Monthly Archives: January 2009

19
Jan
2009

Gold Investments Market Update – Inauguration of Obama – Hope Amidst Monumental Geopolitical and Macroeconomic Challenges

Gold rallied on the open in Asia to over $845/oz overnight before falling on a stronger dollar, then rising again in early morning trade in Europe before falling again to $838/oz, some $3/oz below its close on Friday. Gold fell 1.5% last week but surged 4% on Friday alone (silver was down 0.5% for the week but surged over 7% on Friday). As has been the pattern in recent years, stock markets fell by far more than gold and silver last week with the S&P 500 down 4.5%. The FTSE 100 was down 6.8pc – its worst week since November.

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15
Jan
2009

Gold Investments Market Update – South African Gold Production Falls Sharply Again

Gold is marginally higher today but has fallen to one month lows as markets await the ECB interest rate decision. The ECB is expected to cut by 0.5% today and that has put the euro and gold under pressure as the dollar has strengthened in recent days. However, the deteriorating outlook for the US economy as seen in the very poor retail numbers yesterday (sixth monthly fall) will likely see the dollar come under renewed pressure in the medium term.

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12
Jan
2009

Gold Investments Market Update – Many Government Mints, Wholesalers and Refiners Internationally Continue to Ration Gold and Sil

Gold is marginally lower today despite sharply weaker oil prices (Light Sweet Crude Oil Future – Combined – FEB09 : -5.14%) and a slightly higher dollar (US DOLLAR INDEX: 83.01 +0.6%). There was significant volatility last week and such volatility often portends a big move up or down. Given the strong fundamentals, gold’s next move is likely to be up, especially as investment demand for gold coins, bars, certificates and exchange traded funds remains very robust.

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07
Jan
2009

The Madoff Ponzi Scheme’s Parallels with the US Social Security System

There are interesting parallels between the Madoff Ponzi scheme and the US and many other social security schemes internationally.

As the huge bulging demographic that is the Baby Boomers retire, the smaller demographic of the next generation will have to fund their retirement. As the Baby Boomers retire and begin to withdraw their funds from Social Security system there will be huge redemptions from US and other stock markets as much of their retirement funds are invested in the stock markets.

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06
Jan
2009

Gold Investments Market Update – Silver Up 17% in Month but Remains Very Oversold

Gold has fallen again today and is down some 1% but continues to consolidate between $830/oz and $890/oz. Gold should remain well bid given the degree of international macroeconomic and geopolitical risk challenging us as we enter the New Year. The Middle East tensions continue to escalate and oil is up another 2.5% again today to some $50 per barrel again. Silver has outperformed even gold in the last 30 days and is trading very well – up nearly 17% versus gold’s rise of 12%.

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05
Jan
2009

Gold Investments Market Update – Geopolitical Risk Escalates and Will Lead to Further Safe Haven Demand

Gold has commenced the New Year as it did in 2008 – up sharply in early trading before selling off somewhat. Gold surged (along with oil) on the open in Asia on geopolitical concerns with the Israeli military offensive against Gaza escalating. However, with oil giving up some of its earlier gains and the dollar stronger against most currencies so far this morning, gold has given up its earlier gains.

The reemergence of geopolitical concerns in the Middle East (and with Russia) is likely to see gold well bid in the mid $800s/oz.

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