Thursday, April 27, 2006
Precious Metals Up On 'China Move'
Reuters on what's moving the markets. "Metals and other commodities retreated from their highs Thursday after China upped interest rates to check its economic growth. Precious metals trading was choppy as the Chinese move played off against roaring physical demand for gold in India and the regulatory approval of a long-awaited silver exchange-traded fund from Barclays Global Investors."
"Silver for July delivery rose 9.1 cents to $13.03 per ounce, trading in a wide range of $12.3150 to $13.25. Nearby May silver was up 9.5 cents at $12.91. June gold gained $2.50 to $644.50 an ounce, dealing between $627 and a session peak of $646.20."
And some little known info on one Arab state. "Due to higher oil revenues, impressive growth in non-oil exports and favorable macroeconomic conditions, the net foreign assets held by Saudi Arabian Monetary Agency, autonomous government institutions and local commercial banks increased by 42.9 percent to SR752.8 billion in 2005."
"Following sharp increases in oil prices since 2001, Saudi Arabia began registering substantial surpluses in the balance of payments over the last few years. This has enabled the Kingdom to hold higher levels of foreign reserves, accelerating to reach SR851.8 billion in 2005."
"Economist Dr. Said Al-Shaikh said, 'The high level of foreign exchange reserves has enforced the stability of the riyal exchange rate. At the end of 2005, every SR100 in money supply (M3) was backed by SR138 in the official and banks’ net foreign assets. This ratio further improved to SR141 in January 2006, an impressive cover which a few countries are currently enjoying worldwide.'"
"The Kingdom’s regulations require that each riyal of currency issued by SAMA must be backed by an equivalent amount of foreign currency or gold."
"Silver for July delivery rose 9.1 cents to $13.03 per ounce, trading in a wide range of $12.3150 to $13.25. Nearby May silver was up 9.5 cents at $12.91. June gold gained $2.50 to $644.50 an ounce, dealing between $627 and a session peak of $646.20."
And some little known info on one Arab state. "Due to higher oil revenues, impressive growth in non-oil exports and favorable macroeconomic conditions, the net foreign assets held by Saudi Arabian Monetary Agency, autonomous government institutions and local commercial banks increased by 42.9 percent to SR752.8 billion in 2005."
"Following sharp increases in oil prices since 2001, Saudi Arabia began registering substantial surpluses in the balance of payments over the last few years. This has enabled the Kingdom to hold higher levels of foreign reserves, accelerating to reach SR851.8 billion in 2005."
"Economist Dr. Said Al-Shaikh said, 'The high level of foreign exchange reserves has enforced the stability of the riyal exchange rate. At the end of 2005, every SR100 in money supply (M3) was backed by SR138 in the official and banks’ net foreign assets. This ratio further improved to SR141 in January 2006, an impressive cover which a few countries are currently enjoying worldwide.'"
"The Kingdom’s regulations require that each riyal of currency issued by SAMA must be backed by an equivalent amount of foreign currency or gold."
# posted by Ben Jones @ 2:18 PM 
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PMs did great today. I cant believe SLV shot up like a rocket to $138.00. I am torn on this stock being a good investment vehicle. Has anyone else bought in today?
I agree, people in general are still fixcated on RE. Since spring is in full swing now, sellers think the market is going to come back this summer....on the flip side - our friends and family for the time being, are not interested at all in gold because its too "volatile". Before we know it, everyone will want "in" all at the same time. It's just a matter of time. :)
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