Friday, August 22, 2008

Warren Buffett says Oil Sands Trip for Learning, not to put in "Buy Order"

The secretive trip that became common knowledge this week, where Warren Buffett and Bill Gates took a look at Canadian Natural's C$9.3 billion ($8.9 billion) Horizon oil sands mining and synthetic crude processing operation, touring the facility which is scheduled to begin production later in 2008, resulted in speculators bidding up the oil sands producers' share prices.

Buffett has sinced cooled the stocks and speculators down, saying in an interview on CNBC that he has no plans at this time to buy into the sector.

"No, no. I go to the movies, but I don't buy movie companies. I mean, I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business," he said on CNBC's Squawk Box.

Buffett usually does things quietly so this very thing doesn't happen. Obviously somebody on the inside let it out the duo were touring the operations so that rumors would bid up the oil stocks on the Toronto Stock Exchange.

Even so, Buffett added that the fact-finding tour may be something useful in the future, but said it's the ability to make long-term price forecasts for oil that will determine if it's profitable to invest in the commodity. Buffett also said if oil stayed at about $120 a barrel over the next 50 years, the tar sands would do very well, but he concluded he doesn't have the answer to that uncertainty.

Part of the difficulty in projecting profits is the higher operational cost connected to the thicker crude inherent in the sands. If oil prices plummeted, and new oil resources tapped (like the billions of barrels available in America), it could end up a poor investment, as thinner crude would be less expensive to access and produce.

Thursday, August 21, 2008

More Reasons to Free us from the Ethanol Devil

The growing number of reasons to drop ethanol and its government subsidies continues to reveal the utter stupidity of pursuing ethanol as a significant source of renewable fuel.

As people continue to deconstruct the arguments made in favor of ethanol, it's getting clearer and clearer it's an initiative pushed by special interest groups who created fear of foreign energy dependency at the cost of sanity.

While we obviously need to look at real alternatives in the years ahead, we are far from being in some type of serious trouble, as the billions of barrels of oil under American soil, as well as under its oceans attest to.

Environmentalists and opportunist have created this false problem by panicking people into believing we're on the cusp of a worldwide disaster, when in reality there's enough oil to last for decades ... if not longer.

Recent discoveries in Brazilian waters, along with the huge oil deposits in the Canadian oil sands are also proof of the need to slow down and take into account all the effects and unintended consequences that always accompany decisions that are motivated by fear and political expediency.

Wheat Climbs to Eight-week High On Weak Dollar, Surge in Crude Oil

Wheat enjoyed a comeback on Thursday, as it reached an eight-week high, as crude oil helped lift it up, along with a weakening U.S. dollar. Corn and soybean increases also helped push the commodity upwards.

On the CBOT, December wheat ended the session up 22 3/4 cents at $9.22 1/4 a bushel. December wheat at the Kansas City Board of Trade finished at 23 1/2 cents higher at $9.50 3/4, while December wheat at the Minneapolis Grain Exchange ended the session at $9.82 1/4, a 27 1/4 cent increase.

U.S. wheat export demand should remain strong, as weekly export sales for 2008-09 for the U.S. is at a marketing year high of 916,500 tons. The average of 522 million bushels of export wheat sales is about 10 percent above the five-year average. Wheat shipments are running at about 37 percent higher than the five-year average.

Aquiline Announces XPS Metallurgical Results Confirming High Silver Recoveries at Navidad's Loma De La Plata Zone

TORONTO, ONTARIO, Aug 21, 2008 (MARKET WIRE via COMTEX) -- Aquiline Resources Inc. ("Aquiline" or "the Company") today announced the results of the metallurgical program performed on the Loma de La Plata zone of the Navidad silver project by Xstrata Process Support ("XPS") of Sudbury, Ontario. This program commenced in the first quarter of 2008, and was performed to corroborate and expand upon the metallurgical program results obtained by G & T Metallurgical Services Ltd. ("G & T") which was announced in the second quarter of 2008. Results obtained by XPS support those of G & T in demonstrating that a low mass, high grade silver concentrate can be produced. Rougher concentrates containing up to 39 kilograms of silver per tonne at 85% - 95% recoveries were achieved using simple crushing, grinding and flotation circuits. The final report will be filed on SEDAR and posted to the Company website at


Individual samples from 19 diamond drill holes weighing approximately 1,070 kilograms were selected by XPS to develop six variability composites and two main composites on two geometallurgical units defined as the Sulphide and the Oxide zone. Most of the known ore at Loma de La Plata is characterized as low sulphide ore contained in the Sulphide zone, hosted by latites, although the southwest portion of the zone (Oxide zone) is exposed on surface and shows signs of oxidation. The six variability composites were tested to determine open circuit rougher concentrate recoveries and mineralogical characterization, while the two main composites (one Oxide and one Sulphide) were tested for bond work index determination, Falcon Concentrator work, cyanidation testing, reagent exploration and exploratory cleaner tests. No locked cycle tests were performed in this program. This assessment would be considered as Scoping Level.


The head grades of the six variability composites and two main composites are contained in the report filed on the website at A table summarizing these results accompanies this press release.

The following results have been achieved:

- Overall rougher flotation test silver recoveries ranged from 85% - 95%, which is higher than the range of recoveries obtained in the G & T testing, which ranged from 80% - 85%.

- The silver content in the 1st rougher concentrates varied from 2.4 to 39.3 kilograms of silver per tonne of concentrate. Exploratory cleaner tests at XPS achieved concentrate grades consistent with G&T results, (approximately 50 kg/t) albeit at lower overall recoveries. More extensive cleaner testwork at XPS will commence shortly.

- Generally, oxide samples demonstrated lower silver recoveries than the sulphide samples, but higher silver concentrate grades.

- Combined copper and lead values in the rougher concentrate were typically between 10 - 20%, which is similar to the range obtained by G & T.

- Mineralogical analysis indicates that acanthite is the main silver carrier in both the Sulphide and Oxide zones, with stromeyerite being less common, but contributing up to 15% of the total silver deportment.

- Arsenic and antimony levels are most commonly associated with silver bearing tetrahedrite or tennantite, but remain below levels that would typically attract smelter penalties.

- No assays were performed for cadmium, which the G & T results found to be present in the single composite tested for cadmium. However, cadmium was reported as less than 200 g/t in the concentrate, which is considered to be below levels likely to present any concern to smelters.

- Cyanide leaching tests demonstrated silver recoveries ranging from 77.2% to 98.5%, with results strongly correlated to particle size and cyanide concentration in solution.

- A standard Bond Ball Mill work index of 18.2 kWh/ tonne for the Sulphide main composite and 18.9 kWh/tonne for the Oxide main composite was achieved, which XPS interprets as relatively hard.

Damian Spring, Chief Mining Engineer for Navidad, commented "The metallurgy results from XPS are positive, and confirm the high recoveries obtained by G & T in their testing. We are on track to release our scoping study on Loma de La Plata in September, which will give stakeholders a benchmark for the economics that can be obtained by developing Navidad in a phased approach."

