in next three months. It clearly means that the silver prices are going touch the sky next year. Rising industrial activity in Asia and growing debt concerns in Europe are playing into silver’s strengths. As long as these conditions persist the precious/industrial metal is set to prosper. As gold prices reached all time highs this year, trading over $1,400 an ounce, investors who feel they can’t afford to buy the yellow metal are looking to silver as a possible proxy to gold. Investor predictions for 2011 indicate a steady rise for silver as unrest, and a diminishing confidence in currency rises in light of US inflation and European debt. Average gold prices have increased over 2010, and are predicted to steadily rise in 2011. The average price of gold in 2010 was $1,225 with November reporting $1,424 for gold. The 2011 average is predicted to be as high as $1,459. The increase in silver imports in China is partially responsible for the increase in silver prices. Silver prices averaged $20.13 in 2010. During November, the published price was $27.66. Predicted silver prices for 2011 are $29.63. In a weak economy, investors are looking to gold and silver as their best investment for 2011. |
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bsiong
Supreme |
18-Dec-2010 18:30
Yells: "The Greatest Wealth is Health" |
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$2000 should be gold price now: Rogers December 17, 2010 at 22:05LONDON (Commodity Online): Even as gold prices are showing signs of a continued bull run, some experts are feeling that the yellow metal is yet to reach its real value. According to world renowned investor Jim Rogers, gold prices should be around $2000 in this decade. In an interview with the TheStreet.com, Rogers noted that if you adjust the gold price’s previous all-time high of $850 in 1980 for inflation, the price of gold should be over $2,000 now. He also discussed his bullish forecasts for other commodities, including cotton and zinc, and predicted that silver can certainly go to $50 again and probably much, much higher over the next decade. Rogers subsequently mentioned his bearish outlook for US government bonds, based on the unprecedented level of money printing being undertaken by the Federal Reserve. The gold prices hovered near unchanged at $1,379 per ounce after dropping 1% on Thursday amid strength in the US dollar. The price of gold continues to consolidate below $1,400 per ounce. Rising Treasury yields have weighed on the gold price in recent days as, despite remaining at extremely low nominal levels, higher interest rates are presenting a minor headwind to precious metals. Investments tied to the gold price have retreated in recent days, with the SPDR Gold Trust (GLD) falling 1.0% this week and the AMEX Gold Bugs Index (HUI) declining 4% off its high of last week. Despite the recent weakness, gold mining companies have been one of the strongest sub-sectors of the market in 2010. Record gold prices have led to stronger earnings and cash is building on gold miners’ balance sheets. Agnico-Eagle Mines (AEM) is the latest gold producer to boost its dividend, raising the annual payout to shareholders from $0.16 to $0.64. The yellow metal remains higher by 26.1% year-to-date and is on track for its tenth straight annual gain. Echoing Rogers’ negative view on US bonds was Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital Management. On CNBC’s Fast Money, Schiff was also very critical of the Fed’s policies, pointing to the significant rise in U.S Treasury yields in recent weeks. Schiff, a long-time gold bull and U.S. dollar bear, reiterated his positive outlook for the yellow metal, but did not provide a specific gold price target at this time. He did, however, say that the recent rebound in the U.S. Dollar Index is unlikely to continue, as “all we’re going to keep doing is printing money”. (Source: Goldalert) |
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bsiong
Supreme |
18-Dec-2010 18:28
Yells: "The Greatest Wealth is Health" |
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2011 Outlook: Bright innings for silver, platinum, palladium December 18 2010 05:40 GMT By Allen Sykora of Kitco News (Kitco News) - BNP Paribas describes its 2011 outlook as “favorable” for silver, platinum and palladium, with palladium having the most potential upside due to its tight physical balance. BNP’s 2011 average-price forecasts are $25.80 for silver that includes $27.45 in the fourth quarter of the year, compared to an expected $19.90 for 2010; $750 for palladium, compared to $521 for 2010; and $1,800 in platinum, compared to $1,613 for 2010. Gold, which BNP addressed in a report in late November, was forecast to average $1,500 next year, compared to $1,225 for 2010. "The outlook for silver, platinum and palladium in 2011 and 2012 remains favorable,” said a research report from BNP’s Anne-Laure Tremblay. “In our view, palladium has the most upside given its tight physical balance. The platinum physical balance will need some more time before it begins to tighten. Silver should continue to draw support from gold.” Silver has risen 32% for the quarter to date. “While a more optimistic economic outlook has likely supported fabrication demand, investment demand has been the real driver of the silver price,” BNP said. Silver investment demand has been strong over the past two months, with net inflows into physical exchange-traded funds increasing by 1,363 metric tons from