www.isramart.com
Gold advances today after opening the session, extending the gains recorded yesterday but still, the metal is volatile and fluctuating heavily ahead of the inflation data from the euro zone in addition to the unemployment figures, with mixed expectations and sentiment in the market, as this week comes to an end.
The yellow metal opened the Asian session today at $1614.47 per ounce, and recorded the highest at $1640.15 and the lowest at $1613.72, and is currently hovering around $1627.65 per ounce
The shiny metal traded heavily yesterday, as volatility dominated the market amid major fundamentals released. The closely watched major fundamentals yesterday were the German unemployment rate, U.S gross domestic product figures and finally jobless rate from Japan.
From the euro area the critical inflation data will be the flash CPI estimate for September which is expected to hold at 2.5% yet after German inflation unexpectedly rallied to 2.8% in harmonized terms maybe a drop in inflation is ruled out for the euro area.
In general, the shiny metal eased from the highest level as lawmakers in Europe recognized the consequences of a Greek default on the zone as a whole and on individual members and started to take further and more serious steps and actions not only to prevent the crisis from expanding, but also to overcome the crisis once and for all.
The shiny metal could ease further once the debt crisis is over in Europe, which will have a deep impact on the world as a whole, where the crisis has always forced downside pressures on growth and affected the pace of recovery negatively.
On the other hand, gold could trade higher by the end of this year in case European efforts failed to quell jitters over the general sentiment in the zone, where low confidence and volatility along with heavy fluctuations in the market could provide more demand of the yellow metal, especially when the world's largest economy is also suffering from the global downturn and U.K are heading towards stagflation.
Silver also advanced today extending the gains recorded in the past session, where after opening the session at $30.50 per ounce, the metal set the highest at $31.27 and the lowest at $30.43, and is currently trading around $30.79 per ounce.
Among other precious metals, Platinum also gained after the opening of $1521.30 per ounce, to currently trade around $1544.00. The metal recorded a high of $1513.30 and a low of $1522.50 per ounce.
As this week comes to an end, September also comes to an end, while the yellow metal heads for the biggest monthly losses since 2008, after setting all-time record during the month at $1923.00 per ounce.
Friday, September 30, 2011
Isra-Mart srl: Gold may rebound ahead of Indian festival demand
www.isramart.com
MCX Gold futures traded low volatility and settle upside by more than 0.26 percent to 25740 rupees. U.S. labor data showing signs of improvement kept precious metals in a tight trading range.
Gold jumped more than 1 percent on Friday after Germany approved the expansion of the euro zone bailout fund, offering temporary relief to investors, but still precious metal was heading for its worst monthly decline in last three years.
Buying interest is still strong and people are rushing to stock up a bit before the holiday in China. There's also Indian buying because of the wedding season. Demand expected to remain moderately high due to Navratri and Diwali in month of October. Gold prices may rebound ahead of physical buying in Indian market.
MCX Gold futures traded low volatility and settle upside by more than 0.26 percent to 25740 rupees. U.S. labor data showing signs of improvement kept precious metals in a tight trading range.
Gold jumped more than 1 percent on Friday after Germany approved the expansion of the euro zone bailout fund, offering temporary relief to investors, but still precious metal was heading for its worst monthly decline in last three years.
Buying interest is still strong and people are rushing to stock up a bit before the holiday in China. There's also Indian buying because of the wedding season. Demand expected to remain moderately high due to Navratri and Diwali in month of October. Gold prices may rebound ahead of physical buying in Indian market.
Isra-Mart srl: Mining stocks continue to fall
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Mining stocks continued to fall on Friday as the underlying pessimism about the global economic outlook continued to weigh on sentiment, even as industrial metals prices held steady.
Trading of base metals was light ahead of London Metal Exchange week, which starts on Monday, and copper for three month delivery on the LME was trading up 0.2 per cent at $7,190 per tonne and aluminium rose 0.5 per cent to $2,254 in European midday trading.
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However, miners failed to shake off the weakness, with BHP Billiton, the leading mining firm, down 2.1 per cent to £17.28, Rio Tinto sliding 2.1 per cent to £29.05 and Anglo American losing 3.2 per cent to £22.19. Glencore, the trading house fell below 400p, down 2.4 per cent to 399.45p.
Some analysts believe that with steel equities falling over the past few days, pricing in a sharp downturn, bulk commodities, such as iron ore whose prices have held up, could follow stocks downwards. “If demand falls off then iron ore will not hold up,” said Credit Suisse in its latest report on steel, metals and mining.
While industrial metals have priced in global growth expectations, analysts said the commodities prices have not priced in the pessimistic view held by equities investors. Nevertheless, some investment banks have been downgrading their metal price forecasts to reflect the weaker demand outlook and collapse in sentiment.
Barclays Capital lowered its 2011 copper price forecast to $8,946 a metric from $10,321 a ton a month ago, adjusting its copper demand growth in 2011 from 3.1 per cent to 1 per cent and that of 2012 from 2.5 per cent to 1 per cent. An easing of interest rates in China would provide a positive boost for prices, there were “very real concerns over the event sin Europe and the implications that will have for export demand,” it said.
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Mining stocks continued to fall on Friday as the underlying pessimism about the global economic outlook continued to weigh on sentiment, even as industrial metals prices held steady.
Trading of base metals was light ahead of London Metal Exchange week, which starts on Monday, and copper for three month delivery on the LME was trading up 0.2 per cent at $7,190 per tonne and aluminium rose 0.5 per cent to $2,254 in European midday trading.
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However, miners failed to shake off the weakness, with BHP Billiton, the leading mining firm, down 2.1 per cent to £17.28, Rio Tinto sliding 2.1 per cent to £29.05 and Anglo American losing 3.2 per cent to £22.19. Glencore, the trading house fell below 400p, down 2.4 per cent to 399.45p.
Some analysts believe that with steel equities falling over the past few days, pricing in a sharp downturn, bulk commodities, such as iron ore whose prices have held up, could follow stocks downwards. “If demand falls off then iron ore will not hold up,” said Credit Suisse in its latest report on steel, metals and mining.
While industrial metals have priced in global growth expectations, analysts said the commodities prices have not priced in the pessimistic view held by equities investors. Nevertheless, some investment banks have been downgrading their metal price forecasts to reflect the weaker demand outlook and collapse in sentiment.
Barclays Capital lowered its 2011 copper price forecast to $8,946 a metric from $10,321 a ton a month ago, adjusting its copper demand growth in 2011 from 3.1 per cent to 1 per cent and that of 2012 from 2.5 per cent to 1 per cent. An easing of interest rates in China would provide a positive boost for prices, there were “very real concerns over the event sin Europe and the implications that will have for export demand,” it said.
Isra-Mart srl: Gold Slides More Than Comex Margins as Investors Cover Losses
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Gold fell for a fourth day and slid below $1,600 an ounce, while silver erased its gains this year, as some investors sold the metals to cover losses in other assets. Bullion futures dropped more than margin requirements for a second consecutive day.
The euro slumped to an eight-month low versus the dollar on concern European policy makers are struggling to resolve the debt crisis as the region's economy slows. Commodities touched the lowest level since December and global equities were near the lowest in more than year. The value of a 100-ounce futures contract traded in New York dropped $10,190 on Sept. 23, more than the $9,450 margin requirement that day, prompting margin increases.
"Gold is one of the few assets that remain in positive territory this year, in a sense it is one of the last assets standing, and because of this as investors head for cash they sell the assets that have performed," Edel Tully, a London- based analyst at UBS AG, wrote today in a report. "While gold's retracement was not really a surprise, the depth of its plunge certainly was."
Gold for December delivery fell as much as $104.80, or 6.4 percent, to $1,535 an ounce, the lowest since July 8, and was at $1,600.10 by 12:21 p.m. on the Comex in New York. Immediate- delivery gold was 3.1 percent lower at $1,603.72 in London.
Silver for December delivery fell as much as 13 percent to $26.15 an ounce, the lowest price since Nov. 18, and was last at $29.94. It's down 3.2 percent this year after climbing as much as 61 percent when it touched a 31-year high of $49.845 on April 25.
Central Bank Purchases
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. Central banks are adding to reserves for the first time in a generation, joining billionaire investors including John Paulson in hoarding gold.
CME Group Inc. increased the margin requirements on gold and silver trading after prices plunged. The minimum cash deposit for gold futures will rise 21 percent to $11,475 per 100-ounce contract at the close of trading today, CME said on Sept. 23. The minimum cash deposit for silver was raised 16 percent to $24,975. Margin increases may help steady prices, said James Steel, an analyst at HSBC Securities USA Inc.
Failure to combat the Greek-led debt crisis threatened "cascading default, bank runs and catastrophic risk," U.S. Treasury Secretary Timothy F. Geithner warned euro-area leaders at the annual meeting of the International Monetary Fund. German Chancellor Angela Merkel said euro-region leaders must erect a firewall around Greece to prevent contagion.
Next Tranche
Euro-region finance ministers won't be in a position to decide on the disbursement of the next tranche of aid to Greece when they meet on Oct. 3 because a report by the IMF, European Central Bank and European Commission has been delayed, German Deputy Finance Minister Joerg Asmussen said yesterday.
"A rising fear factor coupled with sinking confidence levels should be helping gold, but this isn't happening because of overriding concerns about liquidity, European bank funding and margin calls amid a stronger U.S. dollar," UBS's Tully said. Physical demand and investor buying after recent declines may "point to a floor being nearby," she said.
The Standard & Poor's GSCI Index of 24 commodities declined as much as 2.6 percent today, before rebounding 0.7 percent. The MSCI All-Country World Index of shares has plunged 22 percent since touching this year's high on May 2.
Hedge Funds
Hedge funds and other large speculators trimmed their net- long gold positions by 11 percent to 150,529 contracts in the week to Sept. 20, data from the U.S. Commodity Futures Trading Commission showed. Gold exchange-traded-product holdings fell 0.4 metric ton to 2,235.6 tons on Sept. 23. Assets reached a record 2,298.4 tons on Aug. 8, Bloomberg data show.
The decline in speculative positions "may mean that short- term longs are being cleaned out of the market," said HSBC's Steel. "This could leave bullion well-placed to trade higher when the current selling cycle winds down."
An ounce of gold bought as much as 60.4 ounces of silver in London, the most in almost a year, data compiled by Bloomberg show. That ratio may extend to 70, UBS said. Silver's slump shows it "is not suited as a store of value and is behaving more like an industrial metal," Commerzbank AG analysts wrote today in a report.
Platinum for October delivery slipped as much as 8.5 percent to $1,475.30 an ounce, the lowest since May last year, and was last at $1,551.20. Palladium for December delivery was down 1.5 percent at $632.80 an ounce. It earlier today fell to $605, the lowest level since October.
Gold fell for a fourth day and slid below $1,600 an ounce, while silver erased its gains this year, as some investors sold the metals to cover losses in other assets. Bullion futures dropped more than margin requirements for a second consecutive day.
The euro slumped to an eight-month low versus the dollar on concern European policy makers are struggling to resolve the debt crisis as the region's economy slows. Commodities touched the lowest level since December and global equities were near the lowest in more than year. The value of a 100-ounce futures contract traded in New York dropped $10,190 on Sept. 23, more than the $9,450 margin requirement that day, prompting margin increases.
"Gold is one of the few assets that remain in positive territory this year, in a sense it is one of the last assets standing, and because of this as investors head for cash they sell the assets that have performed," Edel Tully, a London- based analyst at UBS AG, wrote today in a report. "While gold's retracement was not really a surprise, the depth of its plunge certainly was."
Gold for December delivery fell as much as $104.80, or 6.4 percent, to $1,535 an ounce, the lowest since July 8, and was at $1,600.10 by 12:21 p.m. on the Comex in New York. Immediate- delivery gold was 3.1 percent lower at $1,603.72 in London.
Silver for December delivery fell as much as 13 percent to $26.15 an ounce, the lowest price since Nov. 18, and was last at $29.94. It's down 3.2 percent this year after climbing as much as 61 percent when it touched a 31-year high of $49.845 on April 25.
Central Bank Purchases
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. Central banks are adding to reserves for the first time in a generation, joining billionaire investors including John Paulson in hoarding gold.
CME Group Inc. increased the margin requirements on gold and silver trading after prices plunged. The minimum cash deposit for gold futures will rise 21 percent to $11,475 per 100-ounce contract at the close of trading today, CME said on Sept. 23. The minimum cash deposit for silver was raised 16 percent to $24,975. Margin increases may help steady prices, said James Steel, an analyst at HSBC Securities USA Inc.
Failure to combat the Greek-led debt crisis threatened "cascading default, bank runs and catastrophic risk," U.S. Treasury Secretary Timothy F. Geithner warned euro-area leaders at the annual meeting of the International Monetary Fund. German Chancellor Angela Merkel said euro-region leaders must erect a firewall around Greece to prevent contagion.
Next Tranche
Euro-region finance ministers won't be in a position to decide on the disbursement of the next tranche of aid to Greece when they meet on Oct. 3 because a report by the IMF, European Central Bank and European Commission has been delayed, German Deputy Finance Minister Joerg Asmussen said yesterday.
"A rising fear factor coupled with sinking confidence levels should be helping gold, but this isn't happening because of overriding concerns about liquidity, European bank funding and margin calls amid a stronger U.S. dollar," UBS's Tully said. Physical demand and investor buying after recent declines may "point to a floor being nearby," she said.
The Standard & Poor's GSCI Index of 24 commodities declined as much as 2.6 percent today, before rebounding 0.7 percent. The MSCI All-Country World Index of shares has plunged 22 percent since touching this year's high on May 2.
Hedge Funds
Hedge funds and other large speculators trimmed their net- long gold positions by 11 percent to 150,529 contracts in the week to Sept. 20, data from the U.S. Commodity Futures Trading Commission showed. Gold exchange-traded-product holdings fell 0.4 metric ton to 2,235.6 tons on Sept. 23. Assets reached a record 2,298.4 tons on Aug. 8, Bloomberg data show.
The decline in speculative positions "may mean that short- term longs are being cleaned out of the market," said HSBC's Steel. "This could leave bullion well-placed to trade higher when the current selling cycle winds down."
An ounce of gold bought as much as 60.4 ounces of silver in London, the most in almost a year, data compiled by Bloomberg show. That ratio may extend to 70, UBS said. Silver's slump shows it "is not suited as a store of value and is behaving more like an industrial metal," Commerzbank AG analysts wrote today in a report.
Platinum for October delivery slipped as much as 8.5 percent to $1,475.30 an ounce, the lowest since May last year, and was last at $1,551.20. Palladium for December delivery was down 1.5 percent at $632.80 an ounce. It earlier today fell to $605, the lowest level since October.
Isra-Mart srl: Ten potential bidders for the LME
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Next week marks LME Week, the London Metal Exchange’s annual investor relations extravaganza. This year might be busier than usual. The world’s largest metal exchange and host of Europe’s last open outcry trading floor is weighing up a potential sale and has already received at least 10 expressions of interest. Financial News identifies some likely bidders.
Icap
The London-based inter-dealer broker became the first major institution to stick its head above the parapet and express interest in a bid on September 29. “It’s a very interesting business,” chief executive Michael Spencer said on a conference call to global media. “We will do some research and give it some consideration. We will look at it.”
The Icap bid would have the political advantage of keeping base metals trading in London – likely to be popular with both firms’ boards. Icap currently holds 25,000 B shares, according to the LME’s most recent accounts.
• Singapore Exchange
With a cross-listing deal with the LME for metal futures already in place, a full-blown merger would suit the Singaporean bourse’s chief executive Magnus Böcker’s determination to turn SGX into a global commodities powerhouse. A tie-up would also suit the LME’s ambition to attract more business from the far east.
Böcker seems unabashed by his snubbed bid for the Australian Securities Exchange earlier this year; in the firm’s annual report in August said: “Although the proposed ASX-SGX combination did not come to fruition, we are heartened that the transaction raised SGX’s visibility and created new business opportunities.”
An SGX spokeswoman declined to comment.
• London Stock Exchange Group
News this morning that the LSE is considering a joint bid with SGX comes as little surprise. Another bourse smarting from a failed merger this year, an LSE bid would combine the largest global listing venue for commodity trading firms with its largest metals trading platform. A joint move with SGX would combine a London presence with an existing commodities clearing house in Singapore’s AsiaClear.
Ambitious chief executive Xavier Rolet may already have his hands full negotiating a 51% buyout of clearinghouse, LCH.Clearnet, however (though the LME is of course one of LCH’s biggest shareholders).
An LSE spokesman declined to comment.
• InterContinental Exchange Group
Ice’s growth model has always been based on acquisition, since its founding as a small Atlanta-based company in 2000. Through canny acquisitions, it now stands as one of the world’s largest global exchange operators.
The bourse gained a foothold in Europe with the purchase of London’s International Petroleum Exchange in 2001 – another throwback floor-trading market which chief executive Jeff Sprecher took electronic. That gives Ice a similar blueprint for a UK takeover and a movement to to electronic trading – but such a move might not sit too well with the LME’s dominant floor broker membership.
An ICE spokesman declined to comment.
• CME Group
The world's largest futures exchange – and host of the most liquid gold contract on its Comex subsidiary, acquired along with the New York Mercantile Exchange in 2008 – would be a logical bidder.
The bourse lists a range of precious and base metals, and already clears over-the-counter commodity contracts through its London-based clearing house, CME Clearing Europe.
“We don't comment on rumours or speculation,” said a CME Group spokesman.
• Nasdaq OMX Group
Unlikely – but stranger things have happened. Nasdaq are acquisitive and launched an ambitious counterbid for NYSE Euronext earlier this year, in partnership with Ice. They also attempted to buy the LSE during the last great round of exchange consolidation – though the focus of both bids was control of European cash trading.
A Nasdaq spokesman declined to comment.
• NYSE Euronext-Deutsche Börse
Still more unlikely, given the current protracted negotiations the two exchange groups and global regulators over their merger proposal – but senior executives at the group’s Liffe and Eurex derivatives platforms would be salivating at the prospect of adding a large commodities platform to their financial futures arms.
Spokesmen for both bourses declined to comment.
• Bank-led consortium
In the days of heady metals prices and wide margins on commodity contracts, it’s no surprise that the LME’s biggest shareholders should be banks. Goldman Sachs holds the largest stake of any single bank with 6.5%, followed by two other commodity trading powerhouses, UBS (4.1%) and JP Morgan (4.1%, not counting any holding retained through Bear Stearns).
Deutsche Bank, BNP Paribas and Standard Bank, among others, hold smaller stakes, according to the LME’s most recent accounts.
• Management buyout
Potentially a popular alternative to foreign ownership, LME chief executive Martin Abbott has spent long enough in the metals market to garner support for a leveraged buyout – though if valuations near the £1bn mark are accurate, the price may be prohibitive.
Some of the bourse’s shareholders are former executives; Lord Bagri, a former LME chairman, holds an 8.7% stake through his family’s Metdist firm.
• Broker consortium
Given the bourse's arcane structure and lack of direct trading access to users – all trading is done through powerful brokers – some of the bourse’s larger broker-owners may band together, and buy out some of the smaller firms.
Metal and commodity brokers are among the bourse’s largest owners, with firms such as MF Global (4.4%), Newedge (2.8%) and Sucden (2.7%) holding sizable stakes, according to LME accounts.
Next week marks LME Week, the London Metal Exchange’s annual investor relations extravaganza. This year might be busier than usual. The world’s largest metal exchange and host of Europe’s last open outcry trading floor is weighing up a potential sale and has already received at least 10 expressions of interest. Financial News identifies some likely bidders.
