LONDON (Reuters) - Gold hit a two-week low on Monday as a broadly weaker euro encouraged investors to lock in profits from last week's run to record highs.
Dealers and analysts also cited some selling to cover margin calls from hefty losses made on stock markets, but overall financial market uncertainty on fear of a U.S. recession was seen as an underlying support for gold's safe-haven role.
Spot gold stood at $864.30/865.00 per troy ounce by 11:51 a.m. EST, its lowest since January 8 -- compared with $881.90/882.60 quoted late in New York on Friday.
"It was an unpleasant day for the euro against the dollar and yen and that filtered through into gold. We've swung from being wildly bearish on the dollar and now the focus has shifted to the euro," Mitsubishi analyst Tom Kendall said.
Market volatility was high, due in part to thinner conditions with the Martin Luther King Day holiday.
The market is now more than 4.5 percent away from the record highs hit at $914 per ounce last week, but dealers and analysts said prices could benefit eventually as worries over the possibility of a U.S. recession intensify.
Global markets were dominated by battered stocks and demand for safe-haven bonds as investors worried that a troubled U.S. economy would drag down others with it.
"Commodities opened the year spectacularly, it's only natural really that we see some profit-taking as the gold market was very long. The currencies have been the main factor this morning," analyst James Moore of TheBullionDesk.com said.
Monday, January 21, 2008
Canada markets not immune to global woes: Flaherty
OTTAWA (Reuters) - Canadian financial markets are reflecting global economic concerns but the country's economic fundamentals are strong, a spokesman for Finance Minister Jim Flaherty said on Monday after the Toronto Stock Exchange's main index plunged 4.75 percent.
"The Department of Finance and Minister Flaherty are aware of the market developments in Canada and elsewhere and are watching closely," said David Gamble, a spokesman for the department.
"Global equity markets are reacting to growing concern about the U.S. and global economies in the wake of the U.S. housing crisis."
"Canada's equity markets are not immune to this pressure," Gamble said. "Nevertheless, Canada's economic fundamentals remain solid."
He noted that unemployment remains near a record low, the country's fiscal position is strong and Canadian financial institutions are sound.
(Reporting by Louise Egan; Editing by Peter Galloway)
"The Department of Finance and Minister Flaherty are aware of the market developments in Canada and elsewhere and are watching closely," said David Gamble, a spokesman for the department.
"Global equity markets are reacting to growing concern about the U.S. and global economies in the wake of the U.S. housing crisis."
"Canada's equity markets are not immune to this pressure," Gamble said. "Nevertheless, Canada's economic fundamentals remain solid."
He noted that unemployment remains near a record low, the country's fiscal position is strong and Canadian financial institutions are sound.
(Reporting by Louise Egan; Editing by Peter Galloway)
Canadian gold stocks soar on record bullion prices
TORONTO (Reuters) - Canadian gold stocks soared on Thursday, with top producers such as Barrick Gold (ABX.TO: Quote) and Kinross Gold (K.TO: Quote) setting all-time highs as bullion prices hit record levels.
Gold companies tracked by the TSX global gold index (.SPTTGD: Quote) surged 3.5 percent, touching their highest levels since May 2006, as spot gold prices pushed as high as $869 an ounce, widening the margin between revenues and costs for miners.
The sector's gains follow a 7.6 percent rise on Wednesday, when gold pushed past its previous high of $850 set in 1980.
This week's rise follows a year in which gold stocks fell 5 percent, sharply underperforming a 31 percent jump in bullion prices, in part due to worries about rising input costs for miners, and also on skepticism about whether the metal's price could maintain its lofty levels.
But sentiment appears to be shifting, market watchers say.
Kerry Smith, an analyst at Haywood Securities, said speculative money had been largely active in other sectors such as uranium or chasing takeover premiums, but may now be coming back to the gold sector.
As well, costs of steel and some chemicals used by miners have steadied.
"I think we're getting to the point where the margins are starting to expand for these companies because the gold price is getting high enough and the cost pressures are starting to moderate somewhat," he said.
Barrick, the world's top gold producer, rose 5.8 percent to close at C$48.30 on the Toronto Stock Exchange on Thursday, while Kinross gained 3.3 percent to C$20.65.
Over the last three sessions, Barrick has risen 22 percent, adding more than C$7 billion to its market capitalization.
Other prominent Canadian players were also stronger, as Yamana Gold (YRI.TO: Quote), which has built itself into a top mid-tier producer through acquisitions, climbed 7.2 percent to C$14.73, while Goldcorp (G.TO: Quote) gained 3.2 percent to C$37.50.
The sector's top percentage gainer was NovaGold Resources (NG.TO: Quote), which benefited both from the higher prices and a U.S. court ruling that will allow a subsidiary to proceed with two open-pit mines near Nome, Alaska.
NovaGold jumped 16.2 percent, to C$10.33.
PRICES DRIVEN BY WORRIES
Analysts said gold prices were being helped by safe-haven investment flows, as higher oil prices sparked fears of higher inflation and slower U.S. growth.
John Ing, president of Maison Placements, said the push above the $850 level has likely made stock investors more confident in continued strength in gold prices.
He said he expects the price to hit $1,000 an ounce in the intermediate term, and sees a return of the past thinking on gold investment -- that a bet on gold stocks should produce a better return than the bullion itself.
"I expect that, this year, that the gold stocks will in fact resume their traditional outperforming of bullion," he said.
($1=$0.99 Canadian)
(Reporting by Cameron French; Editing by Rob Wilson)
Gold companies tracked by the TSX global gold index (.SPTTGD: Quote) surged 3.5 percent, touching their highest levels since May 2006, as spot gold prices pushed as high as $869 an ounce, widening the margin between revenues and costs for miners.
The sector's gains follow a 7.6 percent rise on Wednesday, when gold pushed past its previous high of $850 set in 1980.
This week's rise follows a year in which gold stocks fell 5 percent, sharply underperforming a 31 percent jump in bullion prices, in part due to worries about rising input costs for miners, and also on skepticism about whether the metal's price could maintain its lofty levels.
But sentiment appears to be shifting, market watchers say.
Kerry Smith, an analyst at Haywood Securities, said speculative money had been largely active in other sectors such as uranium or chasing takeover premiums, but may now be coming back to the gold sector.
As well, costs of steel and some chemicals used by miners have steadied.
"I think we're getting to the point where the margins are starting to expand for these companies because the gold price is getting high enough and the cost pressures are starting to moderate somewhat," he said.
Barrick, the world's top gold producer, rose 5.8 percent to close at C$48.30 on the Toronto Stock Exchange on Thursday, while Kinross gained 3.3 percent to C$20.65.
Over the last three sessions, Barrick has risen 22 percent, adding more than C$7 billion to its market capitalization.
