Wednesday, October 7, 2009

Gold Prices Rise to $1,500

As measured in U.S. dollars, gold prices surged to another record level, surpassing the $1,500 a troy ounce for the first time in history.

Investing legend Jim Rogers stated that while he wouldn't buy gold on these highs, he's also not betting against it either. Rogers is of course hoping it will drop, having said recently he would buy more gold if there is a drop or correction. For now he's sitting on gold.

Even though this is a record gold price high for gold as measured by the U.S. dollar, in terms of other currencies, it still has a way to go before enjoying that distinction.

In reference to the Australian dollar, it isn't even close to a gold price high, as it's still 30 percent lower than that currencies record, and against the yen it's 15 percent less than that gold price record.

This is a much a result of the collapsing U.S. dollar as it is concern over inflation and the uncertainty of the economic conditions.

Monday, October 5, 2009

How Will Oil Be Traded? Maybe Not in U.S. Dollars

A growing number of nations are negotiating to drop the use of the U.S. dollar as the currency used to trade oil, which originally would be replaced by a basketfull of currencies, and over the long haul an as yet undetermined currency.

Inluded in the countries currently negotiating are France, the Arab states, Japan, China, Russia, and Brazil. India may eventually get on board as well, making it a considerable force in the future. Goals are to make the change from trading oil in U.S. dollars to a basket of currencies by 2018.

Nations understand the extraordinary and misguided practices and policies of the U.S. government and the way it has spent money to bailout the numerous industries they refuse to allow to fail, and the amazing size of the debt incurred to do it.

All this means the U.S. dollar will continue to fall in value as the printing of money continues from the Federal Reserve.

America will find itself struggling to maintain its economic dominance as a result, and there's literally nothing that can be done about it unless the horrid economic policies are abandoned and the political will is there to make it happen.

It's doubtful that will happen any time soon, and so we'll probably have to go through a lot more pain before America and its politicians abandon the economic path they're traveling and return to financial sanity.

Thursday, October 1, 2009

Wheat in Sixth Quarterly Drop

The sixth straight quarterly drop by wheat is the longest losing streak in a minimum of 50 years, as global supply far exceeds demand, continuing to put downward pressure on wheat prices.

According to USDA data, global wheat stockpiles have increased by 10 percent to reach 186.6 million tons during 2009-2010. Oveall production could reach as high as 663.7 tons, only behind last year's 682.3 million tons.

With many other countries focusing on increasing their own domestic wheat supplies, imports have plunged to 121.1 million tons from the 141.2 million tons at the same time last year.

As of mid-September, only 10.5 million metric tons of wheat, or 386 bushels was ordered by foreign buyers, a huge decrease of 36 percent from a year ago.

Wheat supply and prices - Wheat prices going down

Silver | Precious Metal Driving Prices

Silver Prices going up

With silver being valuable as a precious metal and industrial metal, it is important to know what is driving prices at any one time and invest accordingly.

Now that inflation fears are as high as ever, the precious metal side of the equation has been driving silver prices up, and that shouldn't abate any time soon.

This of course doesn't mean supply and demand of silver for industrial uses won't be an ongoing factor in silver prices, just that it's not the primary driver at this time, but will continue to be over the long term.

Silver Prices going up

Fed Admits “Gold Swap Arrangements”

Ron Paul has been pressing the Federal Reserve concerning its outrageous practice of interfering in the gold market through “gold swap arrangements” with foreign banks.

Not only is this an outrage to investors, but the entangling alliances brought about through these arrangement aren't currently under any oversight; one of the reasons the Federal Reserve has been battling Ron Paul so hard on not being audited.

Federal Reserve Board member Kevin M. Warsh recently replied to a request from a lawyer of GATA under the U.S. Freedom of Information Act. concerning these gold swaps, saying, "In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

We need to get information from the Federal Reserve on these gold swaps, and also find out what else they are hiding.