October through Dec. 10, BNP said. Bullion coin sales have also been strong. Silver fabrication demand rebounded strongly in 2010 by 20% after a 17% contraction in 2009, BNP reported. In 2011, this demand was forecast to grow by another 5%. Palladium prices have risen 30% for the quarter to date. “If anything, the market’s view of the metal has become even more positive given increasing rumors of the depletion of Russian stockpiles,” BNP said. The bank looks for palladium demand in auto catalysts to rise by 30% this year, then slowing to 8% to 10% the following two years. There has been a rebound in auto demand in the U.S. and Japan this year, while China’s auto production continues to register double-digit growth. Furthermore, palladium is benefitting from ongoing substitution away from more-expensive platinum, BNP added. The electronics sector has driven other industrial demand growth for palladium in 2010, although jewelry demand weakened in China, the largest consumer. Investment interest rose significantly since October, with ETF net inflows totaling 7.2 metric tons in the first 10 days of December. This was the highest level since January, when the first U.S. palladium ETF was launched, BNP said. “Looking ahead, investment demand in 2011 may moderate from its 2010 level, notably due to an expected absence of major ETF launches. However, palladium should remain one of the favored metals for investors due to its strong fundamentals,” BNP said. Meanwhile, for the quarter to date, platinum rose by a more modest 2%, BNP said. Auto-catalyst and industrial demand has rebounded by 18% in 2010 but this has not been sufficient to significantly reduce the market surplus, BNP said. Also, platinum does not benefit as strongly as silver from its correlation with gold. Demand for industrial uses other than autos rose 30% in 2010, largely due to restocking, BNP said. Jewelry demand declined this year. However, BNP looks for this to rebound in 2011 and 2012, particularly as Chinese jewelers will need to replenish their level of stocks. Investment demand has risen over the last two months, likely helped by high gold prices, BNP said. Inflows into ETFs should continue in 2011, but decline relative to 2010 since this year got an added boost from the launch of the first U.S. platinum ETF, BNP said. The bank said supply from South Africa, which produces most of the world’s platinum, was largely steady in 2010. There is potential for “modest growth” in global platinum supplies the next two years due to increases in output in Zimbabwe. Otherwise, the current platinum price is “not conducive” to raising production, with the industry’s margin “barely positive,” BNP said. Furthermore, a stronger South African rand and rising costs, such as power and wages, are pressuring margins. “Although we expect the surplus to decline over our forecast period, platinum will likely stay the laggard of the precious metals complex in 2011,” BNP said. By Allen Sykora of Kitco News; |
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bsiong
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18-Dec-2010 18:21
Yells: "The Greatest Wealth is Health" |
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Gold up near $1368, oil above $88 in New York closing Published on: December 18 2010 06:25 GMTSINGAPORE (Commodity Online) : Gold and oil prices closed higher for the week ended Dec 17, despite a strong dollar, on Europe’s fiscal crisis that boosted demand for the metal as a haven. New York's main contract, light sweet crude for January delivery, gained 32 cents to close $88.02 a barrel while Brent crude for delivery in February climbed seven cents to close at $91.67 a barrel in London trade. However analysts said oil may decline next week on speculation that the U.S. Energy Department will report an increase in supplies after the biggest drop in more than eight years in this week’s data. Gold for immediate delivery was bid at $1376.80 an ounce in late trade while US gold futures for February delivery were also up, gaining $8.20 to $1379.20 per ounce. The dollar rose slightly against the euro on Friday as positive German economic data failed to offset concerns over the eurozone economy after a huge ratings downgrade for Ireland and more problems in Spain. A stronger US greenback makes dollar-traded commodities such as oil more expensive for buyers holding rival currencies. Silver futures for March delivery rose 35.1 cents, or 1.2 percent, to $29.133 an ounce on the Comex, up 1.8 percent for the week. The metal has gained 73 percent this year. Palladium futures for March delivery dropped $3.95, or 0.5 percent, to $738.60 an ounce on the New York Mercantile Exchange. The price is up 0.8 percent this week. Platinum futures for January delivery declined 10 cents to $1,698.50 an ounce. The price is up 1.4 percent this week. Palladium has surged 81 percent this year, and platinum was up 15 percent. |
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iPunter
Supreme |
18-Dec-2010 12:05
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'Skali' economy show big bull recovery.. then gold sure 'siong '...  |
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bsiong
Supreme |
18-Dec-2010 11:56
Yells: "The Greatest Wealth is Health" |
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Cramer: Buy Any Dip in Gold PricesPublished: Friday, 17 Dec 2010 | 3:09 PM ETAny dips in gold’s price these days are “gifts,” Cramer said during Friday’s “Stop Trading.”