Other prominent Canadian players were also stronger, as Yamana Gold (YRI.TO: Quote), which has built itself into a top mid-tier producer through acquisitions, climbed 7.2 percent to C$14.73, while Goldcorp (G.TO: Quote) gained 3.2 percent to C$37.50.
The sector's top percentage gainer was NovaGold Resources (NG.TO: Quote), which benefited both from the higher prices and a U.S. court ruling that will allow a subsidiary to proceed with two open-pit mines near Nome, Alaska.
NovaGold jumped 16.2 percent, to C$10.33.
PRICES DRIVEN BY WORRIES
Analysts said gold prices were being helped by safe-haven investment flows, as higher oil prices sparked fears of higher inflation and slower U.S. growth.
John Ing, president of Maison Placements, said the push above the $850 level has likely made stock investors more confident in continued strength in gold prices.
He said he expects the price to hit $1,000 an ounce in the intermediate term, and sees a return of the past thinking on gold investment -- that a bet on gold stocks should produce a better return than the bullion itself.
"I expect that, this year, that the gold stocks will in fact resume their traditional outperforming of bullion," he said.
($1=$0.99 Canadian)
(Reporting by Cameron French; Editing by Rob Wilson)
Bullish on bullion
As Soviet tanks rumbled into Afghanistan in January 1980, panicked investors sought refuge in the ultimate safe haven, gold - boosting bullion prices to a record $850 a troy ounce. At the same time, oil prices were shooting up, driven by instability in the Middle East, and the dollar, amid fears of a US recession, was falling dramatically.
Fast-forward 28 years and all appears roughly the same. Again, trouble in south Asia - this time, the assassination of Benazir Bhutto in Pakistan - has pushed gold to a new high above $860 an ounce this week. Once again, oil prices and fears about the US economy and the direction of the dollar are supporting the move.
Fast-forward 28 years and all appears roughly the same. Again, trouble in south Asia - this time, the assassination of Benazir Bhutto in Pakistan - has pushed gold to a new high above $860 an ounce this week. Once again, oil prices and fears about the US economy and the direction of the dollar are supporting the move.
How to succeed in working from home?
It is well-known that holidays cause stress, and the recent, unexpected public holiday in Dubai, during President George W. Bush's visit, must have raised the blood-pressure of more than a few corporate executives, having to cope with an interrupted work-schedule at such short notice, and suffering even more frustration if they ventured on to the jammed-up roads.
Stranded at home, they might be forgiven for wondering whether they would be better-off employed as one of those teleworkers who are allowed to perform a full-time job in the peace and privacy of their own study.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Those very words provide the first clue to the hidden pressures of teleworking. 'Your own study' is just a notional zone, where peace and privacy are not at all guaranteed. If you have a family, it may take a big psychological leap for them to perceive you as being 'at the office' when they can clearly see you, perhaps casually dressed, in what they regard as home territory. Neighbours too will not realise why you should be off-limits through the day; indeed, some of them will be taking advantage of you in the most irresponsible fashion.
Or if you're solo, you may experience the opposite effect - unnatural isolation. Even trivial office routines you hardly notice, like hanging up your jacket and remarking on the weather or the news, become curiously ingrained, and your working day can feel eerily different without them. But there is also the more formal peer-group interaction and networking, sometimes lubricated by office parties, which helps to define your image in the organisation. Again, this is something you don't particularly notice - until it's suddenly not there. Then you begin to feel lonely and forgotten, as though you've been shunted off a main road. (Interestingly, you can now join special teleworkers' clubs, where sufferers can compare their woes!)
One way to minimise unnecessary stress is to ensure that you do fully understand the terms of your new 'virtual' day's work, away from notice-boards and supervisors. Roles and responsibilities need to be spelt-out much more clearly than they would back at the office. Also, before applying to be a teleworker, be sure that the company is suitably geared for it - with the necessary IT support that enables remote access to internal systems and networks.
But the biggest factor about any form of homeworking is that you have to be the right kind of character and personality to make it work.
Self-discipline is obviously the prime quality - you simply have to be able to summon yourself to that desk, whatever the distractions or other excuses for failure. You will also see the need for a formal time management philosophy.
If all these factors are in favour, then your move into teleworking could indeed remove a lot of the daily pressure of commuting and traffic jams and enable you to enjoy a new, stress-reduced working life.
Key points: Homework
Homeworking allows you to do a full-time job in peace and privacy.
'Virtual teamwork' also carries a risk of isolation or family conflict.
Crucially, you need to be the right kind of character and personality for it.
- The writer is a BBC broadcaster and motivational speaker, with 20 years' experience as CEO of Carole Spiers Group, aninternational stress consultancy based in London.
Stranded at home, they might be forgiven for wondering whether they would be better-off employed as one of those teleworkers who are allowed to perform a full-time job in the peace and privacy of their own study.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Those very words provide the first clue to the hidden pressures of teleworking. 'Your own study' is just a notional zone, where peace and privacy are not at all guaranteed. If you have a family, it may take a big psychological leap for them to perceive you as being 'at the office' when they can clearly see you, perhaps casually dressed, in what they regard as home territory. Neighbours too will not realise why you should be off-limits through the day; indeed, some of them will be taking advantage of you in the most irresponsible fashion.
Or if you're solo, you may experience the opposite effect - unnatural isolation. Even trivial office routines you hardly notice, like hanging up your jacket and remarking on the weather or the news, become curiously ingrained, and your working day can feel eerily different without them. But there is also the more formal peer-group interaction and networking, sometimes lubricated by office parties, which helps to define your image in the organisation. Again, this is something you don't particularly notice - until it's suddenly not there. Then you begin to feel lonely and forgotten, as though you've been shunted off a main road. (Interestingly, you can now join special teleworkers' clubs, where sufferers can compare their woes!)
One way to minimise unnecessary stress is to ensure that you do fully understand the terms of your new 'virtual' day's work, away from notice-boards and supervisors. Roles and responsibilities need to be spelt-out much more clearly than they would back at the office. Also, before applying to be a teleworker, be sure that the company is suitably geared for it - with the necessary IT support that enables remote access to internal systems and networks.
But the biggest factor about any form of homeworking is that you have to be the right kind of character and personality to make it work.
Self-discipline is obviously the prime quality - you simply have to be able to summon yourself to that desk, whatever the distractions or other excuses for failure. You will also see the need for a formal time management philosophy.
If all these factors are in favour, then your move into teleworking could indeed remove a lot of the daily pressure of commuting and traffic jams and enable you to enjoy a new, stress-reduced working life.
Key points: Homework
Homeworking allows you to do a full-time job in peace and privacy.
'Virtual teamwork' also carries a risk of isolation or family conflict.
