Shares of Silver wheaton (NYSE:SLW) rebounded on Friday as concerns over the faltering European Union and its sovereign debt crisis pushed silver and gold prices up as investors fled to safety.
Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.
June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.
For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.
Silver Wheaton Corp. operates as a silver streaming company around the world. It generates revenue from royalty deals.
Silver wheaton (SLW) closed Friday at $35.08, up $0.38, or 1.10 percent. It has a market cap of $12.39 billion.
Showing posts with label Euro. Show all posts
Showing posts with label Euro. Show all posts
Monday, May 23, 2011
Eldorado Gold (EGO) Jumps on Euro Fears
Eldorado Gold Corp. (NYSE:EGO) closed strong last week as concerns over the faltering European Union over its sovereign debt crisis pushed gold prices up, and gold miners with them.
June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.
For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.
Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.
Eldorado Gold participates in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People’s Republic of China, Greece, and Turkey.
Eldorado closed Friday at $15.68, up $0.20, or 1.29 percent. It has a market cap of $8.60 billion.
June gold closed on Friday at $1,508.90 an ounce, up $16.50, trading in a range of $1,486.40 and $1,515.80.
For the Week gold was up by about 1.15 percent, but still down 4 percent from the all-time high of $1,575 an ounce reached in the early part of May.
Silver closed at $35.16, up 0.6 percent, but down by about 30 percent since a record high on April 28 of $49.51.
Eldorado Gold participates in the discovery, exploration, development, production, and reclamation of gold properties in Brazil, the People’s Republic of China, Greece, and Turkey.
Eldorado closed Friday at $15.68, up $0.20, or 1.29 percent. It has a market cap of $8.60 billion.
Tuesday, April 12, 2011
Kinross (KGC) (ABX) (AUY) Fall as Gold Pulls Back
Gold prices took a breather Monday after soaring for several days, resulting in gold miners like Kinross (NYSE:KGC), Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) plunging in share price.
On Monday gold prices fell, dropping $6 to $1,468 an ounce on the Comex division of the New York Mercantile Exchange. The contract had set a new all-time in the last session, reaching $1,478 a troy ounce.
Much of the recent push up in gold prices is based upon the collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets.
A stronger dollar on Monday pressured gold prices. The U.S. dollar fought back to gain lost ground from the euro, with the European currency trading at $1.4426, down from $1.4480 on Friday.
Yamana closed Monday at $12.89, falling $0.41, or 3.08 percent. Barrick Gold closed at $53.08, down $1.29, or 2.37 percent. Kinross closed at $16.10, dropping $0.50, or 3.01 percent.
On Monday gold prices fell, dropping $6 to $1,468 an ounce on the Comex division of the New York Mercantile Exchange. The contract had set a new all-time in the last session, reaching $1,478 a troy ounce.
Much of the recent push up in gold prices is based upon the collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets.
A stronger dollar on Monday pressured gold prices. The U.S. dollar fought back to gain lost ground from the euro, with the European currency trading at $1.4426, down from $1.4480 on Friday.
Yamana closed Monday at $12.89, falling $0.41, or 3.08 percent. Barrick Gold closed at $53.08, down $1.29, or 2.37 percent. Kinross closed at $16.10, dropping $0.50, or 3.01 percent.
Friday, February 4, 2011
Citigroup (NYSE:C), Goldman (NYSE:GS) on Possible Greek Default Risk
While a lot of the financial media don't report the extraordinary dangers still inherent in the ongoing sovereign debt crisis in Europe, that doesn't take away from the reality of the fact.
Mostly how the crisis is reported is when an event happens they report on it, and then the EU and its spokesman will say they're ready to intervene to prop up the countries, and then that's basically considered the end of the story. Mix and repeat.
Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) representatives note that the crisis isn't going away, and even Greece is still in danger of defaulting.
German chairman of Goldman Sachs, Alexander Dibelius, said today concerning the potential for Greece to still default, “It cannot be allowed to be led to a Greek default. For this reason a restructuring of the Greek debt is necessary,” Dibelius said in the newspaper 'Bild,' saying there was a need for “a mixture of support, discipline and pressure for Greece in order (for it to) return to the road of virtue.”
Chief analyst for Citigroup, Professor Willem Buiter, added that there is a need for Greece to cut 50 percent of its debt. Buiter added Greek political leaders continue to put off the tough decision needed to get the country back to fiscal health.
The reason Greece is so important isn't because of the size of the debt in relationship to the overall European economy, but it's important because of its symbolism as to the problem the EU and the euro faces, and continues to be a poster child as to why socialism doesn't work, as it makes promises that cannot be kept or met.
The domino effect that would probably result from a Greek default is what is at issue, and we have seen how quickly other countries in the euro-zone had to be propped up after Greece had to be.
If there is a Greek default, the same would happen, and the EU would, as it is, effectively cease to exist, and the euro would struggle to survive.
Mostly how the crisis is reported is when an event happens they report on it, and then the EU and its spokesman will say they're ready to intervene to prop up the countries, and then that's basically considered the end of the story. Mix and repeat.
Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) representatives note that the crisis isn't going away, and even Greece is still in danger of defaulting.
