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Why Energy Will Outperform Base Metals

Why Energy Will Outperform Base Metals

Energy is replacing base metals as the world’s most valuable commodity class… LET’S examine some evidence that energy resources are replacing metals as the world’s most valuable commodities, writes Dan Denning for the Daily Reckoning Australia. Item one is BHP Billiton’s half-year result. The company reported lower profits on higher revenues. Its half-year profit through December of 2011 was down 7% to $9.94 billion from $10.52 billion the period before. Don’t bother sending BHP CEO Marius Kloppers any flowers. $9.94 billion is a respectable result and still one of Australia’s great half-year corporate profits. But what’s interesting is that BHP is basically an iron ore and coal company trying to become an oil […]

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Gold Prices “Being Driven by Investment”

Fundamentals are important in the long run, says Paul Walker, global head of precious metals at consultancy Thomson Reuters GFMS. Over the short run, however, silver and Gold Prices are being driven by investment and low or negative real interest rates, as he explains in this interview with MineWeb’s Geoff Candy. Geoff Candy: me live from the 2012 Mining Indaba in Cape Town is Paul Walker. He’s the global head of precious metals at Thomson Reuters GFMS, and is according to his presentation a lapsed fundamentalist. What exactly does that mean in the context of precious metals? Paul Walker: Well I think it means that when you look at the […]

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Will China Continue to Buy Gold?

| February 8, 2012 | Articles: Insights
Will China Continue to Buy Gold?

“Nobody rings a bell at the top or bottom of a market,” the old saying goes. Yet anyone reading about the veritable stampede to Buy Gold during last month’s Chinese New Year celebrations might have heard a faint ringing in their ears, writes Ben Traynor at BullionVault. Here are a few quotations from various press sources: “Some customers just walk in and buy a bunch of 100g gold bars all at once…Companies come in too to Buy Gold bars for presents.” – branch manager, Industrial and Commercial Bank of China. “Some companies are giving out gold instead of cash to their employees” –Jia Zhihong, jeweler, Wuhan. “With customers crowding and rushing in, we did not even have time […]

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Gold Bullion steady today as Dollar falls

Gold Bullion prices held steady just below $1750 per ounce Wednesday morning – 2.2% up on yesterday’s low – after rallying the previous day following comments from US Federal Reserve chairman Ben Bernanke. Silver Bullion eased slightly this morning after hitting $34.55 per ounce – its highest level since November 16. “Gold faces significant resistance at $1766, but above that look for $1778-1798,” says one Gold Bullion dealer here in London. The S&P 500 hit its highest level in over six months Tuesday at 1349.24 – 25% up on last October’s low. Gold Bullion meantime is up 9.6% over the same period. “I’m very bullish on the [stock] market,” says Laurence D. Fink, chief executive […]

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Mining Stocks and the Gold Price

SO WHEN might a rising Gold Price actually lead to rising stock prices for companies with quality projects and solid treasuries? In this interview with The Gold Report, Outstanding Investments editor Byron King shares his roadmap. The Gold Report: Byron, anyone who reads your reports knows two things: you like to tell stories and you like precious metals. The Gold Price has spent the last 11 years trending higher. Do you see it continuing upward? Byron King: I anticipate that gold, silver and platinum will all continue to rise in price. There are currency-driven reasons why metal prices are going to keep rising, as well as other issues with overall supply and falling production. In terms of production, […]

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Gold Prices decline further as “crunch time” arrives for Greece but Gold now more of a Safe Haven than in Nov and Dec

Gold Prices continued to fall Monday morning in London, hitting $1713 per ounce by lunchtime – 2.8% down on last week’s high – as stocks and commodities also ticked lower, while US Treasury bonds gained. Silver Prices dropped to $33.09 per ounce – 3.9% down on the high from last week – as uncertainty grew over the long-running Greek debt issue. Gold Prices began their downward move on Friday following the publication of better-than-expected US nonfarm jobs data. Stock markets by contrast rallied immediately following the release. “[The fall] may serve as a warning of an interim top,” reckons Russell Browne, technical analyst at bullion bank Scotia Mocatta, adding “there is key support at […]

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Indian Investors Keen to Buy Gold and Silver

Following growing interest from small investors in India, Indian Commodity Exchange, which started operations in late 2009, is to soon introduce micro volumes of gold and silver contracts of up to 1 kilo each, writes MineWeb‘s Shivom Seth in Mumbai. The Exchange is a screen-based on-line derivatives exchange for commodities. At the end of last year, it had recorded one of its highest volumes in physical delivery of bullion (gold and silver) on its platform. “With the spurt in the demand of gold and silver in recent times, commodity exchange trading in these precious metals has surged in India, which is arguably the world’s largest bullion market. Delivery as a percentage of average […]