Icap
The London-based inter-dealer broker became the first major institution to stick its head above the parapet and express interest in a bid on September 29. “It’s a very interesting business,” chief executive Michael Spencer said on a conference call to global media. “We will do some research and give it some consideration. We will look at it.”
The Icap bid would have the political advantage of keeping base metals trading in London – likely to be popular with both firms’ boards. Icap currently holds 25,000 B shares, according to the LME’s most recent accounts.
• Singapore Exchange
With a cross-listing deal with the LME for metal futures already in place, a full-blown merger would suit the Singaporean bourse’s chief executive Magnus Böcker’s determination to turn SGX into a global commodities powerhouse. A tie-up would also suit the LME’s ambition to attract more business from the far east.
Böcker seems unabashed by his snubbed bid for the Australian Securities Exchange earlier this year; in the firm’s annual report in August said: “Although the proposed ASX-SGX combination did not come to fruition, we are heartened that the transaction raised SGX’s visibility and created new business opportunities.”
An SGX spokeswoman declined to comment.
• London Stock Exchange Group
News this morning that the LSE is considering a joint bid with SGX comes as little surprise. Another bourse smarting from a failed merger this year, an LSE bid would combine the largest global listing venue for commodity trading firms with its largest metals trading platform. A joint move with SGX would combine a London presence with an existing commodities clearing house in Singapore’s AsiaClear.
Ambitious chief executive Xavier Rolet may already have his hands full negotiating a 51% buyout of clearinghouse, LCH.Clearnet, however (though the LME is of course one of LCH’s biggest shareholders).
An LSE spokesman declined to comment.
• InterContinental Exchange Group
Ice’s growth model has always been based on acquisition, since its founding as a small Atlanta-based company in 2000. Through canny acquisitions, it now stands as one of the world’s largest global exchange operators.
The bourse gained a foothold in Europe with the purchase of London’s International Petroleum Exchange in 2001 – another throwback floor-trading market which chief executive Jeff Sprecher took electronic. That gives Ice a similar blueprint for a UK takeover and a movement to to electronic trading – but such a move might not sit too well with the LME’s dominant floor broker membership.
An ICE spokesman declined to comment.
• CME Group
The world's largest futures exchange – and host of the most liquid gold contract on its Comex subsidiary, acquired along with the New York Mercantile Exchange in 2008 – would be a logical bidder.
The bourse lists a range of precious and base metals, and already clears over-the-counter commodity contracts through its London-based clearing house, CME Clearing Europe.
“We don't comment on rumours or speculation,” said a CME Group spokesman.
• Nasdaq OMX Group
Unlikely – but stranger things have happened. Nasdaq are acquisitive and launched an ambitious counterbid for NYSE Euronext earlier this year, in partnership with Ice. They also attempted to buy the LSE during the last great round of exchange consolidation – though the focus of both bids was control of European cash trading.
A Nasdaq spokesman declined to comment.
• NYSE Euronext-Deutsche Börse
Still more unlikely, given the current protracted negotiations the two exchange groups and global regulators over their merger proposal – but senior executives at the group’s Liffe and Eurex derivatives platforms would be salivating at the prospect of adding a large commodities platform to their financial futures arms.
Spokesmen for both bourses declined to comment.
• Bank-led consortium
In the days of heady metals prices and wide margins on commodity contracts, it’s no surprise that the LME’s biggest shareholders should be banks. Goldman Sachs holds the largest stake of any single bank with 6.5%, followed by two other commodity trading powerhouses, UBS (4.1%) and JP Morgan (4.1%, not counting any holding retained through Bear Stearns).
Deutsche Bank, BNP Paribas and Standard Bank, among others, hold smaller stakes, according to the LME’s most recent accounts.
• Management buyout
Potentially a popular alternative to foreign ownership, LME chief executive Martin Abbott has spent long enough in the metals market to garner support for a leveraged buyout – though if valuations near the £1bn mark are accurate, the price may be prohibitive.
Some of the bourse’s shareholders are former executives; Lord Bagri, a former LME chairman, holds an 8.7% stake through his family’s Metdist firm.
• Broker consortium
Given the bourse's arcane structure and lack of direct trading access to users – all trading is done through powerful brokers – some of the bourse’s larger broker-owners may band together, and buy out some of the smaller firms.
Metal and commodity brokers are among the bourse’s largest owners, with firms such as MF Global (4.4%), Newedge (2.8%) and Sucden (2.7%) holding sizable stakes, according to LME accounts.
Thursday, September 8, 2011
Isra-Mart srl: Poland eyes new taxes, stakes in shale gas production
www.isramart.com
Poland plans special regulations for shale gas production including fees or even mandatory participation of the state in output in order to safeguard its budgetary interests, a deputy treasury minister said on Thursday.
Mikolaj Budzanowski said special legislation aimed at keeping gas prices low and securing budgetary inflows could be approved next year.
"Poland's interests could be protected through (special) taxes or fees or the state's stake in gas production from licences," Budzanowski told a seminar during an economic forum in Krynica.
Poland is seen as a prospective market for unconventional gas production with already 90 exploration licenses awarded with the sector's giants like Chevron and ExxonMobil amongst interested parties.
However, the licenses only cover exploration and the companies will have to seek a deal with the government again when they want to switch to production.
On Wednesday gas monopoly PGNiG said it had seen gas flows from one of its shale gas test drills in northern Poland, but added the field's profitability could be estimated in 2012 at the earliest.
Polish media has speculated that large scale production from shale gas could start in five years, earlier than expected.
According to a recent study by the U.S. Energy Information Administration, Poland's technically recoverable reserves of shale gas are the biggest in Europe at an estimated 5.3 trillion cubic metres.
Poland plans special regulations for shale gas production including fees or even mandatory participation of the state in output in order to safeguard its budgetary interests, a deputy treasury minister said on Thursday.
Mikolaj Budzanowski said special legislation aimed at keeping gas prices low and securing budgetary inflows could be approved next year.
"Poland's interests could be protected through (special) taxes or fees or the state's stake in gas production from licences," Budzanowski told a seminar during an economic forum in Krynica.
Poland is seen as a prospective market for unconventional gas production with already 90 exploration licenses awarded with the sector's giants like Chevron and ExxonMobil amongst interested parties.
However, the licenses only cover exploration and the companies will have to seek a deal with the government again when they want to switch to production.
On Wednesday gas monopoly PGNiG said it had seen gas flows from one of its shale gas test drills in northern Poland, but added the field's profitability could be estimated in 2012 at the earliest.
Polish media has speculated that large scale production from shale gas could start in five years, earlier than expected.
According to a recent study by the U.S. Energy Information Administration, Poland's technically recoverable reserves of shale gas are the biggest in Europe at an estimated 5.3 trillion cubic metres.
Isra-Mart srl: Natural gas futures extend gains after U.S. supply data
www.isramart.com
Natural gas futures extended gains on Thursday, re-approaching the USD4.00-level after the U.S. Energy Information Administration said that natural gas inventories rose broadly in line with expectations, while concerns over a disruption to U.S. supplies in the Gulf of Mexico provided further support.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD3.989 per million British thermal units during U.S. morning trade, jumping 1.14%.
The contract traded at USD3.929 prior to the release of the EIA data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 2 rose by 64 billion cubic feet, after increasing by 55 billion cubic feet in the preceding week.
Analysts had expected U.S. natural gas storage to rise by 60 billion cubic feet.
Total U.S. natural gas storage stood at 3.025 trillion cubic feet. Stocks were 131 billion cubic feet less than last year at this time and 60 billion cubic feet below the five-year average of 3.085 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 96 billion cubic feet below the five-year average, following net injections of 58 billion cubic feet.
Stocks in the Producing Region were 34 billion cubic feet above the five-year average of 925 billion cubic feet, after a net injection of 2 billion cubic feet.
In the West Region, stocks were 3 billion cubic feet above the five-year average after a net addition of 4 billion cubic feet.
Natural gas prices found further support after the U.S. National Hurricane Center upgraded a tropical depression to Tropical Storm Maria, the 13th named storm of the 2011 hurricane season. The storm is moving across the Atlantic with sustained winds near 50 miles per hour.
The NHC added that a yet-unnamed storm system could be upgraded to tropical depression during the next 24 hours.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October edged 0.3% higher to trade at USD89.61 a barrel, while heating oil for October shed 0.45% to trade at USD3.061 per gallon.
Natural gas futures extended gains on Thursday, re-approaching the USD4.00-level after the U.S. Energy Information Administration said that natural gas inventories rose broadly in line with expectations, while concerns over a disruption to U.S. supplies in the Gulf of Mexico provided further support.
On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD3.989 per million British thermal units during U.S. morning trade, jumping 1.14%.
The contract traded at USD3.929 prior to the release of the EIA data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 2 rose by 64 billion cubic feet, after increasing by 55 billion cubic feet in the preceding week.
Analysts had expected U.S. natural gas storage to rise by 60 billion cubic feet.
Total U.S. natural gas storage stood at 3.025 trillion cubic feet. Stocks were 131 billion cubic feet less than last year at this time and 60 billion cubic feet below the five-year average of 3.085 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 96 billion cubic feet below the five-year average, following net injections of 58 billion cubic feet.
Stocks in the Producing Region were 34 billion cubic feet above the five-year average of 925 billion cubic feet, after a net injection of 2 billion cubic feet.
In the West Region, stocks were 3 billion cubic feet above the five-year average after a net addition of 4 billion cubic feet.
Natural gas prices found further support after the U.S. National Hurricane Center upgraded a tropical depression to Tropical Storm Maria, the 13th named storm of the 2011 hurricane season. The storm is moving across the Atlantic with sustained winds near 50 miles per hour.
The NHC added that a yet-unnamed storm system could be upgraded to tropical depression during the next 24 hours.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October edged 0.3% higher to trade at USD89.61 a barrel, while heating oil for October shed 0.45% to trade at USD3.061 per gallon.
Isra-Mart srl: Moody’s upgrades Gold Fields’ outlook
www.isramart.com
Moody’s Investor Services has upgraded Gold Fields ’ investment grade rating outlook from stable to positive, the precious metals producer said on Thursday.
Moody’s analyst Soummo Mukherjee said in a note that the change in Gold Fields’ Baa3 rating was mainly prompted by the miner’s continued progress in further diversifying its production and earnings before interest, taxes, depreciation and amortisation (EBITDA) geographically and becoming less dependent on its operations in SA.
According to Moody’s rating system, the Baa3 rating means Gold Fields is subject to moderate credit risk, at the lower end of the rating category. Ratings are an indication of how risky it is to invest in a certain country or share.
Mukherjee said Gold Fields’ presence in the country is exposing the company to above inflation electricity and labour increases, which continue to negatively pressure their operating margins.
"Additionally, the South African mining industry continues to face event risk from increased talks of the government considering nationalising its mines, as well as the threat from lawsuits due to silicosis, a type of lung-disease affecting miners," Mukherjee said.
Gold Fields remained committed to reducing its South African production from 50% to around 40% as it targets 5 million ounces in production or development by 2015.
Mukherjee also said the miner’s current Baa3 rating would likely be upgraded to Baa2 if the company demonstrated an ability to preserve the net debt to EBITDA ratio sustainably below times one and still generate positive free cash flow in a much lower gold price environment. Gold Fields would also have to achieve its cost reduction objectives to earn an upgrade.
"An upgrade would also require continued evidence that its main project, South Deep, continues on track and the company is able to maintain its national cash expenditure margins around 20% and continues to diversify geographically outside of SA," Mukherjee said.
Gold Fields latest quarterly report shows that its notional cash expenditure margin – operating costs plus capital expenditure – was 18% in the June quarter, compared to 9% in the March quarter.
Paul Schmidt, chief financial officer of Gold Fields said: "The change acknowledges Gold Fields’ increasing international diversification, solid operating margins, low financial gearing and conservative financial policy as well as our robust cash flow generation."
Moody’s Investor Services has upgraded Gold Fields ’ investment grade rating outlook from stable to positive, the precious metals producer said on Thursday.
Moody’s analyst Soummo Mukherjee said in a note that the change in Gold Fields’ Baa3 rating was mainly prompted by the miner’s continued progress in further diversifying its production and earnings before interest, taxes, depreciation and amortisation (EBITDA) geographically and becoming less dependent on its operations in SA.
According to Moody’s rating system, the Baa3 rating means Gold Fields is subject to moderate credit risk, at the lower end of the rating category. Ratings are an indication of how risky it is to invest in a certain country or share.
Mukherjee said Gold Fields’ presence in the country is exposing the company to above inflation electricity and labour increases, which continue to negatively pressure their operating margins.
"Additionally, the South African mining industry continues to face event risk from increased talks of the government considering nationalising its mines, as well as the threat from lawsuits due to silicosis, a type of lung-disease affecting miners," Mukherjee said.
Gold Fields remained committed to reducing its South African production from 50% to around 40% as it targets 5 million ounces in production or development by 2015.
Mukherjee also said the miner’s current Baa3 rating would likely be upgraded to Baa2 if the company demonstrated an ability to preserve the net debt to EBITDA ratio sustainably below times one and still generate positive free cash flow in a much lower gold price environment. Gold Fields would also have to achieve its cost reduction objectives to earn an upgrade.
"An upgrade would also require continued evidence that its main project, South Deep, continues on track and the company is able to maintain its national cash expenditure margins around 20% and continues to diversify geographically outside of SA," Mukherjee said.
Gold Fields latest quarterly report shows that its notional cash expenditure margin – operating costs plus capital expenditure – was 18% in the June quarter, compared to 9% in the March quarter.
Paul Schmidt, chief financial officer of Gold Fields said: "The change acknowledges Gold Fields’ increasing international diversification, solid operating margins, low financial gearing and conservative financial policy as well as our robust cash flow generation."
Isra-Mart srl: How to Protect Yourself From Investing Scams
www.isramart.com
Call it investor schizophrenia: On the one hand, the volatile stock market has some investors looking for "safety;" and on the other, stock market losses have led some to desperately seek fat returns elsewhere. Either way, you could wind up in trouble, because scam artists are ready to prey on the desires of both.
"It's not a matter of simply being greedy, but people are worried they won't have the assets they need when they retire, there is a certain amount of fear and desperation," says Michael Byrne, chief counsel of the Pennsylvania Securities Commission. Unfortunately, he says there is no shortage of scammers who "don't mind nailing widows and orphans."
It's estimated that $40 billion is lost per year to investment fraud, says Bob Webster, director of communications of the North American Securities Administrators Association. Seniors are often on top of target list.
The NASAA recently released its report, 2011 Top Investor Traps and Threats. Given the breadth and depth of the schemes it profiles, you really should be looking over your shoulder. That's not paranoia: It's prudence.
Here's how you can protect yourself.
Know Where Fraudsters Are Likely to Lurk.
"Fraud is always there," says Webster. "Con artists follow the headlines and tailor their pitches to exploit common fears and popular trends."
"Investment offerings involving distressed real estate have been on the rise following the collapse of the real estate bubble. While many legitimate investment offerings are tied to real estate, investment pools targeting distressed real estate have become increasingly popular with con artists as well as investors," the NASAA's website reports. "Investments in properties that are bank-owned, in foreclosure, pending short sales or otherwise in distress inevitably carry substantial risks and should be evaluated carefully. Just like other securities, interests in real estate ventures also must be registered with state securities regulators."
"Everybody thinks that a load of property can be bought for next to nothing and that they can just flip the house. People are being told to put up money for distressed properties, but what's not being discussed is that there isn't a lot of buying now," says Byrne. "At least when you own stocks and bonds, you can sell [them] and limit your loss, but you don't have that kind of control with a hard asset like a house," says Byrne.
Call it investor schizophrenia: On the one hand, the volatile stock market has some investors looking for "safety;" and on the other, stock market losses have led some to desperately seek fat returns elsewhere. Either way, you could wind up in trouble, because scam artists are ready to prey on the desires of both.
"It's not a matter of simply being greedy, but people are worried they won't have the assets they need when they retire, there is a certain amount of fear and desperation," says Michael Byrne, chief counsel of the Pennsylvania Securities Commission. Unfortunately, he says there is no shortage of scammers who "don't mind nailing widows and orphans."
It's estimated that $40 billion is lost per year to investment fraud, says Bob Webster, director of communications of the North American Securities Administrators Association. Seniors are often on top of target list.
The NASAA recently released its report, 2011 Top Investor Traps and Threats. Given the breadth and depth of the schemes it profiles, you really should be looking over your shoulder. That's not paranoia: It's prudence.
Here's how you can protect yourself.
Know Where Fraudsters Are Likely to Lurk.
"Fraud is always there," says Webster. "Con artists follow the headlines and tailor their pitches to exploit common fears and popular trends."
"Investment offerings involving distressed real estate have been on the rise following the collapse of the real estate bubble. While many legitimate investment offerings are tied to real estate, investment pools targeting distressed real estate have become increasingly popular with con artists as well as investors," the NASAA's website reports. "Investments in properties that are bank-owned, in foreclosure, pending short sales or otherwise in distress inevitably carry substantial risks and should be evaluated carefully. Just like other securities, interests in real estate ventures also must be registered with state securities regulators."
"Everybody thinks that a load of property can be bought for next to nothing and that they can just flip the house. People are being told to put up money for distressed properties, but what's not being discussed is that there isn't a lot of buying now," says Byrne. "At least when you own stocks and bonds, you can sell [them] and limit your loss, but you don't have that kind of control with a hard asset like a house," says Byrne.
Isra-Mart srl:Major market developments in August
www.isramart.com
Zinc prices fell sharply in early August and, while losses were partly recouped later in the month, disappointing demand and a rising supply surplus could keep the market under pressure in coming months.
"You have to be nervous about demand, it's not disastrous, but it's worse than expected and not showing any signs of strength," said Graham Deller of industry consultants CRU Group.
As a result CRU's supply surplus forecast for 2011 could rise from half a million tonnes to as much as 600,000 tonnes, he added.
Fastmarkets analyst Will Adams said prices were in a downtrend and could fall to $2,000 a tonne if the global economic picture continued to worsen and further dented demand.
The London Metal Exchange (LME) three-months zinc price was last indicated at $2,216 a tonne.
But some thought the downside for zinc was limited.
Standard Chartered analyst Dan Smith said most of the bad news for zinc had been priced in.
"Based on the assumption that economic recovery is on the cards I think zinc represents good value at these prices," he said.
Below are some of the more significant recent developments in production, stocks and prices that may continue to influence the direction of the market in 2011.
PRODUCTION
Aug 29 - Terramin Australia said the processing plant at its Angas lead-zinc mining operation was fully operating after repairs following an electrical incident. It said the loss of output meant it had cut its full-year production forecast by 4 percent to 45,000 tonnes of zinc concentrate, while it expected to meet its full-year forecast of 18,500 tonnes of lead and precious metals concentrates.
Aug 23 - The global zinc market was in surplus by 223,000 tonnes in the first half of 2011, the latest monthly bulletin from the International Lead and Zinc Study Group (ILZSG) showed. The latest figures show global refined zinc use was 6.228 million tonnes in January-June 2011, compared with 6.081 million a year earlier. World refined zinc output rose to 6.451 million tonnes from 6.266 million over the same period.
Aug 10 - China produced 2,997,000 tonnes of refined zinc in the first seven months of the year, up 6.7 percent from the same period of last year, according to the National Bureau of Statistics. Output of mined zinc rose by 10.7 percent over the same period to reach 2,249,000 tonnes.