Crucially, you need to be the right kind of character and personality for it.
- The writer is a BBC broadcaster and motivational speaker, with 20 years' experience as CEO of Carole Spiers Group, aninternational stress consultancy based in London.
Oil falls below $89; gold hits 11-day low
London: Oil slid by almost $2 to a six-week low below $89 a barrel on Monday as stock markets fell and concern mounted over an economic slow-down led by top consumer the United States.
US crude fell by $1.57 to $89.00 by 9:17 a.m. EST in electronic trade, just off a session low of $88.67, which was the lowest level since December 11.
Oil has dropped by more than 10 per cent from a record high of $100.09 hit on January 3.
Floor trading on the New York Mercantile Exchange (Nymex) is shut on Monday for the Martin Luther King holiday.
London Brent crude was down $1.29 at $87.94.
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"The economic slowdown is dominating sentiment today," Tony Machacek at Bache Commodities said.
Gold hits 11-day low
Gold hit an 11-day low on Monday as a weaker euro versus the dollar encouraged investors to lock in profits from last week's run to record highs, but broader financial market uncertainty was seen limiting losses.
Spot gold stood at $868.60/869.80 per troy ounce by 6:56 a.m. EST, compared with $881.90/882.60 in New York quoted late in New York on Friday. Market volatility was high, due to the Martin Luther King Day holiday in US.
The market is now some 4.5 per cent away from the record highs hit at $914 per ounce last week, but dealers and analysts said prices could benefit eventually as worries over the possibility of a US recession intensify.
US crude fell by $1.57 to $89.00 by 9:17 a.m. EST in electronic trade, just off a session low of $88.67, which was the lowest level since December 11.
Oil has dropped by more than 10 per cent from a record high of $100.09 hit on January 3.
Floor trading on the New York Mercantile Exchange (Nymex) is shut on Monday for the Martin Luther King holiday.
London Brent crude was down $1.29 at $87.94.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
"The economic slowdown is dominating sentiment today," Tony Machacek at Bache Commodities said.
Gold hits 11-day low
Gold hit an 11-day low on Monday as a weaker euro versus the dollar encouraged investors to lock in profits from last week's run to record highs, but broader financial market uncertainty was seen limiting losses.
Spot gold stood at $868.60/869.80 per troy ounce by 6:56 a.m. EST, compared with $881.90/882.60 in New York quoted late in New York on Friday. Market volatility was high, due to the Martin Luther King Day holiday in US.
The market is now some 4.5 per cent away from the record highs hit at $914 per ounce last week, but dealers and analysts said prices could benefit eventually as worries over the possibility of a US recession intensify.
Global stocks in a tailspin
Dubai: Global stock markets plunged yesterday as US President George W. Bush's $140 billion (about Dh514 billion) tax plan to revive the world's largest economy disappointed investors.
Markets in Europe, Asia and Latin America posted losses of up to seven per cent. Investors were also uneasy as it would take another day to gauge further reaction in the United States, where markets were closed for the Martin Luther King holiday.
"Investor scepticism over the impact of a temporary tax cut trying to save the US economy from a sharp slowdown prompted heavy selling" in equities, said Derek Hal-penny of the Bank of Tokyo-Mitsubishi in London.
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Tokyo's benchmark index closed down a hefty 3.86 per cent, hitting its lowest point since October 2005. Hong Kong shares closed 5.5 per cent lower following a 5.14-per cent plunge by mainland Chinese stocks. South Korea closed down 3.0 per cent, Singapore shed 6.03 per cent and Sydney lost 2.9 per cent.
Sensex cuts early loss
India's benchmark index plunged 7.4 per cent, its second-biggest percentage loss ever. The 30-company Sensex fell 1,353 points - its biggest point drop - to 17,605.35. At one point it was down nearly 11 per cent before partially recovering.
London's FTSE 100 meanwhile ended down 5.48 per cent, its steepest one-day percentage fall since the 9/11 terror attacks. The Paris, Frankfurt and Madrid exchanges also suffered their biggest single day losses since 2001.
Frankfurt declined 7.16 per cent, the Paris market tumbled 6.83 per cent and Madrid fell 7.54 per cent.
The jitters extended to Latin America, where bourses opened with bad news from Sao Paulo in Brazil, Buenos Aires and Mexico.
On the DFM, market leader Emaar Properties slid almost 7 per cent, leading Dubai's main index to plunge more than 5 per cent, as foreign investors sold off in line with the international collapse.
"There are no fundamentals to justify the drop in the market. Profit-taking by foreign investors pushed stocks below certain support levels. Today, we have seen some panic selling among small investors," said Mohammad Yasin, managing director at Shuaa Securities.
"Foreign institutions are selling off to compensate for losses in other markets in the US, Asia and Europe," said Alaa Al Din Moustafa, chief dealer at EFG-Hermes.
Plea for more measures
The foreign exchange market, however, reacted calmly and some dealers described the share sell-off as another short-lived, knee-jerk reaction which offered a buying opportunity. "If (US) interest rates are cut to the extent we expect, the likelihood is that today's share prices will look like silly values," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities.
"It looks like the US is heading for a recession or may be already in recession, looking at the data," said Najeeb Jarhom, head of research for retail clients at Fraser Securities in Singapore.
"The fall in US stocks reflects investor demands for more measures rather than the health of the economy," said Mitsushige Akino, chief fund manager at Ichiyoshi Management in Tokyo.
Markets in Europe, Asia and Latin America posted losses of up to seven per cent. Investors were also uneasy as it would take another day to gauge further reaction in the United States, where markets were closed for the Martin Luther King holiday.
"Investor scepticism over the impact of a temporary tax cut trying to save the US economy from a sharp slowdown prompted heavy selling" in equities, said Derek Hal-penny of the Bank of Tokyo-Mitsubishi in London.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Tokyo's benchmark index closed down a hefty 3.86 per cent, hitting its lowest point since October 2005. Hong Kong shares closed 5.5 per cent lower following a 5.14-per cent plunge by mainland Chinese stocks. South Korea closed down 3.0 per cent, Singapore shed 6.03 per cent and Sydney lost 2.9 per cent.
Sensex cuts early loss
India's benchmark index plunged 7.4 per cent, its second-biggest percentage loss ever. The 30-company Sensex fell 1,353 points - its biggest point drop - to 17,605.35. At one point it was down nearly 11 per cent before partially recovering.
London's FTSE 100 meanwhile ended down 5.48 per cent, its steepest one-day percentage fall since the 9/11 terror attacks. The Paris, Frankfurt and Madrid exchanges also suffered their biggest single day losses since 2001.
Frankfurt declined 7.16 per cent, the Paris market tumbled 6.83 per cent and Madrid fell 7.54 per cent.