The Loma de La Plata zone is estimated to contain 9.1 million tonnes (indicated) at average grades of 226 g/t Ag, or 66 million contained ounces Ag plus 17.3 million tonnes (inferred) at average grades of 159 g./t Ag, or 89 million contained ounces Ag (Snowden Mining Industry Consultants, December, 2007). The average depth of the mineralization has been within 200 metres of surface over a surface area approaching 39 hectares, which is still being expanded with further drilling. The Company is focusing on the development of a simple but pragmatic process flow sheet as a precursor to a Feasibility Study, depending on financing and permitting conditions.

Next Phase Metallurgy Testing

The next stage of test work will include additional bench scale testwork on new Loma de La Plata samples, as well as on samples collected from zones adjacent to Loma, which appear to have similar characteristics. Samples for a pilot plant program are also being collected in a new drilling campaign at Loma de La Plata anticipated to commence in the fourth quarter of 2008.

Under the guidelines of the 43-101 National Instrument, the Qualified Person for the above testing at Xstrata Process Support is Dominic Fragomeni, P.Eng, Engineering Principal. The Qualified Person for the metallurgical program underway at the Navidad Project is Mr. John Wells, Consulting Metallurgist, JAWMETC. Mr Wells has reviewed the technical content of this release.


Aquiline Resources Inc. is an exploration and development company advancing one of the world's largest undeveloped silver deposits (Navidad), as well as a gold/silver deposit (Calcatreu), both in Argentina, and a gold deposit in Peru (Pico Machay).


This press release includes certain "forward-looking statements". All statements, expressed or implied, regarding future development of the Navidad property, are forward-looking statements that involve various risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Aquiline documents filed from time to time with applicable regulatory authorities. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
To view Table 19: Sulphide and oxide Flotation Tests Summary results, please visit the following link:

Aquiline Resources Inc.
Flora Wood
Vice President, Investor Relations
(416) 599-4133

Aquiline Resources Inc.
Martin J. Walter
Executive Vice President
(416) 599-4133

SOURCE: Aquiline Resources Inc.

Copyright 2008 Market Wire, All rights reserved.

CBOT Corn Futures Surpass $6 First Time in Almost Three Weeks

For the first time in about three weeks, corn futures on the Chicago Board of Trade surged past the $6 mark, as the U.S. dollar weakens on stronger oil prices and geo-political concerns.

Nearby September corn on the CBOT increased by 22 1/2 cents to $5.97 3/4, and most-active December gained 22 1/2 cents to end at $6.17 1/2 a bushel.

One other factor in the price of corn futures is Midwest rain may not be enough to pull corn through to a strong harvest. It's also slightly possible that later maturity levels could make corn vulnerable to frost further on in the season.

Kernals now filling out may not be helped by the forecasted wet weather over the next 7-10 days in the midwest.

Corn exports also fell far below the projected 850,000 to 1.4 million tons looked for; only 691,500 metric tons sold the week ending August 14.

According to the U.S. Department of Agriculture, 196,600 metric tons were sold for 2007-08, while 494,900 tons were sold for 2008-09.

Physical Demand for Gold Increases Ahead of Indian Religious Festivals

Gold is expected to rise based on physical demand, as the Indian religious season is close at hand, and analysts have said the demand is so high at this time for finished products that refiners are having difficulty keeping up with it.

Even so, the major mover of gold prices, the U.S. dollar, is still expected to be the primary mover of gold prices, as many believe gold hasn't bottomed out yet, and until the U.S. dollar corrects, the yellow metal will struggle to make gains in any significant way.

Weaker U.S. Dollar, Increasing Global Tensions Drive Oil Up

Even though a U.S. government report revealed crude inventories in the U.S. increased by 9.4 million barrels, political tensions outweighed the good news in relationship to oil, as prices surged by almost 5 percent on Thursday.

While most of the political concerns center on the growing differences with Russia and the West, other factors like the ongoing battle with Iran over its nuclear program, as well as the neverending attacks on oil production in Nigeria have traders on edge on supply disruptions. In the case of Russia, their foray into Georgia already has slowed down the transportation of Azeri oil in the region.

One other factor contributing to the rise in oil prices is the possibility that Tropical Storm Fay could come back into the Gulf of Mexico during the weekend, which would slow down production by affecting offshore platforms and oil refineries.

more ...

Wednesday, August 20, 2008

U.S. Ethanol Subsidies to Keep Food Prices High Everywhere

The outrageous subsidy for corn-based ethanol in the U.S. continues to batter consumers across the world, as even though other commodities have been dropping, food prices are expected to stay the same, and in a number of cases - rise.

For retail food prices in the U.S., they have been growing at a 6 percent rate this year, in contrast to the regular inflation rate at about 2 percent.

With irresponsible politicians and ongoing ignoring of stories like this by the mainstream media, the cost of food items related to corn price increases like chicken, beef and pork are projected to continue rising for the immediate future. The majority of that related to the misguided and terrible idea of subsidizing big corporate corn farmers so it can look like the government is doing something related to energy.

The disaster will continue until the story is continually reported on and the reality of the consequences understood by the public.

The next meat to be affected will be chicken, which so far producers haven't passed on the higher feed costs to consumers, but Bill Roenigk, senior vice president of the National Chicken Council said that's all about to change.

"From a consumer standpoint, more and more of these feed costs are going to be passed on and that means higher prices at the supermarket," said Roenigk.

All this because of the usual pressure from special interest groups with an agenda, as well as a government that continues to pass themselves off as the big daddy of the universe. Until this attitude is reined in, Americans and people around the world will continue to suffer from the continual rise in food prices.

Just like we need to drill for the billions of barrels of oil on American soil or it's coastlines, so we need to stop this outrageous subsidy that is helping no one but the huge corporate corn farmers in America, as well as some landowners cashing in on rising farmland prices.

Tuesday, August 19, 2008

Bill Gates, Warren Buffett in Secret Trip to View Alberta Oil Sands

Northeastern Alberta, Canada was the destination of two of the world's richest men, as Bill Gates and friend Warren Buffett secretly flew into the Canadian province to take a look at the oilsands.

The stated reasons were to satisfy "their own curiosity" but also "with investment in mind."

At this time there is about $125 billion in new construction planned for the rich depository of oil, as well as operating expenses projected at $215 billion through the next five years. With Berkshire Hathaway (BRK-A) sitting on billions, it offers them the type of opportunity Buffett looks for, as the size of the company prohibits smaller investments.

Spokesman for Candain Natural Resources Ltd., Rob Larson, confirmed the pair visited the site, but refused to offer any more information.

Fort McMurray mayor Melissa Blake added that although she wasn't aware of the Gates/Buffett visit, there have been a number of "high-profile investors, politicians and even royalty" coming around to have a look at the high-potential oil depository.

Wheat Outlook and News

US Wheat Review: Slumps In Setback; Consolidation Seen

Wheat Rises as Dry Spell May Curb Australia Crop for Third Year

India May Harvest Record Wheat Crop on Rainfall

Kansas Wheat Report: 2008 Quality Above Average

WA gets new wheat export market

Wheat outlook good in North Dakota

Wheat was once a diplomatic tool

Manitoba crop report: showers delay harvest

Exports of cereals (Romania) climb to 132 million euros

Battle over Ethanol Continues: Resistance Grows

Cellulosic Ethanol turning into fight

Is Ethanol a Boon or Drain on Our Economy?