PRICES
Zinc prices ended August at $2,292 a tonne, down from $2,490 the previous month.
The market fell sharply in early August as worries intensified over a spreading euro zone debt crisis and slowing economic growth.
By Aug. 8, three-months zinc prices had fallen to $2,034.25, their lowest since November.
Losses were partially recouped, but zinc's generally poor fundamentals tended to weigh on sentiment and prices lost some of that recaptured ground after reaching $2,311 on Aug. 31.
In July, the twice-yearly Reuters base metals price poll put the median average for zinc cash prices at $2,360 a tonne for 2011 and at $2,453 for 2012.
According to the January poll zinc prices were expected to average $2,425 a tonne this year compared with an average of $2,159 last year.
STOCKS
LME zinc stocks ended August at 855,850 tonnes, down from 889,325 tonnes the previous month.
Inventories declined steadily throughout much of August, eroding the sharp increases in early July, which took them to 894,825 tonnes and their highest in over 16 years.
At the end of last month they equated to around 24-1/2 days of demand.
Meanwhile, deliverable Shanghai zinc stocks were 417,784 tonnes at the end of August, up from 400,571 tonnes a month earlier.
Western world commercial stocks of zinc were 1.373 million tonnes or 10.1 weeks of demand at the end of June, up from 1.356 million or 10.5 weeks the previous month and 1.163 million tonnes or 10.0 weeks at the end of 2010.
Zinc prices fell sharply in early August and, while losses were partly recouped later in the month, disappointing demand and a rising supply surplus could keep the market under pressure in coming months.
"You have to be nervous about demand, it's not disastrous, but it's worse than expected and not showing any signs of strength," said Graham Deller of industry consultants CRU Group.
As a result CRU's supply surplus forecast for 2011 could rise from half a million tonnes to as much as 600,000 tonnes, he added.
Fastmarkets analyst Will Adams said prices were in a downtrend and could fall to $2,000 a tonne if the global economic picture continued to worsen and further dented demand.
The London Metal Exchange (LME) three-months zinc price was last indicated at $2,216 a tonne.
But some thought the downside for zinc was limited.
Standard Chartered analyst Dan Smith said most of the bad news for zinc had been priced in.
"Based on the assumption that economic recovery is on the cards I think zinc represents good value at these prices," he said.
Below are some of the more significant recent developments in production, stocks and prices that may continue to influence the direction of the market in 2011.
PRODUCTION
Aug 29 - Terramin Australia said the processing plant at its Angas lead-zinc mining operation was fully operating after repairs following an electrical incident. It said the loss of output meant it had cut its full-year production forecast by 4 percent to 45,000 tonnes of zinc concentrate, while it expected to meet its full-year forecast of 18,500 tonnes of lead and precious metals concentrates.
Aug 23 - The global zinc market was in surplus by 223,000 tonnes in the first half of 2011, the latest monthly bulletin from the International Lead and Zinc Study Group (ILZSG) showed. The latest figures show global refined zinc use was 6.228 million tonnes in January-June 2011, compared with 6.081 million a year earlier. World refined zinc output rose to 6.451 million tonnes from 6.266 million over the same period.
Aug 10 - China produced 2,997,000 tonnes of refined zinc in the first seven months of the year, up 6.7 percent from the same period of last year, according to the National Bureau of Statistics. Output of mined zinc rose by 10.7 percent over the same period to reach 2,249,000 tonnes.
PRICES
Zinc prices ended August at $2,292 a tonne, down from $2,490 the previous month.
The market fell sharply in early August as worries intensified over a spreading euro zone debt crisis and slowing economic growth.
By Aug. 8, three-months zinc prices had fallen to $2,034.25, their lowest since November.
Losses were partially recouped, but zinc's generally poor fundamentals tended to weigh on sentiment and prices lost some of that recaptured ground after reaching $2,311 on Aug. 31.
In July, the twice-yearly Reuters base metals price poll put the median average for zinc cash prices at $2,360 a tonne for 2011 and at $2,453 for 2012.
According to the January poll zinc prices were expected to average $2,425 a tonne this year compared with an average of $2,159 last year.
STOCKS
LME zinc stocks ended August at 855,850 tonnes, down from 889,325 tonnes the previous month.
Inventories declined steadily throughout much of August, eroding the sharp increases in early July, which took them to 894,825 tonnes and their highest in over 16 years.
At the end of last month they equated to around 24-1/2 days of demand.
Meanwhile, deliverable Shanghai zinc stocks were 417,784 tonnes at the end of August, up from 400,571 tonnes a month earlier.
Western world commercial stocks of zinc were 1.373 million tonnes or 10.1 weeks of demand at the end of June, up from 1.356 million or 10.5 weeks the previous month and 1.163 million tonnes or 10.0 weeks at the end of 2010.
Isra-Mart srl: Copper Eases On Jobless Claims, Trichet Comments
www.isramart.com
Copper futures fell slightly Thursday as a weaker-than-expected reading on the U.S. labor market and downbeat comments from the European Central Bank chief reinforced concerns about slowing growth that may curb metals demand.
Copper for December delivery, the most actively traded contract, was recently down 2.05 cents, or 0.5%, at $4.1115 a pound on the Comex division of the New York Mercantile Exchange.
The Labor Department said the number of people claiming new jobless benefits in the U.S. rose by 2,000 last week, to 414,000, the latest sign that a persistently weak labor market continues to drag on the world's largest economy. Economists had expected an increase of 1,000. The previous week's claims were revised higher, to 412,000, from the 409,000 originally reported.
Copper also came under pressure as ECB President Jean-Claude Trichet said the bank had cut its euro-zone growth forecasts, and that risks to the economic zone "are on the downside."
Copper is sensitive to such economic factors because of its widespread uses in construction and manufacturing. Recent signs of a slowdown in the global economy, and in manufacturing in particular, have held the attention of the copper market, as traders place bets based largely on outside markets rather than the copper supply and demand picture.
Analysts say quiet trading is likely ahead of speeches by Federal Reserve Chairman Ben Bernanke and President Barack Obama scheduled for Thursday. Bernanke is scheduled to speak in Minneapolis at 1:30 p.m. EDT, and Obama is set to address Congress at 7 p.m. EDT.
Workers at Peruvian mining company Sociedad Minera Cerro Verde Wednesday began a two-day strike to demand higher wages. Union leaders have said that an indefinite strike is possible later this month if its demands are not met.
Cerro Verde is majority owned by Freeport-McMoRan Copper & Gold Inc. (FCX).
Though Freeport has said it doesn't anticipate a material impact on production from the Cerro Verde strike, "it is less clear how production loss could be averted if a longer strike action is taken," analysts with Barclays Capital said in a note.
Copper has drawn support for much of this year from the view that rising demand from China and other emerging economies would outpace mine supply growth. Lost production in top miner Chile because of labor strikes and severe weather helped pushed copper futures near $4.50 a pound in July, before worries mounted about the health of the global economy and dragged futures below $4 a pound.
Copper futures fell slightly Thursday as a weaker-than-expected reading on the U.S. labor market and downbeat comments from the European Central Bank chief reinforced concerns about slowing growth that may curb metals demand.
Copper for December delivery, the most actively traded contract, was recently down 2.05 cents, or 0.5%, at $4.1115 a pound on the Comex division of the New York Mercantile Exchange.
The Labor Department said the number of people claiming new jobless benefits in the U.S. rose by 2,000 last week, to 414,000, the latest sign that a persistently weak labor market continues to drag on the world's largest economy. Economists had expected an increase of 1,000. The previous week's claims were revised higher, to 412,000, from the 409,000 originally reported.
Copper also came under pressure as ECB President Jean-Claude Trichet said the bank had cut its euro-zone growth forecasts, and that risks to the economic zone "are on the downside."
Copper is sensitive to such economic factors because of its widespread uses in construction and manufacturing. Recent signs of a slowdown in the global economy, and in manufacturing in particular, have held the attention of the copper market, as traders place bets based largely on outside markets rather than the copper supply and demand picture.
Analysts say quiet trading is likely ahead of speeches by Federal Reserve Chairman Ben Bernanke and President Barack Obama scheduled for Thursday. Bernanke is scheduled to speak in Minneapolis at 1:30 p.m. EDT, and Obama is set to address Congress at 7 p.m. EDT.
Workers at Peruvian mining company Sociedad Minera Cerro Verde Wednesday began a two-day strike to demand higher wages. Union leaders have said that an indefinite strike is possible later this month if its demands are not met.
Cerro Verde is majority owned by Freeport-McMoRan Copper & Gold Inc. (FCX).
Though Freeport has said it doesn't anticipate a material impact on production from the Cerro Verde strike, "it is less clear how production loss could be averted if a longer strike action is taken," analysts with Barclays Capital said in a note.
Copper has drawn support for much of this year from the view that rising demand from China and other emerging economies would outpace mine supply growth. Lost production in top miner Chile because of labor strikes and severe weather helped pushed copper futures near $4.50 a pound in July, before worries mounted about the health of the global economy and dragged futures below $4 a pound.
Isra-Mart srl: Metals Jumping, Copper Lagging
www.isramart.com
The metals market is much higher today, with the notable exception of copper, which is lower this morning. Equities are modestly higher.
Copper is down 1.8 cents to trade at $4.1140, a loss of 0.44%.
Ipath Dow Jones Ubs Copper Total ETF (NYSE: JJC) is down 32 cents to $53.47, a loss of 0.6%.
Silver is up 67 cents to $42.30, as it looks like $45 is the next mark for the precious metal.
Shares of Ishares Silver Trust ETF (NYSE: SLV [FREE Stock Trend Analysis]) are up 52 cents this morning, to trade at 41.05, a gain of 1.1%.
Gold is soaring, up $37.20 an ounce to $1,854.80, a gain of 2.05%.
Shares of Spdr Gold Trust ETF (NYSE: GLD) are up $2.75 to $179.84.
Platinum is up $21.10 an ounce, trading at $1,849.90, a gain of nearly 1.15%.
The platinum ETF settings First Trust ISE Global Platinum Index (NASDAQ: PLTM) is down 1 cent this morning to trade at $23.54.
Palladium is up $10.55 an ounce today, trading at $763.25, as it looks like it will break $800 an ounce.
Shares of ETFS Physical Palladium Shares (NASDAQ: PALL [FREE Stock Trend Analysis]) are higher today, up 76 cents to $75.27.
Sino Clean Energy moved 10.75% higher after Benzinga Pro reported the Chairman share purchase. Try Benzinga Pro for free now and don't miss out on profits like these!
The metals market is much higher today, with the notable exception of copper, which is lower this morning. Equities are modestly higher.
Copper is down 1.8 cents to trade at $4.1140, a loss of 0.44%.
Ipath Dow Jones Ubs Copper Total ETF (NYSE: JJC) is down 32 cents to $53.47, a loss of 0.6%.
Silver is up 67 cents to $42.30, as it looks like $45 is the next mark for the precious metal.
Shares of Ishares Silver Trust ETF (NYSE: SLV [FREE Stock Trend Analysis]) are up 52 cents this morning, to trade at 41.05, a gain of 1.1%.
Gold is soaring, up $37.20 an ounce to $1,854.80, a gain of 2.05%.
Shares of Spdr Gold Trust ETF (NYSE: GLD) are up $2.75 to $179.84.
Platinum is up $21.10 an ounce, trading at $1,849.90, a gain of nearly 1.15%.
The platinum ETF settings First Trust ISE Global Platinum Index (NASDAQ: PLTM) is down 1 cent this morning to trade at $23.54.
Palladium is up $10.55 an ounce today, trading at $763.25, as it looks like it will break $800 an ounce.
Shares of ETFS Physical Palladium Shares (NASDAQ: PALL [FREE Stock Trend Analysis]) are higher today, up 76 cents to $75.27.
Sino Clean Energy moved 10.75% higher after Benzinga Pro reported the Chairman share purchase. Try Benzinga Pro for free now and don't miss out on profits like these!
Isra-Mart srl: Copper falls after US job data, Trichet speech
www.isramart.com
Copper fell on Thursday after an unexpected
increase in U.S. jobless claims last week and a warning by the European Central
Bank president about uncertain euro zone growth heightened concerns about the
impact on the global economy.
New U.S. jobless claims rose unexpectedly last week, further evidence of a
weak labour market just hours before President Barack Obama unveils a plan on
job creation in a major address to Congress on the issue.
Deepening concern over the state of the global economy and pushing the euro
down to a two-month low against the dollar, the ECB signalled interest rate
rises had been halted, and economic growth would be slow at best.
A stronger U.S. currency makes dollar-priced commodities such as base metals
costlier for holders of other currencies.
Benchmark copper on the London Metal Exchange was $9,050 at 1342
GMT, down 0.5 percent from a last bid $9,092 per tonne on Wednesday. It hit a
session low of $9,004 per tonne after the ECB comments, U.S. jobless claims
data, and on the stronger dollar.
"The very broad fear is that the economic slowdown may extend for longer
than expected," said Credit Suisse analyst Stefan Graber.
"The physical side of the market continues to be positive but increasing
funding stress will trigger institutions to reduce exposure to risky assets such
as base metals."
A two-day pay strike by workers at Peru's third-biggest copper mine Cerro
Verde increased worries about supply constraints, capping losses in price of the
metal.
Adding to supply-side worries, Freeport's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the company meets pay demands.
"Yesterday's rebound showed that the base metals market is still supported
by supply tightness and by resilient demand from all Asiatic countries," said
Gianclaudio Torlizzi from metals consultancy T-Commodity.
"Supporting this view is the fact that central banks in emerging countries
have many more tools available in terms of monetary policy compared with
developed countries and this, at least for the moment, will make them resistant
to the slowdown affecting the U.S. and the EU."
The economic growth worries bothering global markets were further
highlighted by an OECD report that warned central banks to brace for weaker
growth.
The Organisation for Economic Cooperation and Development said on Thursday
that developed countries face a sharp year-end slowdown led by a contraction in
Germany.
Investors are keenly awaiting Obama's speech and one by Federal Reserve
Chairman Ben Bernanke at 1730 GMT.
NICKEL SUPPLY
Indonesia's industry ministry said the country may impose a tax or quota on
mineral ore exports ahead of a planned regulation to ban all exports of raw
minerals by 2014. This will squeeze supplies of metals, including nickel, and
support prices.
"The Indonesian tax points to a tighter supply picture than previously
expected, that is helping to stabilize nickel prices," Graber said.
"Nickel demand has actually surprised on the upside and (stainless) steel
production has been more resilient than expected. We are now at a price level
where nickel pig iron producers are less competitive."
Also pointing to improved demand for the metal, inventories of nickel in
LME-approved warehouses fell to their lowest since February 2009 at $99,180
tonnes. This compares with a record high at more than 166,000 tonnes hit on Feb
2010.
Nickel , used in stainless steel production, was $21,686 from
$21,775 at the close on Wednesday. Earlier, it hit its highest in more than a
week at $21,950 per tonne.
Tin was $24,350 from $24,375 while zinc was $2,233 from
$2,240. Lead was $2,421 from $2,415 and aluminium was $2,403
from $2,404 at the close on Wednesday.
Copper fell on Thursday after an unexpected
increase in U.S. jobless claims last week and a warning by the European Central
Bank president about uncertain euro zone growth heightened concerns about the
impact on the global economy.
New U.S. jobless claims rose unexpectedly last week, further evidence of a
weak labour market just hours before President Barack Obama unveils a plan on
job creation in a major address to Congress on the issue.
Deepening concern over the state of the global economy and pushing the euro
down to a two-month low against the dollar, the ECB signalled interest rate
rises had been halted, and economic growth would be slow at best.
A stronger U.S. currency makes dollar-priced commodities such as base metals
costlier for holders of other currencies.
Benchmark copper on the London Metal Exchange was $9,050 at 1342
GMT, down 0.5 percent from a last bid $9,092 per tonne on Wednesday. It hit a
session low of $9,004 per tonne after the ECB comments, U.S. jobless claims
data, and on the stronger dollar.
"The very broad fear is that the economic slowdown may extend for longer
than expected," said Credit Suisse analyst Stefan Graber.
"The physical side of the market continues to be positive but increasing
funding stress will trigger institutions to reduce exposure to risky assets such
as base metals."
A two-day pay strike by workers at Peru's third-biggest copper mine Cerro
Verde increased worries about supply constraints, capping losses in price of the
metal.
Adding to supply-side worries, Freeport's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the company meets pay demands.
"Yesterday's rebound showed that the base metals market is still supported
by supply tightness and by resilient demand from all Asiatic countries," said
Gianclaudio Torlizzi from metals consultancy T-Commodity.
"Supporting this view is the fact that central banks in emerging countries
have many more tools available in terms of monetary policy compared with
developed countries and this, at least for the moment, will make them resistant
to the slowdown affecting the U.S. and the EU."
The economic growth worries bothering global markets were further
highlighted by an OECD report that warned central banks to brace for weaker
growth.
The Organisation for Economic Cooperation and Development said on Thursday
that developed countries face a sharp year-end slowdown led by a contraction in
Germany.
Investors are keenly awaiting Obama's speech and one by Federal Reserve
Chairman Ben Bernanke at 1730 GMT.
NICKEL SUPPLY
Indonesia's industry ministry said the country may impose a tax or quota on
mineral ore exports ahead of a planned regulation to ban all exports of raw
minerals by 2014. This will squeeze supplies of metals, including nickel, and
support prices.
"The Indonesian tax points to a tighter supply picture than previously
expected, that is helping to stabilize nickel prices," Graber said.
"Nickel demand has actually surprised on the upside and (stainless) steel
production has been more resilient than expected. We are now at a price level
where nickel pig iron producers are less competitive."
Also pointing to improved demand for the metal, inventories of nickel in
LME-approved warehouses fell to their lowest since February 2009 at $99,180
tonnes. This compares with a record high at more than 166,000 tonnes hit on Feb
2010.
Nickel , used in stainless steel production, was $21,686 from
$21,775 at the close on Wednesday. Earlier, it hit its highest in more than a
week at $21,950 per tonne.
Tin was $24,350 from $24,375 while zinc was $2,233 from
$2,240. Lead was $2,421 from $2,415 and aluminium was $2,403
from $2,404 at the close on Wednesday.
Wednesday, September 7, 2011
Isra-Mart srl: Physical delivery still bedevils LME steel contract
www.isramart.com
The LME's physical delivery function has attracted a lot of attention over the last few months thanks to the queue of aluminium awaiting drawdown from registered warehouses in Detroit. Delays in getting metal out of what is supposed to be "the market of last resort" have put the spotlight on broader issues such as the ownership of warehousing operators by trading houses and the stocks financing vogue.
The net result has been a damaging breakdown in the arbitrage between LME prices and the physical market. A similar breakdown seems to be happening in the steel billet market, albeit for quite different reasons.
LME STOCKS. GOING, GOING, GONE?
As of today LME-registered warehouses hold 51,415 tonnes of steel billet. The vast majority of that inventory, 43,550 tonnes, equivalent to 84.7 percent, has been cancelled in preparation for physical drawdown.
Open tonnage, which is the real liquidity pool for LME trading, accordingly stands at just 7,865 tonnes. That's the lowest it's been since the early days of 2008, when what were then two regional billet contracts had just been launched.
The LME often cites stock movements as a sign of liquidity, particularly in its relatively new steel and minor metal contracts. But when so much stock has been cancelled in such a short time with no counter-balancing inflow, something is evidently not quite right.