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bsiong
Supreme |
18-Dec-2010 11:53
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report – 12/17/2010December 17, 2010At 4PM (CT) the APMEX precious metal prices were:
COMMENTARY: Gold was up slightly today, but still down for the week. Jim Cramer is saying to buy gold on these dips. Mr. Cramer is emphatic that gold is now a currency and not a commodity. In addition to the many other reasons for buying gold, he states that supply and demand will contribute to increasing prices and we should see $2000 an oz within five years. I have spoken before that as traders book profits before December31, gold prices may continue to dip. However, these same traders might get right back in come January 3. Now may be the time to buy. Gold spot price was up $5.10 – Silver price was up 44 cents – Platinum price down $1.30 – Palladium price down - $2.90 |
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bsiong
Supreme |
17-Dec-2010 09:01
Yells: "The Greatest Wealth is Health" |
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Gold traded steady on Thursday as
the dollar eased slightly and investors eyed a European Union
summit that is expected to find solutions for the region's debt crisis. MARKET NEWS * The euro steadied on Thursday as dealers squared up positions ahead of a meeting of European Union leaders, while U.S. Treasuries bounced after a selloff overnight took 10-year yields above 3.5 percent, sending some investors hunting for value. * The dollar held near the top of recent ranges against several major currencies but lacked energy to vault them. * Oil prices were steady to lower on Thursday as the prospect of a downgrade to Spain's sovereign credit rating sparked euro-zone debt concerns, outweighing positive U.S. economic data. * U.S. stocks suffered a third straight late-day sell-off on Wednesday, suggesting it may be difficult to chalk further gains as the year comes to a close. * European shares were set to open flat to slightly lower on Thursday, continuing to pause from strong gains earlier in the week, with investors reluctant to take big positions ahead of a meeting of European Union leaders.FUNDAMENTALS |
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bsiong
Supreme |
17-Dec-2010 08:56
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report – 12/16/2010December 16, 2010At 4PM (CT) the APMEX precious metal prices were:
There is much discussion today, that gold is down on profit taking and book-squaring. In up years for gold (and other commodities), it is not unusual to see prices go down toward the end of an up year. Why do prices go down? There were many major hedge funds who invested heavily in gold during 2010, and on paper, they have made a very nice profit. However, paper profits are not eligible when it comes time to collect commissions. You have to sell the gold to actualize the profits and collect commissions. We might see some downward pressure now till December 31, but it also is a good time to take long positions. These same funds selling now may very well jump back in come January. Gold price was down $16.50 – Silver price down 34 cents – Platinum price down $6.40 – Palladium price down $15.30 |
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bsiong
Supreme |
16-Dec-2010 23:23
Yells: "The Greatest Wealth is Health" |
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Gold investment thrives in Chinese households Published on: December 16 2010 13:00 GMT BEIJING (Commodity Online): The lure for the yellow metal continues to grip Chinese households. The number of households that are buying gold across China is steadily going up. China’s craze for gold is surprising many people these days. Some years back, people in China were not allowed to own much gold, thanks to the strict economic rules that the communist China had stipulated. China still remains a one-part communist country; but these days, the Chinese government allows its citizens to buy and possess as much gold as they like. In the past, gold production in China used to lag behind South Africa, United States and Australia. But in 2007, China overtook all these countries to emerge as the largest gold producer in the world. And Chinese government announced early this year that the country wants to increase its gold reserve holdings. To put more specifically, China is eager to replace US dollar as its foreign exchange reserve with gold. While the Chinese government has been officially trying to mop up gold reserves, people across the country are simply buying gold. Some bullion analysts have already forecast that eventually China will emerge as the largest gold consuming country, an honour that India now holds. Indian households are estimated to be owning 15,000 tonnes of gold. What is it that is driving Chinese people to buy more and more gold? How is it that the people of a community country are crazy for gold investment? “People