Newsroom

The GoldBugg Report – June 10, 2008

June 10, 2008

-”In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”  Alan Greenspan

-”I see gold at $1,250 to $1,500 in the next 12 months.”  Peter Brieger on BNN June 4 2008

-”The gains in silver will be double those of gold on the next uplegs.” “My favorite remains silver, for many reasons.”  Jim Willie CB

-”As gold regains its footing and contemplates the next run above $1000, I believe to $1400 within six to nine months, if not far sooner.”  Kevin Kerr-Read more here-http://www.marketwatch.com/news/story/story.aspx?guid=%7B0DB29E93-78B3-4A75-B1D1-6E7F166F5E4A%7D

-Israeli official says attack on Iran ‘unavoidable’

“If Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective” Read more- http://www.msnbc.msn.com/id/24998146/

-Mark O’Byrne, of Gold and Silver Investments Ltd., said that “no amount of jawboning by Bernanke or anyone else will help rectify the huge fundamental headwinds facing the U.S. economy in the face of a housing crash, huge deficits, huge credit and systemic risks and the increasing reality of stagflation.”  Kitco Daily Resource

-Fund managers are switching to cash and commodities such as gold for asset allocation after profits fell in the first quarter, Standard & Poor’s Fund Services said. Active managed funds lost a median of 7.9 percent in the first three months of 2008, compared with a 5.7 percent gain in the year-earlier period, while balanced managed funds lost 7.5 percent and cautious managed funds 5.2 percent, the fund research company said in an e-mailed statement today.

Funds such as Jupiter Merlin Income Portfolio have bought gold as a hedge against inflation, and funds denominated in sterling to gain from currency appreciation, S&P; said. “In the cautious managed sector, some managers we interviewed have added to gold as a hedge against inflation and some also have a preference for cash,” said Frankfurt-based analyst Irina Schoenberg, adding that corporate bonds have also become more attractive to investors.  Bloomberg

-”Physical buyers are coming back into the market,” said Matthew Zeman, a metals trader at LaSalle Futures Group in Chicago. “People are thinking it’s better to buy now at these discounted levels, than wait as it moves higher and have to buy at full price.”  Kitco Daily Resource

-The reason why prices are so stable during a gold standard is that the rate of increase in the gold supply corresponds very closely to the increase in population. Since 1800 the annual compound increase in the gold supply has been around 1.5% while the population growth has been approximately 1% per year. If we allow 0.5% per year for productivity increases we see that prices should be very stable indeed under a gold standard, over the long term. Historical data corroborates this proposition.  Paul van Eeden

-Report: U.S. to order limited raid on Iran. The United States is moving closer to ordering a limited attack on Iranian Revolutionary Guard installations, a military intelligence group reports. The operation would target training camps and munitions factories that assist Iraqi insurgents, Hezbollah and terrorist groups in Gaza, DEBKAfile.com, a military intelligence Web site, reported Tuesday, quoting sources in Washington.

U.S. President George Bush in May said talk of a military action of some kind against Iran is “highly speculative.” “I’ve always made it clear that options are on the table, but, you know, the biggest weapon we have against those who can’t stand freedom is the advance of freedom,” he said. Iran reportedly is preparing counter measures, perhaps on a larger scale, the Web site said.

“Iran’s Armed Forces are fully prepared to counter any military attack with any intensity and to make the enemy regret initiating any such incursions,” Iran defense minister Gen. Mostafa Mohammad-Najjar said Sunday. The Revolutionary Guard has completed preparations for a U.S. attack on their bases, DEBKAfile.com said, and have evacuated training camps and bases.  UPI

GOLD

-Some bullish thoughts on gold from Dr. Martin Murenbeeld.  Read more here-http://www.resourceinvestor.com/pebble.asp?relid=43261

-Gold Market Update Clive Maund. Gold is now in position to begin its next major uptrend, and in relation to where this uptrend is going to take it, it is considered to be at a very good price right now. According to the “Summer doldrums” crowd who are obsessed with seasonal factors, gold has to wait until August to go up, because everyone is preoccupied with Summer holidays, making the most of the good weather, pursuing pretty girls and looking after unruly kids released from the confines of school etc etc.

