Friday, February 17, 2006
Markets Turn To Gold For Safe-Haven
Political events have given a new boost to gold. "Gold futures closed higher Friday on safe-haven buying amid a fresh threat of violence in Nigeria and Iran's continued defiance of calls to stop its uranium-enrichment program. The metal also found support from data showing a bigger-than-expected rise in wholesale inflation in January."
"Gold for April delivery closed up $5.80 at $554.60 an ounce, its highest level since Feb. 9. After a volatile week, the contract managed to eke out a 0.2% gain from last Friday. A Nigerian group has threatened 'total war' against foreign oil companies operating in that country, according to the BBC."
"Meanwhile, tensions surrounding Iran's nuclear research program are growing ahead of a meeting with Russia scheduled for Monday. The talks will focus on a Russian offer to allow Iran to enrich uranium within Russia. 'The gold market has been looking for more uncertainty and we are seeing it this morning,' said Kevin Kerr. Investors are looking at gold as more of a buying opportunity after its steep decline than a commodity preparing to crash, 'and this is prudent,' he said."
"'After all nothing has fundamentally changed for gold and now technically we have had the correction we needed to see and new buying can pour back in.'"
"Peter Grandich agreed that the bull market is intact. 'Hard as it would be to take it, gold could fall to the high 400s and still not have violated the bull run. But have no fear; I don't think we'll get even close to that.'"
"Other metals were also on the rise Friday. March silver futures ended up 5 cents at $9.42 an ounce. Platinum was up $3.40 at $1,011 an ounce and sister metal palladium rose $11.55 to $288.75 an ounce."
And a platinum miner had a good day. "U.K.-based platinum miner Lonmin PLC soared as much as 34% on Friday after the company said it's had talks on a prospective buyout. Lonmin (UK:LMI), the world's third-largest platinum miner, didn't identify the bidder and stressed that talks were 'very preliminary.'"
"But Lonmin, a component of the FTSE 250 mid-cap index, soared as investors bet that the talks would succeed. The shares ended up nearly 25% higher, and the bid lifted other mining stocks in London as well. Speculation over which companies might be in talks to buy Lonmin included Xstrata (UK:XTA). Anglo American (AAUK) and Goldfields (GFI) also are possible bidders for the company, analysts said."
"Gold for April delivery closed up $5.80 at $554.60 an ounce, its highest level since Feb. 9. After a volatile week, the contract managed to eke out a 0.2% gain from last Friday. A Nigerian group has threatened 'total war' against foreign oil companies operating in that country, according to the BBC."
"Meanwhile, tensions surrounding Iran's nuclear research program are growing ahead of a meeting with Russia scheduled for Monday. The talks will focus on a Russian offer to allow Iran to enrich uranium within Russia. 'The gold market has been looking for more uncertainty and we are seeing it this morning,' said Kevin Kerr. Investors are looking at gold as more of a buying opportunity after its steep decline than a commodity preparing to crash, 'and this is prudent,' he said."
"'After all nothing has fundamentally changed for gold and now technically we have had the correction we needed to see and new buying can pour back in.'"
"Peter Grandich agreed that the bull market is intact. 'Hard as it would be to take it, gold could fall to the high 400s and still not have violated the bull run. But have no fear; I don't think we'll get even close to that.'"
"Other metals were also on the rise Friday. March silver futures ended up 5 cents at $9.42 an ounce. Platinum was up $3.40 at $1,011 an ounce and sister metal palladium rose $11.55 to $288.75 an ounce."
And a platinum miner had a good day. "U.K.-based platinum miner Lonmin PLC soared as much as 34% on Friday after the company said it's had talks on a prospective buyout. Lonmin (UK:LMI), the world's third-largest platinum miner, didn't identify the bidder and stressed that talks were 'very preliminary.'"
"But Lonmin, a component of the FTSE 250 mid-cap index, soared as investors bet that the talks would succeed. The shares ended up nearly 25% higher, and the bid lifted other mining stocks in London as well. Speculation over which companies might be in talks to buy Lonmin included Xstrata (UK:XTA). Anglo American (AAUK) and Goldfields (GFI) also are possible bidders for the company, analysts said."
# posted by Ben Jones @ 12:40 PM 
Comments:
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I knew an engineer that had to be air-rescued from a mob in Nigeria. He said the entire region is a powder-keg. They have lots of oil, but the locals feel like the multinationals are stealing it.
wmbz,
Great stuff! Have to research that solder usage...