German chairman of Goldman Sachs, Alexander Dibelius, said today concerning the potential for Greece to still default, “It cannot be allowed to be led to a Greek default. For this reason a restructuring of the Greek debt is necessary,” Dibelius said in the newspaper 'Bild,' saying there was a need for “a mixture of support, discipline and pressure for Greece in order (for it to) return to the road of virtue.”
Chief analyst for Citigroup, Professor Willem Buiter, added that there is a need for Greece to cut 50 percent of its debt. Buiter added Greek political leaders continue to put off the tough decision needed to get the country back to fiscal health.
The reason Greece is so important isn't because of the size of the debt in relationship to the overall European economy, but it's important because of its symbolism as to the problem the EU and the euro faces, and continues to be a poster child as to why socialism doesn't work, as it makes promises that cannot be kept or met.
The domino effect that would probably result from a Greek default is what is at issue, and we have seen how quickly other countries in the euro-zone had to be propped up after Greece had to be.
If there is a Greek default, the same would happen, and the EU would, as it is, effectively cease to exist, and the euro would struggle to survive.
Friday, January 28, 2011
Bank of America's (NYSE:BAC) CEO Says Euro Survived Major Test
Comments from Bank of America's (NYSE:BAC) CEO Brian T. Moynihan that the euro has survived a major test and is "holding together," seems to be a very premature conclusion to draw, as the EU sovereign debt crisis hasn't went away by any means.
This was in response to the rescue packages awarded to Greece, and then Ireland, in 2010, along with concerns over other countries and their ability to remain solvent.
Moynihan stated, “We see the euro holding together; it’s a committed-to structure. We think it’s fundamentally there and it’s survived a major testing.”
We think the major testing is still going on, and the worst is yet to come with the euro. Greece and Ireland were the easy countries to deal with, and they had the euro back on its heels. If one of the stronger economies have to be bailed out, it's doubtful the euro could survive, or at best, some countries would probably leave it.
Bank of America was trading at $13.76, gaining $0.09, or 0.62 percent, as of 11:47 AM EST.
This was in response to the rescue packages awarded to Greece, and then Ireland, in 2010, along with concerns over other countries and their ability to remain solvent.
Moynihan stated, “We see the euro holding together; it’s a committed-to structure. We think it’s fundamentally there and it’s survived a major testing.”
We think the major testing is still going on, and the worst is yet to come with the euro. Greece and Ireland were the easy countries to deal with, and they had the euro back on its heels. If one of the stronger economies have to be bailed out, it's doubtful the euro could survive, or at best, some countries would probably leave it.
Bank of America was trading at $13.76, gaining $0.09, or 0.62 percent, as of 11:47 AM EST.
Friday, January 7, 2011
Bank of America (NYSE:BAC) on U.S. Dollar, Euro
Bank of America Corp.'s (NYSE:BAC) head of Americas G- 10 currency strategy at Bank of America Corp. in New York, Paresh Upadhyaya, commented on the relationship of the U.S. dollar and the euro after the U.S. payrolls report, which was considered disappointing.
Upadhyaya said, “Overall, the tone for the dollar should be stronger as most of the data has been coming in on the stronger side and that funding problems still weigh on Europe.”
As for the payrolls report, Upadhyaya added “They were clearly disappointing. The market had high hopes of a strong number due to the rising employment component in the regional manufacturing surveys.
“It is mixed data and therefore the dollar’s reaction is likely to be choppy.”
Because the U.S. dollar is the reserve currency of the world, it maintains the unique position of being able to go up in value even when it is weak itself, as its relationship with the euro shows.
That's why the dollar and gold can break its usual inverse relationship at times and move up together in value.
Long term this won't help the dollar, as it continues to be flawed because of the policies of the Federal Reserve.
But it will trade up at times as the real story of weakness in the EU and by extension, the euro, continues to unfold.
Upadhyaya said, “Overall, the tone for the dollar should be stronger as most of the data has been coming in on the stronger side and that funding problems still weigh on Europe.”
As for the payrolls report, Upadhyaya added “They were clearly disappointing. The market had high hopes of a strong number due to the rising employment component in the regional manufacturing surveys.
“It is mixed data and therefore the dollar’s reaction is likely to be choppy.”
Because the U.S. dollar is the reserve currency of the world, it maintains the unique position of being able to go up in value even when it is weak itself, as its relationship with the euro shows.
That's why the dollar and gold can break its usual inverse relationship at times and move up together in value.
Long term this won't help the dollar, as it continues to be flawed because of the policies of the Federal Reserve.
But it will trade up at times as the real story of weakness in the EU and by extension, the euro, continues to unfold.
Wednesday, December 1, 2010
eBay (NASDAQ:EBAY) Faces FOREX Challenges in Latest Quarter
Even with eBay (NASDAQ:EBAY) is expected to increase margins and has strengths in several segments, all that could be negated by FOREX challenges, especially in relationship to the Euro and the British Pound.