Oh is that so? Try telling that to Wall St traders who thought they were safe on the beaches of Long Island with their huge picnic hampers last August. So let’s get this straight we no longer live in normal times and the markets are not going to wait on the convenience of people whose minds are not on their work. So if you are planning on strolling down to the station in August to find the train waiting for you, you may find that it left long ago without you.  Read more with charts here-http://news.goldseek.com/CliveMaund/1212693870.php

-What is the biggest mistake you can make with your money in 2008? Ignoring gold, silver and their related inflation hedges can lose you more money than all the other mistakes you can make put together, except for playing the roulette table in Vegas.

Once in a lifetime, there comes a chance to turn a relatively small amount of money into a fortune, and this is one of them. We are in the early stages of a massive multi-year bull market in the metals. The supply-demand situation beggars belief. This is as close to riskless as anything I have ever recommended in 31 years of publishing The Ruff Times.

You can put a list of mining stocks on the wall, throw a dart at them, invest in the holes and make a lot of money, in effect creating your personal mutual fund. When the wind blows, even the turkeys fly. the metals are going to the moon. $2500 gold or $125 silver anyone? And what about 500% to 2000% profits in the next few years. That is written in cement over the next few years or in gold or silver.  Read more here-http://www.kitco.com/ind/Ruff/ruff_jun032008.html

-Don’t be Afraid, Buy Gold. As the price of gold has taken some lumps since it crashed into the symbolically significant $1,000 per ounce mark back in March, those on Wall Street who had consistently underplayed its potential on its way up are now assuring its continued retreat.  According to these gold market spectators, prices have risen solely as a result of financial panic, and now that the fear has apparently subsided, gold’s gains will evaporate as well.

I have been buying gold and gold stocks for myself and my clients since 1999 and not once did I buy out of fear.  In fact, from my perspective the only fear I’ve observed in the gold market is from those who have been too afraid to buy. While fear may from time to time play a role in creating price spikes in gold, the underlying bull market has been driven by solid fundamentals. 

Those who have been too afraid to buy simply do not understand the underlying dynamics and have instead decided that the market is irrational.  As a result, gold continues to climb the classic wall of worry as any dip in its otherwise upward trajectory causes the speculative investors to jump ship. Gold’s ascent from less than $300 an ounce to its current level was, and is, being driven by those who prefer it as a store of value to the paper alternatives offered by governments. 

As the Federal Reserve’s dollar debasement policy kicks into high gear and other central banks around the world are forced to follow suit to maintain their pegs against the dollar, the rational choice for long term investors is gold.  Thus, the decision to buy is not rooted in fear but reason.  On the other hand, the decision not to buy is not only rooted in fear, but ignorance as well.  Read more here-http://news.goldseek.com/EuroCapital/1212164525.php

-How will Gold Perform in the Coming Months? Recent dollar strength has led some to the erroneous conclusion that gold may struggle in the coming months. While true that short term dollar strength will affect gold in the short term, what is more important is the medium to long term supply and demand. So what is the summer like for Gold Investments?

Traditionally, summer months are a good buying opportunity with period of sideways movement or slight sell off prior to strength in August, September and October. In the last 35 years, over two-thirds of the average annual gains have been registered between August and December so it is important that investors have taken positions in the summer in order to take advantage of seasonal strength in late summer and autumn.

Could this possibly be a summer of difference? With the credit crisis gathering momentum still a lot of traditional cycles might just go out the window? This could well be the case. But given all the extra risk credit, systemic and stagflation gold is likely to surprise to the upside rather than the downside. However further consolidation may be necessary near 200 day moving average which has steadily risen and is now at $875. Gold is looking very well supported above $850 and we would be very surprised to see it materially below $850.

In bull markets the 200 day moving average is normally where support is found in periods of correction. For 8 years, gold’s 200 DMA has acted as very strong support with only extremely brief periods below it. It is thus a great average price for buyers to get in at. This was seen in June, July and August of last year when gold traded around its 200 DMA at around $650 to $680 prior to taking off in September as per the chart.

Given the prevailing macroeconomic and systemic climate, we believe gold will likely start moving up sooner than September. We could well see a gradual move back towards $1,000 in the summer months (June, July, August) prior to accelerating higher in the Autumn months targeting our year end high prediction of $1,200 per ounce.  Gold.ie

-Gold price to rise long term, according to China’s central bank. International gold prices are likely to rise further in the long term due to dollar depreciation, rising demand and global political and economic uncertainty, a researcher at China’s central bank said. Worries about global inflation, a possible worldwide economic slowdown and geopolitical instability will also bolster the metal’s price, Wang Yu, director of the gold and foreign exchange market division of the People’s Bank of China, told an industry conference.