The jitters extended to Latin America, where bourses opened with bad news from Sao Paulo in Brazil, Buenos Aires and Mexico.
On the DFM, market leader Emaar Properties slid almost 7 per cent, leading Dubai's main index to plunge more than 5 per cent, as foreign investors sold off in line with the international collapse.
"There are no fundamentals to justify the drop in the market. Profit-taking by foreign investors pushed stocks below certain support levels. Today, we have seen some panic selling among small investors," said Mohammad Yasin, managing director at Shuaa Securities.
"Foreign institutions are selling off to compensate for losses in other markets in the US, Asia and Europe," said Alaa Al Din Moustafa, chief dealer at EFG-Hermes.
Plea for more measures
The foreign exchange market, however, reacted calmly and some dealers described the share sell-off as another short-lived, knee-jerk reaction which offered a buying opportunity. "If (US) interest rates are cut to the extent we expect, the likelihood is that today's share prices will look like silly values," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities.
"It looks like the US is heading for a recession or may be already in recession, looking at the data," said Najeeb Jarhom, head of research for retail clients at Fraser Securities in Singapore.
"The fall in US stocks reflects investor demands for more measures rather than the health of the economy," said Mitsushige Akino, chief fund manager at Ichiyoshi Management in Tokyo.
Crude Oil could hit $120 by March
By Irwin Greenstein
The shock waves from the bomb that killed former Pakistan Prime Minister Benazir Bhutto in December reverberated into January to blow the cap off $100 oil...and that creates a perfect opportunity for investors to get in on the best oil plays in 2008.
Don’t be surprised to see oil easily sail past $100 a barrel. In fact, by March you could see oil hit $120. That may seem far-fetched, but here’s the real eye-opener: As Pakistan drives oil to record highs, three tiny oil producers friendly to the West could hand you a windfall.
In a moment, I’ll tell you about these three Young Tigers of Oil -- and their amazing profit potential. But first, an important insight into Pakistan’s explosive impact on oil prices…
You see, the real oil story behind Pakistan is that it’s geographically cursed. Pakistan is bordered by the oil-thirsty neighbors of China and India -- as well as al-Qaeda sanctuaries of Iran and Afghanistan.
Best Oil Plays: To the South, Chokepoint Alley
Pakistan’s southern border runs along the Arabian Sea, one of the world’s vital shipping lanes for transporting oil from Saudi Arabia and Iran. The Arabian Sea encompasses “Chokepoint Alley,” which includes the oil-tanker-laden Strait of Hormuz and Bab el-Mandeb.
Up to 20 million barrels of oil per day pass through these treacherous chokepoints. Geographically, Pakistan is in a no-win situation when it comes to oil.
Unless you know this -- and most people don’t -- you get slapped by sticker-shock when oil hits $100 per barrel in the aftermath of Benazir Bhutto’s tragic assassination.
Pakistan Reveals Best New Oil Plays
In the meantime, Wall Street and big media want you to blame $100 oil on China, Iran or Venezuela. These are the “fast-food staples” for energy reporters and analysts on tight deadlines. Oil investors who bought into that hogwash also bought into Exxon Mobil (XOM: NYSE), BP (BP: NYSE) and Chevron (CVX: NYSE) -- and actually did pretty well for themselves.
But the biggest investor gains from Pakistan’s cursed location are with three tiny oil producers already trending upward as oil heads toward $120 by March.
Of course, these little oil-producing gems are not for scaredy cats. They’re strictly for investors with a penchant for extraordinary investments.
Best Oil Plays in 2008: The Young Tigers of Oil
And that means riding the three Young Tigers of Oil for all they’re worth. We’re talking about Vietnam, Cambodia and Thailand.
Once you find out more about the Young Tigers of Oil, you’ll immediately see why they could be the best oil plays of 2008.
Vietnam already pumped nearly 1 billion barrels of crude as of 2005 -- up from an estimated 130 million barrels in 2004. Most of these wells are offshore and include the Hoang Sa and Truong Sa group of basins.
Today, key players in Vietnam oil include ConocoPhillips (COP: NYSE), Korean National Oil Corp., SK Corp. of South Korea and PetroVietnam.
The vitality of Vietnam’s oil industry recently attracted Wall Street’s Morgan Stanley. On December 28, 2007, Morgan Stanley quietly paid $217 million for a 10% stake in Petrovietnam Finance Corp. (PVFC), the financial arm of Vietnam's state oil firm.
And we expect more big money to pour into Vietnam oil as Pakistan’s politics deteriorate. That’s because Vietnam’s offshore reserves still remain largely unexplored. With oil rocketing toward $120 in the coming months, expect to see wells popping up like crazy in the waters off Vietnam.
But Vietnam is only part of the bigger story.
Best Oil Plays: Pakistan Could Ignite Profits in Cambodia
The instability around Pakistan could also reap gains for oil investors in Cambodia.
Cambodia will start pumping oil from offshore fields by 2009-2010. More important, though, three clues indicate that Cambodia’s reserves could be far bigger than officially stated.
Clue No. 1 is that China’s state-owned CNOOC oil monopoly got in as early as 2006, hinting that Cambodia’s National Petroleum Authority may be playing coy with lowball estimates of 400 million and 700 million barrels in reserves.
The second clue is that respected institutions such as the U.N., World Bank and Harvard University pegged Cambodian oil reserves at upwards of 2 billion barrels.
The third clue is that Japan, France and Kuwait have been sniffing around Cambodia lately for oil deals. The potential billions from these three countries could hit Cambodia anytime now -- as Pakistan continues to drive up oil prices elsewhere in the world.
Best Oil Plays: Thailand Output Up 500%
To the north, Thailand's crude oil output is expected to reach 30,000 barrels a day by next year -- a 500% increase from 2007. The boost is attributed to $300 million and $500 million in new investments, according to Thailand’s Department of Mineral Fuels.
The beauty of Thailand’s oil production is that it’s inland and less expensive to extract than the offshore reserves of Vietnam and Cambodia.
So when is the time to get in on the Young Tigers of Oil? Given the market’s hypersensitivity to the Middle East, today is the perfect time to act.
Best Oil Plays in 2008: Oil Producers Friendly to the West
The situation in Pakistan is unraveling fast. And there are only a few politically stable places left in the world to explore for oil... That translates into a profit premium for investors.
With oil breaking $100 and gas creeping toward $3.50 per gallon, Americans will want to know -- will demand to know -- where we can get cheap, painless oil. We’ve been monitoring this situation closely, and will continue to do so. But the bottom line is the Young Tigers of Oil could make headlines anytime now as the last new hope for Western-friendly oil.