Barclays (NYSE:BCS) said, "We are modestly raising core estimates for 4Q10 and 2011 GMV and TPV based on Marketplaces improvements both in the U.S. and International, as well as PayPal Merchant Services strength. Additionally, we are tweaking Marketplaces take rates higher and raising overall margins slightly. However, the impact is muted somewhat by the weaker Euro (-6%) and British Pound (-3%) relative to spot rates coming out of 3Q earnings more than a month ago, which also weighs on cross-border activity which accounts for roughly 20% of Marketplaces and likely more than that for PayPal. For 4Q10 we remain at PF EPS of $0.47, for 2011 we go from $1.81 to $1.85."
Barclays maintains an "Equalweight" on eBay, which closed Tuesday at $29.14, falling $1.09, or 3.61 percent. Barclays has a price target of $29 on eBay, raising it from $27.
Barclays (NYSE:BCS) said, "We are modestly raising core estimates for 4Q10 and 2011 GMV and TPV based on Marketplaces improvements both in the U.S. and International, as well as PayPal Merchant Services strength. Additionally, we are tweaking Marketplaces take rates higher and raising overall margins slightly. However, the impact is muted somewhat by the weaker Euro (-6%) and British Pound (-3%) relative to spot rates coming out of 3Q earnings more than a month ago, which also weighs on cross-border activity which accounts for roughly 20% of Marketplaces and likely more than that for PayPal. For 4Q10 we remain at PF EPS of $0.47, for 2011 we go from $1.81 to $1.85."
Barclays maintains an "Equalweight" on eBay, which closed Tuesday at $29.14, falling $1.09, or 3.61 percent. Barclays has a price target of $29 on eBay, raising it from $27.
Gold Prices Today Closing in on $1,400
Gold prices today are pressing toward $1,400, after European Central Bank President Jean-Claude Trichet hinted the ECB may step up acquisitions of sovereign debt of nations continuing to struggle from out of control deficits and inability to pay for promises to their people they should have never made.
The U.S. dollar also reversed course today, helping shore up gold prices, as it moved back to its expected performance of falling in value against the euro.
This will continue to be a volatile situation, as there appears to be a hiding of the true depth of the sovereign debt crisis in Europe, and every time it is revealed that it is much worse than thought, the euro plunges, the U.S. dollar strengthens against it, and gold prices rise.
That will continue to happen until the situation is handled in Europe, if it even can be.
For gold, much of the quantitative easing news has been shoved aside as the sovereign debt crisis grabs headlines, but once investors price that into gold again, prices should continue to press up and easily surpass the $1,400 an ounce mark.
The U.S. dollar also reversed course today, helping shore up gold prices, as it moved back to its expected performance of falling in value against the euro.
This will continue to be a volatile situation, as there appears to be a hiding of the true depth of the sovereign debt crisis in Europe, and every time it is revealed that it is much worse than thought, the euro plunges, the U.S. dollar strengthens against it, and gold prices rise.
That will continue to happen until the situation is handled in Europe, if it even can be.
For gold, much of the quantitative easing news has been shoved aside as the sovereign debt crisis grabs headlines, but once investors price that into gold again, prices should continue to press up and easily surpass the $1,400 an ounce mark.
Tuesday, November 30, 2010
Eldorado (NYSE:EGO), Gammon (NYSE:GRS), Ivanhoe (NYSE:IVN) Push Up on Rising Gold Prices
Eldorado Gold (NYSE:EGO), Gammon Gold (NYSE:GRS) and Ivanhoe Mines (NYSE:IVN) are all in positive territory today, moving up with the broader gold market as investors flee to safety because of concerns over possible sovereign debt contagion in Europe.
The unusual event of the U.S. dollar moving up along with the price of gold is occuring again, as it had each time the fears concerning the sovereign debt crisis and uncertainty over the future of the euro are brought to the forefront recently.
As long as the story is headline news, that will probably be the case. The longer the narrative, the longer the two will move up together in general.
Eldorado Gold was trading at $17.43, rising by $0.52, or 3.08 percent as of 2:44 PM EST. Gammon was at $6.68, gaining $0.16, or 2.45 percent. Ivanhoe rose to $24.44, increasing by $0.25, or 1.03 percent.
The unusual event of the U.S. dollar moving up along with the price of gold is occuring again, as it had each time the fears concerning the sovereign debt crisis and uncertainty over the future of the euro are brought to the forefront recently.
As long as the story is headline news, that will probably be the case. The longer the narrative, the longer the two will move up together in general.
Eldorado Gold was trading at $17.43, rising by $0.52, or 3.08 percent as of 2:44 PM EST. Gammon was at $6.68, gaining $0.16, or 2.45 percent. Ivanhoe rose to $24.44, increasing by $0.25, or 1.03 percent.
Gold Prices Today Soar on EU Sovereign Debt Disaster
Black Friday temporarily captured the attention and imagination of traders and investors, but that is already past us and the potential contagion and ongoing disaster related to the EU sovereign debt crisis has them running to gold again for safety reasons.
Gold for February delivery at the Comex division of the New York Mercantile Exchange rose by $17.40 to $1,384.90 an ounce. Spot gold was at 1,384.10, rising by $16.80 as of 2:19 PM EST.
