18
May
2009

Gold Investments Market Update

Global markets perceive that economic green-shoots may be growing on stony ground as the rally in the Dow ran out of steam last week. Inflation figures published in the US suggested that core inflation may be higher than previously expected, contributed to the down week for the Dow and a minor strengthening of the Greenback.

Despite the dollar strengthening, gold benefited from the outflows from both stocks and commodities.

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15
May
2009

The horse race: Betting on individual companies

The Horse Race

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15
May
2009

Gold Investments Market Update & Announcement

Further consolidation was seen yesterday with gold and silver rising marginally again and both look set to have a second strong week of gains.

While the staggering pace of economic decline has certainly abated, individual economies and the global economy continues to deteriorate as recessions deepen internationally.

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14
May
2009

Federal Reserve Cannot Account for $9 Trillion

Rep. Alan Grayson talks to the Federal Reserve Inspector General Elizabeth Coleman of the Federal Reserve, asking her questions regarding trillions of dollars that came from the Fed’s expanded balance sheet and what the losses on its $2 trillion portfolio are.

The Inspector General does not have the answers Grayson is looking for.

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14
May
2009

Gold Investments Market Update

Gold and silver were essentially flat yesterday and consolidated on recent gains despite a slight dollar recovery and marked weakness in equity markets.

Gold has fallen somewhat in Asian and early European trading but still looks good from a technical perspective.

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13
May
2009

Gold Investments Market Update – Uncle Sam to be Downgraded?

Gold and silver rose again yesterday (1.2% and 2.3% respectively) as the dollar continues to come under pressure.

The dollar has fallen not due to an increase in risk appetite but rather an increase in risk aversion coming from the dawning realisation that the very credit worthiness of the US is at risk due to the global financial and economic crisis.

The former US Comptroller General, David Walker, warned in an op-ed article in the Financial Times that “America’s Triple A Rating is at Risk”.

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12
May
2009

Gold Investments Market Update

Gold and silver took a breather from their gains of last week and consolidated yesterday with marginal losses for both metals. The dollar recovered somewhat from its sharp falls of last week as did long term US interest rates (10-Year: 3.180% -0.113) but US stock markets came under pressure.

Gold threaded water in Asia but has risen sharply in early trading in Europe as the dollar has again come under pressure with the US Dollar Index falling to 82.40.

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11
May
2009

Gold Investments Market Update

Gold and silver prices rose last week (gold was up 3.1% and silver rose sharply by 11.6%) as the US dollar fell sharply and broke down technically and US bonds continue to sell off aggressively.

Stock markets remained sanguine as ever and continued on their merry way despite valuations looking very ripe and the recent bear market rally looking long in the tooth. Ostensibly the data was positive last week leading to more “green shoots” speculation but the jobs data was actually poor (previous months jobs number was revised upwards – March Nonfarm Payrolls revised to (699K) vs.

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08
May
2009

Gold Investments Market Update

Gold rose for the fourth day yesterday and is up some 3.5% so far this week and set to complete a very strong week. As expected, under reported and leveraged silver has outperformed gold and surged more than 12% this week. A close above $14.60/oz, could see silver again challenge recent nominal highs at $20.88/oz.

Gold’s rise in recent days has been volatile with sharp moves up followed by retrenchments and this is leading to an under appreciation of gold’s move up and a perception that gold is struggling. Some of the larger shorts appear to be engaged in a form of managed retreat.

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07
May
2009

Central Banks Favouring Gold Again Especially the “Elephant in the Room” China

Gold rallied 2% following news that China’s state holdings of the metal have been quietly raised by 76% since 2003. Rumours and speculation about Chinese buying have been rife for years, but many market participants remained in denial until this irrefutable proof was given. China is not only the world’s largest mine producer of gold, but also the fifth-largest individual country holder of gold with 1,054t.

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