Courtesy: www.taipanfinancialgroup.com
The shock waves from the bomb that killed former Pakistan Prime Minister Benazir Bhutto in December reverberated into January to blow the cap off $100 oil...and that creates a perfect opportunity for investors to get in on the best oil plays in 2008.
Don’t be surprised to see oil easily sail past $100 a barrel. In fact, by March you could see oil hit $120. That may seem far-fetched, but here’s the real eye-opener: As Pakistan drives oil to record highs, three tiny oil producers friendly to the West could hand you a windfall.
In a moment, I’ll tell you about these three Young Tigers of Oil -- and their amazing profit potential. But first, an important insight into Pakistan’s explosive impact on oil prices…
You see, the real oil story behind Pakistan is that it’s geographically cursed. Pakistan is bordered by the oil-thirsty neighbors of China and India -- as well as al-Qaeda sanctuaries of Iran and Afghanistan.
Best Oil Plays: To the South, Chokepoint Alley
Pakistan’s southern border runs along the Arabian Sea, one of the world’s vital shipping lanes for transporting oil from Saudi Arabia and Iran. The Arabian Sea encompasses “Chokepoint Alley,” which includes the oil-tanker-laden Strait of Hormuz and Bab el-Mandeb.
Up to 20 million barrels of oil per day pass through these treacherous chokepoints. Geographically, Pakistan is in a no-win situation when it comes to oil.
Unless you know this -- and most people don’t -- you get slapped by sticker-shock when oil hits $100 per barrel in the aftermath of Benazir Bhutto’s tragic assassination.
Pakistan Reveals Best New Oil Plays
In the meantime, Wall Street and big media want you to blame $100 oil on China, Iran or Venezuela. These are the “fast-food staples” for energy reporters and analysts on tight deadlines. Oil investors who bought into that hogwash also bought into Exxon Mobil (XOM: NYSE), BP (BP: NYSE) and Chevron (CVX: NYSE) -- and actually did pretty well for themselves.
But the biggest investor gains from Pakistan’s cursed location are with three tiny oil producers already trending upward as oil heads toward $120 by March.
Of course, these little oil-producing gems are not for scaredy cats. They’re strictly for investors with a penchant for extraordinary investments.
Best Oil Plays in 2008: The Young Tigers of Oil
And that means riding the three Young Tigers of Oil for all they’re worth. We’re talking about Vietnam, Cambodia and Thailand.
Once you find out more about the Young Tigers of Oil, you’ll immediately see why they could be the best oil plays of 2008.
Vietnam already pumped nearly 1 billion barrels of crude as of 2005 -- up from an estimated 130 million barrels in 2004. Most of these wells are offshore and include the Hoang Sa and Truong Sa group of basins.
Today, key players in Vietnam oil include ConocoPhillips (COP: NYSE), Korean National Oil Corp., SK Corp. of South Korea and PetroVietnam.
The vitality of Vietnam’s oil industry recently attracted Wall Street’s Morgan Stanley. On December 28, 2007, Morgan Stanley quietly paid $217 million for a 10% stake in Petrovietnam Finance Corp. (PVFC), the financial arm of Vietnam's state oil firm.
And we expect more big money to pour into Vietnam oil as Pakistan’s politics deteriorate. That’s because Vietnam’s offshore reserves still remain largely unexplored. With oil rocketing toward $120 in the coming months, expect to see wells popping up like crazy in the waters off Vietnam.
But Vietnam is only part of the bigger story.
Best Oil Plays: Pakistan Could Ignite Profits in Cambodia
The instability around Pakistan could also reap gains for oil investors in Cambodia.
Cambodia will start pumping oil from offshore fields by 2009-2010. More important, though, three clues indicate that Cambodia’s reserves could be far bigger than officially stated.
Clue No. 1 is that China’s state-owned CNOOC oil monopoly got in as early as 2006, hinting that Cambodia’s National Petroleum Authority may be playing coy with lowball estimates of 400 million and 700 million barrels in reserves.
The second clue is that respected institutions such as the U.N., World Bank and Harvard University pegged Cambodian oil reserves at upwards of 2 billion barrels.
The third clue is that Japan, France and Kuwait have been sniffing around Cambodia lately for oil deals. The potential billions from these three countries could hit Cambodia anytime now -- as Pakistan continues to drive up oil prices elsewhere in the world.
Best Oil Plays: Thailand Output Up 500%
To the north, Thailand's crude oil output is expected to reach 30,000 barrels a day by next year -- a 500% increase from 2007. The boost is attributed to $300 million and $500 million in new investments, according to Thailand’s Department of Mineral Fuels.
The beauty of Thailand’s oil production is that it’s inland and less expensive to extract than the offshore reserves of Vietnam and Cambodia.
So when is the time to get in on the Young Tigers of Oil? Given the market’s hypersensitivity to the Middle East, today is the perfect time to act.
Best Oil Plays in 2008: Oil Producers Friendly to the West
The situation in Pakistan is unraveling fast. And there are only a few politically stable places left in the world to explore for oil... That translates into a profit premium for investors.
With oil breaking $100 and gas creeping toward $3.50 per gallon, Americans will want to know -- will demand to know -- where we can get cheap, painless oil. We’ve been monitoring this situation closely, and will continue to do so. But the bottom line is the Young Tigers of Oil could make headlines anytime now as the last new hope for Western-friendly oil.
Courtesy: www.taipanfinancialgroup.com
Why you should buy Gold today?
By Richard Daughty
Investing for the long-term? Inflation ruins everything – and that's why investors need to Buy Gold today... The Economist magazine says we ought to start taking defensive action, and maybe putting in some barbed wire on that exposed left flank out by the garage.
It said: "America's jobless rate is now 0.6 percentage points above the cyclical trough reached in March 2007."
If you are like me, you yawned and were bored at such a measly increase – and that must mean it's now time for a snack. But we don't have anything tasty to hand, and all my colleagues have started hiding their lunches from me.
So what to do?
My second thought is that my blood sugar is too low – because my first thought was to just attack my co-workers, throw them aside, and ransack their desks until I find something yummy to eat. And I'll keep this search-and-consume mission going, desk by desk and cubicle after cubicle, until I pass the point where marginal utility equals marginal cost; the point where the hassle just ain't worth another Twinkie or candy bar.
But I was saved from both strenuous activity and further musings along that line when The Economist went on to say that the significance of this piddly little 0.6% move, which is probably just a statistical rounding error as far as I am concerned, is much more than that. For as Merrill Lynch points out:
"At no point in the past 60 years has the unemployment rate risen by more than half a percentage point from its trough without the economy slipping into a recession."