As has happened several times in the recent past, gold ignored the temporary rising value of the U.S. dollar, for imperceivable reasons, has also attracted those seeking safety.
At those times the two ignore the usual inverse relationship and rise together. That could continue to happen in the current economic climate for a short period of time.
Much of that will be determined by the perceived fate and value of the euro against the dollar as the narrative unfolds in Europe.
The problem seems to be the EU and news outlets are not reporting the true depth of the problem, which appears to be far worse than is being let on.
Greece, for example, recently stated their deficits are probably worst than last reported, which implies either outright dishonesty or ineptness; both of which are dangerous to the region, although at lower levels than the obvious repercussions if Spain were to require a bailout.
This seems to be the primary driver of gold at this time, and as long as the euro remains under pressure and the U.S. dollar moves up against it, gold and the dollar will probably rise together.
That will eventually change, but until it does, gold will most likely move up slower than it otherwise would have in light of other economic factors like the quantitative easing of the Federal Reserve.
Gold for February delivery at the Comex division of the New York Mercantile Exchange rose by $17.40 to $1,384.90 an ounce. Spot gold was at 1,384.10, rising by $16.80 as of 2:19 PM EST.
As has happened several times in the recent past, gold ignored the temporary rising value of the U.S. dollar, for imperceivable reasons, has also attracted those seeking safety.
At those times the two ignore the usual inverse relationship and rise together. That could continue to happen in the current economic climate for a short period of time.
Much of that will be determined by the perceived fate and value of the euro against the dollar as the narrative unfolds in Europe.
The problem seems to be the EU and news outlets are not reporting the true depth of the problem, which appears to be far worse than is being let on.
Greece, for example, recently stated their deficits are probably worst than last reported, which implies either outright dishonesty or ineptness; both of which are dangerous to the region, although at lower levels than the obvious repercussions if Spain were to require a bailout.
This seems to be the primary driver of gold at this time, and as long as the euro remains under pressure and the U.S. dollar moves up against it, gold and the dollar will probably rise together.
That will eventually change, but until it does, gold will most likely move up slower than it otherwise would have in light of other economic factors like the quantitative easing of the Federal Reserve.
Monday, November 22, 2010
Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) Positive in Afternoon Trading
Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) have all moved into positive territory as the trading session went on today, with spot gold prices moving up to $1,259.90, or $5.80 an ounce.
Gold prices had been down in the earlier part of the day, as mixed economic news kept things mostly level.
It seems the announcement Ireland would in fact be bailed out would ultimately move the price of gold up, as the euro strengthened and U.S. dollar fell in value.
Gold may be ready to surge again after the market has digested the news China is going to battle inflation and the Federal Reserve implement another round of quantitative easing.
Although opposing factors in gold prices, it seems the inflationary move by the Fed is weighing more on gold than any other element now, and that will drive prices, along with the growing realization Europe is far worse off than believed, and as Greece has revealed, may still be hiding the levels of deficits existing in the regions.
Barrick was trading at $50.08, rising by $0.31, or 0.62 percent at 2:10 PM EST. Newmont was at $60.74, gaining $0.40, or 0.66 percent. Goldcorp was moving to $46.02, increasing by $0.28, or 0.59 percent.
Gold prices had been down in the earlier part of the day, as mixed economic news kept things mostly level.
It seems the announcement Ireland would in fact be bailed out would ultimately move the price of gold up, as the euro strengthened and U.S. dollar fell in value.
Gold may be ready to surge again after the market has digested the news China is going to battle inflation and the Federal Reserve implement another round of quantitative easing.
Although opposing factors in gold prices, it seems the inflationary move by the Fed is weighing more on gold than any other element now, and that will drive prices, along with the growing realization Europe is far worse off than believed, and as Greece has revealed, may still be hiding the levels of deficits existing in the regions.
Barrick was trading at $50.08, rising by $0.31, or 0.62 percent at 2:10 PM EST. Newmont was at $60.74, gaining $0.40, or 0.66 percent. Goldcorp was moving to $46.02, increasing by $0.28, or 0.59 percent.
Freeport McMoRan (NYSE:FCX) Volatile on Competing Market Factors
Freeport McMoRan (NYSE:FCX), as with most commodity producers, has been experiencing some volatility lately as competing market data and events push against the company and commodity sector from opposing sides.
For example, copper prices were moving up based on the drop in value of the U.S. dollar, but at the same time pressured down by the news China imported the lowest amount of copper in a year.
The announced bailout of Ireland helped push up the euro in trading, also resulting in the fall in value of the dollar. All of this is causing commodities to fluctuate and uncertainty to swirl around them because of the different economic and market pressures.
Freeport is a good bellwether to test the commodities market, and today it's telling us things are weak and volatile, suggesting the market remains jittery as China, Ireland and currencies generate concerns.
Freeport was trading at $100.51, falling by $1.29, or 1.27 percent at 1:32 PM EST.
For example, copper prices were moving up based on the drop in value of the U.S. dollar, but at the same time pressured down by the news China imported the lowest amount of copper in a year.
The announced bailout of Ireland helped push up the euro in trading, also resulting in the fall in value of the dollar. All of this is causing commodities to fluctuate and uncertainty to swirl around them because of the different economic and market pressures.