PHYSICAL ARBITRAGE
The life-blood of the LME's billet contract since its launch has been the arbitrage relationship with the physical market. True to the LME contract's germination as a Mediterranean billet contract, the physical leg of that arbitrage has tended to be free-market assessments of Black Sea port FOB prices.
There are various Black Sea price-series published, including a weekly report from Reuters. But the most commonlycited "benchmark" is the weekly assessment from Steel Business Briefing (SBB), recently purchased by Platts. The way the arbitrage should work is that metal flows out of the LME when there is a sufficient premium in the physical market to attract it. And in theory the flow should reverse if the LME price moves to a premium over the physical price.
LME warehouse "out" charges have to be factored into the equation. Free-on-truck rates for most LME steel locations are currently in a $30-35 per tonne range. Most steel traders seem to use $50 as a rule-of-thumb maximum logistics cost.
As the chart shows, the arbitrage has worked pretty well with a strong correlation between physical market premium and LME cancellation activity.
The LME's physical delivery function has attracted a lot of attention over the last few months thanks to the queue of aluminium awaiting drawdown from registered warehouses in Detroit. Delays in getting metal out of what is supposed to be "the market of last resort" have put the spotlight on broader issues such as the ownership of warehousing operators by trading houses and the stocks financing vogue.
The net result has been a damaging breakdown in the arbitrage between LME prices and the physical market. A similar breakdown seems to be happening in the steel billet market, albeit for quite different reasons.
LME STOCKS. GOING, GOING, GONE?
As of today LME-registered warehouses hold 51,415 tonnes of steel billet. The vast majority of that inventory, 43,550 tonnes, equivalent to 84.7 percent, has been cancelled in preparation for physical drawdown.
Open tonnage, which is the real liquidity pool for LME trading, accordingly stands at just 7,865 tonnes. That's the lowest it's been since the early days of 2008, when what were then two regional billet contracts had just been launched.
The LME often cites stock movements as a sign of liquidity, particularly in its relatively new steel and minor metal contracts. But when so much stock has been cancelled in such a short time with no counter-balancing inflow, something is evidently not quite right.
PHYSICAL ARBITRAGE
The life-blood of the LME's billet contract since its launch has been the arbitrage relationship with the physical market. True to the LME contract's germination as a Mediterranean billet contract, the physical leg of that arbitrage has tended to be free-market assessments of Black Sea port FOB prices.
There are various Black Sea price-series published, including a weekly report from Reuters. But the most commonlycited "benchmark" is the weekly assessment from Steel Business Briefing (SBB), recently purchased by Platts. The way the arbitrage should work is that metal flows out of the LME when there is a sufficient premium in the physical market to attract it. And in theory the flow should reverse if the LME price moves to a premium over the physical price.
LME warehouse "out" charges have to be factored into the equation. Free-on-truck rates for most LME steel locations are currently in a $30-35 per tonne range. Most steel traders seem to use $50 as a rule-of-thumb maximum logistics cost.
As the chart shows, the arbitrage has worked pretty well with a strong correlation between physical market premium and LME cancellation activity.
Isra-Mart srl: Shanghai Metals Rise On Equities; Bargain Hunting
www.isramart.com
Base metals on the Shanghai Futures Exchange rose Wednesday as investors took advantage of low prices to make bargain purchases.
The rebound after the market's recent decline was in line with Chinese equity markets as investors welcomed a commentary piece in a leading newspaper that heightened expectations that China's central bank may consider lowering banks' reserve requirements.
Benchmark November copper settled 1% higher at CNY67,450 a metric ton.
Buying on dips helped keep SHFE metals stay firmly in positive territory, while spillover positive sentiment from the stock market also improved confidence, analysts said.
A commentary piece on the front page of the China Securities Journal quoted analysts as saying that the People's Bank of China might lower reserve requirements for some or all banks, soon after it tightened liquidity by expanding the ratio to include margin deposits.
"Metals were basically tracking equities, just like what they've been doing recently, so it made sense to see some technical rebound today," Shanghai Cifco Futures analyst Wang Zhouyi said.
SHFE metals also benefited from a stronger euro against the dollar in Asian trading, which boosted buying for dollar-denominated metals on the London Metal Exchange as they became cheaper for other currency holders. Although SHFE metals are priced in yuan, they tend to track LME counterparts.
At 0700 GMT, the euro was at $1.4077, compared with $1.3997 late Tuesday in New York.
Analysts said metals' near-term price movement may continue to track developments out of the U.S. and euro-zone economies, with fundamental news taking a backseat for now.
Copper traded at the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, was quoted at CNY67,350-CNY67,400/ton, up from CNY67,100-CNY67,100/ton Tuesday.
Three-month London Metal Exchange copper ended Monday's afternoon kerb $26 lower at $8,933/ton.
It was quoted 1.1% higher at $9,032/ton around 0700 GMT, when the SHFE closed.
SHFE aluminum settled 0.6% higher, zinc settled 1.2% higher and lead added 0.8%.
Base metals on the Shanghai Futures Exchange rose Wednesday as investors took advantage of low prices to make bargain purchases.
The rebound after the market's recent decline was in line with Chinese equity markets as investors welcomed a commentary piece in a leading newspaper that heightened expectations that China's central bank may consider lowering banks' reserve requirements.
Benchmark November copper settled 1% higher at CNY67,450 a metric ton.
Buying on dips helped keep SHFE metals stay firmly in positive territory, while spillover positive sentiment from the stock market also improved confidence, analysts said.
A commentary piece on the front page of the China Securities Journal quoted analysts as saying that the People's Bank of China might lower reserve requirements for some or all banks, soon after it tightened liquidity by expanding the ratio to include margin deposits.
"Metals were basically tracking equities, just like what they've been doing recently, so it made sense to see some technical rebound today," Shanghai Cifco Futures analyst Wang Zhouyi said.
SHFE metals also benefited from a stronger euro against the dollar in Asian trading, which boosted buying for dollar-denominated metals on the London Metal Exchange as they became cheaper for other currency holders. Although SHFE metals are priced in yuan, they tend to track LME counterparts.
At 0700 GMT, the euro was at $1.4077, compared with $1.3997 late Tuesday in New York.
Analysts said metals' near-term price movement may continue to track developments out of the U.S. and euro-zone economies, with fundamental news taking a backseat for now.
Copper traded at the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, was quoted at CNY67,350-CNY67,400/ton, up from CNY67,100-CNY67,100/ton Tuesday.
Three-month London Metal Exchange copper ended Monday's afternoon kerb $26 lower at $8,933/ton.
It was quoted 1.1% higher at $9,032/ton around 0700 GMT, when the SHFE closed.
SHFE aluminum settled 0.6% higher, zinc settled 1.2% higher and lead added 0.8%.
Isra-Mart srl: Copper firms as supply fears offset global economy woes
www.isramart.com
Copper prices gained more than 1 percent on Wednesday after falling for three consecutive days as a series of labour disputes at mines threatened production and
helped offset jitters about the health of the global economy.
Three-month copper on the London Metal Exchange climbed 1.2 percent to $9,037 a tonne by 0701 GMT, after ending the previous session 0.3 percent lower.
Analysts say labour disputes at copper mines in Indonesia and Peru were supporting the red metal, used in power and construction.
"If you also look at LME and prices in China, the spreads on some are pretty wide as well," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore. "Very copper specific is the fact that we're probably going to see a
strike at the (Freeport) Grasberg mine."
Freeport McMoRan Copper & Gold's Indonesia mine workers are set to strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay rise, a union official told Reuters on Tuesday.
Workers at Peru's third biggest copper mine, Cerro Verde, are due to launch a 48-hour strike on Wednesday for higher pay.
The most-active November copper contract on the Shanghai Futures Exchange SCFc3 traded 1.2 percent higher at 67,800 yuan per tonne, after ending little-changed in the
previous session.
Equity markets also provided support, with the Nikkei average up 2 percent on short-covering after three days of losses, with market participants calling the move a short-term rebound amid fears about sovereign debt in Europe and a U.S. economic slowdown. Despite signs that the economic recovery in the United States is faltering, U.S. shares ended above the session's lows on Tuesday after data showed the U.S. services sector picked up steam unexpectedly last month following a three-month streak of slower growth.
"Support has come from the non-manufacturing ISM," Schnider said. "That was a supporting sign."
Further clues about business conditions in the world's top economy may come from the release of the Federal Reserve's Beige Book due on Wednesday nFXDIARY. The anecdotal
narrative of business and economic conditions across the United States is likely to describe an anemic U.S. labour market.
Metals investors are also eyeing Chinese imports and inflationary data due on Friday, which analysts say could offer further market direction.
"Up modestly," said David Thurtell, a Singapore-based metals analyst at Citigroup. "There are looming strikes at copper mines, but the macro side is likely to cap the
complex for some time."
Analysts also say that options helped push copper over the dominant strike price of $9,000, as investors approach the month's options declaration deadline later in early London trading hours.
Most other metals were trading slightly higher, with aluminium at $2,397 from $2,380 on Tuesday, battery-material lead at $2,424.25 versus $2,388 and nickel at $21,090 from $20,675.
Global nickel demand is forecast to rise 4-5 percent a year, the chief executive at French mining group Eramet said.
"Over the last couple of days we came under pressure based on economic concerns ... but the tightness is certainly still out there when you look down the curve," Jonathan Barratt, managing director of Commodity Broking Services said on copper.
Tin traded at $24,095 from $23,875, while zinc, used in galvanizing, was at $2,218 a tonne versus $2,190 at Tuesday's close.
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month.
Copper prices gained more than 1 percent on Wednesday after falling for three consecutive days as a series of labour disputes at mines threatened production and
helped offset jitters about the health of the global economy.
Three-month copper on the London Metal Exchange climbed 1.2 percent to $9,037 a tonne by 0701 GMT, after ending the previous session 0.3 percent lower.
Analysts say labour disputes at copper mines in Indonesia and Peru were supporting the red metal, used in power and construction.
"If you also look at LME and prices in China, the spreads on some are pretty wide as well," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore. "Very copper specific is the fact that we're probably going to see a
strike at the (Freeport) Grasberg mine."
Freeport McMoRan Copper & Gold's Indonesia mine workers are set to strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay rise, a union official told Reuters on Tuesday.
Workers at Peru's third biggest copper mine, Cerro Verde, are due to launch a 48-hour strike on Wednesday for higher pay.
The most-active November copper contract on the Shanghai Futures Exchange SCFc3 traded 1.2 percent higher at 67,800 yuan per tonne, after ending little-changed in the
previous session.
Equity markets also provided support, with the Nikkei average up 2 percent on short-covering after three days of losses, with market participants calling the move a short-term rebound amid fears about sovereign debt in Europe and a U.S. economic slowdown. Despite signs that the economic recovery in the United States is faltering, U.S. shares ended above the session's lows on Tuesday after data showed the U.S. services sector picked up steam unexpectedly last month following a three-month streak of slower growth.
"Support has come from the non-manufacturing ISM," Schnider said. "That was a supporting sign."
Further clues about business conditions in the world's top economy may come from the release of the Federal Reserve's Beige Book due on Wednesday nFXDIARY. The anecdotal
narrative of business and economic conditions across the United States is likely to describe an anemic U.S. labour market.
Metals investors are also eyeing Chinese imports and inflationary data due on Friday, which analysts say could offer further market direction.
"Up modestly," said David Thurtell, a Singapore-based metals analyst at Citigroup. "There are looming strikes at copper mines, but the macro side is likely to cap the
complex for some time."
Analysts also say that options helped push copper over the dominant strike price of $9,000, as investors approach the month's options declaration deadline later in early London trading hours.
Most other metals were trading slightly higher, with aluminium at $2,397 from $2,380 on Tuesday, battery-material lead at $2,424.25 versus $2,388 and nickel at $21,090 from $20,675.
Global nickel demand is forecast to rise 4-5 percent a year, the chief executive at French mining group Eramet said.
"Over the last couple of days we came under pressure based on economic concerns ... but the tightness is certainly still out there when you look down the curve," Jonathan Barratt, managing director of Commodity Broking Services said on copper.
Tin traded at $24,095 from $23,875, while zinc, used in galvanizing, was at $2,218 a tonne versus $2,190 at Tuesday's close.
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month.
Isra-Mart srl: Copper up, but demand jitters cap gains
www.isramart.com
Copper prices rose on Wednesday as looming labour
disputes at mines threatened supplies and the dollar slipped, but nervousness
about demand from top consumers China and the United States curbed gains.
Benchmark copper on the London Metal Exchange was trading at $9,012
a tonne at 0918 GMT from $8,933 a tonne at the close on Tuesday. The metal used
widely in the power and construction industries has so far on Wednesday traded
in a $9,043 and $8,968 a tonne range.
"Copper is supported by the strikes in Indonesia and Peru, but that
underlines the fundamentals for the future," said Andrey Kryuchenkov, analyst at
VTB Capital.
"More immediately there is a lot of concern about global demand,
particularly from China ... We need to see significant draws in LME
inventories."
China accounts for nearly 40 percent of global copper demand estimated this
year at around 19 million tonnes. The United States accounts for about 10
percent of global consumption.
A lower U.S. currency makes commodities priced in dollars cheaper for
holders of other currencies.
Freeport McMoRan Copper & Gold's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay
rise, a union official told Reuters on Tuesday.
Workers at Peru's third-biggest copper mine, Cerro Verde, are due to launch
a 48-hour strike on Wednesday for higher pay.
FEW SIGNS OF PICK-UP
Stocks of copper in LME approved warehouses stand at 465,250 tonnes, little
changed in recent months. Cancelled warrants -- material earmarked for delivery
-- at a mere 1.26 percent of total stocks also show few signs of a pick up in
demand.
"Copper inventories rose in the early part of the year, till about May,
since then there hasn't been much change. I think prices are still too high for
the Chinese," a copper trader said. "They are waiting to see what happens."
Eyes are also on the LME options market where there are a large number of
outstanding contracts to buy (calls) and sell (puts) copper at $9,000 a tonne.
An election to exercise options needs to be made Wednesday morning.
"There isn't much difference between the number of puts and calls, it's
probably an indication of how much uncertainty there is," the trader said.
Alongside equities and bonds, metal markets are watching the euro zone debt
crisis and looking for clues to the health of the U.S. economy, the world's
largest, and growth prospects in China.
"Uncertainty is likely to remain high and the slowdown in the economy may
drag on for an extended period," Credit Suisse Private Banking said in a note.
Three-month aluminium was trading at $2,383 a tonne from $2,380 a
tonne on Tuesday, zinc at $2,204 from $2,190, lead at $2,411
from $2,388.
Tin was trading at $24,000 from $23,875 and nickel at
$21,125 a tonne from $20,675.
Copper prices rose on Wednesday as looming labour
disputes at mines threatened supplies and the dollar slipped, but nervousness
about demand from top consumers China and the United States curbed gains.
Benchmark copper on the London Metal Exchange was trading at $9,012
a tonne at 0918 GMT from $8,933 a tonne at the close on Tuesday. The metal used
widely in the power and construction industries has so far on Wednesday traded
in a $9,043 and $8,968 a tonne range.
"Copper is supported by the strikes in Indonesia and Peru, but that
underlines the fundamentals for the future," said Andrey Kryuchenkov, analyst at
VTB Capital.
"More immediately there is a lot of concern about global demand,
particularly from China ... We need to see significant draws in LME
inventories."
China accounts for nearly 40 percent of global copper demand estimated this
year at around 19 million tonnes. The United States accounts for about 10
percent of global consumption.
A lower U.S. currency makes commodities priced in dollars cheaper for
holders of other currencies.
Freeport McMoRan Copper & Gold's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay
rise, a union official told Reuters on Tuesday.
Workers at Peru's third-biggest copper mine, Cerro Verde, are due to launch
a 48-hour strike on Wednesday for higher pay.
FEW SIGNS OF PICK-UP
Stocks of copper in LME approved warehouses stand at 465,250 tonnes, little
changed in recent months. Cancelled warrants -- material earmarked for delivery
-- at a mere 1.26 percent of total stocks also show few signs of a pick up in
demand.
"Copper inventories rose in the early part of the year, till about May,
since then there hasn't been much change. I think prices are still too high for
the Chinese," a copper trader said. "They are waiting to see what happens."
Eyes are also on the LME options market where there are a large number of
outstanding contracts to buy (calls) and sell (puts) copper at $9,000 a tonne.
An election to exercise options needs to be made Wednesday morning.
"There isn't much difference between the number of puts and calls, it's
probably an indication of how much uncertainty there is," the trader said.
Alongside equities and bonds, metal markets are watching the euro zone debt
crisis and looking for clues to the health of the U.S. economy, the world's
largest, and growth prospects in China.
"Uncertainty is likely to remain high and the slowdown in the economy may
drag on for an extended period," Credit Suisse Private Banking said in a note.
Three-month aluminium was trading at $2,383 a tonne from $2,380 a
tonne on Tuesday, zinc at $2,204 from $2,190, lead at $2,411
from $2,388.
Tin was trading at $24,000 from $23,875 and nickel at
$21,125 a tonne from $20,675.
Isra-Mart srl: Metals higher, technical buying and covering halts three-day downtrend
www.isramart.com
Base metals recovered from a three-day downtrend during Wednesday’s LME pre-market trading session, but the atmosphere remained cautious amid economic concerns, including this morning's German bailout ruling
The German constitutional court has rejected a lawsuit brought by German professors intended to block Germany's role in the bailouts of, for example, Greece. Still, it ruled that the Bundestag must vote on all future aid packages, with approval needed from its budget committee. This could slow down any further bailouts.
The euro surged briefly on the news but has almost as quickly given up gains. Equities rose, with the DAX up more than 2.5 percent
“In line with equity markets, which recovered in late trading in the US yesterday and have resumed their uptrend movement in Asia, metals have also recovered some of their lost ground and are advancing on a broad front,” said Commerzbank in its daily report.
While the market has picked up, the main focus will be on President Barack Obama's speech on Thursday, in which he is expected to announce plans to create a $300 billion job-creation package.
“Needless to say there is room for disappointment, so the stronger tone may not last”, said Fastmarkets analyst William Adams.
“It looks as though the pull back in base metals in recent days has been more to do with consolidation after the late August run higher. Prices now seem to have found support and we would expect further consolidation although bargain hunting is likely to mean that the consolidation is done at higher price levels,” he added.
METALS STRUGGLE TO MAINTAIN GAINS
Copper prices remained above the $9,000 level although only just, trading at $9,008 per tonne, still $75 higher than yesterday’s close.
“Copper is ranging at the moment around the $8,970-$9,050 level. The market is obviously waiting for Obama's speech for direction,” said a trader.
The LME/Shanghai arbitrage window remains closed, but only by a thin margin of around $10/tonne.
Warehouse stocks at 465,250 tonnes were down a net 215 tonnes while cancelled warrants were down 100 tonnes at 5,875 tonnes.
“It is becoming increasingly clear that the global copper market will show a high supply deficit this year. In Chile, the mining minister has now acknowledged - the first official representative to do so - that Chile's copper production will decline this year. The price of copper should therefore be well supported,” said Commerzbank
On the other end of the scale, aluminium's global surplus is increasing and according to Sumitomo, Japan's third-largest trading house, and supply should exceed demand this year by more than 1.5 million tonnes. Commerzbank said, however, that prices should remain supported given high power costs.
Prices were unchanged at $2,380. Inventories were down 3,825 tonnes at 4,614,775 tonnes, however cancelled warrants were also down, placed at 310,400 tonnes, a decrease of 4,550, tonnes which helped to offset the headline figure.