Big Horn Basin Ethanol puts brakes on new plant

Minus microphones, ethanol critics still have their say

Texas Gov Calls Ethanol Mandate a 'Scam'

Ethanol blend petrol not much healthier

Ethanol producers say they didn't cause spike

What are the future of biofuels?

Oil News Around the Web

Oil stocks post gains as crude prices rebound

Oil jumps $3 on projections about inventory report

McCain touts drilling agenda from oil platform

Crude Oil Advances on Weaker Dollar, Gasoline Supply Forecast

Trio Plan $1.8 Billion Oil Port In Bet On Texas Refining

Zone Oil & Gas Signs Joint Venture deal with Penn Virginia

Petrobras July oil output in Brazil flat

Storm Fay unlikely to disrupt offshore oil production

Spindletop Oil & Gas Co. Releases Earnings for First Half of 2008.

Platinum Energy Resources, Inc. Reports Financial and Operational Results for the Second Quarter Ended June 30, 2008

ReoStar Energy Announces First Quarter Fiscal Year 2009 Financial Results

Corn News and Updates

US corn rallies in late trading

CBOT Corn Review

Corn prices gain 2.05% in Chicago

Farmers using biotech seed may pay less insurance

Farmers always adapt to meet demand for corn

USDA: Corn production down from last year

USDA Approves Syngenta and John Deere for Broadened Biotechnology Endorsement for Corn Crop Insurance

Half Corn Crop At Dough Stage

India corn futures lower on US corn

Gold News Around the Web

Gold futures gain on stronger oil, weaker dollar

Gold ends up; weak dollar fuels commodities rally

Victoria Gold Corp. to Acquire Gateway Gold Corp.

Nevada Exploration Inc. completes Phase I drilling at Bull Creek project and commences Phase I drilling at Awakening project

Piedmont Reports Exploration Progress At Willow Creek Gold Project

Gold miners show sheen

Leaping From BRIC to Gold

Gold higher as recovery continues

Orsu Metals says to focus on Varvarinskoye mines, copper-gold exploration

Silver News and Reports

Coeur Announces Management Changes at Its San Bartolome Silver Mine in Bolivia

General Metals Management Discusses Results Identified in Interim Report and Continues on the Path to Near Term Production

Silver price boosts profits at miner Fresnillo

Klondike Silver Corp. -- Concentrate Shipments Begin

Pan American Silver (PAAS) NewsBite - PAAS Rises on Higher Silver Futures

Gold and silver bullion mystery

Silver stocks trashed with metal price more volatile than gold

Monday, August 11, 2008

Happy Corn Subsidy Pacific Ethanol: Company Gets Clobbered with High Corn Prices

Talk about a self-inflicted wound! In a second-quarter report for Pacific Ethanol Inc. (Nasdaq:PEIX), the company said it lost to common stockholders of $10.5 million, or 23 cents a share. That's almost double the 12 cents a share loss analysts were looking for.

Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.

Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.

Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.

Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.

For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.

The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.

More Reasons to Drop the Ethanol Nonsense

As Kenneth P. Green wrote in a recent article concerning ethanol, we need to adapt a new slogan: "Ethanol: Drink It, Don't Drive It."

He offers a number of reasons increasingly understood as to why we need to drop this disastrous policy and taxpayer subsidy for corn-based, or any other type of ethanol, encouraged for the dubious reason of being energy independent, creating jobs, lowering gasoline prices and reducing the non-existent global warming.

The truth is, other than the corn industry, nobody is really prospering from this misguided government policy set up to make it look like something's being done. I guess people deserve it for making big government their god.

Other possibilities like making use of switch grass or other cellulosic crops to produce ethanol would "increase greenhouse gas emissions by 50 percent compared to using regular gasoline."

Whether or not increasing greenhouse gas emissions is really bad for the planet, using the standards of those promoting ethanol as the answer, it is a negative.

Anyway, go here to get a number of reasons this needs to be stopped ASAP.

Wheat Growers Facing Tough Cost-Control Challenges in 2009

The end of the huge profits for wheat producers may come to an end next year as skyrocketing prices of inputs, in the face of flattening prices, will challenge producers to manage their costs more efficiently than ever.

Prices of almost everything have increased significantly, including fuel, fertilizer, machinery, labor, crop insurance and seed. A number of these inputs have surged by almost 20 percent over the last year. If producers want to add land to the mix, prices have also increased by 19 percent over the last 12 months as well.

As of 2004, breakeven for wheat was around $4 a bushel, in 2009 it's projected to reach over $6.85 a bushel.

Who would have thought that the idea of $7.00 wheat would have profitability challenges, but in 2009 that's a distinct possibility and probability.

How and when producers buy and at what discount may be the difference between profits and losses next year.

Go here for costs and revenue of irrigated and dryland winter wheat over the last ten years, included the projections for 2009.

Arian Silver's Exploration Update-San Jose: Phase-1 Drill Results Summary; Phase-2 Drilling Progresses

LONDON, UNITED KINGDOM, Aug 11, 2008 (Marketwire via COMTEX) ----Arian Silver Corporation ("Arian Silver" or the "Company") (TSX VENTURE:AGQ) (AIM:AGQ) (PLUS:AGQ) (FRANKFURT:I3A), the AIM and TSX-V listed silver exploration company with Mexican mineral properties, today announced it has received and tabulated all of the outstanding assay results from the Phase-1 drill programme at its San Jose Project in Zacatecas State, Mexico; while the Phase-2 drill programme is already well underway.


- Phase-1 drilled 11,772 metres (m) in 70 holes with 65 holes intersecting significant silver and base-metal mineralisation;

- Resource zones appear to be open along strike and down-dip;

- Phase-2 drill programme underway with 5,500m completed to date;

- Resource estimation update expected during Q3 2008.

The Phase-1 drill programme has achieved all of its goals to explore for the continuation of known silver zones and potential new areas of mineralisation, aimed at defining preliminary NI 43-101 resources around the San Jose Ramp. Several new veins have been discovered along with areas of stockwork-style mineralisation that the Company is currently evaluating for possible bulk-tonnage mineralisation. The drilling results also indicate that the higher-grade silver zones are open at depth.

Arian's Chief Executive Officer, Jim Williams, stated, "We are progressing extremely well with our systematic exploration of the San Jose Vein. To date we have only explored some four kilometres (km) of the San Jose Vein, which is a relatively small portion of the total estimated strike length, within our concessions, of more than 12 km. We are also encouraged by the discovery of the continuation of high-grade mineralisation adjacent to the historically mined areas. These high-grade zones may represent nearer-term targets for mining."