Oops! Maybe it is because of that blood sugar thing, or maybe out of envy that The Economist magazine has such spread and influence while I am stuck here in this stupid little closet...cloistered "away from the other employees" at their stupid request, and nobody ever listens to me anyway...but I feel compelled to get right in their faces to remind Merrill Lynch and The Economist magazine that also "at no time in the last 60 years" has the definition of recession been so grossly distorted by the fact that the miserable squirt Alan Greenspan and the equally miserable Michael Boskin came up with all those inventive ways to discount inflation by "adjusting" prices for changes in quality (the car costs twice as much, but you get fancy hubcaps!) or potential utility (the computer costs twice as much, but is assumed to have gone up in value because it is twice as fast but cost less than double!).
The CPI inflation index, in other words, is a real stupid load of crap because you only use your faster computer to goof off at work...playing games of Solitaire at the same slow speed and downloading pornography – which slows everything down because the computer still has to go around compacting files and looking for places to store it all.
The effect is that the rise in nominal GDP is not adjusted for the full effects of inflation, making GDP look bigger than it is. For example, if Mogambo Enterprises sold 10 widgets last year for $1 apiece, then Mogambo GDP was $10. If this year Mogambo Enterprises sells only 8 widgets, but at $2 apiece, it looks like we made money! We had total revenue of $16, whereas last year we only booked $10. Everybody is happy until my boss realizes that inflation was 100%, and so Mogambo Enterprises had a real, inflation-adjusted loss of 20%.
This must be the reason why I never seem to tire of screeching in my Loud Mogambo Disagreement (LMD) about the ridiculous idea of "investing for the long term" and that putting your money into common stocks to fund a retirement is a loser of an idea, and only idiots could possibly believe that investors as a group can take more out of a bucket than they put in it.
But it is a hard slog to convince people of something contrary to what everyone seems to agree on, even though there is not one shred of evidence that such a preposterous notion could possibly be true, and my throat is raw and sore from yelling and calling people idiots for believing something so Utterly, Utterly Stupid (UUS).
Now, I save my energy, as now I have a chart from Chartoftheday.com, which "illustrates the Dow adjusted for inflation since 1925." As they say, "There are several points of interest...
"For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s. It is also interesting to note that the inflation-adjusted Dow is now less than three times higher than where it was in 1929 and a little over double where it was in 1965. Not that spectacular of a performance considering the time frames involved."
Then they go on to show how the damned Alan Greenspan and his despicable Federal Reserve created so much monetary inflation that all that money and debt slopped over into everything. For Chartoftheday.com continues, "However, the magnitude of the bull market of 1982 to 1999 (even when adjusted for inflation) was truly of historic proportions. While the Dow is currently more than 1,000 points above the dot-com peak that occurred eight years ago, today's chart does illustrate that on an inflation-adjusted basis the Dow still trades below its 1999 peak."
So nobody made any money in the stock market in over eight years? Hahaha! "Investing for the long term"? Hahaha! "Investing for retirement"? Hahahahaha, what idiocy!
And what the chart shows, but nobody is saying, is that it wasn't until 1960 that the Dow high, again rose high enough to equal the very peak in 1929. (The Dow remains even further below its 1999 peak in terms of Gold Prices...)
"Investing for the long term"? Hahaha!
In short, inflation ruins everything, and yelling about it won't make it better. You have to let gold yell for you instead.
The angriest guy in economics, the Mogambo Guru is Richard Daughty, general partner and COO for Smith Consultant Group, serving the financial and medical communities. The Mogambo Guru economic newsletter – an avocational exercise to heap disrespect on those who desperately deserve it – is quoted frequently in Barron's, The Daily Reckoning and other fine publications.
Investing for the long-term? Inflation ruins everything – and that's why investors need to Buy Gold today... The Economist magazine says we ought to start taking defensive action, and maybe putting in some barbed wire on that exposed left flank out by the garage.
It said: "America's jobless rate is now 0.6 percentage points above the cyclical trough reached in March 2007."
If you are like me, you yawned and were bored at such a measly increase – and that must mean it's now time for a snack. But we don't have anything tasty to hand, and all my colleagues have started hiding their lunches from me.
So what to do?
My second thought is that my blood sugar is too low – because my first thought was to just attack my co-workers, throw them aside, and ransack their desks until I find something yummy to eat. And I'll keep this search-and-consume mission going, desk by desk and cubicle after cubicle, until I pass the point where marginal utility equals marginal cost; the point where the hassle just ain't worth another Twinkie or candy bar.
But I was saved from both strenuous activity and further musings along that line when The Economist went on to say that the significance of this piddly little 0.6% move, which is probably just a statistical rounding error as far as I am concerned, is much more than that. For as Merrill Lynch points out:
"At no point in the past 60 years has the unemployment rate risen by more than half a percentage point from its trough without the economy slipping into a recession."
Oops! Maybe it is because of that blood sugar thing, or maybe out of envy that The Economist magazine has such spread and influence while I am stuck here in this stupid little closet...cloistered "away from the other employees" at their stupid request, and nobody ever listens to me anyway...but I feel compelled to get right in their faces to remind Merrill Lynch and The Economist magazine that also "at no time in the last 60 years" has the definition of recession been so grossly distorted by the fact that the miserable squirt Alan Greenspan and the equally miserable Michael Boskin came up with all those inventive ways to discount inflation by "adjusting" prices for changes in quality (the car costs twice as much, but you get fancy hubcaps!) or potential utility (the computer costs twice as much, but is assumed to have gone up in value because it is twice as fast but cost less than double!).
The CPI inflation index, in other words, is a real stupid load of crap because you only use your faster computer to goof off at work...playing games of Solitaire at the same slow speed and downloading pornography – which slows everything down because the computer still has to go around compacting files and looking for places to store it all.
The effect is that the rise in nominal GDP is not adjusted for the full effects of inflation, making GDP look bigger than it is. For example, if Mogambo Enterprises sold 10 widgets last year for $1 apiece, then Mogambo GDP was $10. If this year Mogambo Enterprises sells only 8 widgets, but at $2 apiece, it looks like we made money! We had total revenue of $16, whereas last year we only booked $10. Everybody is happy until my boss realizes that inflation was 100%, and so Mogambo Enterprises had a real, inflation-adjusted loss of 20%.
This must be the reason why I never seem to tire of screeching in my Loud Mogambo Disagreement (LMD) about the ridiculous idea of "investing for the long term" and that putting your money into common stocks to fund a retirement is a loser of an idea, and only idiots could possibly believe that investors as a group can take more out of a bucket than they put in it.
But it is a hard slog to convince people of something contrary to what everyone seems to agree on, even though there is not one shred of evidence that such a preposterous notion could possibly be true, and my throat is raw and sore from yelling and calling people idiots for believing something so Utterly, Utterly Stupid (UUS).