Nickel stocks continued to fall, reaching their lowest since March 17, 2009 at 20,675 tonnes while cancelled warrants were up 132 tonnes to 8,130 tonne. These positive developments helped propel prices to $21,110, an increase of $435.
“It is worth noting that nickel is the worst performing metal on the LME this year - down over 16 percent - but the only metal with a year-to-date drawdown in stocks - down over 34,000 tonnes,” said broker RBC.
Zinc inventories were also down, dropping 950 tonnes to 847,825 tonnes, the lowest since May 17. Prices were up $17 to $2,206.
Lead stocks increased by 100 tonnes to 341,450 tonnes, but cancelled warrants dropped 225 tonnes to 13,400 tonnes. At $2,405, prices were up $17.
Tin prices were up $125 to $24,000. Stocks were down 150 tonnes to 21,755 tonnes, while cancelled warrants were also down 150 tonnes to 2,260 tonnes.
Steel was up $11, trading at $601, the highest for nine months, while cobalt was quoted at 34,500/36,750 and molybdenum at 32,000/32,400.
Base metals recovered from a three-day downtrend during Wednesday’s LME pre-market trading session, but the atmosphere remained cautious amid economic concerns, including this morning's German bailout ruling
The German constitutional court has rejected a lawsuit brought by German professors intended to block Germany's role in the bailouts of, for example, Greece. Still, it ruled that the Bundestag must vote on all future aid packages, with approval needed from its budget committee. This could slow down any further bailouts.
The euro surged briefly on the news but has almost as quickly given up gains. Equities rose, with the DAX up more than 2.5 percent
“In line with equity markets, which recovered in late trading in the US yesterday and have resumed their uptrend movement in Asia, metals have also recovered some of their lost ground and are advancing on a broad front,” said Commerzbank in its daily report.
While the market has picked up, the main focus will be on President Barack Obama's speech on Thursday, in which he is expected to announce plans to create a $300 billion job-creation package.
“Needless to say there is room for disappointment, so the stronger tone may not last”, said Fastmarkets analyst William Adams.
“It looks as though the pull back in base metals in recent days has been more to do with consolidation after the late August run higher. Prices now seem to have found support and we would expect further consolidation although bargain hunting is likely to mean that the consolidation is done at higher price levels,” he added.
METALS STRUGGLE TO MAINTAIN GAINS
Copper prices remained above the $9,000 level although only just, trading at $9,008 per tonne, still $75 higher than yesterday’s close.
“Copper is ranging at the moment around the $8,970-$9,050 level. The market is obviously waiting for Obama's speech for direction,” said a trader.
The LME/Shanghai arbitrage window remains closed, but only by a thin margin of around $10/tonne.
Warehouse stocks at 465,250 tonnes were down a net 215 tonnes while cancelled warrants were down 100 tonnes at 5,875 tonnes.
“It is becoming increasingly clear that the global copper market will show a high supply deficit this year. In Chile, the mining minister has now acknowledged - the first official representative to do so - that Chile's copper production will decline this year. The price of copper should therefore be well supported,” said Commerzbank
On the other end of the scale, aluminium's global surplus is increasing and according to Sumitomo, Japan's third-largest trading house, and supply should exceed demand this year by more than 1.5 million tonnes. Commerzbank said, however, that prices should remain supported given high power costs.
Prices were unchanged at $2,380. Inventories were down 3,825 tonnes at 4,614,775 tonnes, however cancelled warrants were also down, placed at 310,400 tonnes, a decrease of 4,550, tonnes which helped to offset the headline figure.
Nickel stocks continued to fall, reaching their lowest since March 17, 2009 at 20,675 tonnes while cancelled warrants were up 132 tonnes to 8,130 tonne. These positive developments helped propel prices to $21,110, an increase of $435.
“It is worth noting that nickel is the worst performing metal on the LME this year - down over 16 percent - but the only metal with a year-to-date drawdown in stocks - down over 34,000 tonnes,” said broker RBC.
Zinc inventories were also down, dropping 950 tonnes to 847,825 tonnes, the lowest since May 17. Prices were up $17 to $2,206.
Lead stocks increased by 100 tonnes to 341,450 tonnes, but cancelled warrants dropped 225 tonnes to 13,400 tonnes. At $2,405, prices were up $17.
Tin prices were up $125 to $24,000. Stocks were down 150 tonnes to 21,755 tonnes, while cancelled warrants were also down 150 tonnes to 2,260 tonnes.
Steel was up $11, trading at $601, the highest for nine months, while cobalt was quoted at 34,500/36,750 and molybdenum at 32,000/32,400.
Isra-Mart srl: Copper up on supply worries, growth fears weigh
www.isramart.com
Copper prices rose on Wednesday as labour
disputes at mines threatened supplies and the dollar slipped, but nervousness
about demand from top consumers China and the United States curbed gains.
Benchmark copper on the London Metal Exchange traded at $9,099.75 a
tonne by 1400 GMT, from $8,933 a tonne at the close on Tuesday.
Supporting the metal used in power and construction was the commencement of
a two-day strike by workers in Peru's third-biggest copper mine Cerro Verde,
controlled by Freeport McMoran , with further threats of an indefinite
walkout later this month according to union leaders.
Adding to the supply worries, Freeport's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay
rise.
A weak dollar also underpinned metals prices, with the dollar falling 0.4
percent against a basket of currencies. A lower U.S. currency makes commodities
priced in dollars cheaper for holders of other currencies.
But analysts expect gains to be kept in check in the short-term by lingering
uncertainty about the trajectory of global economic growth which could hamper
demand for industrial metals.
"Things will remain pretty choppy and prices are likely to trade sideways
over the next few weeks due to the fact that the European banking crisis is
showing no real signs of going away and global PMI(purchasing managers index)
numbers are still going south," said Daniel Smith, head of metals research at
Standard Chartered.
Data from earlier this week showed disappointing services PMI figures from
China, India, Britain and the euro zone, raising fears that the world's economy
is facing another recession.
Alongside equities and bonds, metal markets are watching the euro zone debt
crisis and looking for clues to the health of the U.S. economy, the world's
largest, and growth prospects in China.
"Uncertainty is likely to remain high and the slowdown in the economy may
drag on for an extended period," Credit Suisse Private Banking said in a note.
China accounts for nearly 40 percent of global copper demand estimated this
year at around 19 million tonnes. The United States accounts for about 10
percent of global consumption.
FEW SIGNS OF PICK-UP
Stocks of copper in LME approved warehouses stand at 465,250 tonnes, little
changed in recent months. Cancelled warrants -- material earmarked for delivery
-- at a mere 1.26 percent of total stocks also show few signs of a pick up in
demand.
"Copper inventories rose in the early part of the year, till about May,
since then there hasn't been much change. I think prices are still too high for
the Chinese," a copper trader said. "They are waiting to see what happens."
Three-month aluminium traded at 2,397.50 a tonne from $2,380 a tonne
on Tuesday, zinc traded at $2,237.25 from $2,190, lead at
$2,426.75 from $2,388.
Tin rose to $24,299 a tonne from $23,875. Nickel traded at
$21,301 a tonne from $20,675.
Copper prices rose on Wednesday as labour
disputes at mines threatened supplies and the dollar slipped, but nervousness
about demand from top consumers China and the United States curbed gains.
Benchmark copper on the London Metal Exchange traded at $9,099.75 a
tonne by 1400 GMT, from $8,933 a tonne at the close on Tuesday.
Supporting the metal used in power and construction was the commencement of
a two-day strike by workers in Peru's third-biggest copper mine Cerro Verde,
controlled by Freeport McMoran , with further threats of an indefinite
walkout later this month according to union leaders.
Adding to the supply worries, Freeport's Indonesia mine workers are set to
strike from Sept. 15 to Oct. 15 unless the firm meets their demands for a pay
rise.
A weak dollar also underpinned metals prices, with the dollar falling 0.4
percent against a basket of currencies. A lower U.S. currency makes commodities
priced in dollars cheaper for holders of other currencies.
But analysts expect gains to be kept in check in the short-term by lingering
uncertainty about the trajectory of global economic growth which could hamper
demand for industrial metals.
"Things will remain pretty choppy and prices are likely to trade sideways
over the next few weeks due to the fact that the European banking crisis is
showing no real signs of going away and global PMI(purchasing managers index)
numbers are still going south," said Daniel Smith, head of metals research at
Standard Chartered.
Data from earlier this week showed disappointing services PMI figures from
China, India, Britain and the euro zone, raising fears that the world's economy
is facing another recession.
Alongside equities and bonds, metal markets are watching the euro zone debt
crisis and looking for clues to the health of the U.S. economy, the world's
largest, and growth prospects in China.
"Uncertainty is likely to remain high and the slowdown in the economy may
drag on for an extended period," Credit Suisse Private Banking said in a note.
China accounts for nearly 40 percent of global copper demand estimated this
year at around 19 million tonnes. The United States accounts for about 10
percent of global consumption.
FEW SIGNS OF PICK-UP
Stocks of copper in LME approved warehouses stand at 465,250 tonnes, little
changed in recent months. Cancelled warrants -- material earmarked for delivery
-- at a mere 1.26 percent of total stocks also show few signs of a pick up in
demand.
"Copper inventories rose in the early part of the year, till about May,
since then there hasn't been much change. I think prices are still too high for
the Chinese," a copper trader said. "They are waiting to see what happens."
Three-month aluminium traded at 2,397.50 a tonne from $2,380 a tonne
on Tuesday, zinc traded at $2,237.25 from $2,190, lead at
$2,426.75 from $2,388.
Tin rose to $24,299 a tonne from $23,875. Nickel traded at
$21,301 a tonne from $20,675.
Isra-Mart srl: Zinc concentrates supply will be tighter than copper - Boliden
www.isramart.com
Tight mine supply and excess smelting capacity to depress zinc TCs + Boliden more exposed to spot copper TC/RCs
The supply of zinc concentrates will be tighter than the supply of copper concentrates in the medium term, Lennart Evrell, president and ceo of Swedish miner Boliden, told MB. “Everyone believes the concentrates market will be tighter than ever, but suddenly the copper market is easing and the zinc market is tightening,” Evrell said on the sidelines of Boliden’s capital markets seminar, held at the company’s Garpenberg mine on September 6. Yet because the company is more integrated in zinc than it is in copper, an expected decline in spot zinc treatment charges would be less damaging than a similar downward movement in copper treatment charges and refining charges (TC/RCs), he said. “There is greater availability of copper concentrate than zinc. Because we are more exposed to spot TC/RCs in copper, we would be more concerned had it been the opposite situation,” Evrell said.
Tight mine supply and excess smelting capacity to depress zinc TCs + Boliden more exposed to spot copper TC/RCs
The supply of zinc concentrates will be tighter than the supply of copper concentrates in the medium term, Lennart Evrell, president and ceo of Swedish miner Boliden, told MB. “Everyone believes the concentrates market will be tighter than ever, but suddenly the copper market is easing and the zinc market is tightening,” Evrell said on the sidelines of Boliden’s capital markets seminar, held at the company’s Garpenberg mine on September 6. Yet because the company is more integrated in zinc than it is in copper, an expected decline in spot zinc treatment charges would be less damaging than a similar downward movement in copper treatment charges and refining charges (TC/RCs), he said. “There is greater availability of copper concentrate than zinc. Because we are more exposed to spot TC/RCs in copper, we would be more concerned had it been the opposite situation,” Evrell said.
Isra-Mart srl: Upward Trend of Platinum-Group Metals Demand Growth Persists in Years to Come According to Merchant Research & Consulting, Ltd.
www.isramart.com
otal index for demand growth on the global platinum-group metals market has risen dramatically over the past few years. The offered available supplies were far behind the commercial demand for these metals. The demand thus increased by approximately 16% last year while the supply level remained flat during 2010. This made the global platinum market balanced with the upward trend of requirements growth persisting well in the years to come.
With a major rise in the post-recession glass and chemical industries, the expansion of the demand for platinum-group metals in industrial applications jumped up by around 48%. At the same time jewelry sector remained lackluster or even reducing during 2010. The only exception here is the regional jewelry market of China -- the key marketers here have been eager to purchase.
Topical full review of global, regional and country markets of platinum-group metals can be found in the new market research report "Platinum-Group Metals Market Review" that presents detailed analysis of the present market landscape, historical background and future outlooks and provides access to factual parameters and indexes characterizing platinum-group metals market performance.
otal index for demand growth on the global platinum-group metals market has risen dramatically over the past few years. The offered available supplies were far behind the commercial demand for these metals. The demand thus increased by approximately 16% last year while the supply level remained flat during 2010. This made the global platinum market balanced with the upward trend of requirements growth persisting well in the years to come.
With a major rise in the post-recession glass and chemical industries, the expansion of the demand for platinum-group metals in industrial applications jumped up by around 48%. At the same time jewelry sector remained lackluster or even reducing during 2010. The only exception here is the regional jewelry market of China -- the key marketers here have been eager to purchase.
Topical full review of global, regional and country markets of platinum-group metals can be found in the new market research report "Platinum-Group Metals Market Review" that presents detailed analysis of the present market landscape, historical background and future outlooks and provides access to factual parameters and indexes characterizing platinum-group metals market performance.
Isra-Mart srl: Metal prices fall as European worries weigh
www.isramart.com
Industrial metal prices are falling as a sagging stock market causes worries that global demand and factory production could weaken.
Copper for December delivery fell 6.85 cents to settle at $4.056 a pound. October platinum fell $26.60 to $1,858.20 an ounce and December palladium fell $33.65 to $749.55 per ounce.
The prices fell in tandem with global stock prices. The value of industrial metals usually tracks with investors' confidence about future economic growth. The metals are used as raw materials in many kinds of manufactured goods, from iPads to automobiles.
Stocks were battered Tuesday by worries that the European debt crisis could continue to roil financial markets and curtail consumer demand.
Industrial metal prices are falling as a sagging stock market causes worries that global demand and factory production could weaken.
Copper for December delivery fell 6.85 cents to settle at $4.056 a pound. October platinum fell $26.60 to $1,858.20 an ounce and December palladium fell $33.65 to $749.55 per ounce.
The prices fell in tandem with global stock prices. The value of industrial metals usually tracks with investors' confidence about future economic growth. The metals are used as raw materials in many kinds of manufactured goods, from iPads to automobiles.
Stocks were battered Tuesday by worries that the European debt crisis could continue to roil financial markets and curtail consumer demand.
Isra-Mart srl: BASE METALS HIGHLIGHTS
www.isramart.com
Brazilian mining company Vale SA (VALE, VALE5.BR) is "carefully looking" at its investment program and "could make announcements in the near future," amid global market uncertainties, said Will Landers, manager of the Latin America portfolio at BlackRock Inc. (BLK), the largest publicly-traded fund manager in the U.S., and a large investor in Vale shares.
Rio Tinto Director Calls On Australia To Rethink Carbon Scheme
MELBOURNE (Dow Jones)--Australia's government should reconsider its approach to deterring carbon emissions, which as plans stand will undermine the country's competitiveness and hurt trade-exposed industries, an executive at mining giant Rio Tinto PLC (RIO) said Wednesday.
Eramet SA To Invest $6 Bln In Nickel Mining In Indonesia
JAKARTA (Dow Jones)--Eramet SA (ERA.FR) plans to invest $6 billion in a nickel mining project in Indonesia, the French mining group's chief executive told reporters after meeting with Indonesia's President Susilo Bambang Yudhoyono on Wednesday.
Russia Regulator Probes Rusal Over Market Abuse Allegation
MOSCOW (Dow Jones)--Russian Federal Anti-Monopoly Service, or FAS, said Wednesday it has launched an investigation against the world's biggest aluminum producer United Co. Rusal PLC (0486.HK), suspecting the company of abusing its dominant position on the local market.
Mining M&A Slows After Busiest 1H On Record - PwC
LONDON (Dow Jones)--Merger and acquisition activity in the global mining sector appears to be slowing after the busiest half-year on record, PricewaterhouseCoopers said Wednesday.
STORIES OF INTEREST:
Peru's Cerro Verde Union To Proceed With Strike Plans
LIMA (Dow Jones)--Union workers at Peruvian copper miner Sociedad Minera Cerro Verde are proceeding with plans to strike on Wednesday, following unsuccessful talks with the company to avert a 48-hour work stoppage.
China To Remain Net Importer Of Nickel In 2011 -Jinchuan Executive
SHANGHAI (Dow Jones)--China will remain a net importer of nickel this year as demand outstrips production, Jinchuan Group vice president Wu Jun said Wednesday.
China Stainless Steelmakers Face 'Tough' 2H -Baoshan Iron Executive
SHANGHAI (Dow Jones)--Chinese stainless steelmakers face a "tough" second half this year, as the global economy may continue to slow, a senior executive at Baoshan Iron and Steel Co. (600019.SH) said Wednesday.
China Jinchuan, MacroAsia To Invest $1 Bln In Philippine Nickel Mines
MANILA (Dow Jones)--China'sJinchuan Group Ltd. and MacroAsia Corp. (MAC.PH) expect to invest up to $1 billion in a nickel project in Palawan in central Philippines, MacroAsia told the stock exchange Wednesday.
Zambia Mulyanshi Contractor Threatens To Fire Striking Workers -Officials
African Construction and Trade, the contractor developing Zambia's Chinese- owned Mulyanshi Copper project, has threatened to fire hundreds of striking construction workers if they don't return to work, company and labor union officials said Tuesday.
Zambia Mulyanshi Miners Agree Deal On Pay Dispute, End Strike-Union
Construction workers at Zambia's Chinese-owned Mulyanshi Copper project reached a deal over a pay dispute with management late Tuesday, and agreed to end a two-day strike action which had stalled construction works on the $370 million mine project, a union official told Dow Jones Newswires Wednesday.
Kloeckner & Co Seeks Cost Cuts, Disposals As Economy Slows Down
FRANKFURT (Dow Jones)--Steel and metals distributor Kloeckner & Co. (KCO.XE) Wednesday announced a package of measures aimed at protecting its profitability amid signs that global economic growth is slowing down.
MARKETS:
LME Metals Move Higher In Subdued Trade
LONDON (Dow Jones)--Base metals are higher on the London Metal Exchange Wednesday, although trade is subdued and relatively directionless as market players continue to chase currency moves and sentiment in the stock markets.
Brazilian mining company Vale SA (VALE, VALE5.BR) is "carefully looking" at its investment program and "could make announcements in the near future," amid global market uncertainties, said Will Landers, manager of the Latin America portfolio at BlackRock Inc. (BLK), the largest publicly-traded fund manager in the U.S., and a large investor in Vale shares.
Rio Tinto Director Calls On Australia To Rethink Carbon Scheme
MELBOURNE (Dow Jones)--Australia's government should reconsider its approach to deterring carbon emissions, which as plans stand will undermine the country's competitiveness and hurt trade-exposed industries, an executive at mining giant Rio Tinto PLC (RIO) said Wednesday.
Eramet SA To Invest $6 Bln In Nickel Mining In Indonesia
JAKARTA (Dow Jones)--Eramet SA (ERA.FR) plans to invest $6 billion in a nickel mining project in Indonesia, the French mining group's chief executive told reporters after meeting with Indonesia's President Susilo Bambang Yudhoyono on Wednesday.
Russia Regulator Probes Rusal Over Market Abuse Allegation
MOSCOW (Dow Jones)--Russian Federal Anti-Monopoly Service, or FAS, said Wednesday it has launched an investigation against the world's biggest aluminum producer United Co. Rusal PLC (0486.HK), suspecting the company of abusing its dominant position on the local market.