Freeport is a good bellwether to test the commodities market, and today it's telling us things are weak and volatile, suggesting the market remains jittery as China, Ireland and currencies generate concerns.
Freeport was trading at $100.51, falling by $1.29, or 1.27 percent at 1:32 PM EST.
Friday, November 19, 2010
Citigroup (NYSE:C) Sees Greek, Irish, Portuguese Bonds Continuing to Fall
As risks increase for the sovereign debt of Greece, Ireland and Portugal, Citigroup (NYSE:C) says they see bonds in the countries continuing to fall, as the crisis grows.
Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”
The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.
The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.
There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.
Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”
The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.
The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.
There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.
Jim Rogers Says Let Ireland Go Bankrupt, Would Learn Lesson
Once again billionaire commodity expert and investor Jim Rogers has it right, as he calls for Ireland to be allowed to go bankrupt in order to learn a lesson concerning their irresponsible borrowing, and for Europe to show they're serious about the euro remaining a legitimate and strong currency.
The European Union will have none of that, and is going to borrow over $100 billion to shore up the Irish banking system, and some are calling that not enough.
Rogers said it's time for banks and countries around the world to learn to not spend more than they can pay back. While an obvious and responsible suggestion, there are very few that take heed to the simple advice of Rogers.
You wonder why so many individuals are in difficult times, as they simply follow the lead of financial institutions and countries and continue to borrow far beyond their means.
Rogers has been consistent with his call on the European Union, having called for Greece to be allowed to go bankrupt, which now has somehow discovered, after being bailed out, that they understated the size of their deficit.
This will continue on until someone has the integrity and strength to say enough is enough.
You continue to hear politicians say they must bail out these countries to preserve the EU, not even understanding that be bailing out the countries and making the euro weak and a joke, they're destroying it themselves.
The European Union will have none of that, and is going to borrow over $100 billion to shore up the Irish banking system, and some are calling that not enough.
Rogers said it's time for banks and countries around the world to learn to not spend more than they can pay back. While an obvious and responsible suggestion, there are very few that take heed to the simple advice of Rogers.
You wonder why so many individuals are in difficult times, as they simply follow the lead of financial institutions and countries and continue to borrow far beyond their means.
Rogers has been consistent with his call on the European Union, having called for Greece to be allowed to go bankrupt, which now has somehow discovered, after being bailed out, that they understated the size of their deficit.
This will continue on until someone has the integrity and strength to say enough is enough.
You continue to hear politicians say they must bail out these countries to preserve the EU, not even understanding that be bailing out the countries and making the euro weak and a joke, they're destroying it themselves.
Teck (NYSE:TCK), Freeport (NYSE:FCX), Southern Copper (Nasdaq:SCCO) Boosted by Higher Metal Prices
After several days of a stronger U.S. dollar pushing the prices of metals and commodities down, Teck Resources (NYSE:TCK), Freeport-McMoRan (NYSE:FCX), Southern Copper (Nasdaq:SCCO) rebounded as the greenback fell again on news the sovereign debt crisis in Europe will receive another band-aide by Ireland being bailed out to the tune of over $100 billion.
The weakened euro caused investors to put their money in the U.S. dollar as commodity prices fell during the period of uncertainty, pushing down the price of most miners as well.
Freeport closed Thursday at $99.85, soaring by $3.01, or 3.11 percent. Tech Resources was up to $49.19, increasing by $1.67, or 3.51 percent. Southern Copper exploded upward to close at $44.34, rising by $1.81, or 4.26 percent.
The decision by China on whether or not they will increase interest rates to battle inflation still awaits, and that could pull commodity prices and commodity companies down again.
Even if that happens, it'll only be temporary, as the primary driver of gold prices during this season of time will continue to be the implementation of quantitative easing which will offer long-term support to gold.
The weakened euro caused investors to put their money in the U.S. dollar as commodity prices fell during the period of uncertainty, pushing down the price of most miners as well.
Freeport closed Thursday at $99.85, soaring by $3.01, or 3.11 percent. Tech Resources was up to $49.19, increasing by $1.67, or 3.51 percent. Southern Copper exploded upward to close at $44.34, rising by $1.81, or 4.26 percent.
The decision by China on whether or not they will increase interest rates to battle inflation still awaits, and that could pull commodity prices and commodity companies down again.
Even if that happens, it'll only be temporary, as the primary driver of gold prices during this season of time will continue to be the implementation of quantitative easing which will offer long-term support to gold.
Wednesday, November 17, 2010
Gold Prices Bursting or Correcting?
The usual speculation when any asset class makes a wide swing is part of gold now, as gold prices are in the midst of a huge downward move, and has generated questions on whether or not gold is correcting or it's in the middle of a bubble bursting.
Anyone familiar with gold for a long period of time knows this is nothing more than a correction, as the elements surrounding a bubble haven't yet emerged, and gold prices have a long way to go before they run their course, although it is a good lesson in what factors will eventually bring gold prices back to earth.
One of the major things ultimately stopping the rise of gold prices will be measures put in place to combat inflation: increasing interest rates.
