Wednesday, December 16, 2009
Central banks, holding about 18 percent of all gold ever mined, are expanding their reserves for the first time in a generation as a nine-year bull market drives prices to a record.
The banks will buy 13.8 million ounces (429 metric tons) this year, worth $15.5 billion, for the first net expansion in reserves since 1988, New York-based researcher CPM Group estimates. Gold fell 15 percent that year and took another 15 years to trade again at the same price as central banks from Switzerland to the U.K. cut their holdings. (more)
US Mint bullion coins are not sold directly to the public. These coins are distributed through a network of authorized purchasers, who resell the coins to other bullion dealers and the public. During times when demand for the bullion coins has exceeded the amount the US Mint was able to supply, the Mint has rationed coins at the authorized purchaser level through an "allocation program."
On November 25, 2009, the US Mint had announced the suspension of sales for one ounce American Gold Eagle and American Silver Eagle bullion coins. Sales of the Silver Eagles resumed on December 7, 2009, but sales were subject to rationing. Sales of the one ounce Gold Eagles will resume tomorrow December 15, also subject to allocation. (more)
Projected losses for 2010 are about half the $11 billion deficit that IATA predicts for this year. Passenger demand, after a decline of 4.1 percent in 2009, may grow by 4.5 percent in 2010 as the industry rebounds from the recession, IATA General Director Giovanni Bisignani said today in Geneva.
"Fuel costs are rising and yields are a continuing disaster," Bisignani said. Yields, or average fares, fell 12 percent in 2009 and will remain at depressed levels, he said.
The group had forecast in September that the industrywide loss in 2010 would be $3.8 billion. IATA said today that global revenue will rise by 4.9 percent to $478 billion in 2010, below the peak of $535 billion in 2008. (more)
The worry is that the massive fiscal and monetary stimulus implemented to fight the recession won’t be withdrawn quickly enough to avoid a jump in inflation.
In November alone, investors allocated $3.9 billion to commodity-related mutual funds and ETFs and $2 billion to mutual funds holding inflation-protected bonds, according to research firm Morningstar.
Even stock funds are seeking hedges against inflation, putting money into basic materials companies and companies that can raise prices. (more)
Deprive banking and other financial businesses of the income they gain from credit and debit card services, fees, penalties and interest
Big Banking is out of control. Many corporate financial institutions, considered too big to fail, received a share of a trillion dollars of taxpayer money. To thank us, they are hiking interest rates on existing credit card debt, lowering and cancelling small business credit lines, and imposing more and higher fees and penalties with impunity.
As taxpayers, workers, citizens and merchants we can fight back. Not with letters to the editor nor with calls to our government representatives. There is an easy, immediate and direct path toward banking and monetary reform that benefits people, not corporations, through everyday transactions in the marketplace.
Use cash. (more)