Mining M&A Slows After Busiest 1H On Record - PwC
LONDON (Dow Jones)--Merger and acquisition activity in the global mining sector appears to be slowing after the busiest half-year on record, PricewaterhouseCoopers said Wednesday.
STORIES OF INTEREST:
Peru's Cerro Verde Union To Proceed With Strike Plans
LIMA (Dow Jones)--Union workers at Peruvian copper miner Sociedad Minera Cerro Verde are proceeding with plans to strike on Wednesday, following unsuccessful talks with the company to avert a 48-hour work stoppage.
China To Remain Net Importer Of Nickel In 2011 -Jinchuan Executive
SHANGHAI (Dow Jones)--China will remain a net importer of nickel this year as demand outstrips production, Jinchuan Group vice president Wu Jun said Wednesday.
China Stainless Steelmakers Face 'Tough' 2H -Baoshan Iron Executive
SHANGHAI (Dow Jones)--Chinese stainless steelmakers face a "tough" second half this year, as the global economy may continue to slow, a senior executive at Baoshan Iron and Steel Co. (600019.SH) said Wednesday.
China Jinchuan, MacroAsia To Invest $1 Bln In Philippine Nickel Mines
MANILA (Dow Jones)--China'sJinchuan Group Ltd. and MacroAsia Corp. (MAC.PH) expect to invest up to $1 billion in a nickel project in Palawan in central Philippines, MacroAsia told the stock exchange Wednesday.
Zambia Mulyanshi Contractor Threatens To Fire Striking Workers -Officials
African Construction and Trade, the contractor developing Zambia's Chinese- owned Mulyanshi Copper project, has threatened to fire hundreds of striking construction workers if they don't return to work, company and labor union officials said Tuesday.
Zambia Mulyanshi Miners Agree Deal On Pay Dispute, End Strike-Union
Construction workers at Zambia's Chinese-owned Mulyanshi Copper project reached a deal over a pay dispute with management late Tuesday, and agreed to end a two-day strike action which had stalled construction works on the $370 million mine project, a union official told Dow Jones Newswires Wednesday.
Kloeckner & Co Seeks Cost Cuts, Disposals As Economy Slows Down
FRANKFURT (Dow Jones)--Steel and metals distributor Kloeckner & Co. (KCO.XE) Wednesday announced a package of measures aimed at protecting its profitability amid signs that global economic growth is slowing down.
MARKETS:
LME Metals Move Higher In Subdued Trade
LONDON (Dow Jones)--Base metals are higher on the London Metal Exchange Wednesday, although trade is subdued and relatively directionless as market players continue to chase currency moves and sentiment in the stock markets.
Isra-Mart srl: Upbeat Equities Markets Draw Buying To Copper
www.isramart.com
Copper futures climbed Wednesday as firmer global equities markets and increased investor appetite for risk drew buyers to the industrial metal.
The most actively traded copper contract, for December delivery, was recently up 7.7 cents, or 1.9%, at $4.133 a pound on the Comex division of the New York Mercantile Exchange.
Major global stock indexes were mostly higher Wednesday, supported by hopes for a jobs plan to be announced Thursday by President Barack Obama and a ruling from a German court upholding the first bailout package for debt-laden Greece.
Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing, and the metal can track equities markets as a proxy for growth expectations and investor sentiment toward risky assets such as commodities.
The Dow Jones Industrial Average was recently up 161 points at 11301.
"With equities markets recovering, that's providing some extra support for the copper market," said Sterling Smith, an analyst with Country Hedging. Smith said a weaker U.S. dollar also provided the metal with a boost Wednesday.
Dollar-denominated copper futures can rise as the dollar falls, as the weaker greenback makes the futures cheaper for buyers using other currencies. The ICE U.S. Dollar Index, which tracks the currency against those of some major U.S. trading partners, was at 75.789, down from about 75.929 late Tuesday in New York as investor demand for risky assets hit the safe-haven currency.
Copper Tuesday fell to its lowest levels in almost two weeks, as the market came under pressure from worries that the developed world could slip into a recession and hit copper demand from key sectors such as housing and manufacturing.
Copper has been supported for much of the last year by the view that mine supply growth will fail to meet rising global demand, but the threat of a renewed global slowdown has held investors interest recently and generally trumped the influence of supply and demand factors.
Copper futures climbed Wednesday as firmer global equities markets and increased investor appetite for risk drew buyers to the industrial metal.
The most actively traded copper contract, for December delivery, was recently up 7.7 cents, or 1.9%, at $4.133 a pound on the Comex division of the New York Mercantile Exchange.
Major global stock indexes were mostly higher Wednesday, supported by hopes for a jobs plan to be announced Thursday by President Barack Obama and a ruling from a German court upholding the first bailout package for debt-laden Greece.
Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing, and the metal can track equities markets as a proxy for growth expectations and investor sentiment toward risky assets such as commodities.
The Dow Jones Industrial Average was recently up 161 points at 11301.
"With equities markets recovering, that's providing some extra support for the copper market," said Sterling Smith, an analyst with Country Hedging. Smith said a weaker U.S. dollar also provided the metal with a boost Wednesday.
Dollar-denominated copper futures can rise as the dollar falls, as the weaker greenback makes the futures cheaper for buyers using other currencies. The ICE U.S. Dollar Index, which tracks the currency against those of some major U.S. trading partners, was at 75.789, down from about 75.929 late Tuesday in New York as investor demand for risky assets hit the safe-haven currency.
Copper Tuesday fell to its lowest levels in almost two weeks, as the market came under pressure from worries that the developed world could slip into a recession and hit copper demand from key sectors such as housing and manufacturing.
Copper has been supported for much of the last year by the view that mine supply growth will fail to meet rising global demand, but the threat of a renewed global slowdown has held investors interest recently and generally trumped the influence of supply and demand factors.
Isra-Mart srl: Metals Mostly Lower, Copper Soaring Higher
www.isramart.com
The metals market is much lower today, with the notable exception of copper, which is soaring on the back of a risk on day. Equities are jumping, with all three indexes sharply higher.
Copper is up 7.65 cents to trade at $4.1325, a gain of 1.9%.
Ipath Dow Jones Ubs Copper Total ETF (NYSE: JJC) is up 92 cents to $53.73, a gain of 1.74%.
Silver is down 94 cents to $40.93, as it looks it may break $40 if riskier assets continue to see a bid.
Shares of Ishares Silver Trust ETF (NYSE: SLV [FREE Stock Trend Analysis]) are down $1.37 this morning, to trade at $39.68, a loss of 3.26%.
Gold is plunging $61.30 an ounce to $1,812.00, a loss of 3.25%.
Shares of Spdr Gold Trust ETF (NYSE: GLD) are down $7.62 to $175.12.
Platinum is down $36.90 an ounce, trading at $1,821.30, a loss of nearly 2%.
The platinum ETF settings First Trust ISE Global Platinum Index (NASDAQ: PLTM) is up 53 cents this morning to trade at $23.34.
Palladium is up $2 an ounce today, trading at $756 an ounce, as it looks like it will break $800 an ounce sooner rather than later.
Shares of ETFS Physical Palladium Shares (NASDAQ: PALL [FREE Stock Trend Analysis]) are lower today, down 13 cents to $74.23.
The metals market is much lower today, with the notable exception of copper, which is soaring on the back of a risk on day. Equities are jumping, with all three indexes sharply higher.
Copper is up 7.65 cents to trade at $4.1325, a gain of 1.9%.
Ipath Dow Jones Ubs Copper Total ETF (NYSE: JJC) is up 92 cents to $53.73, a gain of 1.74%.
Silver is down 94 cents to $40.93, as it looks it may break $40 if riskier assets continue to see a bid.
Shares of Ishares Silver Trust ETF (NYSE: SLV [FREE Stock Trend Analysis]) are down $1.37 this morning, to trade at $39.68, a loss of 3.26%.
Gold is plunging $61.30 an ounce to $1,812.00, a loss of 3.25%.
Shares of Spdr Gold Trust ETF (NYSE: GLD) are down $7.62 to $175.12.
Platinum is down $36.90 an ounce, trading at $1,821.30, a loss of nearly 2%.
The platinum ETF settings First Trust ISE Global Platinum Index (NASDAQ: PLTM) is up 53 cents this morning to trade at $23.34.
Palladium is up $2 an ounce today, trading at $756 an ounce, as it looks like it will break $800 an ounce sooner rather than later.
Shares of ETFS Physical Palladium Shares (NASDAQ: PALL [FREE Stock Trend Analysis]) are lower today, down 13 cents to $74.23.
Isra-Mart srl: Gold declines for the second day amid the slight optimism seen in Equities
www.isramart.com
Gold retreated today after opening the Asian session, where the metal is mainly affected by the slight wave of optimism seen in the Asian equities, where the Asian main indexes rebounded to the upside and are trading in Green today after the losses seen in the past sessions, which reflected less demand for the shiny metal.
Gold retreated today after opening the Asian session at $1874.75 an ounce, where the metal extended the losses recorded yesterday, as gold slipped from all-time record. The metal recorded a high of $1880.02 and a low of $1827.50, and is currently hovering around $1849.79 per ounce.
Gold extended the downside movement, as we can see the metal is trade lower today, however the general sentiment is still pessimistic, while fears and jitters are still dominant in the market, and we expect the metal to resume the upside journey unless Europe overcomes the debt crisis and U.S. lawmakers take further steps to beat the rising challenges, while eyes will be focused on the president Barrack Obama jobs speech tomorrow, where the president's statement may include hints and clues regarding the Fed's next moves, after the downbeat non-farm payrolls last Friday. The president could also provide some plans and proposals to boost jobs growth, by providing the economy with more funds.
Moreover, the Australian gross domestic product figures expanded today beyond expectations by 1.2% from the previous drop of 1.2%, which reflected some improvement in the Asian region. In addition the Bank of Japan has kept interest rates unchanged today, in order to stimulate growth further and to support the recovery in the country, which started to rebound after the disaster that hit the nation in March.
Furthermore, the Swiss National Bank intervened yesterday and set a minimum exchange rate for the Swiss franc against the euro at 1.20 in order to stop the rapid appreciation seen on franc, which hurt the Swiss economy and the country's exports. This move from the central bank reflected some optimism in the market, as investors recognized that central banks in Europe and in the world as whole will intervene and could take further steps and use the different tool they have if need to stimulate recovery and to support growth to improve in the second half of this year.
As we noticed, demand for safe havens retreated today after the optimism seen in the Asian equities, where the U.S. dollar also slumped today along with the yellow metal, while investors tend to invest in stocks instead of precious metals and low yielding currencies.
German Finance Minister said yesterday that Greece should apply the austerity measures as soon as possible in order to get the second bailout package, as the Greek finance minister pledged to quicken the steps needed to apply the austerity measures.
Furthermore, Italian streets face general strikes for the third day as the Italian cabinet approved the Austerity measures of 45.5 billion euros, awaiting the vote of confidence from the senators today, and as the senators approves the package, the package should be sent for the Chamber of Deputies for a final vote during this week.
We can see the serious steps taken by European nations to prevent the debt crisis from expanding further, where Greece, Italy and Switzerland have made some progress till now, which eased jitters and rising concerns for a while awaiting more moves from central banks and government to control the debt crisis, which eased demand for the yellow metal today.
The European central bank is to release the rate decision tomorrow, which will be the week's main event in Europe, as we expect the central bank to cut rates to support the recovery pace and support growth.
Among other precious metals, silver declined today extending the losses recorded in the past sessions, where after the opening of $41.97 per ounce, the metal rebounded slightly to the upside reaching a high of $42.18 and then retreated to a low of $ 40.39 is currently hovering around $41.47 an ounce.
Platinum also declined today, as demand for precious metals and low yielding currencies retreated, where after opening the session at $1870.00 per ounce; the metal surged to a high of $1878.00 and recorded a low of $1855.00, and is currently trading around $1860.00 an ounce.
Gold retreated today after opening the Asian session, where the metal is mainly affected by the slight wave of optimism seen in the Asian equities, where the Asian main indexes rebounded to the upside and are trading in Green today after the losses seen in the past sessions, which reflected less demand for the shiny metal.
Gold retreated today after opening the Asian session at $1874.75 an ounce, where the metal extended the losses recorded yesterday, as gold slipped from all-time record. The metal recorded a high of $1880.02 and a low of $1827.50, and is currently hovering around $1849.79 per ounce.
Gold extended the downside movement, as we can see the metal is trade lower today, however the general sentiment is still pessimistic, while fears and jitters are still dominant in the market, and we expect the metal to resume the upside journey unless Europe overcomes the debt crisis and U.S. lawmakers take further steps to beat the rising challenges, while eyes will be focused on the president Barrack Obama jobs speech tomorrow, where the president's statement may include hints and clues regarding the Fed's next moves, after the downbeat non-farm payrolls last Friday. The president could also provide some plans and proposals to boost jobs growth, by providing the economy with more funds.
Moreover, the Australian gross domestic product figures expanded today beyond expectations by 1.2% from the previous drop of 1.2%, which reflected some improvement in the Asian region. In addition the Bank of Japan has kept interest rates unchanged today, in order to stimulate growth further and to support the recovery in the country, which started to rebound after the disaster that hit the nation in March.
Furthermore, the Swiss National Bank intervened yesterday and set a minimum exchange rate for the Swiss franc against the euro at 1.20 in order to stop the rapid appreciation seen on franc, which hurt the Swiss economy and the country's exports. This move from the central bank reflected some optimism in the market, as investors recognized that central banks in Europe and in the world as whole will intervene and could take further steps and use the different tool they have if need to stimulate recovery and to support growth to improve in the second half of this year.
As we noticed, demand for safe havens retreated today after the optimism seen in the Asian equities, where the U.S. dollar also slumped today along with the yellow metal, while investors tend to invest in stocks instead of precious metals and low yielding currencies.
German Finance Minister said yesterday that Greece should apply the austerity measures as soon as possible in order to get the second bailout package, as the Greek finance minister pledged to quicken the steps needed to apply the austerity measures.
Furthermore, Italian streets face general strikes for the third day as the Italian cabinet approved the Austerity measures of 45.5 billion euros, awaiting the vote of confidence from the senators today, and as the senators approves the package, the package should be sent for the Chamber of Deputies for a final vote during this week.
We can see the serious steps taken by European nations to prevent the debt crisis from expanding further, where Greece, Italy and Switzerland have made some progress till now, which eased jitters and rising concerns for a while awaiting more moves from central banks and government to control the debt crisis, which eased demand for the yellow metal today.
The European central bank is to release the rate decision tomorrow, which will be the week's main event in Europe, as we expect the central bank to cut rates to support the recovery pace and support growth.
Among other precious metals, silver declined today extending the losses recorded in the past sessions, where after the opening of $41.97 per ounce, the metal rebounded slightly to the upside reaching a high of $42.18 and then retreated to a low of $ 40.39 is currently hovering around $41.47 an ounce.
Platinum also declined today, as demand for precious metals and low yielding currencies retreated, where after opening the session at $1870.00 per ounce; the metal surged to a high of $1878.00 and recorded a low of $1855.00, and is currently trading around $1860.00 an ounce.
Isra-Mart srl: Forte baisse de l'or: le refuge n'a plus la cote
www.isramart.com
Les options sur l'or étaient en nette baisse ce mercredi, tombant à leur pire niveau en trois jours de cotation tandis que se poursuivait l'encaissement de plus-values après qu'un nouveau record ait été atteint lors de la séance précédente et que le moral des investisseurs revenait.
Sur la section Comex de la bourse aux matières premières de New York, les contrats sur l'or à échéance pour octobre se sont échangés à 1 845.25 USD de l'once en fin de séance asiatique, cédant 1.35%.
Ils avaient précédement touché le fond à 1 827.25 USD, leur pire cours depuis le 2 septembre, avec une dégringolade de 2.5%.
Leur nouveau plafond de tous les temps avait été établi hier à 1 921.05 USD l'once, la combinaison des craintes concernant le futur de l'économie mondiale et du spectre de l'aggravation de la crise de la dette souveraine de la zone euro augmentant leur attrait.
Ce rebond a poussé certains acteurs à liquider leurs positions favorables et s'assurer des gains.
Les marchés boursiers ont toutefois connu un regain de forme ce mercredi, après trois jours de disette, l'Asie montrant de fortes progressions et les valeurs européennes se trouvant en large hausse après l'ouverture, ternissant le blason du métal précieux.
La devise européenne restait toutefois vulnérable aux incertitudes concernant la crise de la dette souveraine de la zone euro, tandis que la cour constitutionnelle de l'Allemagne devrait rendre aujourd'hui sa décisionn concernant la légalité de la dernière bouée de sauvetage attribueé à la Grèce.
Un représentant de la banque centrale russe a pour sa part annoncé aujourd'hui que celle-ci comptait acquérir environ trois tonnes d'or au cours de la semaine.
Elle en a déjà acheté 4.42 tonnes en juillet, portant le total de ses réserves, les cinquièmes du monde, à 841.13 tonnes.
Les futures sur l'argent pour décembre ont par ailleurs plongé de 0.95% pour chuter à 41.47 USD de l'once, et celles sur le cuivre à échéance identique ont gagné 0.74% pour se retrouver à 4.093 USD la livre dans le même temps.
La Bolivie a quand à elle fait savoir mardi par la voix d'Hector Cordova, son ministre adjoint aux ressources minières, qu'elle comptait augmenter les pourcentages de prélèvements imposés aux concessions afin de tirer avantage des prix élevés des métaux et de renforcer le rôle de l'état dans le domaine, le pays se plaçant au sixième rang de la production d'argent mondiale.
Les options sur l'or étaient en nette baisse ce mercredi, tombant à leur pire niveau en trois jours de cotation tandis que se poursuivait l'encaissement de plus-values après qu'un nouveau record ait été atteint lors de la séance précédente et que le moral des investisseurs revenait.
Sur la section Comex de la bourse aux matières premières de New York, les contrats sur l'or à échéance pour octobre se sont échangés à 1 845.25 USD de l'once en fin de séance asiatique, cédant 1.35%.
Ils avaient précédement touché le fond à 1 827.25 USD, leur pire cours depuis le 2 septembre, avec une dégringolade de 2.5%.
Leur nouveau plafond de tous les temps avait été établi hier à 1 921.05 USD l'once, la combinaison des craintes concernant le futur de l'économie mondiale et du spectre de l'aggravation de la crise de la dette souveraine de la zone euro augmentant leur attrait.
Ce rebond a poussé certains acteurs à liquider leurs positions favorables et s'assurer des gains.
Les marchés boursiers ont toutefois connu un regain de forme ce mercredi, après trois jours de disette, l'Asie montrant de fortes progressions et les valeurs européennes se trouvant en large hausse après l'ouverture, ternissant le blason du métal précieux.
La devise européenne restait toutefois vulnérable aux incertitudes concernant la crise de la dette souveraine de la zone euro, tandis que la cour constitutionnelle de l'Allemagne devrait rendre aujourd'hui sa décisionn concernant la légalité de la dernière bouée de sauvetage attribueé à la Grèce.
Un représentant de la banque centrale russe a pour sa part annoncé aujourd'hui que celle-ci comptait acquérir environ trois tonnes d'or au cours de la semaine.
Elle en a déjà acheté 4.42 tonnes en juillet, portant le total de ses réserves, les cinquièmes du monde, à 841.13 tonnes.