That alone won't completely stop it if other major factors are driving gold prices up, but it would definitely slow it down, and if implemented in most, if not all, major economies, could have a dramatic effect.
That isn't going to happen any time soon though, as the U.S. isn't even close to thinking of raising interest rates in the current economic climate.
Even if China is to increase interest rates like South Korea did on Monday, that won't be enough to pull down gold in the long term, even though it would push gold prices down immediately and give the appearance of a bubble bursting.
Another thing driving gold prices down down, in conjunction with interest rate concerns, is the temporary strengthening of the U.S. dollar. That's all related to the weakened euro because of the renewed focus on the European sovereign debt crisis, which continues to stubbornly hang on.
After the EU bluffs its way through that or throws a bailout bone to Ireland, that will be considered taken care of, even though as Greece had shown yesterday, as it appears there is still corruption in the process, as Greece said they had underestimated the size of their deficit.
Greece isn't exactly so big that working out how big of a deficit they have should be that difficult. They're obviously understating things in hopes of stealing more money from the region to support their socialist practices via unsustainable entitlement programs.
In the end, there hasn't been much that has changed to justify the typical ignorant conclusions, and wishful thinking by some, that gold has ended its historical run. It isn't even close to being the case.
The U.S. dollar will continue its collapse in light of the inflationary policies of the Federal Reserve, the euro isn't considered that important any longer by the international community, physical demand for gold continues to rise, and of course, it's still the best place for safety in the turbulent economic times we live in, which are far from turning around at all.
What may happen in the near term with gold is it'll be much more volatile than usual until the decisions - by Asian countries in particular - as to raising their interest rates to combat inflation come about.
That appears to be priced already into the fall in gold prices, although I think the China factor will be the most devastating impact in the near term.
Once that's over with, gold will resume its assent with little in the way to stop it.
Anyone familiar with gold for a long period of time knows this is nothing more than a correction, as the elements surrounding a bubble haven't yet emerged, and gold prices have a long way to go before they run their course, although it is a good lesson in what factors will eventually bring gold prices back to earth.
One of the major things ultimately stopping the rise of gold prices will be measures put in place to combat inflation: increasing interest rates.
That alone won't completely stop it if other major factors are driving gold prices up, but it would definitely slow it down, and if implemented in most, if not all, major economies, could have a dramatic effect.
That isn't going to happen any time soon though, as the U.S. isn't even close to thinking of raising interest rates in the current economic climate.
Even if China is to increase interest rates like South Korea did on Monday, that won't be enough to pull down gold in the long term, even though it would push gold prices down immediately and give the appearance of a bubble bursting.
Another thing driving gold prices down down, in conjunction with interest rate concerns, is the temporary strengthening of the U.S. dollar. That's all related to the weakened euro because of the renewed focus on the European sovereign debt crisis, which continues to stubbornly hang on.
After the EU bluffs its way through that or throws a bailout bone to Ireland, that will be considered taken care of, even though as Greece had shown yesterday, as it appears there is still corruption in the process, as Greece said they had underestimated the size of their deficit.
Greece isn't exactly so big that working out how big of a deficit they have should be that difficult. They're obviously understating things in hopes of stealing more money from the region to support their socialist practices via unsustainable entitlement programs.
In the end, there hasn't been much that has changed to justify the typical ignorant conclusions, and wishful thinking by some, that gold has ended its historical run. It isn't even close to being the case.
The U.S. dollar will continue its collapse in light of the inflationary policies of the Federal Reserve, the euro isn't considered that important any longer by the international community, physical demand for gold continues to rise, and of course, it's still the best place for safety in the turbulent economic times we live in, which are far from turning around at all.
What may happen in the near term with gold is it'll be much more volatile than usual until the decisions - by Asian countries in particular - as to raising their interest rates to combat inflation come about.
That appears to be priced already into the fall in gold prices, although I think the China factor will be the most devastating impact in the near term.
Once that's over with, gold will resume its assent with little in the way to stop it.
Tuesday, November 16, 2010
Gold Correction Drives Yamana Gold (NYSE:AUY), Eldorado Gold (NYSE:EGO), Novagold (AMEX:NG) Down
In what can now safely be identified as a gold correction, the price of gold and gold mining shares has been plunging, and is affecting major gold miners and others like Yamana Gold, Inc. (NYSE:AUY), Eldorado Gold Corp Ltd (NYSE:EGO) Novagold Resources Inc (AMEX:NG).
Today the news driving the gold miners' prices down is primarily the decision by South Korea to raise its interest rates by 25 basis points to 2.50. Also weighing on the market is what other countries in the region may follow suit, especially China.
The other factor is the weakness of the euro from the ongoing sovereign debt debacle in the European Union, which is now highlighted by the probability Ireland will eventually have to be bailed out, and the news from Greece that somehow they understated their deficit. That hints and dishonesty and uncertainty more than anything, which underscores the inability for investors and analysts to know the real condition of the EU, which is in reality fighting to maintain its existence.
This has artificially propped up the U.S. dollar, which has added to the drop in gold prices today.