Appendix 1 sets out details of the complete sets of results from various batches from the Phase-1 drilling programme. Some of these results have been previously reported, as illustrated in the appendix. Highlights from the complete sets of results are as follows:

- 1.9m grading 1057.6 g/t Ag, 0.65% Pb and 1.17% Zn

- 2.4m grading 643.6 g/t Ag

- 2.3m grading 444.4 g/t Ag, 4.11% Pb and 8.81% Zn

- 7.9m grading 346.7 g/t Ag, 0.68% Pb and 1.47% Zn

- 4.8m grading 326.8 g/t Ag

- 2.5m grading 356.9 g/t Ag, 1.96% Pb and 3.45% Zn

- 3.6m grading 330.2 g/t Ag

- 9.6m grading 241.5 g/t Ag, 2.26% Pb and 5.21% Zn

- 10.2m grading 213.1 g/t Ag

- 4.2m grading 269.7 g/t Ag

- 3.4m grading 245 g/t Ag, 1.95% Pb, 2.59% Zn

- 7.25m grading 164.7 g/t Ag, 1.51% Pb and 2.03% Zn

- 50.9m grading 65.7 g/t Ag

- 42.4m grading 81.1 g/t Ag

- 13.4m grading 73.2 g/t Ag, 1.2% Pb and 3.1% Zn

- 2.2m grading 109.0 g/t Ag 2.5% Pb and 7.24% Zn.

The more recent holes from the Phase-1 programme have been collared no more than on 100 metre intervals along strike between the previously demarcated inferred resource areas (see Arian Silver's press release dated 3 March 2008 entitled, "Initial NI 43-101 Resource Calculation at San Jose" available on Sedar at The drilling has been designed to further delineate the San Jose Vein and to discover new silver-rich zones.

Arian Silver has submitted all of the Phase-1 drill-hole data to A.C.A. Howe International Limited to update the initial NI 43-101 resource estimation of March this year. The updated resource estimation is expected to be delivered during Q3 2008.

The Company has also completed 25 holes totalling 5,500m of its Phase-2 (12,000m) diamond-drill programme at the San Jose Property. Initial results for the Phase-2 holes are expected later this month. The Phase-2 drill programme is designed to test the San Jose Vein strike further to the west and for infill drilling on 50m or less intervals to gain additional information about metal distribution and controls on mineralisation that can be used to upgrade existing resources.

Additional information, including the collar locations of the drill-holes mentioned in this release, is illustrated in the longitudinal section contained in the following link.

About the San Jose Project

Arian Silver's 6,200-plus hectare San Jose Property is located in Zacatecas State, Mexico, 55km east of the mining town of Zacatecas, and within the renowned Fresnillo Silver Trend that hosts a number of world-class silver deposits.

Arian Silver Mexico S.A. de C.V., a wholly owned subsidiary of the Company, holds a 100% exclusive option to acquire the San Jose Project. The Project concessions include the past producing San Jose Mine, which was operated by a subsidiary of Penoles from 1973 to 1991 and then by Monarca, which operated the mine between 1993 and 2001. In 2001 the mine closed due to the then prevailing low silver prices.


All technical information for the San Jose Project is obtained and reported under a formal quality assurance and quality control (QA/QC) programme. The core is logged and photographed by Arian Silver staff and then split using a diamond saw. Half the core is stored on-site in a secure core shed and the other half is sampled, bagged and secured before being transported to a preparation facility in San Luis de Potosi, Mexico. The entire half-core is crushed and two kilograms is pulverized and homogenized. 150-gram pulp samples are then air freighted to OMAC's analytical laboratory in Ireland for analysis. Systematic assaying of duplicates is performed for precision and accuracy, with check assays regularly conducted by OMAC. Each sample has its own unique sample number. The laboratories in San Luis Potosi, Mexico and Ireland are ISO 17025 and ISO 9001:2000 accredited.

Approximately 5% of the analysed samples are re-sampled and sent to the ALS Chemex preparation facility in Guadalajara, Mexico. The samples consist of both coarse reject samples and 150-gram pulp samples. The coarse material is crushed and pulverised, and all the pulp samples are air freighted to ALS Chemex's analytical laboratories in Vancouver, British Columbia, for analysis. Results from all duplicate analyses are compared to identify potential analytical or sampling errors.

The OMAC and ALS Chemex laboratories are independent of Arian Silver.

The samples were analysed for 32 elements by ICP (inductively coupled plasma), proceeded by an Aqua Regia acid digestion. High-grade samples (gold greater than 3 g/t and silver greater than 200g/t) were re-analysed by fire assay with a gravimetric finish.

Additional information with respect to the San Jose Project is contained in a technical report prepared by A.C.A. Howe International Limited, dated 15 April, 2008, and entitled "Resource Estimation Study on the San Jose silver-lead-zinc prospect, Zacatecas, Mexico". A copy of this report can be obtained from the Company's page on SEDAR at

The "qualified person" (as such term is defined in NI 43-101) who prepared the current resource estimates for the San Jose Project is Mr. James Hogg. Mr. Hogg was at the time an employee of A.C.A. Howe International Limited.

Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, DIC, FIMMM, CEng, CGeol, and Chief Executive Officer of Arian Silver, is a "Qualified Person" as defined in the AIM guidelines of the London Stock Exchange, and a "Qualified Person" as defined in NI 43-101. This press release has been prepared under Mr. Williams' supervision. Mr. Williams has verified the data disclosed by this release (including sampling, analytical and test data underlying the information).

About the Company

Arian Silver Corporation is a silver exploration company listed on London's AIM and "PLUS", on Toronto's TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian Silver is active in Mexico, the world's second largest silver producing country. The Company's main projects are the Calicanto and San Jose projects in Zacatecas State and the Tepal project in Michoacan State. Part of Arian Silver's forward-looking strategy lies in the envisaged use of large scale mechanized mining techniques over wider mineralised structures, which reduces the overall operating cost per ounce of silver, and to build up NI 43-101 compliant resources.

Further information can be found by visiting Arian Silver's website: or the Company's publicly available records at

To receive Company news via email, contact and mention "AGQ News" on the subject line.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this release.

Forward-Looking Statements

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, the mineral resource estimates referred to in this press release and statements regarding exploration results, potential mineralisation, potential mineral resources, future production and the Company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, uncertainties relating to the availability and costs of financing needed in the future, changes in commodity prices, changes in equity markets, political developments in Mexico, changes to regulations affecting the Company's activities, foreign currency fluctuations, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting exploration results and other geological data, and the other risks involved in the mineral exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE: Arian Silver Corporation

Arian Silver Corporation Jim Williams CEO (London)
+44 (0)207 529 7511 Email: Arian Silver Corporation Fuad Sillem Investor Relations (London) +44
(0)207 529 7511 Email: Bishopsgate Communications Limited Nick Rome (London) +44 (0)207 562 3350 Email: Grant Thornton

Copyright: 2008 Marketwire. All rights reserved.

High Desert Gold Plans to Drill the Bluebird Copper-Silver Property

VANCOUVER, BRITISH COLUMBIA, Aug 11, 2008 (MARKET WIRE via COMTEX) -- High Desert Gold Corporation has awarded a drill contract to begin drilling on its Bluebird copper-silver property in western Montana. The 850 metre drilling program is scheduled to start in late August and is designed to test the continuity of the copper and silver mineralization which has been previously identified by drilling.