Les futures sur l'argent pour décembre ont par ailleurs plongé de 0.95% pour chuter à 41.47 USD de l'once, et celles sur le cuivre à échéance identique ont gagné 0.74% pour se retrouver à 4.093 USD la livre dans le même temps.
La Bolivie a quand à elle fait savoir mardi par la voix d'Hector Cordova, son ministre adjoint aux ressources minières, qu'elle comptait augmenter les pourcentages de prélèvements imposés aux concessions afin de tirer avantage des prix élevés des métaux et de renforcer le rôle de l'état dans le domaine, le pays se plaçant au sixième rang de la production d'argent mondiale.
Isra-Mart srl: Le point Bourse du 7 septembre, à la mi-journée
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Les Bourses européennes tentaient de redresser la barre ce mercredi en fin de matinée après deux séances catastrophiques. La relative bonne tenue de Wall Street mardi soir, et la clôture en nette hausse de la Bourse de Tokyo (+2%) ce matin encourageaient les investisseurs à revenir sur le marché.
EUROPE
Du côté des actions, les secteurs qui ont le plus souffert ces dernières séances étaient en toute logique plébiscitée par les investisseurs. C’était entre autre le cas du secteur bancaire. Des actions comme Société Générale ou Deutsche Bank profitaient d’achats à bon compte.
Par ailleurs, les valeurs minières étaient en progression dans le sillage de l’appréciation des cours des métaux précieux. BHP Billiton et Rio Tinto se portaient bien en fin de matinée.
BRUXELLES HAUSSES
A Bruxelles, les valeurs bancaires étaient en tête du Bel 20 après deux séances de chute libre. KBC et Ageas se partageaient la première marche du podium.
Hors indice, Option poursuivait sur sa lancée et prenait encore quelques pourcents.
BRUXELLES BAISSES
Chose assez exceptionnelle, aucune action du Bel 20 n’était en recul à la mi-séance. Les valeurs défensives qui ont bien résisté à la tempête boursière de ces deux derniers jours étaient toutefois en petite forme à l’image de Colruyt.
Hors indice, Galapagos reculait légèrement dans de faibles volumes.
MARCHES AMERICAINS
La Bourse de New York a fini en baisse pour la troisième séance d'affilée mardi, mais a résisté à la panique qui avait saisi les marchés la veille en Europe, où la crise de la dette ne cesse d'empirer: le Dow Jones a perdu 0,90% et le Nasdaq 0,26%.
MARCHE DES CHANGES
Sur le marché des changes, l'euro était en hausse mercredi face au billet vert, repassant au dessus du seuil de 1,40 dollar alors que les marchés continuaient de digérer l'intervention surprise la veille de la banque centrale suisse.
Les Bourses européennes tentaient de redresser la barre ce mercredi en fin de matinée après deux séances catastrophiques. La relative bonne tenue de Wall Street mardi soir, et la clôture en nette hausse de la Bourse de Tokyo (+2%) ce matin encourageaient les investisseurs à revenir sur le marché.
EUROPE
Du côté des actions, les secteurs qui ont le plus souffert ces dernières séances étaient en toute logique plébiscitée par les investisseurs. C’était entre autre le cas du secteur bancaire. Des actions comme Société Générale ou Deutsche Bank profitaient d’achats à bon compte.
Par ailleurs, les valeurs minières étaient en progression dans le sillage de l’appréciation des cours des métaux précieux. BHP Billiton et Rio Tinto se portaient bien en fin de matinée.
BRUXELLES HAUSSES
A Bruxelles, les valeurs bancaires étaient en tête du Bel 20 après deux séances de chute libre. KBC et Ageas se partageaient la première marche du podium.
Hors indice, Option poursuivait sur sa lancée et prenait encore quelques pourcents.
BRUXELLES BAISSES
Chose assez exceptionnelle, aucune action du Bel 20 n’était en recul à la mi-séance. Les valeurs défensives qui ont bien résisté à la tempête boursière de ces deux derniers jours étaient toutefois en petite forme à l’image de Colruyt.
Hors indice, Galapagos reculait légèrement dans de faibles volumes.
MARCHES AMERICAINS
La Bourse de New York a fini en baisse pour la troisième séance d'affilée mardi, mais a résisté à la panique qui avait saisi les marchés la veille en Europe, où la crise de la dette ne cesse d'empirer: le Dow Jones a perdu 0,90% et le Nasdaq 0,26%.
MARCHE DES CHANGES
Sur le marché des changes, l'euro était en hausse mercredi face au billet vert, repassant au dessus du seuil de 1,40 dollar alors que les marchés continuaient de digérer l'intervention surprise la veille de la banque centrale suisse.
Isra-Mart srl: Commodities daily update: precious metals, base metals, crude oil (September 07, 2011)
www.isramart.com
- Kazakhstan's central bank said on Wednesday it would be buying up the Central Asian nation's entire gold bullion output until at least 2014-15 to ease its exposure to the sagging dollar.
- A construction company building Zambia's Muliashi copper mine, owned by China Nonferrous Metals Co Ltd, said on Tuesday it would sack 1,200 striking workers if they did not return to work immediately.
- China's nickel ore imports are expected to slow in the second half compared with the first, an executive at the country's top nickel producer Jinchuan Group told Reuters on Wednesday.
- Mexico's largest oil refinery shut down on Tuesday after a power outage but the state oil monopoly Pemex said it expects operations to resume by the end of the day.
- Iran has been importing four to five cargoes of gasoline per month, with most of it supplied by China as the Islamic Republic finds ways to get around the U.S.-led sanctions, three industry sources familiar with the matter said.
- Kazakhstan's central bank said on Wednesday it would be buying up the Central Asian nation's entire gold bullion output until at least 2014-15 to ease its exposure to the sagging dollar.
- A construction company building Zambia's Muliashi copper mine, owned by China Nonferrous Metals Co Ltd, said on Tuesday it would sack 1,200 striking workers if they did not return to work immediately.
- China's nickel ore imports are expected to slow in the second half compared with the first, an executive at the country's top nickel producer Jinchuan Group told Reuters on Wednesday.
- Mexico's largest oil refinery shut down on Tuesday after a power outage but the state oil monopoly Pemex said it expects operations to resume by the end of the day.
- Iran has been importing four to five cargoes of gasoline per month, with most of it supplied by China as the Islamic Republic finds ways to get around the U.S.-led sanctions, three industry sources familiar with the matter said.
Isra-Mart srl: Gold Falls 2% in Minutes in Asian Trade – Global Currency Wars Resume and Markets Digest German Decision
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Gold closed marginally lower in all currencies yesterday except for the Swiss franc which fell nearly 7% against gold and other fiat currencies.
Gold’s London AM fix this morning was USD 1,844.00, EUR 1,311.99, GBP 1,153.44 per ounce. Gold fixed lower in all currencies (USD 1,891.00, EUR 1,330.75, GBP 1,172.86 per ounce).
Cross Currency Table
The German constitutional court rejected the challenge against the Eurozone ‘bail outs’ but said that the ruling shouldn’t be seen as “blanket” approval for future bail outs. Going forward Angela Merkel and the German government must seek approval from the Parliament’s budget committee for new guarantees it assumes under the European Financial Stability Facility.
Gold closed in New York at $1,870.70/oz yesterday and then traded sideways prior to sharp selling in Asian trading saw gold fall 2.3% or nearly $50 in minutes ($1,871/oz at 0514 GMT to a low of $1,827/oz at 0523 GMT). The price fall was odd as there was no breaking news or ostensible reasons for the sell off and other markets were unchanged at the time.
Speculation was that the falls were technical in nature after stop losses were triggered.
However, Asian traders spoke of some 4,000 lots of gold being ‘dumped’ on the COMEX and of a “large sell order”.
This would suggest that the sellers may not have been profit motivated and official selling may have been involved.
After the Swiss franc intervention and currency debasement yesterday, market participants are wary of further official government and central bank intervention. With further gains for the Swiss franc artificially capped (at least in the short term), it would be naïve to exclude the possibility of intervention in the gold market and a continuing strategic capping of the price.
“The start of full-on currency wars has started in earnest,” said Maurice Pomery, chief executive at Strategic Alpha, quoted in the front page of the Financial Times today. “After currency wars come trade wars and as we see the exporting world pressured as the developed world contracts, tensions will rise.”
Central banks, from the Swiss National Bank to the Bank of Japan, are openly intervening in the currency markets and devaluing their currencies and therefore may be surreptitiously intervening in the gold market.
The safe haven Swiss franc is now pegged to the not so safe haven euro and Japanese money printing is leading to question marks over the safe haven status of the yen. Therefore, risk averse money is likely to flow into gold.
Gold is an internationally traded currency that is not controlled by any one government and therefore cannot be debased, unlike fiat currencies. A way to control gold (at least in the short term) is by market manipulation and capping or lowering the price at key strategic and psychological moments in order to prevent enthusiasm and the public from seeking out the safe haven.
Reuters reports this morning that analysts believe that “expectations that other central banks may step in to intervene in the currency market” may have contributed to the “restraint” in the gold market overnight.
Given the fact that global currency wars have intensified and will likely escalate in the coming weeks, we should be mindful of peculiar and volatile short term movements that give false signals.
All interventions and market manipulation can be successful in the short term but as ever the real fundamentals of supply and demand will dictate the price of all goods, services, assets and currencies in the long term.
Gold closed marginally lower in all currencies yesterday except for the Swiss franc which fell nearly 7% against gold and other fiat currencies.
Gold’s London AM fix this morning was USD 1,844.00, EUR 1,311.99, GBP 1,153.44 per ounce. Gold fixed lower in all currencies (USD 1,891.00, EUR 1,330.75, GBP 1,172.86 per ounce).
Cross Currency Table
The German constitutional court rejected the challenge against the Eurozone ‘bail outs’ but said that the ruling shouldn’t be seen as “blanket” approval for future bail outs. Going forward Angela Merkel and the German government must seek approval from the Parliament’s budget committee for new guarantees it assumes under the European Financial Stability Facility.
Gold closed in New York at $1,870.70/oz yesterday and then traded sideways prior to sharp selling in Asian trading saw gold fall 2.3% or nearly $50 in minutes ($1,871/oz at 0514 GMT to a low of $1,827/oz at 0523 GMT). The price fall was odd as there was no breaking news or ostensible reasons for the sell off and other markets were unchanged at the time.
Speculation was that the falls were technical in nature after stop losses were triggered.
However, Asian traders spoke of some 4,000 lots of gold being ‘dumped’ on the COMEX and of a “large sell order”.
This would suggest that the sellers may not have been profit motivated and official selling may have been involved.
After the Swiss franc intervention and currency debasement yesterday, market participants are wary of further official government and central bank intervention. With further gains for the Swiss franc artificially capped (at least in the short term), it would be naïve to exclude the possibility of intervention in the gold market and a continuing strategic capping of the price.
“The start of full-on currency wars has started in earnest,” said Maurice Pomery, chief executive at Strategic Alpha, quoted in the front page of the Financial Times today. “After currency wars come trade wars and as we see the exporting world pressured as the developed world contracts, tensions will rise.”
Central banks, from the Swiss National Bank to the Bank of Japan, are openly intervening in the currency markets and devaluing their currencies and therefore may be surreptitiously intervening in the gold market.
The safe haven Swiss franc is now pegged to the not so safe haven euro and Japanese money printing is leading to question marks over the safe haven status of the yen. Therefore, risk averse money is likely to flow into gold.
Gold is an internationally traded currency that is not controlled by any one government and therefore cannot be debased, unlike fiat currencies. A way to control gold (at least in the short term) is by market manipulation and capping or lowering the price at key strategic and psychological moments in order to prevent enthusiasm and the public from seeking out the safe haven.
Reuters reports this morning that analysts believe that “expectations that other central banks may step in to intervene in the currency market” may have contributed to the “restraint” in the gold market overnight.
Given the fact that global currency wars have intensified and will likely escalate in the coming weeks, we should be mindful of peculiar and volatile short term movements that give false signals.
All interventions and market manipulation can be successful in the short term but as ever the real fundamentals of supply and demand will dictate the price of all goods, services, assets and currencies in the long term.
Isra-Mart srl: PRECIOUS METALS: Gold Tumbles As Investors Seek Riskier Assets
www.isramart.com
Gold fell as risk appetite improved after a German court approved that country's participation in resolving the euro zone's sovereign debt problems.
The most actively traded contract, for December delivery, was recently down $63.00, or 3.4%, at $1,810.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
The front-month contract, for August delivery, was down $60.10, or 3.2%, at $1,809.80 a troy ounce.
Germany's Federal Constitutional Court ruled that the first Greek bailout package and aid extended through the European Financial Stability Facility, the euro zone's rescue fund, is legal. The move paves the way for German Chancellor Angela Merkel to win parliamentary approval later this month to expand the EFSF and make it more flexible.
The decision emboldened investors to return to equity and commodity markets, with some choosing to shed refuge assets like gold in favor of riskier bets that stand to bring greater potential returns.
But gold is unlikely to languish for long, said Standard Bank precious metals analyst Marc Ground.
"This news was largely expected and does little to change the ongoing sovereign-debt problems of the region. Again we feel sentiment will soon turn in favour of gold, as uncertainty and euro zone concerns are reignited," said Marc Ground at Standard Bank.
Gold's steepest losses were recorded during overnight trading in Asia, when around 6,000 contracts sold over four minutes knocked $50 a troy ounce off the futures price.
Gold fell as risk appetite improved after a German court approved that country's participation in resolving the euro zone's sovereign debt problems.
The most actively traded contract, for December delivery, was recently down $63.00, or 3.4%, at $1,810.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
The front-month contract, for August delivery, was down $60.10, or 3.2%, at $1,809.80 a troy ounce.
Germany's Federal Constitutional Court ruled that the first Greek bailout package and aid extended through the European Financial Stability Facility, the euro zone's rescue fund, is legal. The move paves the way for German Chancellor Angela Merkel to win parliamentary approval later this month to expand the EFSF and make it more flexible.
The decision emboldened investors to return to equity and commodity markets, with some choosing to shed refuge assets like gold in favor of riskier bets that stand to bring greater potential returns.
But gold is unlikely to languish for long, said Standard Bank precious metals analyst Marc Ground.
"This news was largely expected and does little to change the ongoing sovereign-debt problems of the region. Again we feel sentiment will soon turn in favour of gold, as uncertainty and euro zone concerns are reignited," said Marc Ground at Standard Bank.
Gold's steepest losses were recorded during overnight trading in Asia, when around 6,000 contracts sold over four minutes knocked $50 a troy ounce off the futures price.
Isra-Mart srl: Why Precious Metals And U.S. Treasuries Aren't Good Bets Against The Current Uncertainty
www.isramart.com
With the world economy heading for a double-dip recession and sovereign debt concerns growing, small and large investors are rushing to buy three assets that are considered a safe bet against uncertainty: gold, silver, and treasury bonds. This has sent iShares Silver Trust (SLV), SPDR Gold Shares (GLD), and iShares Barclays 20+ Year Treasury bond fund (TLT) soaring, while SPDR S&P 500 (SPY) has been heading in the other direction. But are these investments the right bets against the current uncertainty?
We don’t think so. Precious metals are caught at the crosscurrents of a bearish trend (the recession), and a bullish trend (the sovereign debt crisis). That’s why they aren’t good bets against the current uncertainty, especially after their big run up. iShares Silver Trust (SLV) is up 350 percent since early 2009; SPDR Gold Shares (GLD) is up 100 percent; and Freeport-McMoRan Copper and Gold (FCX) has soared 400 percent.
But there are good reasons to believe the commodity rally may be over. Monetary policy is no longer ultra-accommodating, and some have raised rates (China, Brazil, and India). The dollar is stabilizing, and the world economy may slide into deflation before experiencing any inflationary pressures. In addition, changes in margin requirements may limit the flow of funds into commodities.
Similar arguments can be made about U.S. Treasuries that are also caught between the bullish trend fueled by the prospect of a double-dip recession and the bearish trend fuelled by sovereign debt concerns. Here in the US, the prospect of further downgrades by major credit agencies, and the possibility of an unusually large fiscal stimulus loom large.
So what is the alternative?
Buy protection. Short or buy puts on SPDR S&P 500 (SPY). The problem, however, is that the S&P 500 has had a big correction already. So investors may want to average into this trade rather than going outright into a major position. They may want to do the same with iPath S&P 500 VIX Short-Term Futures ETN (VXX)--Buy VXX or buy calls on VXX to bet on rising volatility; short VXX or buy puts to bet on declining volatility.
With the world economy heading for a double-dip recession and sovereign debt concerns growing, small and large investors are rushing to buy three assets that are considered a safe bet against uncertainty: gold, silver, and treasury bonds. This has sent iShares Silver Trust (SLV), SPDR Gold Shares (GLD), and iShares Barclays 20+ Year Treasury bond fund (TLT) soaring, while SPDR S&P 500 (SPY) has been heading in the other direction. But are these investments the right bets against the current uncertainty?
We don’t think so. Precious metals are caught at the crosscurrents of a bearish trend (the recession), and a bullish trend (the sovereign debt crisis). That’s why they aren’t good bets against the current uncertainty, especially after their big run up. iShares Silver Trust (SLV) is up 350 percent since early 2009; SPDR Gold Shares (GLD) is up 100 percent; and Freeport-McMoRan Copper and Gold (FCX) has soared 400 percent.
But there are good reasons to believe the commodity rally may be over. Monetary policy is no longer ultra-accommodating, and some have raised rates (China, Brazil, and India). The dollar is stabilizing, and the world economy may slide into deflation before experiencing any inflationary pressures. In addition, changes in margin requirements may limit the flow of funds into commodities.
Similar arguments can be made about U.S. Treasuries that are also caught between the bullish trend fueled by the prospect of a double-dip recession and the bearish trend fuelled by sovereign debt concerns. Here in the US, the prospect of further downgrades by major credit agencies, and the possibility of an unusually large fiscal stimulus loom large.
So what is the alternative?
Buy protection. Short or buy puts on SPDR S&P 500 (SPY). The problem, however, is that the S&P 500 has had a big correction already. So investors may want to average into this trade rather than going outright into a major position. They may want to do the same with iPath S&P 500 VIX Short-Term Futures ETN (VXX)--Buy VXX or buy calls on VXX to bet on rising volatility; short VXX or buy puts to bet on declining volatility.
Isra-Mart srl: Precious Metals Under Sharp Pressure
www.isramart.com
Higher oil prices, last qouted with a 2.8% gain at $88.43 per barrel, have helped take the CRB Commodity Index 1.1% higher. Natural gas has also provided support to the CRB; the energy component was last quoted with a 1.8% gain at $4.01 per MMBtu after it had been in negative territory ahead of pit trade.
Precious metals are under pressure amid an improved tone of trade in the equity market. With the risk trade switched back on today, gold prices are down 3.7% to $1803 per ounce, which is only a few dollars above the session low that it set only minutes ago. Meanwhile, silver has fallen 2.6% to $40.78 per ounce. That's still about $0.40 above silver's session low, though.
Higher oil prices, last qouted with a 2.8% gain at $88.43 per barrel, have helped take the CRB Commodity Index 1.1% higher. Natural gas has also provided support to the CRB; the energy component was last quoted with a 1.8% gain at $4.01 per MMBtu after it had been in negative territory ahead of pit trade.
Precious metals are under pressure amid an improved tone of trade in the equity market. With the risk trade switched back on today, gold prices are down 3.7% to $1803 per ounce, which is only a few dollars above the session low that it set only minutes ago. Meanwhile, silver has fallen 2.6% to $40.78 per ounce. That's still about $0.40 above silver's session low, though.
