Monday, January 31, 2005

Bill Gates, World's Richest Man, Bets Against Dollar

Jan. 29 (Bloomberg) -- Bill Gates, the world's richest person with a net worth of $46.6 billion, is betting against the U.S. dollar.

``I'm short the dollar,'' Gates, chairman of Microsoft Corp., told Charlie Rose in an interview at the World Economic Forum in Davos, Switzerland. ``The ol' dollar, it's gonna go down.''

Read more here.

Embry: $800-$1000 gold is conservative

VANCOUVER--( Sprott Asset Management Chief Investment Strategist John Embry is adamant that gold will hit at least $800 per ounce as "paper money is going to hell in a handcart."

In a presentation to the Mining Exploration Roundup in Vancouver, Embry said he believes even a $1,000/oz gold price may be conservative. Meanwhile, he reasserted his steadfast contention that the gold price continues to be manipulated.

Read more here.

Source: Mineweb, By Dorothy Kosich.

Gold is back - 25 years after its peak

IT IS 25 years this month since gold hit its all-time high of $850 an ounce and people were queuing in the streets outside jewellery shops trying to capitalise on their family heirlooms.

Read more here.

Source: Times Online, By Clare Francis.

Is a Gold Bottom Imminent?

Back in the final days of November I warned that a correction was probably about to begin. I did not give up on the gold bull market. I argued that the bull market would come back and surprise everyone in 2005, but that one final correction would likely take place before the next launch of wave 2 of the bull market begins. I said I would buy this correction when it came.

Read more here.

Source:, Mike Swanson.

Gold futures close at three-week low under $422

SAN FRANCISCO (AFX) -- February gold dropped $4 to close at $421.80 an ounce in New York, its lowest closing level since Jan. 10. It's also down $16.60, or 3.8 percent, from its ending level on Dec. 30, the last futures trading session of 2004.


UAE gold consumption up 9pc

DUBAI — World Gold Council (WGC) regional office in Dubai has announced that the annual gold consumption in terms of sales experienced an increase of 25 per cent last year compared to 2003. The retail gold sales increased from Dh4.4 billion in the year 2003 to Dh5.3 billion last year contributing to a 25 per cent increase.

In terms of tonnage, the UAE gold consumption increased from 88 tonnes in 2003 to 96 tonnes in 2004. This nine per cent increase in gold consumption places the UAE as one of the top 10 gold consuming countries in the world.

Read more here.

Source: Khaleej Times, BY A STAFF REPORTER

Saturday, January 29, 2005

Oh yes, it can happen here

COUNTRIES GO broke gradually, by borrowing so much money that creditors lose confidence in their ability to pay the debt back. Then, they go broke suddenly as creditors stop lending.

This has happened to more than a dozen Third World nations, who had the additional misfortune of having to borrow in dollars. As their own currency lost the confidence of world markets, they lost value against the dollar. This only increased their real debt burden. The optimists say, ''It can't happen here."

Read more here.

Source: Boston Globe, ROBERT KUTTNER

UN report warns US to cut deficit

The United Nations said yesterday that the US must reduce its fiscal deficit rather than rely on a depreciation of the dollar if "an abrupt and globally damaging correction" to the world economy was to be avoided.

Read more here.

Source: The Gurdian, Charlotte Moore.

Secret £1.55bn gold backs trading funds

ONE of the largest hoards of gold ever gathered outside a central bank has been accumulated at a secret address in London over the past few months.

Gold Bullion Securities (GBS), the British and Australian ETF that listed in London in December 2003, has 60 tonnes of gold in the vault — a 30 per cent increase in the past four months. StreetTRACKS, its sister ETF in the US, which was launched in November, is now backed by 152 tonnes of gold deposited in the same vault.

Read more here.

Source: Times Business, By Patrick Hosking, Investment Editor.

Friday, January 28, 2005

China's gold output reaches record high

The Chinese mainland's gold output reached a record high of 212.35 tons last year, according to an industry organization.

The figure was up 11.75 tons, or 5.86 per cent year-on-year, said the China Gold Association.

"The record high mainly resulted from production increases at domestic gold mines boosted by high gold prices," said Wang Yanpin, an official from the association.

Read more here.

Source: By Gong Zhengzheng (China Daily)

Central banks dump dollar for euro

WASHINGTON - Central banks around the world are getting rid of the US dollar in favor of the euro in a bid to stem losses from the declining greenback, an international survey reveals. The survey says that more than two-thirds of central banks have increased their exposure to the euro in the past two years, mainly at the expense of the dollar. The report also finds that over half the central banks surveyed now find euro-zone money and debt markets as attractive for investors as those of the United States.

Read more here.

Source: By Emad Mekay, Asia Times Online

Gold inches up in Asia

Gold edged up in Asia on Friday due to buying interest at lower levels and looked set to track the fortunes of the US dollar ahead of elections in Iraq and key economic events next week, dealers said.

Fears of escalating violence in Iraq before Sunday's elections, next week's State of the Union address by President George W Bush and the Group of Seven nations' meeting were likely to buoy gold's position as a safe-haven asset, they said.

Read more here.

Source: Reuters

High Prices Fail To Dent India's Gold Demand

NEW DELHI (Dow Jones)--Indian consumers seem to have resigned themselves to high gold prices and are no longer postponing buying jewelry in the hope of prices falling in the future.

"People have generally realized prices are not coming down to where they were a year ago. So they (are) buying jewelry, largely ignoring the rising trend in world gold prices," said Bhuwan Gaurav, head of north India operations at Tanishq, the country's largest branded jewelry retailer.

Read more here.

Source:Prasenjit Bhattacharya Of DOW JONES NEWSWIRES

Thursday, January 27, 2005

China Loses Faith in Dollar

China Has Lost Faith in Stability of U.S. Dollar, Top Chinese Economist Says at World Forum

DAVOS, Switzerland (AP) -- China has lost faith in the stability of the U.S. dollar and its first priority is to broaden the exchange rate for its currency from the dollar to a more flexible basket of currencies, a top Chinese economist said Wednesday at the World Economic Forum.

Read more here.

Source: Associated Press By Edith M. Lederer, Associated Press Writer

Gold rush before Lunar New Year raises prices

SINGAPORE – Premiums for gold bars have increased by two-thirds in Singapore, a centre for bullion trading in Southeast Asia, as jewellers make last-minute purchases before the Lunar New Year, dealers said yesterday.

Gold bars fetch a premium of 50 US cents an ounce to London spot prices, up from 30 US cents last week because of strong demand from manufacturers in neighbouring Indonesia and Malaysia. The Lunar New Year falls on February 9.

Read more here.


Business Day, Thailand/Reuters