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Bernanke Lends Support to Gold Prices but strong US jobs data sees Gold slip from 11 Wk High

Dollar Gold Prices fell back below $1750 per ounce while stock markets jumped higher immediately following the release of better-than-expected US jobs data on Friday. The Bureau of Labor Statistics nonfarm payrolls report, published on Friday, shows that the US added a net 243,000 nonagricultural private sector jobs last month. In addition, both November and December’s nonfarm figures were revised upwards. The unemployment rate fell to 8.3%, down from 8.5% the previous month. Silver Prices also fell following the nonfarm announcement, while the US Dollar saw an immediate gain against major currencies such as the Pound, Euro and Yen. Earlier on Friday Dollar Gold Prices hit their highest level in 11 weeks at $1762 per […]

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Global Gold Production Stuck in Sluggish Mode

Global Gold Production Stuck in Sluggish Mode

RECENTLY PUBLISHED data from the US Geological Survey show that global Gold Bullion production, after falling every year between 2001 and 2008, finally rose for the past three years, writes Gregor Macdonald. In 2011, production reached 2,700 metric tons. However, in a larger context, the past decade has been quite a poor one for the production of Gold Bullion. The compound annual growth (CAGR) rate has fallen well below the average of the past 110 years. The high cost of marginal supply and the poor production performance of the large cap gold miners fits in nicely to the theme. It also mirrors the experience of “Big Oil” the past decade, […]

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Gold Price volatile, Indian & Chinese Gold demand rises

The Gold Price slipped 0.5% from a new 8-week high Thursday lunchtime in London, while global stock markets stalled after a 3-day rise and commodities also pulled back. The Euro fell from $1.32 for the third time this week after chief finance minister Jean-Claude Juncker called new proposals for stemming the currency zone’s debt crisis – only agreed at a summit on Monday – “largely insufficient”. The Gold Price for Euro investors today touched €43,900 per kilo, a level breached only five times during the surge of summer last year. Beijing meantime said China’s full-year Gold Mining output in 2011 – all of which was bought domestically, as exports are banned – hit a record 361 tonnes, […]

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The Gold Price Recovery

The Gold Price Recovery

We know gold is in a historic bull market because: A) Western governments have taken on huge debts and unfunded liabilities that cannot be paid back with sound, honest money (“real money,” gold, rises as a result). And B) the relatively poor countries of Asia are growing richer. They have a centuries-old cultural affinity for gold and silver. And they are buying huge amounts of gold. These “big drivers” have allowed gold to register 11 consecutive years of higher prices. Despite that historic run, there are many skeptics of gold and its bull market. Although these skeptics have been wrong for years, they gleefully claimed the gold bull market was […]

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Investors buying Gold, stocks and euro as report confirms soft landing for China

Dollar prices for Buying Gold rose to $1750 per ounce Wednesday morning in London – their highest level since early December – while commodities gained and stock markets surged following a raft of better-than-expected manufacturing data. Prices for Buying Silver rallied to $34.01 – though they remained below yesterday’s high. US Treasury bond prices fell meantime, while the Euro rallied 1.3% against the Dollar. “Buyers have returned to the Euro, which is helping the situation in gold,” says Ole Hansen, senior manager at Saxo Bank. “[Gold] had a bit of lackluster profit-taking yesterday but didn’t break anything important on the downside, which helped confirm that being long is back in vogue.” “I think that […]

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How Savings Accounts Became Rubbish

BEFORE the late 18th and early 19th century, there was no facility for most people to save. Banks did not accept small deposits and had no interest in anyone but the rich. Although building societies existed then, their purpose – as the name suggests – was to finance the building of houses, writes Jason Riddle of Save Our Savers. The idea for savings banks evolved against a background of severe economic decline and appalling poverty. The philanthropists who set them up were motivated by a strong belief in thrift and self-help. But their establishment was not purely a philanthropic gesture; savings banks made sound economic sense. The rudimentary welfare system of the day, […]

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Gold Bullion Headed for Biggest Monthly Gain this Century

Gold Bullion prices were headed for their biggest calendar month gain this century by Tuesday lunchtime in London. Gold Prices hit $1745 per ounce – just shy of 14% higher than the Dollar Gold Bullion price set at the last London Fix of 2011. By this measure, January 2012 looked set to record the fourth-largest calendar month gain in the last three decades, and the biggest since September 1999, the month that saw the signing of the Central Bank Gold Agreement, which limited the sales of Gold Bullion by signatory central banks. Stocks and commodities also gained Tuesday, while government bond prices dipped. “In overnight trade in Asia, we continued […]

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