You know, as Morgan pointed out in that recent presentation, this typifies the common industrial uses of silver. Tiny amounts individually that add up to huge amounts overall, none of it realistically recoverable.
BTW, here's a cut from a promo piece at DailyReckoning...
That's what former CIA Director Robert Gates said about the imminent nightmare economy his team of analysts foresaw at this recent series of oil strategy exercises, caused by just three minor disturbances in the already overtaxed world oil flow...
What are these "disturbances," you're asking? A trio of very likely events plotted by a team of former oil industry executives and government officials - including Rand Beers, the White House counterterrorism expert who resigned in 2003 to protest the Iraq war. They are:
1) Ethnic unrest in Nigeria (12th in world oil production, 11th in reserves) causes a slowdown in that African nation's petroleum industry.
2) Al Qaeda attacks an oil terminal in Valdez, Alaska, and a natural gas facility in the Middle East. (Think this can't happen? It already has - see below)
3) The stepped-up aggression from terrorists spurs a mass exodus of skilled Western petroleum industry workers from Saudi Arabia.
Great stuff! Have to research that solder usage...
You know, as Morgan pointed out in that recent presentation, this typifies the common industrial uses of silver. Tiny amounts individually that add up to huge amounts overall, none of it realistically recoverable.
BTW, here's a cut from a promo piece at DailyReckoning...
That's what former CIA Director Robert Gates said about the imminent nightmare economy his team of analysts foresaw at this recent series of oil strategy exercises, caused by just three minor disturbances in the already overtaxed world oil flow...
What are these "disturbances," you're asking? A trio of very likely events plotted by a team of former oil industry executives and government officials - including Rand Beers, the White House counterterrorism expert who resigned in 2003 to protest the Iraq war. They are:
1) Ethnic unrest in Nigeria (12th in world oil production, 11th in reserves) causes a slowdown in that African nation's petroleum industry.
2) Al Qaeda attacks an oil terminal in Valdez, Alaska, and a natural gas facility in the Middle East. (Think this can't happen? It already has - see below)
3) The stepped-up aggression from terrorists spurs a mass exodus of skilled Western petroleum industry workers from Saudi Arabia.
Mike C.
I did a post on that a while back. IMO, a person should find a sell source before they buy. Start with the yellow pages and call about 5 dealers. Ask the price they are willing to pay that day and compare. Most will give you a number related to spot.
Don't assume the outfit that sells to you will buy. Many will not.
Also, don't limit your inquiries to one area. The best price may be in the next town. Just figure out drive times and see if it's worth it.
Maybe some readers who have sold recently can add to this.
I did a post on that a while back. IMO, a person should find a sell source before they buy. Start with the yellow pages and call about 5 dealers. Ask the price they are willing to pay that day and compare. Most will give you a number related to spot.
Don't assume the outfit that sells to you will buy. Many will not.
Also, don't limit your inquiries to one area. The best price may be in the next town. Just figure out drive times and see if it's worth it.
Maybe some readers who have sold recently can add to this.
Mike,
I only buy from volume dealers that post buy & sell prices daily. These places will also trade, too. We have several around L.A.; a little legwork should find you one in Chicago.
PMs will always have value, so even if you missed the top you'll still get something for them. As it is, we're just transitioning into stage 2 now, so we're not even close to thinking about a top.
I only buy from volume dealers that post buy & sell prices daily. These places will also trade, too. We have several around L.A.; a little legwork should find you one in Chicago.
PMs will always have value, so even if you missed the top you'll still get something for them. As it is, we're just transitioning into stage 2 now, so we're not even close to thinking about a top.
Mike,
Just found this with a quick Google search:
http://www.chicagocoin.com/bullion.htm
I'm sure you can easily find more.
Just found this with a quick Google search:
http://www.chicagocoin.com/bullion.htm
I'm sure you can easily find more.
thejdog,
I'm a "Peak Oil" believer.
Way back in high school I wrote a paper for the topic "The New International Economic Order". I chose Middle Eastern oil as my theme. Everything happening now rings true to my early research. Scary deja vu, you know?
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I'm a "Peak Oil" believer.
Way back in high school I wrote a paper for the topic "The New International Economic Order". I chose Middle Eastern oil as my theme. Everything happening now rings true to my early research. Scary deja vu, you know?
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