The Bluebird copper-silver project is located in Granite County, Montana approximately 25 miles south of Phillipsburg and 30 miles west of Anaconda. The property is a Spar Lake type target with the HDG property position covering a stratabound, primary copper-silver occurrence within the Bonner Formation of the Belt Supergroup. HDG controls 98 federal lode claims through staking and a lease agreement covering over 7,500 metres of strike length of the host stratigraphy.

The property was originally drilled by Anaconda Copper Company ("Anaconda") between 1979 and 1982. Partial information from this earlier drilling was obtained from the Anaconda collection files housed in Laramie, Wyoming. Reports state the results for two of the holes as: 29 metres at 0.88% Cu and 9.3 g/t Ag, including 10.4 metres at 1.68% Cu and 22.7 g/t Ag within diamond drill hole 1, and 19.8 metres at 0.34% Cu and 7.1 g/t Ag, including 6.1 meters at 0.76% Cu and 19.6 g/t Ag within diamond drill hole 2. Both of these holes were drilled in 1979 and are the only two holes for which there are complete results. The Anaconda drill results were released prior to the establishment of the National Instrument 43-101 reporting standards and may not be in compliance with the current standards, therefore may not be reliable and HDG is not relying on these results.

The host rocks are a series of sandstones which are similar to the mineralized beds within the Spar Lake deposits in western Montana. High-grade, primary mineralization consists of chalcocite within the matrix of the sandstone host rock. Secondary mineralization seen on surface consists of chrysocolla, malachite, and turquoise. Several deposits of this type are found in western Montana. They include the following: Spar Lake, Montanore and Rock Creek, all of which have reserves in the 50-100 million tonne range and copper grades in the 0.6-0.8 % range and contain up to two ounces of silver per tonne.

HDG collected 343 soil samples to geochemically define the trace of the host stratigraphy. The results of this work outline a mineralized strike length of 17,700 feet (5,400 metres) with copper values ranging up to 0.06% Cu within the soil. By accurately defining the trace of the mineralized stratigraphy the Company determined that most of the holes drilled by Anaconda would not have intersected the host unit as interpreted by HDG. This work also determined that there are areas showing significant copper values within the soils where no past drilling occurred.

This initial drilling program will consist of a total of 6 diamond drill holes which will determine if the copper-silver mineralization has continuity along strike.
The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The two major properties held by HDG are the flagship Canasta Dorada gold property in Sonora, Mexico, and the Gold Lake porphyry copper-gold-molybdenum property in New Mexico.
The Qualified Person on the Gold Lake property is Randall Moore, Executive Vice President of Exploration, High Desert Gold Corporation and he has reviewed the content of this press release.

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential," "interpretation" and similar expressions. Information concerning the interpretation of soil samples and drill results also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. In particular, the Anaconda drilling results contained herein predate National Instrument 43-101 and may not be in compliance with the current reporting standards, therefore may not be reliable and HDG is not relying on these results. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.


High Desert Gold Corporation
Richard Doran
Executive Vice President, Investor Relations
(303) 584-0606
(303) 758-2063 (FAX)

SOURCE: High Desert Gold Corporation
Copyright 2008 Market Wire, All rights reserved.

Gold Plunges Below $820 an Ounce

Dropping to its lowest level in a year, gold dropped by 4 percent to day to finish the session below $820 an ounce; much of that attributed to longs getting out more than a large build-up of short positions.

"It's clearly a technical break. It's clearly the oil and the dollar/euro. You could see some panic here in the gold market now," said Bruce Dunn, vice president of trading at Auramet Trading in New Jersey.

This is the largest one-day loss percentage-wise since March 19, when gold futures fell by 5.8 percent.

The yellow metal ended the day at $818.25/820.85, the lowest price since December 27, 2007.

On the COMEX division of the NYMEX, U.S. gold futures for December fell by $36.50, to settle at $828.30 an ounce.

Oil Drops Below $115 a Barrel

For today, at least, traders decided that slowing demand for the black liquid gold outweighs possible disruptions from the escalating conflict between Russia and Georgia, as the price of oil fell below the $155 a barrel mark Monday; the lowest level in three months.

For the day it fell as low as $112.72 on Globex, before rallying some to finish the session at $114.45 a barrel on the NYMEX. Even so, it did rise as high as $116 during the day. That rise was primarily attributed to the growing tensions in South Ossetia.

Depending on where the problems between Russia and Georgia lead to, for now it looks like demand will be the chief metric used to price the value of oil.

Thursday, August 7, 2008

Moronic EPA Rejects Ethanol Waiver Request of Texas Governor Rick Perry

As Texas Governor Rick Perry said in response to the idiotic decision by the EPA to refuse an ethanol waiver, "Congress specifically created an emergency waiver provision for situations like these and EPA refuses to implement it."

In the latter part of April, Perry asked the EPA for a 50 percent waiver on the so-called Renewable Fuel Standard (RFS), which artificially forces about 9 billion gallons of corn-based ethanol to be added to U.S. gasoline supplies on a yearly basis. Next year it'll rise to 11.1 billion gallons.

It's caused huge food problems around the world, and has significantly impacted the price of food in the U.S., as prices continue to rise.

According to EPA Administrator Stephen Johnson, the agency denied the waiver because it did not find it caused "severe economic harm."

I wonder if he knows how stupid that sounds? He's basically acknowledging it's causing harm, but as long it's not "severe," it's ok. Screwball!

The only recognition that it's causing higher prices was that it has in the EPA's terms it is only adding 7 cents to each bushel of corn.

While that could be disputed, even if it's true, you add that to the number of bushels sold and it's significant. But that's far from the whole story, and Johnson and the EPA know it. There are huge residual effects not talked about, like the cost of feed and seed, which adds to the price of various meats. Even more significantly, the increasing use of acreage for corn is causing less acreage to grow other crops, which is also raising their prices.

The cost of ethanol is huge, and largely not worth the effort. It's already seen as a disaster in the making, and the usual good intentions of government interference in the free market is again rearing its ugly head, as people pay the price of lawmakers' folly.

Oil Fluctuates on Slowing Demand, Attack on Turkish Pipeline

Oil continued its recent swing as opposing news stories had it going up and down.

On the one hand the price surged to $121 a barrel when news of the attack on the Turkish-based Baku-Tbilisi-Ceyhan pipeline, earlier in the day, by the PKK (separatist group Kurdistan Workers' Party), caused the upswing. It's estimated the pipeline could be closed for up to 15 days.

The other factor continues to be the cutting back on fuel use, as Americans continue to travel less during the summer months.

Residual effects of the drop in oil prices is also showing up at the gas pumps as overnight prices fell by a little over a penny to a national average of $3.849 a gallon; about 6 percent off it's highs last month of over $4 a gallon.

In afternoon trading, light, sweet crude rose by 21 cents to $188.79 a barrel on the NYMEX for September delivery, while Brent crude in London increased by 16 cents to $117.16 a barrel.