Isra-Mart srl: EEX natural gas and co2 trading results in augustPeter Schiff: get Gold, U.S. Economy will “never recover”
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Euro Pacific Capital CEO Peter Schiff said the telltale signs of another leg down to the phantom U.S. economic recovery has begun to emerge more clearly of late, capitulating the next layer of investors who now get the thesis of Schiff’s earlier warnings before everyone rushes to the precious metals counter—a la January 1980.
Further underscoring the Schiff thesis, the Swiss National Bank announced Tuesday its intentions to intervene in the Forex and halt the relentless rise of the franc at the 1.20 level against the euro, effectively slamming yet another door on the fingers of investors seeking capital preservation away from the coordinated U.S. dollar-euro debasement scheme.
Only days before the SNB announcement, Schiff stated in his Friday article, “The SNB even recently threatened to peg the franc to the euro. It’s as if survivors on one of the Titanic’s lifeboats were so confused and bewildered that they began tying their boat to the sinking behemoth out of a desire for a ‘stable relationship.’”
Many astute investors who frequent zerohedge.com believe the SNB may be preparing for another swoon in the euro. And the timing of such a move down against the dollar just prior to the FOMC meeting scheduled for Sept. 20-21 would be most fortuitous for the Fed in its scheme with chief tag-team partner the ECB to see-saw the two dominant reserve currencies to oblivion.
And with a little help from U.S. plant at the IMF, Christine Lagarde (another fortuitous appointment to replace euro-centric Dominique Strauss-Kahn), who has wasted no time publicly contradicting ECB chief Jean-Claude “Tricky” Trichet’s clean bill of health diagnosis of the state of European bank capital levels, it now appears the rigged game between the euro and dollar plays on in earnest.
With the latest SNB move, central planners on both sides of the Atlantic have now enjoined the Swiss into the growing globalist cabal, enslaving those holders of Swiss francs too daft or trapped to flee to the freedom inherent of gold. Some wonder whether the Swiss decision to formally un-peg its currency to gold at the time of the launch of the euro in 1999 foreshadowed a conspiracy of a one-world reserve currency to follow at a later time. Tuesday’s uncharacteristic action by the SNB to debase the franc so overtly only serves to fan those flames further.
Schiff, former candidate for U.S. Senate from Connecticut, pointed out on The Schiff Report that in addition to the ever-growing strong fundamentals for a higher gold price (especially now that the Swiss have joined the central bankers’ crack den), he believes a high-profile sentiment reading has just turned to a buy signal for accumulating gold now.
Schiff surmises that PIMCO Co-CEO Bill Gross’ recent flip-flop on the outlook for U.S. Treasuries—to, now, move higher in price (yield lower), from his earlier call for a top in Treasuries of 2.7% – 3.0% yields on the 10-year note during the late spring of 2011, could be a buy signal for gold and correspondingly a signal to sell U.S. Treasuries. In other words, Schiff thinks the long-awaited pop in U.S. sovereign debt is imminent.
“This [Bill Gross' revised call] may be one of the biggest capitulations ever, which could be a sign that the bond bubble is about to burst,” Schiff chuckled. Back in May-June, Schiff added, Gross believed that the U.S. economy was on the mend, “and thought a recovering U.S. economy would mean higher rates, which is why he wanted out of Treasuries.”
“Well the reason he now wants back in,” Schiff continued, “despite the fact that the yields are even lower (1.97% 10-year note) and the prices are higher than when he got out, is because now he is convinced that there is no recovery and so he wants to be in bonds.”
Schiff wrote in a piece on Friday, entitled The Last Haven Standing, “No longer is the U.S. dollar the default shelter; instead, gold, the Swiss franc, and the Japanese yen are the preferred assets.”
Well, we can eliminate the Swiss franc, now. And, as far as the BOJ is concerned, it, too, suffers from its own “Swiss problem,” with the yen being repatriated back from two decades of overseas flight into higher-yielding assets, in response to a rebuilding effort following the two-punch disaster of an earthquake and tsunami earlier this year. The reverse in yen flow could last a few years longer, some analysts have suggested. The BOJ has established a ceiling of 74-76 yen against the dollar since the tsunami and reported in August it would take further measures to stem the rise in the yen.
Therefore, investors are now left with record-low yields in the U.S. Treasury market and dollar-induced inflation still in the pipeline from QE2, QE2.5 and possibly more at the conclusion of the FOMC meeting of Sept. 21, at the earliest. For nearly a decade, Schiff’s ultimate point has been: Why wait to watch the last man standing in this phony currency war fall to the relentless punishment of the world’s true reserve currency, gold?
Euro Pacific Capital CEO Peter Schiff said the telltale signs of another leg down to the phantom U.S. economic recovery has begun to emerge more clearly of late, capitulating the next layer of investors who now get the thesis of Schiff’s earlier warnings before everyone rushes to the precious metals counter—a la January 1980.
Further underscoring the Schiff thesis, the Swiss National Bank announced Tuesday its intentions to intervene in the Forex and halt the relentless rise of the franc at the 1.20 level against the euro, effectively slamming yet another door on the fingers of investors seeking capital preservation away from the coordinated U.S. dollar-euro debasement scheme.
Only days before the SNB announcement, Schiff stated in his Friday article, “The SNB even recently threatened to peg the franc to the euro. It’s as if survivors on one of the Titanic’s lifeboats were so confused and bewildered that they began tying their boat to the sinking behemoth out of a desire for a ‘stable relationship.’”
Many astute investors who frequent zerohedge.com believe the SNB may be preparing for another swoon in the euro. And the timing of such a move down against the dollar just prior to the FOMC meeting scheduled for Sept. 20-21 would be most fortuitous for the Fed in its scheme with chief tag-team partner the ECB to see-saw the two dominant reserve currencies to oblivion.
And with a little help from U.S. plant at the IMF, Christine Lagarde (another fortuitous appointment to replace euro-centric Dominique Strauss-Kahn), who has wasted no time publicly contradicting ECB chief Jean-Claude “Tricky” Trichet’s clean bill of health diagnosis of the state of European bank capital levels, it now appears the rigged game between the euro and dollar plays on in earnest.
With the latest SNB move, central planners on both sides of the Atlantic have now enjoined the Swiss into the growing globalist cabal, enslaving those holders of Swiss francs too daft or trapped to flee to the freedom inherent of gold. Some wonder whether the Swiss decision to formally un-peg its currency to gold at the time of the launch of the euro in 1999 foreshadowed a conspiracy of a one-world reserve currency to follow at a later time. Tuesday’s uncharacteristic action by the SNB to debase the franc so overtly only serves to fan those flames further.
Schiff, former candidate for U.S. Senate from Connecticut, pointed out on The Schiff Report that in addition to the ever-growing strong fundamentals for a higher gold price (especially now that the Swiss have joined the central bankers’ crack den), he believes a high-profile sentiment reading has just turned to a buy signal for accumulating gold now.
Schiff surmises that PIMCO Co-CEO Bill Gross’ recent flip-flop on the outlook for U.S. Treasuries—to, now, move higher in price (yield lower), from his earlier call for a top in Treasuries of 2.7% – 3.0% yields on the 10-year note during the late spring of 2011, could be a buy signal for gold and correspondingly a signal to sell U.S. Treasuries. In other words, Schiff thinks the long-awaited pop in U.S. sovereign debt is imminent.
“This [Bill Gross' revised call] may be one of the biggest capitulations ever, which could be a sign that the bond bubble is about to burst,” Schiff chuckled. Back in May-June, Schiff added, Gross believed that the U.S. economy was on the mend, “and thought a recovering U.S. economy would mean higher rates, which is why he wanted out of Treasuries.”
“Well the reason he now wants back in,” Schiff continued, “despite the fact that the yields are even lower (1.97% 10-year note) and the prices are higher than when he got out, is because now he is convinced that there is no recovery and so he wants to be in bonds.”
Schiff wrote in a piece on Friday, entitled The Last Haven Standing, “No longer is the U.S. dollar the default shelter; instead, gold, the Swiss franc, and the Japanese yen are the preferred assets.”
Well, we can eliminate the Swiss franc, now. And, as far as the BOJ is concerned, it, too, suffers from its own “Swiss problem,” with the yen being repatriated back from two decades of overseas flight into higher-yielding assets, in response to a rebuilding effort following the two-punch disaster of an earthquake and tsunami earlier this year. The reverse in yen flow could last a few years longer, some analysts have suggested. The BOJ has established a ceiling of 74-76 yen against the dollar since the tsunami and reported in August it would take further measures to stem the rise in the yen.
Therefore, investors are now left with record-low yields in the U.S. Treasury market and dollar-induced inflation still in the pipeline from QE2, QE2.5 and possibly more at the conclusion of the FOMC meeting of Sept. 21, at the earliest. For nearly a decade, Schiff’s ultimate point has been: Why wait to watch the last man standing in this phony currency war fall to the relentless punishment of the world’s true reserve currency, gold?
Isra-Mart srl: Investors have many ways to buy silver
www.isramart.com
Dillon Gage Metals: As silver reached a recent high of $48.48 an ounce this spring, owners who had bought the metal 10 years ago -- when it was less than $5 an ounce -- saw a tenfold increase.
"As the price of gold escalates beyond many investors' budgets, they're turning to silver in a variety of ways," says Terry Hanlon, president of Dillon Gage Metals in Dallas. One approach is to buy basic coins, including American Eagles, Canadian Maple Leafs, Austrian Philharmonics and Australian Kookaburras. "These coins are excellent choices because they have good liquidity, with fairly low purchasing premiums."
In today's turbulent markets, precious metals are one of the few, true safe havens, he says. Many investors want to own silver and gold as insurance against the diminishing value of other investments and assets.
Silver has a positive set of supply and demand factors, Hanlon notes. In 2010, world silver jewelry purchases grew by over 5 percent to a five-year high, according to GFMS in London. That helped lift the metal's total fabrication demand by nearly 13 percent to a 10-year high of 878.8 million ounces. Photographic usage of silver fell last year but had its smallest decline in six years as medical users reconsidered converting to digital photo systems, GFMS said. Meanwhile, global mine production of silver rose 2.5 percent last year.
Hanlon says, "I recommend owning the real thing." Silver bullion is a good investment because of its currency-like properties. "The average premium that you're required to pay for silver bullion items is generally pretty low," he continues. "I suggest that investors buy the basic coins from recognized world mints or bars in one-ounce, 10-ounce or 100-ounce sizes, with well-known hallmarks, such as Royal Canadian Mint, Engelhard or Johnson Matthey."
As alternatives to investing in coins and bars, funds or managers of pooled money offer shares in silver. One investment vehicle is iShares Silver Trust ETF or SLV, Hanlon states. Another option for those who prefer to own paper is the Sprott Fund out of Toronto, backed by silver stored in Canada. And, of course, another avenue is buying silver futures contracts. Dillon Gage has a division specializing in commodity futures markets for this purpose.
Silver's all-time high was $50 an ounce, reached in early 1980. Many commodity fund managers are buying the physical metal, and some of them are eying targets of $50 and higher, comments Hanlon.
For small investors, Hanlon recommends buying basic bullion items, such as silver American Eagles or Canadian Maple Leafs. "Choose a reputable dealer who's been in the business for awhile, has credentials and stands behind its products," he suggests. "You can call the U.S. Mint for a list of recommended dealers." Dillon Gage will assist customers who wish to conduct buying or selling transactions greater than $10,000.
Always ask questions when buying silver, he advises. "When you're inquiring about silver's selling price, also ask about the firm's buyback prices and policies," Hanlon urges. "And understand that buying coins and bullion is done for long-term investing and to offset your other assets and investments. So try not to worry about any minor price setbacks in silver."
If storage is a concern, you can place your coins or bullion in a metals depository, like Diamond State Depository, owned by Dillon Gage Metals and located outside of Wilmington, DE, Hanlon says.
Dillon Gage Metals: As silver reached a recent high of $48.48 an ounce this spring, owners who had bought the metal 10 years ago -- when it was less than $5 an ounce -- saw a tenfold increase.
"As the price of gold escalates beyond many investors' budgets, they're turning to silver in a variety of ways," says Terry Hanlon, president of Dillon Gage Metals in Dallas. One approach is to buy basic coins, including American Eagles, Canadian Maple Leafs, Austrian Philharmonics and Australian Kookaburras. "These coins are excellent choices because they have good liquidity, with fairly low purchasing premiums."
In today's turbulent markets, precious metals are one of the few, true safe havens, he says. Many investors want to own silver and gold as insurance against the diminishing value of other investments and assets.
Silver has a positive set of supply and demand factors, Hanlon notes. In 2010, world silver jewelry purchases grew by over 5 percent to a five-year high, according to GFMS in London. That helped lift the metal's total fabrication demand by nearly 13 percent to a 10-year high of 878.8 million ounces. Photographic usage of silver fell last year but had its smallest decline in six years as medical users reconsidered converting to digital photo systems, GFMS said. Meanwhile, global mine production of silver rose 2.5 percent last year.
Hanlon says, "I recommend owning the real thing." Silver bullion is a good investment because of its currency-like properties. "The average premium that you're required to pay for silver bullion items is generally pretty low," he continues. "I suggest that investors buy the basic coins from recognized world mints or bars in one-ounce, 10-ounce or 100-ounce sizes, with well-known hallmarks, such as Royal Canadian Mint, Engelhard or Johnson Matthey."
As alternatives to investing in coins and bars, funds or managers of pooled money offer shares in silver. One investment vehicle is iShares Silver Trust ETF or SLV, Hanlon states. Another option for those who prefer to own paper is the Sprott Fund out of Toronto, backed by silver stored in Canada. And, of course, another avenue is buying silver futures contracts. Dillon Gage has a division specializing in commodity futures markets for this purpose.
Silver's all-time high was $50 an ounce, reached in early 1980. Many commodity fund managers are buying the physical metal, and some of them are eying targets of $50 and higher, comments Hanlon.
For small investors, Hanlon recommends buying basic bullion items, such as silver American Eagles or Canadian Maple Leafs. "Choose a reputable dealer who's been in the business for awhile, has credentials and stands behind its products," he suggests. "You can call the U.S. Mint for a list of recommended dealers." Dillon Gage will assist customers who wish to conduct buying or selling transactions greater than $10,000.
Always ask questions when buying silver, he advises. "When you're inquiring about silver's selling price, also ask about the firm's buyback prices and policies," Hanlon urges. "And understand that buying coins and bullion is done for long-term investing and to offset your other assets and investments. So try not to worry about any minor price setbacks in silver."
If storage is a concern, you can place your coins or bullion in a metals depository, like Diamond State Depository, owned by Dillon Gage Metals and located outside of Wilmington, DE, Hanlon says.
Isra-Mart srl:U.S. Precious Metals, Inc. (OTC:USPR) Recorded Another Unreasonable Gain
www.isramart.com
U.S. Precious Metals, Inc. (OTC:USPR, USPR message board) has been advancing up fast over the pastdays. Yesterday, the stock added another 13.18% to its price and traded over 1 million shares on the market. Though, no particular reason for the gain could be found.
According to the records, USPR has not released any news on its business recently and no one is familiar with its present activities. Moreover, its financials are not revealed either.
In end-August, the company filed a notification of late filing with the SEC related to its annual report for the year ended May 31, 2011. The document stated that results could not be filed within the prescribed period because USPR was unable to compile certain information required in order to permit the company to file a timely and accurate report on its financial condition.
So, there is only one thing clear about USPR at this point - the high trading activity with the company's shares of common stock. Since the beginning of this month, certain directors from USPR have been acquiring or disposing different amount of the company's shares with no reasonable explanation.
Actually, the same happened about a month ago when USPR hit the gain again. Looks like the company uses the high trading activity to provoke investors' interest. However, the stock price gets back down in a while.
And while the company is preparing its annual report, the last 10-Q of USPR is full of liabilities, risk factors, immediate need for capital and potential dilution for shareholders. In this case, the only thing left for investors is to hope for a miracle for USPR.
U.S. Precious Metals, Inc. (OTC:USPR, USPR message board) has been advancing up fast over the pastdays. Yesterday, the stock added another 13.18% to its price and traded over 1 million shares on the market. Though, no particular reason for the gain could be found.
According to the records, USPR has not released any news on its business recently and no one is familiar with its present activities. Moreover, its financials are not revealed either.
In end-August, the company filed a notification of late filing with the SEC related to its annual report for the year ended May 31, 2011. The document stated that results could not be filed within the prescribed period because USPR was unable to compile certain information required in order to permit the company to file a timely and accurate report on its financial condition.
So, there is only one thing clear about USPR at this point - the high trading activity with the company's shares of common stock. Since the beginning of this month, certain directors from USPR have been acquiring or disposing different amount of the company's shares with no reasonable explanation.
Actually, the same happened about a month ago when USPR hit the gain again. Looks like the company uses the high trading activity to provoke investors' interest. However, the stock price gets back down in a while.
And while the company is preparing its annual report, the last 10-Q of USPR is full of liabilities, risk factors, immediate need for capital and potential dilution for shareholders. In this case, the only thing left for investors is to hope for a miracle for USPR.
Isra-Mart srl: Investor Uprising Releases Gold Update Report
www.isramart.com
Investor Uprising, which months ago alerted readers that gold could rise dramatically during the global debt crisis, has published a free new “Gold Update” report that tells readers how to value gold, how to trade it, and what to expect in the continuing precious metals bull market.
After months of research into how hedge funds and leading precious metals analysts are valuing gold, Investor Uprising has come up with a framework to help readers evaluate the gold bull market and put a fair value on the gold price. The report also outlines the leading ways to buy gold, including futures, bullion, ETFs, and leading mining companies.
“Our research indicates that the gold bull market is likely to continue and that it is still misunderstood by the public and mainstream media,” said R. Scott Raynovich, editor and publisher of the report. “We have published the most comprehensive guide to date for anybody who wants to understand the gold bull market.”
The report covers the leading public gold-mining companies, including AngloGold Ashanti (NYSE:AU), Barrick Gold (NYSE:ABX), Buenaventura (NYSE:BVN), Eldorado Gold (EGO), Gold Fields (NYSE:GFI), Goldcorp (NYSE:GG), Kinross Gold (NYSE:KGC), Newmont Mining (NYSE:NEM), and Yamana Gold (NYSE:AUY).
Investor Uprising, which months ago alerted readers that gold could rise dramatically during the global debt crisis, has published a free new “Gold Update” report that tells readers how to value gold, how to trade it, and what to expect in the continuing precious metals bull market.
After months of research into how hedge funds and leading precious metals analysts are valuing gold, Investor Uprising has come up with a framework to help readers evaluate the gold bull market and put a fair value on the gold price. The report also outlines the leading ways to buy gold, including futures, bullion, ETFs, and leading mining companies.
“Our research indicates that the gold bull market is likely to continue and that it is still misunderstood by the public and mainstream media,” said R. Scott Raynovich, editor and publisher of the report. “We have published the most comprehensive guide to date for anybody who wants to understand the gold bull market.”
The report covers the leading public gold-mining companies, including AngloGold Ashanti (NYSE:AU), Barrick Gold (NYSE:ABX), Buenaventura (NYSE:BVN), Eldorado Gold (EGO), Gold Fields (NYSE:GFI), Goldcorp (NYSE:GG), Kinross Gold (NYSE:KGC), Newmont Mining (NYSE:NEM), and Yamana Gold (NYSE:AUY).
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