are just buying gold coins, bars and jewellery as family investment. Gold has emerged as part of the family investment culture. Probably, Chinese households will beat India as the largest physical holder of gold in few years,” says Peter Lee, a bullion specialist based in Beijing. He said one of the main reasons for the massive physical buying of by Chinese households is the huge savings rates of people in that country. Lee is of the opinion that gold demand in China remains as a form of investment and saving, not of spending. Whatever be the reasons for China's massive household savings rate (a BIS paper last month suggested it's because household earnings are falling as a proportion of national income), a recent World Gold Council report shows that private consumers are putting ever-more money into physical gold. Here are some facts on the Chinese going on a gold buying spree: According to the World Gold Council, gold demand in China has risen by 26% in the last one decade. In the 30 months between Jan. 2008 and June 2010 alone, private households bought more gold (1057 tonnes) than the central bank reports in its entire gold reserves (1054 tonnes). If the gold buying spree by Chinese households goes on at the current pace, private gold Chinese demand may overtake Indian gold demand by 2014 (if not sooner), giving the world's two most populous nations two ounces of gold in every five sold worldwide that year. Chinese household savers have bought almost half as much gold since the global financial crisis started in mid-2007 as all investors living in the developed West. Nearly 16% of global gold demand went to Chinese households between July and October in 2010, rising from the previous three-year total of 14%. Lee points out that gold buying has landed Chinese households into a cultural shift in history. “Chinese people are now buying gold coins, bars, jewellery etc. which they believe are efficient forms of gold investment. Gold has taken a cultural shift to become an investment model across China,” Lee added. |
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bsiong
Supreme |
16-Dec-2010 23:20
Yells: "The Greatest Wealth is Health" |
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Jim Rogers: Silver to hit $50 December 16 2010 12:25 GMT LONDON (Commodity Online): Global commodities guru Jim Rogers, who has predicted that gold price will eventually shoot up to surpass the $2,000 per ton mark, says silver price is also set to go to a record of $50 or higher. In an interview to Alex Steel of TheStreet.com, Rogers, who is an authority on investment in global commodities market, said that silver prices, like gold, are certainly going up, driven by the boom in almost all commodities across the world. Rogers, who is a well known commodities bull, and who wrote the famous books like Hot Commodities and A Bull in China, said that “gold will be $2,000 certainly in the decade, it'll probably be much higher than $2,000 in the decade but maybe even sooner I don't know.” “But to me it seems pretty clear that it'll go to at least $2,000. If you adjust the old high back in 1980 for inflation, gold should be over $2,000 now,” he said in the interview. But on silver price prediction, not many agree with Rogers. In its latest metals report, the global consultancy VM Metals and ABN AMRO, a Netherlands-based bank, raised its average 2011 silver price forecast by nearly $2 to $29.63, up from $27.66 in November. The 2010 average was listed at $20.13. “In the month of November, 4.2 (million) silver eagles were purchased by U.S. Mint dealers, topping the previous record of 3.69 (million) set in December 1986,” the report said. “ETF inflows have also risen sharply in November, with global holdings growing by 5% to a record high of 477 Moz.” Industrial activity in China has also helped drive the price of silver, with an increase of silver imports into China, the report said. Following is the TheStreet.com interview with Jim Rogers: Now, you've said that gold will hit $2,000. Do you know when -- crystal ball? Rogers: I wish I knew when, watch TheStreet.com you can get all these answers to market timing; I am no good at it. I explained to you that gold will be $2,000 certainly in the decade, it'll probably be much higher than $2,000 in the decade but maybe even sooner I don't know. But to me it seems pretty clear that it'll go to at least $2,000. If you adjust the old high back in 1980 for inflation, gold should be over $2,000 now. What about silver? Silver at the old high was $50, silver's at $30 now. Silver can certainly go to $50 again and probably much much higher over the next decade. It just seems you'd be selling your gold this year with all the hype that's been going on. There's been some hype about it [but] most of the public, for instance, is selling gold. If you walk around the streets in nearly any American city you'll see signs -- sell us your gold. The public is in