Friday, September 18, 2009
A huge announcement out of Hong Kong rattled the financial world on September 3. Although big media relegated the story to the back pages, it should have been front and center! What’s the news? China is demanding its gold back.
“Hong Kong is pulling all its physical gold holdings from depositories in London,” reported MarketWatch (emphasis mine throughout).
The announcement, coming in the midst of the global economic crisis, is sending a clear signal: Britain is in far worse economic shape than generally realized, and China thinks it needs to get its gold out while it can—before something happens to it. Gold closed at a new record high of $1,006 per ounce on Friday. (more)
Bank analyst Meredith Whitney says home prices have another leg to drop, perhaps 25 percent.
“Fourth quarter, then you see another leg down,” she told CNBC.
"No bank underwrote a loan with 10 percent unemployment on the horizon," Whitney said.
"I think there is no doubt that home prices will go down dramatically from here, it's just a question of when."
That would mean less demand for energy in the near term and increased the chance of low-priced gasoline and heating gas for some time.
Benchmark crude for October delivery slipped three cents to settle at US$72.47 a barrel on the New York Mercantile Exchange. Prices crested at $73.16 a barrel in morning trading, the highest that crude has reached this month.
At the pump in the United States, retail gas prices dropped nearly a penny overnight to a new national average of $2.55 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Gas prices are now falling away from the peaks reached in June at the outset of the driving season, when a gallon hit $2.69. (more)
But the length and degree of the run-up in gold prices certainly caught a number of investors (myself included) off guard. Brett Arends poses a question I would have laughed at two years ago, but now take quite seriously: is it realistic to think gold could really go to $3,000?Some gold bugs think it’s a distinct possibility. (more)
means is that a writer did not do a good enough job of explaining or highlighting the material which is of greatest significance.
It is with this in mind that I have decided to repeat a discussion which I had focused on in a previous commentary. In that commentary, I discovered what I believed (and still believe) to be the most important piece of data I have unearthed since I started writing about this sector.
It came from one, simple graph – on global silver inventories, over roughly a 50-year time horizon. The chart was compiled by the CPM Group, a private consultancy that is one of two quasi-official sources for supply and demand data in the precious metals sector, which we all must rely upon. (more)
I recently updated the list, and while the names may have changed from a year ago, the general lessons remain the same.
Our screen looked for domestic and Canadian stocks that were valued above $250 million and traded on major exchanges -- stocks the individual American investor would have been likely to actually buy. (more)