Thoughts on Markets

Thursday, June 03, 2010

Currencies - Miners - Gold - Silver - Yaun - Euro

Looks to me as though the boyz are at it again in NY Trading for both of our metals.


Gold a ‘Good Choice’ for Boosting Global Use of Yuan

May 28 (Bloomberg) -- China’s trade in yuan-denominated gold investment products moves the currency closer toward global acceptance and the country should develop more of them, a central bank official said.
Pricing commodities in the currency “helps China’s goal to internationalize the yuan,” Wang Zhenying, deputy director- general of the Department of Financial Management at the Shanghai office of the People’s Bank of China, said today. “Gold is a good choice to have yuan trading.” Read it HERE.


Gold could fall below $1000 by year end - Natixis

While there are some good reasons to hold gold at the moment, many of the drivers behind gold's strong, decade-long run look like they have begun to turn.

Safe haven buying of gold continues apace as investors continue to worry about the state of the global economy.
But, according to Nic Brown, head of commodities research at Natixis, many of the factors that have driven the yellow metal's significant rise over the last nine years have begun to turn. And, as a result the price of gold is likely to fall below $1,000, in the short to medium term, possibly as soon as year end. Read it HERE.

While I do not agree with this prognosis, it is important for us to see both sides of the gold picture. This is an interesting read, and I recommend you peruse it carefully.


South African gold output falls hard

Allan Seccombe | Wed, 02 Jun 2010 11:27
IN an all too familiar announcement in recent years, the South African Chamber of Mines reported the country's first quarter gold production fell 15% quarter-on-quarter, extending the downward slide in output. South Africa has fallen quickly from the top of the perch as the world's largest gold producer. It is now behind China, the United States and Australia. Its mines are becoming deeper and more expensive to mine and grades, which is the measurement of the amount of gold in each tonne of ore hauled to the surface for treatment, is dropping. Read it HERE.


NY Nearly Goes Broke Again, Delays Paying Bills 

New York state delayed paying $2.5 billion of bills as a short-term way of staying solvent but its cash crunch could get even worse in August and September, Budget Director Robert Megna said on Tuesday. Read it HERE. 


Why a 'new euro' could be the saviour of the European dream

Well, among market participants – the politicians will not countenance it, despite the tectonic shifts in theeurozone and the profound strains on the single currency.

Put simply, the authorities' view is that the euro must be retained – not only for the survival of governments and financial institutions, but also to keep intact the dream of a United States of Europe. So central is the currency to the ideal of the single economic bloc – an economy to compete with the US and Asia's emerging titans – that the notion the euro could fail is a great unmentionable in these circles. Read it HERE.

Now, there is an interesting idea. Will it happen? I doubt it, but only God knows the future.

From  The Daily Pfennig: "Tomorrow is the Big Kahuna for data, with it being a Jobs Jamboree Friday... Right now, it looks like the BIG CHUNK of census workers were hired or rehired (from last week's note about the census workers blowing the whistle) to the tune of over 500,000... I see where the BLS is going to split up the Gov't workers from the private sector to make it easier for us... The private sector is forecast to have created 178,000 jobs in May... Which would be pretty darn good, eh? Of course we don't get a forecast of how many "ghost jobs' the BLS will add!

Speaking of private and public hiring... There's a huge discrepancy going on these days folks... Gov't workers (public) are making a large chunk of payroll, that's more than what's getting shelled out in the private sector... According to a 2009 CATO Institute study the average federal civilian salary with benefits totals $119,982 compared to $59,909 for the average private sector worker...

I thought that those people worked for us? Is that not right? It sure doesn't look that way to me! And... Think about that for a minute... The Deficit just keeps getting added on to, eh?"


Stocks Rally, Bonds Fall, Ethics Questioned

Equity markets are set to open higher this morning while treasuries are little changed. Pending Home Sales data is set to be released at 10:00 AM EDT. The street is forecasting more modest gains than indicated by last month's data. The street is focused on employment data set to be released tomorrow and Friday. Tomorrow we have Jobless Claims and ADP Employment. Friday brings Nonfarm Payrolls and the Unemployment Rate. Read it HERE.


“There is nothing to fear except the persistent refusal to find out the truth, the persistent refusal to analyze the cause of happening.” —Dorothy Thompson
There is absolutely no need for military conquest. Changing human liberty to fascism is done gradually… even if it takes 100 years. Here’s how: Read it HERE.

Here are the miners from

Here are the currencies from
Some prices at 1 pm Central Time: BYDDF 8.50; FVITF 1.99; EXGMF 2.6722; BULM 0.426; Gold off 15.50 to 1208.50; Silver off 0.39 to 17.96; DOW off 41 to 10208.

God has everything in His hands. What a relief, we do not have to control all. Remember He even counts the hairs that fall from our heads and the Sparrows that fall. 

Best to each, Doug



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