Wednesday, August 6, 2008

Investing in Silver - How to Buy Silver Bullion Coins Under Spot

How would you like to buy silver bullion coins at a discount?

I'm going to tell you about a certain type of coins that you can purchase under the spot price of silver.

Yep. Below cost. The type of silver bullion that I'm referring to are 90% silver coin bags.

You'll often hear 90% silver coin bags referred to as 'junk silver' bags. They aren't really 'junk,' though. This term is simply used to describe a bag of circulated silver coins in average condition. These coins are really only valued for their silver content, not their collectible value.

'Junk silver' bags contain coins that were struck in 1964 or earlier, such as the silver Kennedy half dollars, Roosevelt dimes, and Washington quarters. They are comprised of 90% silver. After 1964, the amount of silver contained in coins was reduced to 40%.

Here's the neat part - the 90% silver bags containing dimes or quarters can be purchased through some dealers for as much as 1% under spot! It's like getting silver on sale! How cool is that?

Yes, the coins will look worn, have nicks, scratches, and show their 40-plus year-old- age. However, keep in mind, it's what inside that counts. And these 'junk silver' coins will usually still contain over 99 percent of their silver content.

So which would you rather have? A newly-minted, pristine American Silver Eagle that costs 9% (at current prices) over spot? Or a bag of 90% silver coins that you can buy for 1% under spot? If you buy the bags, you can get 10% more silver! Amazing, huh?

You can purchase 'junk silver' bags very easily online from any of the larger, reputable dealers or from your local coin shop in various sizes and denominations. Or, you can try one of the popular online auctions sites for even greater savings.

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CBOT September Wheat Drops 14 1/4 cents to $7.65 3/4 a Bushel

Even though wheat partook in the plunge in prices of crop cousins soybeans and corn, it still held up pretty good taking all factors into consideration.

September wheat on the CBOT dropped by 14 1/4 cents to $7.65 3/4 a bushel, while Kansas City Board of Trade September wheat dropped 10 1/2 cents to $7.96, and Minneapolis Grain Exchange September wheat rose 1/2 cent to $8.53 3/4.

There were about 3,000 wheat contracts that sold on the CBOT today.

"I think, technically, it's acting fairly well," Alan Brugler, president of Brugler Marketing & Management, said of wheat. "I would attribute most of the selling to fund-type liquidation."

As far as their companion crops, November soybeans fell 47 cents to $12.22, while December corn declined 17 1/4 cents to $5.27 3/4.

Oil Prices Swinging Back and Forth On Gasoline Stockpiles and Crude Oil Supply

A government report showing gasoline stockpiles are lower than last weeks' forecast, along with a surprise that the crude oil supply grew more than expected, has oil prices swinging back and forth today after the release of the report.

In early trading, September delivery of light, sweet crude gained 51 cents, to reach $119.68 a barrel on the Nymex. After the report prices have been going up and down.

According to the Energy Information Administration, stockpiles of gasoline dropped by 4.4 million barrels last week. That's much more than the 1.4 million decline analysts were looking for.

Crude supplies also surprised analysts in the positive, as they grew to 1.7 million barrels, in contrast to the 1.2 million barrel drop analysts thought would be coming.

Tuesday, August 5, 2008

Gold futures Continue Downward Spiral: off $36 in Three Days

Gold futures dropped by over $21 today, continuing its plunge, which now stands at $36 an ounce over the last three sessions. Futures are now at the lowest levels since the middle of June.

As with all commodities denominated in U.S. dollars, the strengthening greenback continues to put pressure on the yellow metal, decreasing its demand.

Even so, there was an upward move in gold prices in response to the Federal Reserve keeping the interest rates unchanged at 2 percent.

Still, Jon Nadler, a senior analyst at Kitco Bullion Dealers, had this to say about the hold on interest rates in relationship to commodities, including gold:

"The Fed meeting does nothing to alleviate the continuing exodus from commodities even though the central bank held its cards very close to the vest. September's meeting, however, might be quite a bit different in both tone as well as results."

Today's gold futures finished the session at $886.10 on the Nymex, a $21.80 drop. It had reached as high as $903.90 earlier in the day.

Responses to this was all over the map, as a number of analysts believe this is the prelude to a drop to maybe about $845, which would then start a rally that could bring gold back to record-breaking levels, reaching as high as $1,150 an ounce by the end of 2008.

Others see no indication that gold will make any significant upward moves in the short-term.

Much of the discussion has centered around whether the U.S. dollar rally is real, or it's simply a correction related to the bear market. Most seem to think it's the latter, and a bottom for gold is close at hand, with nothing but upside potential in the near future.

Of course if that assumption is wrong, gold could have a longer way to drop before a recovery begins.

Corn Futures Drop to Lowest Level in Four Months

For the fourth straight session corn futures fell, dropping as low as $5.26 earlier in the day, the lowest level in four months on the CBOT.

The major driver of the drop is the cooling weather, as pollination will increase in response to cooler weather conditions, increasing corn yields. This helps to address the opposite concerns that hot weather would cause corn prices to surge through an even lower pollination rate.

"A forecast for relatively cooler weather this week will be beneficial for" corn's pollination, said Elaine Kub, a grain analyst at commodities research firm DTN.

Even so, according to the U.S. Department of Agriculture, as of August 3, pollination of corn was down from the five-year average of 91 percent, with 83 percent pollinating at this time. The cooler weather will increase that percentage, and probably bring it closer in line with past performance.

Another factor is the strengthening U.S. dollar, which has brought downward pressure on commodities in general, including corn.

Archer Daniels Midland Co. Acknowledges Slowdown in Agricultural Products, Especially Ethanol-related

Archer Daniels Midland (ADM) is the third-largest ethanol producer in the U.S., and the slowing demand for corn-based ethanol has had a significant impact on the company's performance for the quarter. A number of producers have stopped or closed expansion plans in response to the falling demand. Corn prices have also responded accordingly, falling to four-month low of $5.3625 a bushel today.

John Rice, executive vice-president commercial and production, attempting to shore up the company's stock said he believes the price and demand pressures are largely limited to North America, citing Asian sales are continuing to grow; although he was thinking in terms of meat there rather than ethanol-related consumption.

But he also acknowledged the drop in demand for palm oil was also having a significant effect on the margins of the company.

Rice added concerning the growing push to offer waivers for the ethanol mandate as something he's not too worried about. "We're already blending over the mandate right now, so even if there is a waiver (from the federal mandate) we don't see ethanol demand slowing down," said Rice.

If this was only connected to waivers, I may agree with Rice, but there is a growing resistance to the subsidizing and encouragement of corn-based ethanol, and if it continues to grow, like it seems it will, we could see some significant changes in direction for that commodity. That could have adverse effects on ADM. Ethanol Fix of course hopes that happens, as it's doing much more harm than good.

As far as the share price of ADM, it has plummeted by 40 percent since May, as commodity price concerns continue to hammer the profits and growth of the company.

Profits in the fourth quarter fell by 61 percent for the company, as market demand for their products continued to fall.

