Monthly Archives: December 2008

10
Dec
2008

Gold Investments Market Update – Deflation Now But Significant Inflation in Medium to Long Term

Gold rallied for a second day yesterday on concerns regarding the deepening US recession and the dollar. Gold has continued to rally in Asian and early European trading. The bounce in oil prices is likely lending support as is continuing robust physical demand internationally. Asian equity markets were largely positive overnight but European ones are again under pressure this morning.

The global deflationary spiral appears to be accelerating as are desperate attempts by politicians and central bankers to reflate their way out of the recession.

Continue Reading
09
Dec
2008

Gold in Backwardation; talk of a run on the COMEX

It wouldn’t be suprising if you had never heard of backwardation. Though many commodities markets are frequently in backwardation, especially for seasonal or perishable/soft commodities, it has only happened twice in history in precious metals.

Continue Reading
09
Dec
2008

Gold Investments Market Update – South African Gold Production Continues to Fall Significantly – From over 1000 Tonnes in 1970 to 272 Tonnes in 2007

After falling sharply last week, gold rallied yesterday on the back of a weaker dollar, higher oil (Light Sweet Crude Oil Future – Combined – JAN09 is up more than 6% yesterday after falling an incredible 25% last week) and commodity prices and the Obama fiscal stimulus package.

The economic recession will get significantly worse before it starts to improve, US President-elect Barack Obama said in an interview at the weekend.

Continue Reading