Thursday, January 26, 2006
Silver Bucks Gold, Miners Upgraded
More volatility in the futures market today. "Gold futures fell Thursday, giving back much of nearly 1% gain they saw in the previous session, but prices were still trading above the session's worst level. 'Despite the continuing consolidation, there are few gold sellers,' said Julian Phillips, an analyst at GoldForecaster.com. 'Any pullback is already bringing buyers.'"
"Gold for February delivery fell to a low of $554.40 an ounce on the New York Mercantile Exchange. It was last at $557.70, down $4.80. Analysts remained upbeat about the metal's overall outlook despite gold's occasion pull backs. 'With..a lot of talk about new commodity funds getting involved in the metals, we have to think that the trend in gold will continue to point to the upside,' Nell Sloane. In the near term, she sees the $566 level as a 'critical pivot point, with close-in resistance seen at $570.'"
"Most other metals prices on the exchange pulled back along with gold after Wednesday's broad market strength, but silver managed to reach another 18-year high."
"Gold Fields Ltd. (GFI) saw its share rise 1% to $21.65. The South African miner said second-quarter earnings, which exclude special items, rose to $40 million from $11 million a year ago on higher production, lower expenses and strong gold prices. 'As expected, Gold Fields posted a strong December quarter with, in particular, the South African operations delivering a healthy 8% improvement in production, while maintaining a strong grip on costs as evidenced by a 4% decline in total cash costs,' CEO Ian Cockerill said in a statement."
"Shares in London-listed diversified resources groups Anglo American (AGL) and BHP Billiton (BIL) roared to record highs on Thursday morning after positive rating news from JP Morgan boosted the stocks in London. A weaker rand gave them added impetus locally. The rand was bid at 6.08 per dollar, around four cents weaker than its level at Wednesday's close on the JSE."
"In a research note, JP Morgan upped Anglo to 'neutral' from 'underweight' and reiterated its overweight rating on Billiton. Xstrata was upgraded to 'overweight' from 'neutral', while Rio Tinto was downgraded to 'neutral' from overweight'. JP Morgan said that it had reviewed the potential for each company to re-invest the considerable cash it expects to result from this period of strong commodity prices."
"As a result, it believed Xstrata and Billiton had the biggest upside potential from current levels, at 32% and 5% respectively, AFX reported."
"Gold for February delivery fell to a low of $554.40 an ounce on the New York Mercantile Exchange. It was last at $557.70, down $4.80. Analysts remained upbeat about the metal's overall outlook despite gold's occasion pull backs. 'With..a lot of talk about new commodity funds getting involved in the metals, we have to think that the trend in gold will continue to point to the upside,' Nell Sloane. In the near term, she sees the $566 level as a 'critical pivot point, with close-in resistance seen at $570.'"
"Most other metals prices on the exchange pulled back along with gold after Wednesday's broad market strength, but silver managed to reach another 18-year high."
"Gold Fields Ltd. (GFI) saw its share rise 1% to $21.65. The South African miner said second-quarter earnings, which exclude special items, rose to $40 million from $11 million a year ago on higher production, lower expenses and strong gold prices. 'As expected, Gold Fields posted a strong December quarter with, in particular, the South African operations delivering a healthy 8% improvement in production, while maintaining a strong grip on costs as evidenced by a 4% decline in total cash costs,' CEO Ian Cockerill said in a statement."
"Shares in London-listed diversified resources groups Anglo American (AGL) and BHP Billiton (BIL) roared to record highs on Thursday morning after positive rating news from JP Morgan boosted the stocks in London. A weaker rand gave them added impetus locally. The rand was bid at 6.08 per dollar, around four cents weaker than its level at Wednesday's close on the JSE."
"In a research note, JP Morgan upped Anglo to 'neutral' from 'underweight' and reiterated its overweight rating on Billiton. Xstrata was upgraded to 'overweight' from 'neutral', while Rio Tinto was downgraded to 'neutral' from overweight'. JP Morgan said that it had reviewed the potential for each company to re-invest the considerable cash it expects to result from this period of strong commodity prices."
"As a result, it believed Xstrata and Billiton had the biggest upside potential from current levels, at 32% and 5% respectively, AFX reported."
# posted by Ben Jones @ 10:38 AM 
Comments:
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I forgot, here is an interesting article about the silver/oil ratio.
Silver/Oil Ratio Extremes
hey ben, I read that the grains are at an all-time low, maybe you should start a grains blog? hahah.
Silver/Oil Ratio Extremes
hey ben, I read that the grains are at an all-time low, maybe you should start a grains blog? hahah.
john_the_law_ii said:
"maybe you should start a grains blog?"
With all due respects to Mike Nichols:
Just one word Benjamin: Soybeans!
Great future as a diesel additive
"maybe you should start a grains blog?"
With all due respects to Mike Nichols:
Just one word Benjamin: Soybeans!
Great future as a diesel additive
Just where is that "Silver ETF" anyway? I remember hearing it was around the corner. Any news on when (if) it's launching? (And what the ticker might be?)
TIA
Sohonyc
TIA
Sohonyc
LV_CPA thanks for the link. The fear of silver shortage for users because investors would tie it up reminded me of story which links, silver gold and uranium. During WW II the Manhattan project had need for 10,000 tons of copper to make giant electromagnetic separators to process uranium. When there was no copper to spare (pennies were made out of zinc and steel), they "borrowed" more than 10,000 tons of silver from the US Treasury and melted it down to wire for the magnets in the separation processing. Of course back then, the mint used silver for regular coinage and so the terasury stockpiled it. Anybody know if the treasury still has large holdings of silver.?
That's great the silver ETF is coming along. SLW has been boosting up. I wonder what the stock price will go to if SLV is approved.
It's FXE.
This is the only currency ETF available (brand new). I'm sure they are in the works for more. You can track any ETF symbol just like a stock symbol.
Austin Yankee: You should also ask where the silver will go before SLV hits the market too because Barclay has to acquire 130 million ounces of silver before the ETF is public!
This is the only currency ETF available (brand new). I'm sure they are in the works for more. You can track any ETF symbol just like a stock symbol.
Austin Yankee: You should also ask where the silver will go before SLV hits the market too because Barclay has to acquire 130 million ounces of silver before the ETF is public!
Yeah, just because inflation does go up, doesn't mean your employer is going to give you a raise. It might work better on macro/gov't levels, but it will hurt peons.
I've read that the Treasury melted down all their silver for production of Silver Eagles. Now they're buying on the market for production.
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