Now, I save my energy, as now I have a chart from Chartoftheday.com, which "illustrates the Dow adjusted for inflation since 1925." As they say, "There are several points of interest...
"For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s. It is also interesting to note that the inflation-adjusted Dow is now less than three times higher than where it was in 1929 and a little over double where it was in 1965. Not that spectacular of a performance considering the time frames involved."
Then they go on to show how the damned Alan Greenspan and his despicable Federal Reserve created so much monetary inflation that all that money and debt slopped over into everything. For Chartoftheday.com continues, "However, the magnitude of the bull market of 1982 to 1999 (even when adjusted for inflation) was truly of historic proportions. While the Dow is currently more than 1,000 points above the dot-com peak that occurred eight years ago, today's chart does illustrate that on an inflation-adjusted basis the Dow still trades below its 1999 peak."
So nobody made any money in the stock market in over eight years? Hahaha! "Investing for the long term"? Hahaha! "Investing for retirement"? Hahahahaha, what idiocy!
And what the chart shows, but nobody is saying, is that it wasn't until 1960 that the Dow high, again rose high enough to equal the very peak in 1929. (The Dow remains even further below its 1999 peak in terms of Gold Prices...)
"Investing for the long term"? Hahaha!
In short, inflation ruins everything, and yelling about it won't make it better. You have to let gold yell for you instead.
The angriest guy in economics, the Mogambo Guru is Richard Daughty, general partner and COO for Smith Consultant Group, serving the financial and medical communities. The Mogambo Guru economic newsletter – an avocational exercise to heap disrespect on those who desperately deserve it – is quoted frequently in Barron's, The Daily Reckoning and other fine publications.
Analysts bullish on Gold
With the potential backdrop of a U.S. recession, Goldman Sachs analysts are recommending that investors think defensively when it comes to investing in commodity stocks. They prefer sectors that have little sensitivity to the U.S. consumer, namely agriculture, gold and specialty packaging.
Their absolute top pick in the materials space is Barrick Gold Corp. (ABX), which they rate a "buy" with a target of $66 a share....
The analysts are also very bullish on the price of gold. They are calling for average prices of $910 an ounce in 2008 and $870 an ounce in 2009. They also figure there is upside risk to that forecast should there be an extended slowdown in global GDP this year.
Courtesy: theaureport.com
Their absolute top pick in the materials space is Barrick Gold Corp. (ABX), which they rate a "buy" with a target of $66 a share....
The analysts are also very bullish on the price of gold. They are calling for average prices of $910 an ounce in 2008 and $870 an ounce in 2009. They also figure there is upside risk to that forecast should there be an extended slowdown in global GDP this year.
Courtesy: theaureport.com
Gold will rise, US Dollar would burn
Thursday the Chairman of the Federal Reserve expressed his support for a significant fiscal and monetary stimulus as a preemptive strike against a US recession. The market answered by dropping over 300 points.
Today the President of the U.S. broadly outlined a non-specific plan for economic stimulation. After the Administration's plan for $150 billion of economic stimulation was made public, the DOW closed almost 60 points lower. The result of the Bernanke/Adminstration fiscal and monetary stimulus is a total Dow decline of 479 points, according to my calculations.
Nothing said by either luminary addresses the problem, including those that developed this afternoon by the downgrade of the debt of Ambac, one of the four major bond insurers, MBIA, MGIC and similar companies dealing in OTC Default Derivatives. Should S&P and Moody take similar action, which is expected, two trillion in debt should also be downgraded. The downgrade of the debt of the guarantor must impact the debt they have guaranteed. So the two trillion is debt that may well and should be downgraded now is another domino of titanic size.
This afternoon's problems are new and their size says both Kings Are Wearing No Clothes" with respect to their presentations of Thursday and today.
The general equities market must be calmed. Should the Dow crater, another major domino falls. Let's see how the PPT (Price Protection Team) brings the Dow in Tuesday morning in pre U.S. trading and then how Tuesday closes. The DOW better be higher each day than the indices are before U.S. trading or as the last two days demonstrated, the PPT has lost its tight control of the equities markets. Watch the pre-open indices and closing Dow very closely.
If the equity markets cannot be calmed then:
**Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
**Gold will rise to $1650 as an almost immediate effect of what will be done to attempt to fend off a total panic starting to take place in general equities, therein threatening to be followed by all credit markets of all kinds.
**The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.
**The PPT and the Fed will step out of gold’s way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again now on the upside.
**Gold is the only insurance there is against what all this means because a panic in equities will blow the financial system, already coming apart, to smithereens.
**All country funds would shut down on any further investments in "at the wall" financial institutions.
**The rollover in credit and default derivatives would exceed the entire foreign debt of the USA.
**The rest of the $450 trillion dollar mountain of derivatives would start a disintegration like nothing you have every seen in your lifetime.
**Consumer demand would slam shut.
**The auto industry might as well go into liquidation this coming Monday, avoiding the June 2008 rush.
**The US dollar would burn a hole in the floor going directly to .5200 or lower.
**As the dollar disintegrates gold would rocket to and through $1650 in days.
**The markets for general equities would all have to institute total trading halts every 100 points on the downside for 30 minutes each.
**All commercial call loans would be called.
**All debtors one day late on any payment, lacking grace period, would be liquidated. All debtors over one day of the grace period would be liquidated.
**It is clearly visible to anyone with eyes or a mind to think that the PPT has lost all semblance of control in the equity markets and will soon in all remaining markets.
**The commercial paper credit market which is almost dead will die totally.
**Should no emergency action take place soon, you will see an old fashioned panic of the 1929 variety.
**Just as emotional fools sell gold and gold shares, be assured that more emotional general equity fools will unload and bring the averages down more than ever in history in one day.
**Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
**Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.
**There now must be EMERGENCY ACTION because the Chairman of the Fed has BOMBED OUT PUBLICLY and a PANIC is about to occur. Expect EMERGENCY ACTION in days, not weeks.
**If you have not protected yourself, you may only have days to do so. Protection amounts to a simple act: As much as possible eliminate financial agents between you and your assets. Own gold or equivalents equal to one half of your liquid net worth. Then you insure your entire net worth. Do not have margin debt. If you have debt you must own gold fully paid equal to that debt to insure it.
Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. He founded the Sinclair Group of Companies (1977), which offered full brokerage services in stocks, bonds, and other investment vehicles. The companies, which operated branches in New York, Kansas City, Toronto, Chicago, London and Geneva, were sold in 1983.
Courtesy: http://www.jsmineset.com/
Today the President of the U.S. broadly outlined a non-specific plan for economic stimulation. After the Administration's plan for $150 billion of economic stimulation was made public, the DOW closed almost 60 points lower. The result of the Bernanke/Adminstration fiscal and monetary stimulus is a total Dow decline of 479 points, according to my calculations.