NovaGold was trading at $13.65, falling $0.53, or 3.74 percent at 2:55 PM EST. Eldorado was at $16.56, losing $0.50, or 2.93 percent. Yamana was down to $11.22, decreasing by $0.24, or 2.09 percent.
Today the news driving the gold miners' prices down is primarily the decision by South Korea to raise its interest rates by 25 basis points to 2.50. Also weighing on the market is what other countries in the region may follow suit, especially China.
The other factor is the weakness of the euro from the ongoing sovereign debt debacle in the European Union, which is now highlighted by the probability Ireland will eventually have to be bailed out, and the news from Greece that somehow they understated their deficit. That hints and dishonesty and uncertainty more than anything, which underscores the inability for investors and analysts to know the real condition of the EU, which is in reality fighting to maintain its existence.
This has artificially propped up the U.S. dollar, which has added to the drop in gold prices today.
NovaGold was trading at $13.65, falling $0.53, or 3.74 percent at 2:55 PM EST. Eldorado was at $16.56, losing $0.50, or 2.93 percent. Yamana was down to $11.22, decreasing by $0.24, or 2.09 percent.
Barrick (NYSE:ABX), Newmont (NYSE:NEM), Goldcorp (NYSE:GG) Pressured Down on Falling Gold Prices
At Everything Gold we like to report on key gold miners whenever there is a major price move in gold prices, and today that's no exception, as gold is getting hammered again, and major gold miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Goldcorp Inc. (NYSE:GG) are all fallng in response.
What is moving gold prices down today are South Korea raising interest rates, Ireland's sovereign debt crisis, and the resultant fall in the euro against the U.S. dollar.
There is also the emergence of the story that other countries like Greece may still be fudging on their deficit numbers, as today they also announced the deficit may be larger than they thought.
That is an old story of dishonesty and/or incompetence. They still refuse to end their socialist and entitlement ways, not willing to admit socialism isn't a sustainable economic system. The EU better learn it quickly and take appropriate action, as bailout after bailout won't work if the existing systems are kept in place, even with the alleged "austerity" measures being put in place.
What austerity measures count if a country like Greece can simply say they miscalculated their deficit? They simply ask for more handouts as a response.
The sovereign debt crisis is worse than being revealed and reported, and every time a bailout is announced, the financial press forgets about it as if the problem is taken care of, while the simmering failure of socialism refuses to be acknowledged.
Consequently the U.S. dollar is being propped up at this time because of this, adding the downward pressure on gold prices. It's not that the U.S. dollar is improving, it's just that the euro is much worse than it is. That will be the case until Ireland receives their bailout, giving the impression economic health and the euro is restored. This will ultimately get worse before it gets better, as it's questionable as to whether or not the announced austerity programs are in fact being followed.
The other element of interest rates will also be an ongoing factor in the rise and fall of gold prices, as every time a country announces they're raising their interest rates, gold prices will surely take a hit, although China announcing it will be much more significant than a smaller Asian country announcing it.
If China raises interest rates, then the price of gold should have the overall impact included in the price, and that will give a better view of where gold will go from there.
It looks like gold miners will also move up and down with gold, which will give investors some headaches, but better price points to get back in. While traders, assuming they're on the right side of the play, could enjoy some major profits on the inevitable huge price swings that could be a way of life for gold in the near term.
What is moving gold prices down today are South Korea raising interest rates, Ireland's sovereign debt crisis, and the resultant fall in the euro against the U.S. dollar.
There is also the emergence of the story that other countries like Greece may still be fudging on their deficit numbers, as today they also announced the deficit may be larger than they thought.
That is an old story of dishonesty and/or incompetence. They still refuse to end their socialist and entitlement ways, not willing to admit socialism isn't a sustainable economic system. The EU better learn it quickly and take appropriate action, as bailout after bailout won't work if the existing systems are kept in place, even with the alleged "austerity" measures being put in place.
What austerity measures count if a country like Greece can simply say they miscalculated their deficit? They simply ask for more handouts as a response.
The sovereign debt crisis is worse than being revealed and reported, and every time a bailout is announced, the financial press forgets about it as if the problem is taken care of, while the simmering failure of socialism refuses to be acknowledged.
Consequently the U.S. dollar is being propped up at this time because of this, adding the downward pressure on gold prices. It's not that the U.S. dollar is improving, it's just that the euro is much worse than it is. That will be the case until Ireland receives their bailout, giving the impression economic health and the euro is restored. This will ultimately get worse before it gets better, as it's questionable as to whether or not the announced austerity programs are in fact being followed.
The other element of interest rates will also be an ongoing factor in the rise and fall of gold prices, as every time a country announces they're raising their interest rates, gold prices will surely take a hit, although China announcing it will be much more significant than a smaller Asian country announcing it.
If China raises interest rates, then the price of gold should have the overall impact included in the price, and that will give a better view of where gold will go from there.
It looks like gold miners will also move up and down with gold, which will give investors some headaches, but better price points to get back in. While traders, assuming they're on the right side of the play, could enjoy some major profits on the inevitable huge price swings that could be a way of life for gold in the near term.
