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The Gold Market, U.S. Business Confidence/Job Creation - StockReserchPortal.com
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January 20, 2010
Good Morning:
The Gold Market, U.S. Business Confidence/Job
Creation
Mining and Petroleum Search Engines
I learned this morning that the SearchMining and SearchPetroleum search engines
found at the upper right of StockResearchPortal.com's Home Page are
attracting increasing tiem and attention from our website's visitors and Subscribers.
We think these are very useful tools for investors
and traders in mining and oil & gas stocks, and recommend you use them if you
are not doing that.
Is Gold The World's Largest Physical Commodity Market
An article by Adrian Douglas, publisher of Market Force Analysis Financial Letter and
a member of the Gold Anti-Trust Action Committee's ('GATA') Board of Directors,
titled 'The 'tiny' gold market is actually the world's biggest'
says the 'tiny gold market' is in fact the world's biggest physically traded commodity
market. In summary, the article says:
· the London Bullion Market Association ('LBMA') 'over-the-counter'
gold market trades approximately 90% of the world's physical gold trade -
click here to see the amount of physical gold sold each day;
· the value of the LBMA daily trading for November 2009 is given
as $22 billion, which Douglas says is a 'daily' and not 'monthly' amount;.
· world daily crude oil consumption is 82 million barrels, which
at U.S.$77 per barrel is $6.3 billion each day, about 30% of the gold dollar value
traded at November, 2009 gold prices;
· in a GATA dispatch in October 2009 analyst Paul
Mylchreest estimated that the gross volume of gold traded on the LBMA each day was
about 2,100 metric tones - equating to about $77 billion each day at 1,150 per ounce.
This versus NYMEX WTI crude oil gross value traded of about $31 billion per day;
· Douglas thinks that it is impossible for the LBMA to have enough
gold in its vaults to trade such large daily volumes - inferring the LBMA is operating
a fractional reserve system and has sold much more gold than it has or could ever
have;
· if I have it right, Douglas thinks that where people buy and
sell gold without ever taking delivery there is the opportunity for the bullion
houses to sell gold that doesn't exist, and that "this is the basis of the 'strong
dollar policy' that allows interest rates to be lower than they should be, and in
turn lowers the price of commodities and imports as it artificially enhances the
dollar's buying power"; and,
· he concludes that investors in precious metals should take delivery
of their bullion, because if they don't in due course they might discover investments
they thought they had in gold are just promissory notes.
Reverting to one of my continuing mantras, I consider this to be a real 'think for
yourself' article - and strongly recommend you read
the entire article carefully and in context by clicking here.
U.S. Business Confidence, Job Creation
An article this morning titled 'In Just The Last Week, Job Creation And Business
Confidence Tumbled Again' says the lastest Gallup survey confirms "the bump
nature of the recovery" in circumstances where U.S.:
· job creation deteriorated last week, with the Gallup Job Creation
Index at -2, down from the +1 of the prior week. Hiring was down slightly as 23%
of employees reported their companies were hiring compared with 24% the prior week.
At the same time, slightly more companies (25%) were letting people go compared
with the previous week (23%);
· economic confidence worsened, with Gallup's Economic Confidence
Index at -29, down from -22 the prior week. Economic confidence is essentially back
where it was last month after showing improvement during each of the past three
weeks; while,
· consumer spending was unchanged last week with self-reported
daily spending in stores, restaurants, gas stations, and online averaging $68, up
from $64 from January, 2009.
Notes to Readers
This email and its content is in no
way to be interpreted as an endorsement of one or more of the companies mentioned
herein, a suggestion as to the future direction of the stock price of one or more
of them, or a suggestion or recommendation to buy or sell the shares of one or more
of them. Rather this email is simply a short overview commentary and tutorial
demonstrating the type of information available on StockResearchPortal.com and how
to access it.
The owners of Stock Research DD Inc. (the owner of StockResearchPortal.com and StockResearchPortalBlog.com)
or their families, entities in which they have ownership interests, and officers,
directors, employees, agents, partners, affiliates and partners of Stock Research
DD Inc. may beneficially own securities and participate in Private Placements of
companies referenced in this E-mail. The fact that one or more companies are
referenced or discussed in this E-mail should not be construed as an endorsement
or investment recommendation with respect to those companies or their securities.
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