“My personal conclusion is that international gold prices will remain volatile in the short term, while from a long-term perspective there is a possibility for and room for prices to increase further,” she said. Wang said she believed that the U.S. dollar was likely to depreciate further despite a recent rebound. Gold often moves in the opposite direction to the dollar, which tends to weaken when U.S. interest rates are cut. On the demand side, Wang said rising prices would actually be likely to encourage buying in developing countries, where the metal is considered an important store of value.

“Global gold demand is increasing steadily with strong economic growth in developing countries, but the supply of the metal is stable,” Wang said. “That creates a deficit.” Gold demand in China, the world’s second-largest jewellery market, is expected to rise this year despite high prices that have depressed demand elsewhere, Philip Klapwijk, executive chairman of metals consultancy GFMS Ltd, said on Wednesday.  Reuters

-Gold is seen as a safe bet, with 28 per cent of people claiming to feel most confident investing in gold during the current economic uncertainty. According to research published by specialist insurance broker Aon Private Clients, gold was seen as the safest bet, compared to 20 per cent of people feeling confident in property investment. However, of the 2,031 adults surveyed, a third (34 per cent) said they were not confident of investing in anything at all.

Women are much more cautious, with 38 per cent not willing to take the risk compared to just 24 per cent of men. The results are dramatically different to those on Aon’s 2006 research, which showed that 58 per cent of people favored property investment to supplement a pension, followed by 50 per cent preferring shares. Director at Aon Artscope & Specie Daniel Smith said: “Gold has historically been a safe haven for investors in times of trouble. Even the credit crunch and the biggest fall in gold price for a quarter of a century in March have failed to dent confidence.

“As with any market, prices will go up and down, but the price of gold has consistently increased over the longer period, so is still considered by most to be a sound investment. “The survey results reflect the growing global appetite for gold and other precious metals. With its global appeal and emerging consumers, such as in China, the good news is that demand continues to outstrip supply, suggesting that the price will remain buoyant for the long term.”  Ftadviser.com

-Soc Gen gold mine hedge book: big cuts in Q1 and more expected in Q2. Producers continue to dehedge at a high rate led mainly by AngloGold Ashanti and are expected to repurchase at least 200 tons during the year or probably much more.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=53865&sn;=Detail

-Australian quarterly gold output plunges to lowest level in 19 years.  Read more here-http://www.miningweekly.com/article.php?a_id=134650

-South African gold production again down – 15.6% lower in Q1. South Africa’s gold production fell to 52 228k (52.2 tnnes)g in the first quarter of 2008 as gold miners battled with lower power supply.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=54062&sn;=Detail

-Zimbabwe’s gold production to decline to 4 tonnes this year. Zimbabwe’s Chamber of Mines now predicts that the country’s annual gold output will decline even more to 4 tonnes this year  a far cry from its theoretical output capacity of around 30 tonnes a year.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=54038&sn;=Detail

-What does a US recession imply for the gold price? Recent research from the World Gold Council is particularly pertinent following the revision to the US First Quarter GDP figures.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=54175&sn;=Detail

-Gold particles can cleanse Oil spills!  Read more here-http://www.commodityonline.com/news/topstory/newsdetails.php?id=9081

SILVER

-This secular silver bull likely still has a long way to go.  And I believe we will eventually see silver prices much higher than the highs experienced in March. The bottom line is silver’s long-term fundamentals remain excellent. 

While mined supply is expected to rise, demand should also continue to grow mainly led by investment. As silver’s powerful bull market continues to gather strength, more and more investors will see the fortunes of investing in this precious metal.  Scott Wright

-Silver Wheaton chief sees $30/oz silver in ‘next couple of years’. Vancouver-based silver reseller Silver Wheaton’s president and CEO, Peter Barnes, expects the spot price for the precious metal will continue to rise, in the medium term, underpinned by both physical and investment demand, he said on Tuesday. “My view is that silver is going through $30/oz in the next couple of years,” he said on a conference call with investors.