there selling their gold, selling gold jewelry, as fast as they can. I spoke not too long ago to 300 major international money managers from around the world, sophisticated people with a lot of money under management. And the moderator, I didn't know why he said it, but he said, "How many of you have ever owned gold?" Seventy-six percent of those people had never owned gold. I was stunned, so was the moderator, so was everybody, stunned at how few people actually had ever owned gold, so it's still an under-owned asset, and think about zinc. He didn't say zinc or cotton or some of the other commodities. None of them would have ever said they have ever owned zinc and cotton and other commodities, so the commodity bull market has a long way to go. How do you own these commodities? I have an index called the Rogers Commodities Index. I own commodities through those indexes because my lawyer won't let me buy individual commodities anymore because I'm talking to people like you about commodities all the time ... and by the way, many studies have shown that index investing outperforms nearly all active managers anyway year after year, so I'm quite happy just owning indexes. Let's go to your outlook for 2011. What are three things you are going to be paying attention to in the world economy in the next year? Everything, everything that's going on: central banks, currencies, commodities, stocks, bonds. I'm short bonds, I'm short U.S. long bonds. I try to pay attention to everything. I cannot be a successful investor unless I pay attention to everything. You mentioned shorting bonds -- so in terms of commodities, stocks, bonds and cash what's your diversified portfolio? I'm mainly long commodities. My investments are commodities and currencies right now. I'm short bonds, as I mentioned, I'm short an emerging-market ETF, because emerging markets were so hot in the last couple of years. I own some shares that I've owned for years. I have all my Chinese shares that I've ever owned. I bought my first Chinese shares back in 1999. I don't like to sell things unless there's a good reason. Are you short any U.S. stocks? I'm short one ETF, one index ETF. Are you short any other bonds in any other countries? No, only the US Courtesy: TheStreet.com |
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bsiong
Supreme |
16-Dec-2010 23:16
Yells: "The Greatest Wealth is Health" |
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No end to gold bull run in 2011 December 16, 2010 at 16:05LONDON (Commodity Online): Even as 2010 coming to an end, investors across the globe are worried over what is in store for gold in the coming year. According to reports, neo rich Chinese families and Indian rural folk helped gold set new records in 2010. The uncertainty prevalent in global economies also helped gold gain safe haven status. However, analysts predict that in the coming year, gold will continue its bull run in the first half. But, the second half of the year is harder to predict, with one potential setback coming in the form of surging interest rates in Europe and the US. Much higher interest rates would push investors away from gold, which bears no interest, pays no dividend and thus carries an opportunity cost. Gold has gained 26% this year, putting it on track for its third double-digit gain of the last four years. This year, fears of a sovereign credit crunch in Europe; lack of confidence in the dollar, the euro and other major currencies; and low real interest rates pushed Western investors towards gold in droves. In Asia, there was fear of runway inflation, particularly in China; more money around as emerging Asian economies grew and more joined the ranks of the middle class; and the presence of investors traditionally more predisposed to own gold — Indians and the Chinese are among the top consumers of gold in the world. Western investors in 2010 bid more than ever for gold coins, bought futures contracts, and also poured record amounts of money into exchange-traded funds backed by gold. Indians, Chinese, and others in Asia kept buying physical gold, in addition to investing in it, despite the ever-increasing prices. Jewelry demand in the four corners of the globe held despite the higher prices. In addition, the influx of scrap gold, normally a cooling factor whenever gold prices spike higher, was largely absent this year, analysts said. The demand from some of these buyers also make gold vulnerable to a swift correction. Large hedge funds, which helped push gold to the forefront of investing this year, could sell their gold positions as easily as they started it, swiftly taking the floor from under prices. Several forecasts predict gold has $100 to $400 more to gain. The timing of the peak may depend on interest rates. Gold is likely to average around $1,400 an ounce in 2011, which suggests a rise to around $1,550 is yet to come. // |
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