Share price also missed analysts' expectations by a large margin, reaching only 58 cents a share, while analysts were looking for 67 cents a share. Net income came in at $372 million for the quarter ending June 30.

Revenue for the quarter did rise by $21.8 billion, with about 90 percent of that attributed to higher commodity prices and increased volumes.

Saturday, August 2, 2008

Kansas City Board Of Trade Wheat Volume Third Largest In July

The Kansas City Board of Trade trading volume for the month of July ended at 300,025 contracts in the hard red winter wheat futures contract, which makes it the third-largest trading volume for the month of July, although far behind 407,032 contracts in 2007 and 377,494 contracts in 2006.

Price volatility continues, as during the month of July, the nearby contract traded in a range of 98 cents, as low as $8.07 and as high as $9.05. During that same period of time in 2007, the price range was 83 1/2 cents, with lows reaching $5.73 and highs $6.56 1/2. On Monday, the USDA projected the hard red winter wheat harvest was 79 percent complete. KCBT floor traders think it's a little further along, estimating HRW wheat harvest at 80 to 85 percent complete.

Texas Gov. Rick Perry Continues Battle Against Ethanol and Rising Feed Prices

Texas Gov. Rick Perry, still concerned about rising feed prices, continues his battle to pressure the federal government to cut ethanol production requirements in half.

Perry rightly notes that federal requirements to increase the ethanol mandate is "no longer a good idea. It's hurting America. It's hurting our families."

The high cost of corn-based ethanol has not only devasted the food industry for human consumption, but also the cost of feeding livestock, which of course also goes directly to consumers' pocketbooks.

There is growing opposition to the ill-advised Renewable Fuel Standard by just about everybody but those taking advantage of subsidies; including the corn growers.

The EPA administrator has the authority to dismiss the requirements after it consults with the Energy and Agriculture secretaries.

The US dollar and Oil

Prior to the oil price going through the roof last Friday, something unusual occurred - the US dollar rallied. The stronger greenback impacted the commodity markets, with oil, base metals and the Dow Jones Industrials for that matter all falling sharply.

The source of the beleaguered US dollar's rally was hawkish inflation comments from Fed Chairman Ben Bernanke, in a speech at the International Monetary Conference in sunny Barcelona, Spain. The foreign exchange market's ears pricked up with the following words:

"In collaboration with our colleagues at the Treasury, we continue to carefully monitor developments in foreign exchange markets. The challenges that our economy has faced over the past year or so have generated some downward pressures on the foreign exchange value of the dollar, which have contributed to the unwelcome rise in import prices and consumer price inflation. We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks to both parts of our dual mandate, including the risk of an erosion in longer-term inflation expectations."

It's extraordinary that after years of US dollar weakness, the Fed decides that now is the time to act concerned. We believe there are a few reasons for this change of tact, mainly political. But there are many more reasons why the Fed's words are unlikely to be backed up with actions, and for this reason, we expect continued US dollar weakness and rising inflation in the years ahead.

Let's put Bernanke's dollar comments into context.

Since September last year the Fed has slashed interest rates from 4.75% to 2%, a massive reduction in nominal terms. But in an inflationary environment, the reduction in real interest rates has been even greater. With inflation running around 4% (officially...) real rates are negative.

While the Fed's intent was to prop up careless Wall Street investment banks, negative real rates have caused frenzied speculation in the commodity markets, most notably oil. Following the recent round of interest rate cuts, the oil price rallied to more than US$130 a barrel, a level that is clearly destabilising for the global economy.

Markets were not helped either by Israel's threats to attack Iran should the Iranians continue to develop a nuclear capability. How this development will play out is anyone's guess but with Iranian President Mahmoud Ahmadinejad threatening to destroy Israel a few years ago, it is unlikely that the Israeli's are bluffing. There is also a precedent in 1980 when Israeli jets bombed a nuclear reactor that was being built in Iraq,

US Treasury Secretary Henry Paulson has had his hands full in the Middle East, where he had face to face talks with one of the US Treasury's biggest group of lenders, OPEC. Oil producing nations have for decades recycled billions of US petro dollars back into US treasury bonds and securities, thus providing financial support for the dollar. But there are signs this relationship may be coming to an end.

Inflation, which has lain dormant for many decades, is now making a come back that Elvis would be proud of. The once harmonious relationship that existed between the US and OPEC is no longer comfortable.

Most of the Mid East oil producers have their currencies pegged to the dollar, which means they cannot conduct monetary policy independently. So when US rates fall, their official interest rates also decline.

As a result, inflation is running at double-digit rates in most of these countries, which is in turn leading to questions over whether the currency pegs should be maintained (and indeed China is asking itself the same question). With a chronically weak US dollar, these countries are massively disadvantaged. As well as importing inflation, a socially destabilising effect, they are selling a finite asset (crude oil) for depreciating dollars.

So Henry Paulson's recent trip to the Mid-East would have made for particularly interesting conversation. OPEC's support for the US dollar is crucial. Because oil is priced in dollars, all oil production is 'monetised' in US dollars and provides a huge source of demand for the Greenback. We believe that without OPEC being onside, the US dollar is completely exposed.

Imagine if oil were all of a sudden traded in euro's? The US, with its huge oil bill, would no longer be able to print dollars (issue treasury bonds to OPEC and China) to pay the bills. Instead, it would be required to borrow euro's to buy the required amount of oil. Nearly every other country around the world would also be in the position of no longer having to buy dollars to pay for oil.

While a switch to the euro (or a basket of currencies) is not about to happen any time soon, this explanation provides some idea of how interlinked the US dollar and oil are, and inevitably, the price of gold. Behind closed doors Henry Paulson was undoubtedly given some stern words over the strength of the US dollar, or lack thereof. "If you want us to maintain our currency pegs, stop devaluing your currency." Or words to that effect.

And as Bernanke noted in his speech in Barcelona, "in collaboration with our colleagues at the Treasury...we are attentive to the implications of changes in the value of the dollar for inflation..."

Given Paulson has zero credibility in talking up the dollar (he of the strong dollar mantra) he has obviously 'collaborated' with the Federal Reserve and enlisted the credible Bernanke to try and win the FX market over. And they listened, for a few days at least. We suspect that the very short term speculators were spooked out of their positions, and the dollar benefitted from short covering. On the flip side, commodities and commodity related stocks sold off sharply.

But the reality is that Bernanke will have to do more than just 'talk the dollar up'. Soon after Bernanke's comments last Tuesday, the European Central Bank was again talking tough on inflation (they have better form in managing inflation expectations) and the dollar promptly sold off against its main rival, the euro.

Then, in US trade on Friday, firm evidence arrived that the US economy is indeed slowing down, with the unemployment rate soaring from 5% to 5.50% following the release of May's payroll statistics.

These numbers confirmed to us that if the US economy is to avoid a deep recession, interest rates will remain low, and by implication, real interest rates will remain negative.