Nothing said by either luminary addresses the problem, including those that developed this afternoon by the downgrade of the debt of Ambac, one of the four major bond insurers, MBIA, MGIC and similar companies dealing in OTC Default Derivatives. Should S&P and Moody take similar action, which is expected, two trillion in debt should also be downgraded. The downgrade of the debt of the guarantor must impact the debt they have guaranteed. So the two trillion is debt that may well and should be downgraded now is another domino of titanic size.
This afternoon's problems are new and their size says both Kings Are Wearing No Clothes" with respect to their presentations of Thursday and today.
The general equities market must be calmed. Should the Dow crater, another major domino falls. Let's see how the PPT (Price Protection Team) brings the Dow in Tuesday morning in pre U.S. trading and then how Tuesday closes. The DOW better be higher each day than the indices are before U.S. trading or as the last two days demonstrated, the PPT has lost its tight control of the equities markets. Watch the pre-open indices and closing Dow very closely.
If the equity markets cannot be calmed then:
**Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
**Gold will rise to $1650 as an almost immediate effect of what will be done to attempt to fend off a total panic starting to take place in general equities, therein threatening to be followed by all credit markets of all kinds.
**The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.
**The PPT and the Fed will step out of gold’s way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again now on the upside.
**Gold is the only insurance there is against what all this means because a panic in equities will blow the financial system, already coming apart, to smithereens.
**All country funds would shut down on any further investments in "at the wall" financial institutions.
**The rollover in credit and default derivatives would exceed the entire foreign debt of the USA.
**The rest of the $450 trillion dollar mountain of derivatives would start a disintegration like nothing you have every seen in your lifetime.
**Consumer demand would slam shut.
**The auto industry might as well go into liquidation this coming Monday, avoiding the June 2008 rush.
**The US dollar would burn a hole in the floor going directly to .5200 or lower.
**As the dollar disintegrates gold would rocket to and through $1650 in days.
**The markets for general equities would all have to institute total trading halts every 100 points on the downside for 30 minutes each.
**All commercial call loans would be called.
**All debtors one day late on any payment, lacking grace period, would be liquidated. All debtors over one day of the grace period would be liquidated.
**It is clearly visible to anyone with eyes or a mind to think that the PPT has lost all semblance of control in the equity markets and will soon in all remaining markets.
**The commercial paper credit market which is almost dead will die totally.
**Should no emergency action take place soon, you will see an old fashioned panic of the 1929 variety.
**Just as emotional fools sell gold and gold shares, be assured that more emotional general equity fools will unload and bring the averages down more than ever in history in one day.
**Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
**Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.
**There now must be EMERGENCY ACTION because the Chairman of the Fed has BOMBED OUT PUBLICLY and a PANIC is about to occur. Expect EMERGENCY ACTION in days, not weeks.
**If you have not protected yourself, you may only have days to do so. Protection amounts to a simple act: As much as possible eliminate financial agents between you and your assets. Own gold or equivalents equal to one half of your liquid net worth. Then you insure your entire net worth. Do not have margin debt. If you have debt you must own gold fully paid equal to that debt to insure it.
Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. He founded the Sinclair Group of Companies (1977), which offered full brokerage services in stocks, bonds, and other investment vehicles. The companies, which operated branches in New York, Kansas City, Toronto, Chicago, London and Geneva, were sold in 1983.
Courtesy: http://www.jsmineset.com/
Bullion futures in Asia in 'recession mode'
MUMBAI: US recession worries and reports of global economic slowdown led to a decline in bullion futures across Asian markets. In India, the gold market was in negative mood, as most traders and dealers said buyers were waiting for a correction in the prices of the yellow metal.
In major Asian markets, gold and silver declined as the dollar gained against the euro reducing the appeal of precious metals as alternative investments.
Bullion for immediate delivery traded $1.43, or 0.2 per cent lower at $881.74 an ounce in Singapore. Silver for immediate delivery lost 0.2 per cent to $16.12. Gold reached a record $914.30 an ounce January 14.
India's gold futures remain unattractive, as traders and dealers waited for more concrete signals from overseas.
Global gold that guides local prices, was slightly down on Monday after American President George Bush chalked out a plan to provide the economy temporary tax cut.
The February contract on the Multi Commodity Exchange of India Ltd (MCX) could find support at 11,060 rupees per 10 grams and an upside at 11,230 rupees. Open interest for February gold on MCX was 11,290 lots, up from 11,093 lots the previous session. Volume on Saturday was at 1.25 kg.
In major Asian markets, gold and silver declined as the dollar gained against the euro reducing the appeal of precious metals as alternative investments.
Bullion for immediate delivery traded $1.43, or 0.2 per cent lower at $881.74 an ounce in Singapore. Silver for immediate delivery lost 0.2 per cent to $16.12. Gold reached a record $914.30 an ounce January 14.
India's gold futures remain unattractive, as traders and dealers waited for more concrete signals from overseas.
Global gold that guides local prices, was slightly down on Monday after American President George Bush chalked out a plan to provide the economy temporary tax cut.
The February contract on the Multi Commodity Exchange of India Ltd (MCX) could find support at 11,060 rupees per 10 grams and an upside at 11,230 rupees. Open interest for February gold on MCX was 11,290 lots, up from 11,093 lots the previous session. Volume on Saturday was at 1.25 kg.
OPEC rules out US call for more output
ABU DHABI: Ruling out suggestions made by US Energy secretary Sam Bodman, OPEC on Monday dismissed further calls to boost oil output.
Speaking to newsmen here OPEC Secretary-General Abdullah Al Badri said, OPEC is keeping a close eye on the market and stood ready to pump more when needed.
Qatar’s Deputy Premier and Minister of Energy and Industry Abdulla bin Hamad Al Attiyah said there is no need to increase the supply because the market is well supplied.
US Energy Secretary Sam Bodman had urged top exporter Saudi Arabia and OPEC to raise supply on a visit to the kingdom. His appeal came just days after President George W Bush asked the group for more oil on a separate visit to Riyadh, and less than two weeks before OPEC's next meeting on February 1.
Speaking to newsmen here OPEC Secretary-General Abdullah Al Badri said, OPEC is keeping a close eye on the market and stood ready to pump more when needed.
Qatar’s Deputy Premier and Minister of Energy and Industry Abdulla bin Hamad Al Attiyah said there is no need to increase the supply because the market is well supplied.
US Energy Secretary Sam Bodman had urged top exporter Saudi Arabia and OPEC to raise supply on a visit to the kingdom. His appeal came just days after President George W Bush asked the group for more oil on a separate visit to Riyadh, and less than two weeks before OPEC's next meeting on February 1.
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