Citigroup (NYSE:C) Recommends Buying Euro when it Drops, Poised to Climb
Saying the euro will roar back to levels it maintained in January 2010, Citigroup (NYSE:C) recommends for investors to buy the currency whenever it falls.
The euro has continued to be under pressure because of the ongoing sovereign debt crisis in Europe, which has never went away, and continues to be under-reported on by the media, as it's largely swept under the rug as to its threat.
Ireland is of course the latest member of the EU to be in danger, and they are being pressed to take a bailout package; something they deny but is assuredly being negotiated behind the scenes.
Greece has also announced their deficit is larger than they projected, and Portugal is also close to seeking aid to pay for its deficits.
This is all an outrage, as the socialist, entitlement culture of Europe is unsustainable, and calls to tax the productive continue to go forth even in light of the total failure of socialist economics.
So far it's the socialist who have demonstrated because they don't believe they should have to be productive and actually work to generate wealth. They want it from some other place. The problem is there is no other place, as there is only so far you can go before you run out of other people's money, as Margaret Thatcher has said in the past.
EU leaders are saying if the Euro fails so will the EU. But who cares? There was Europe far before there was a EU, and they can just start doing business again as sovereign countries rather than the ridiculous unit they've become where most nations break the economic rules and parameters at the expense of the others.
In practice, there is already a failed European Union, and why should the productive, hard-working people of Germany, and a couple of others, have to pay for the entitlement culture of the socialist states and people who believe they are owed these things?
Lately the euro has been getting hammered for these very reasons, but if all the bailouts indeed come, that could reverse the direction of the euro, which is again suffering a confidence crisis.
The member nations of the EU either have to comply with the economic parameters or there's no reason to continue the already flawed experiment.
Citigroup believes the euro will rebound to about $1.45 against the U.S. dollar in 2011.
For gold, this will offer up more support for its ongoing increase in price, although things will be choppy for awhile.
The euro has continued to be under pressure because of the ongoing sovereign debt crisis in Europe, which has never went away, and continues to be under-reported on by the media, as it's largely swept under the rug as to its threat.
Ireland is of course the latest member of the EU to be in danger, and they are being pressed to take a bailout package; something they deny but is assuredly being negotiated behind the scenes.
Greece has also announced their deficit is larger than they projected, and Portugal is also close to seeking aid to pay for its deficits.
This is all an outrage, as the socialist, entitlement culture of Europe is unsustainable, and calls to tax the productive continue to go forth even in light of the total failure of socialist economics.
So far it's the socialist who have demonstrated because they don't believe they should have to be productive and actually work to generate wealth. They want it from some other place. The problem is there is no other place, as there is only so far you can go before you run out of other people's money, as Margaret Thatcher has said in the past.
EU leaders are saying if the Euro fails so will the EU. But who cares? There was Europe far before there was a EU, and they can just start doing business again as sovereign countries rather than the ridiculous unit they've become where most nations break the economic rules and parameters at the expense of the others.
In practice, there is already a failed European Union, and why should the productive, hard-working people of Germany, and a couple of others, have to pay for the entitlement culture of the socialist states and people who believe they are owed these things?
Lately the euro has been getting hammered for these very reasons, but if all the bailouts indeed come, that could reverse the direction of the euro, which is again suffering a confidence crisis.
The member nations of the EU either have to comply with the economic parameters or there's no reason to continue the already flawed experiment.
Citigroup believes the euro will rebound to about $1.45 against the U.S. dollar in 2011.
For gold, this will offer up more support for its ongoing increase in price, although things will be choppy for awhile.
Coeur d'Alene Mines (NYSE:CDE), Goldcorp (NYSE:GG), Pan American (Nasdaq:PAAS) Drop
The rising price of gold and silver futures wasn't enough to help miners like Coeur d'Alene Mines (NYSE:CDE), Goldcorp (NYSE:GG) and Pan American Silver (Nasdaq:PAAS), as many gold and silver companies dropped in conjunction with spot prices.
Gold futures for December delivery settled up $3 to $1,368.50 an ounce at the Comex division of the New York Mercantile Exchange.
Silver for December delivery rose 58 cents, or 0.2%, to $26.09 an ounce.
The U.S. dollar index was stronger Monday, rising to $78.43, a gain of 0.45 percent. The euro fell to $1.36 against the dollar.
Pan American Silver closed Monday at $35.89, falling $0.89, or 2.42 percent. Goldcorp ended at $45.93, losing $0.51, or 1.10 percent. Coeur d'Alene Mines ended the trading day at $22.82, dropping $0.14, or 0.61 percent.
Gold futures for December delivery settled up $3 to $1,368.50 an ounce at the Comex division of the New York Mercantile Exchange.
Silver for December delivery rose 58 cents, or 0.2%, to $26.09 an ounce.
The U.S. dollar index was stronger Monday, rising to $78.43, a gain of 0.45 percent. The euro fell to $1.36 against the dollar.
Pan American Silver closed Monday at $35.89, falling $0.89, or 2.42 percent. Goldcorp ended at $45.93, losing $0.51, or 1.10 percent. Coeur d'Alene Mines ended the trading day at $22.82, dropping $0.14, or 0.61 percent.
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