The geopolitics now being played out in the Middle East add another layer of complexity to the oil market. And with Barrack Obama being the clear favourite for the Whitehouse at the end of the year, the risk of an Israel/Iran conflict is now rapidly escalating. We thought oil was due for a correction last week, but the threat of Israeli action could drive oil even higher, and this is now being reflected with a risk premium being priced into the market

This creates more headaches for the US in their attempts to control inflation.

Inevitably, no matter how much Bernanke tries to anchor 'inflationary expectations', the reality of negative real interest rates will ensure inflation in the US (and globally for that matter) continues to gather momentum.

The attached chart shows the recent performance of long term US Government bond yields. If inflationary pressures continue to build, and we suspect they will, bond yields will slowly rise and bond prices will slowly fall.

The reality is that if the US wants to fight inflation, it must raise rates. As we have repeatedly stated, we do not see that as a realistic policy option for the US and we believe the authorities will continue to 'manage' the US dollar lower. The extraordinary volatility we are witnessing in the markets on an almost daily basis is the result of these huge imbalances that have become embedded in the global economy. The market is now attempting to right these imbalances through a serious bout of global US dollar inflation, which is being passed on to every other nation in the world.

About the Author

Fat Prophets are leading global independent stock market advisors with a comprehensive product range of research reports for all investors. Visit the Fat Prophets website to learn more and get expert advice on investing in shares and managed funds.

Why Invest In Gold - 3 Significant Financial Events That Investors Should Not Ignore

While there is never a wrong time to be investing in gold, the recent collapse and bailout of the GSE's, failure of IndyMac Bank, and the sharp rise in the CPI make it more imperative than ever, for you to protect your wealth with gold. I'm going to review those three financial events and explain why I feel that it is so crucial for you to be buying gold bullion now.

The Failure of IndyMac Bank

On Friday, IndyMac became the largest bank to fail in two decades. On Monday morning, depositors lined up for blocks and waited for hours to withdraw their money from the bank. Unless, of course, their deposits on account, were over the FDIC limit.

At this point, no one knows how long depositors will have to wait to receive the remainder of their funds or exactly how much they will eventually receive. That is, of course, if they collect anything at all.

What Could Happen

1. The problems at IndyMac are not just an isolated incident, but indicative of a U.S. banking system that has been deeply affected by the worsening credit-mortgage crisis.

2. The Federal Deposit Insurance Corporation's insurance fund has a capital reserve of $53 billion. The IndyMac failure could use up 10% of those reserves.

3. The FDIC has a secret list of 90 other 'problem' banks. The FDIC chairman has assured the public that its reserves would be adequate to handle the additional bank failures that are expected to occur.

4. A few more well publicized bank failures could cause depositors to start pulling money out of even the strongest banks. A widespread panic could start a nation-wide bank run.

Why You Should Buy Gold

Investors who own gold do not have to worry about FDIC insurance, bank failures, and the danger of holding large amounts of cash. Gold is safe, stable, and secure.

The Bailout of the GSEs

Last weekend, the Federal Reserve and the U.S. Treasury attempted to restore investor confidence in Freddie Mae and Freddie Mac by agreeing to open up their discount lending window (loan money) to the beleaguered GSEs. For the time being, it seems to have worked.

The Treasury is now lobbying Congress for a permission to invest (buy shares) in either company, if the need arises. And that is in addition to a desire to increase the companies' $2.25 billion dollar lines of credit.

What Could Happen

1. A government bailout of the GSEs would increase our national debt, increasing interest rates at a time when the economy can hardly afford it.

2. The Federal Reserve has repeatedly stated that the GSEs are in no danger of failing. But, what if they're wrong? Between the two of them, Fannie and Freddie guarantee almost half of all the $12 trillion U.S. mortgage debt.

3. Their ability to function is critical for mortgage prices.

4. However, if the GSE's collapse, the ability to obtain an affordable mortgage will be the least of anyone's concerns.

Why You Should Invest In Gold

Owning gold is like having an insurance policy. It has been around for centuries and will continue to exist for centuries more. Owning gold will give you peace of mind and protect your assets from any possible financial catastrophe.

The Rise in Consumer Prices

The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 1.1% in May and is up 5% from one year ago. That's a seasonally adjusted annual rate of 7.9%. Over the same period, food rose 8.7%. And, energy alone is up almost 54%.

That means if you have cash invested in a typical bank savings account, CD, or Treasury bond or bill, you are getting a negative return on your money.

What Could Happen

1. Inflation is rising but the Federal Reserve will be hard pressed to raise interest rates because of the weak economy and stressed-out financial system.
2. That means a weaker dollar. A weaker dollar means a continued rise in inflation. If your investments don't keep pace with inflation, that means less and less purchasing power as time goes on.

Why You Should Be Buying Gold

Gold is a proven hedge against inflation. Did you know that during the five years after WWII that inflation was at its highest, gold had a real return of over 130% compared to a negative 12% for the Dow Industrial Average? Gold is a stable asset that keeps its purchasing power and preserves wealth.

Still not convinced that you should be investing in gold? Throughout history, fiat currencies have collapsed. Stocks, bonds, futures, and options are subject to the fate of the markets and companies associated with them. We've experienced hyperinflation, recessions, and depressions. Both governments and countries have risen and fallen. But, through it all, gold has survived and will continue to be a safe-haven for those wise enough to recognize its true value.

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Please take this opportunity to protect your hard-earned money from bank failures, financial catastrophes, and the devastating effects of high inflation with pure gold bullion coins. You can find a huge selection of discount gold bullion coins at:

Investing In Silver Bullion - Should You Buy Silver Bullion Rounds?

Silver bullion rounds are simply another name for silver coins. The term round came about because the silver was shaped into coins and thus was able to be stacked into rolls. This made it convenient for the coins to be handled and shipped. You'll often see them referred to as silver art rounds because they can be purchased inscribed with a variety of designs ranging from commemorative, religious, military, cars, holidays, weapons, animals, presidents, and even Elvis!


You can buy silver rounds in sizes ranging from one ounce to over one hundred ounces. The one ounce variety is the most popular.

Each silver round coin contains one full ounce of pure silver. It has a purity of .999 fine silver. It is not government-backed and has no legal tender status.


Silver bullion rounds are available in both name-brand and generic.
Name-brand silver rounds include the one-ounce private mint produced A-Mark Precious Metals, Wall Street Mint and Sunshine Minting. These silver rounds will display the name or hallmark of the mint that manufactured them.

Generic silver rounds are produced by a variety of small, little-known firms as well as those produced over the years by companies that may or may not still be in business. They typically have a smaller markup than the name-brand silver rounds.

Most Valuable:

Engelhard Silver Prospectors is the one ounce silver round that is most sought after by collectors. It was minted by Engelhard but has not been produced since 1988. This silver round is difficult to obtain and occasionally can be purchased on the secondary market.

Reasons to Buy:

Silver rounds are readily available.They typically sell for a lower premium than government-backed silver bullion coins.The value of the rounds is directly correlated to the current price of silver.Their small size makes them perfect coins for bartering.


Silver bullion rounds are affordable, easy to store, count, buy and sell. They are an excellent way for the small investor or collector to invest directly in pure silver bullion.

By: Christina Goldman

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