Gold - a torrent of news China, Barrick etc. 2009-09-09+
Wednesday 9th September 2009. 09/09/09 09:09:09 hrs onward:
1. China may default on some derivatives contracts, especially in oil.
China threatens to default on oil derivatives trades - BloggingStocks ,
WRAPUP 1-US commodities rattled by China derivatives stance ...
2. China has suggested in a government broadcast to its people that they buy gold and silver.
China pushes silver and gold investment to the masses
3. Hong Kong has let it be known that it wants its sovereign gold to be brought from London to a new high security vault at Hong Kong airport. The gold might be used as a backing for the Shanghai Metals Exchange.
Hong Kong recalls gold reserves from London - MarketWatch ,
4. Barrick is buing back its hedge book, apparently in a big hurry:
Barrick to sell $3 billion in stock to buy back hedges Reuters ,
Why Barrick reversed its gold-hedging strategy (Globe & Mail),
Has Barrick Been Barricked By The U.S.? by Antal Fekete.
5. The gold and silver COT (Commitment of Traders) are showing more or less record commercial short positions, usually the sign of an interim top. The above events may possibly influence the price to the upside, so is a commercial signal failure followed by a large upward spike in gold due to short covering (a short squeeze) possible? Hear Ted Butler on King World News and John Rubino on www.Howe Street.com.
Ted Butler September 12th: Ted Butler on the Metals Market
John Rubino on Howestreet: Gold Roundup *AUDIO*
Also on Goldseek: COT Gold, Silver and US Dollar Index Report - Septemer 11, 2009.
6. Jim Dines has suggested on King World News that Rare Earth elements are going to be in a super-bull market.
7. Rick Rule on King World News acknowledges that a bull market in 'alternative' energy is very likely but he sees geothermal and hydro as being the two that are viable in the free market without government subsidies.
8. NOW A BULLISH VIEW: Dave Skarica on Howestreet thinks that it's a A Bullish End To A Wild Week *AUDIO* and he thinks that gold has had its breakout with the gold stocks breaking out too. See his charts in an Acrobat Reader .pdf file next to the broadcast link. He can really talk! Very interesting. 'NG-AU-AG-HUI all had a strong week Click for Dave's charts.'
As an aside to this but highly important for the future, will China allow their Yuan currency to appreciate against the US dollar? In other words a dollar devaluation with respect to Asian currencies. Marc Faber thinks so on goldseek.com this weekend.
Dr. Marc Faber & Chris Waltzek on their useful 'nuggets' page to bookmark:
Also, see Mish Mike Shedlock's article
and the often fascinating LEAP article with a highly European perspective:
Happy reading! I am going to try to post relevant links most weeks in a post like this, especially if we get a big move in gold.
By the way, Bob Hoye on http://www.howestreet.com/ expects that gold and silver prices have had a good run but that it may come to an end with the gold:silver ratio going up again as silver and other commodities fall relative to gold in another deleveraging this autumn. Dr. Marc Faber & Chris Waltzek discussion has Marc Faber saying that he thinks there is a bit too much enthusiasm for gold right now at $1000 to make this the big move in gold. Dave Morgan on http://www.financialsense.com/fsn/main.html newshour 12 September 2009 first section says he thinks that maybe this might not be the last ever chance to get gold under $1000 for similar reasons.
That's it for this weekend!