The supply and demand outlook was “pretty robust”, and the combined effects of geopolitical risk and a weaker US dollar would continue to support higher prices. “My strong feeling is that, in the long term, the US dollar still has a long way to go [downwards],” Barnes said. Silver Wheaton buys silver from producers on a long-term basis, at predetermined prices, and then sells the metal at the current spot price.

The spot price for silver reached a 27-year high above $21/oz last month, but has since slipped back to around $17/oz. “It takes a bit of consolidation, whenever it hits new levels it consolidates for a while and then it takes another run,” Barnes commented.  Miningweekly.com

-High flying U.S. Silver Eagle Bullion coin sales grounded by U.S. Mint. Silver’s growing popularity as an investment vehicle has stymied the U.S. Mint, which stopped taking orders for its American Eagle Silver Bullion coin, and rationed sales for the remainder of this year.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=53852&sn;=Detail

-Tracking the Re-Monetization of Silver.  Read more here-http://news.silverseek.com/SilverSeek/1212414200.php

-Bubble Mania? Such a bubble phase in silver could easily lift the price into the hundreds of dollars price range. And in some ways, silver may not appear at that time to be excessively valued. For instance, at $200 per ounce, the 1 billion ounces of real investment silver in existence would be worth $200 billion.

Assuming that gold was only priced at that time at $1000 per ounce (an admittedly very low number), that would make all the gold in the world worth $5 trillion, or still 25 times what all the silver was worth. And if gold were much higher, as is likely, the comparison would be more favorable for silver. With potential new investors realizing silver is rarer than gold, silver could still look cheap to them.

This is not a promise that silver is going into a bubble and will trade at hundreds of dollars per ounce in the next few years. It is intended as an additional thought process for you to consider. Don’t you wish someone hinted at such a possibility in tech stocks or real estate before those bubbles developed?  Ted Butler-Read more here-http://news.silverseek.com/TedButler/1212510161.php

-Mitsui in talks to sell silver-based autocats. Mitsui Mining and Smelting Co Ltd aims to start commercial production of its new, less costly catalyst which applies silver rather than platinum in 2011/12, a company official said last week. The use of silver instead of the more expensive platinum, currently trading near a historical high, will enable the company to cut metals costs by more than 90 percent.  Read more here-http://www.miningmx.com/mining_fin/395594.htm

-Silver-Coated Endotracheal Tubes Cut Down on Infections. Saves money and time spent in intensive care units, researcher says.  Read more here-

http://health.usnews.com/articles/health/healthday/2008/05/19/silver-coated-endotracheal-tubes-cut-down-on_print.htm

-Silver zinc laptop batteries last 40 percent longer.  Read more here-http://news.idealo.co.uk/news/1559/zpower-silver-zinc-batteries-last-40-percent-longer.html

-A Silver Coating in the Fight Against Microbes. Silver nanoparticles could be the next step forward in antibacterial products. A new technique in paint making could soon make almost any surface germfree. Researchers have made paint that is embedded with silver nanoparticles known for their ability to kill bacteria and other microbes, in the hope that hospitals will coat their walls and countertops to fight infection.

According to the U.S. Centers for Disease Control and Prevention (CDC), more than one million people a year contract bacterial infections in hospitals. Silver itself is an excellent bacteria fighter, and in nanoparticle form it is even more potent at killing microorganisms. So far it has not shown any adverse effects in humans.  Read more here-

http://www.sciam.com/article.cfm?id=silver-coating-fights-microbes

PLATINUM-PALLADIUM

-Implats needs power to add 600,000 platinum ounces. Impala Platinum has growth plans at various operations that will boost production from 2012 to 2018, but the company has yet to secure power to realize some of the projects.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=54179&sn;=Detail

-Implats Power Deal to Open New Shafts.  Read more here-http://www.resourceinvestor.com/pebble.asp?relid=43368

-Platinum demand to climb despite high oil price. Investec Asset Management expects platinum demand from autocatalysts still to increase this year as vehicle demand in the East surpasses a slowdown in the West.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=53883&sn;=Detail

-The platinum supply equation refrigeration key to ongoing supply levels. As platinum mines get deeper they need to refrigerate intake air to maintain reasonable working conditions and this requires a big increase in power which may just not be available in the short to medium term.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=53494&sn;=Detail

-Platinum 2008: key trends for the year ahead. Jewellery scrap return becomes an important component of the market; so does second-hand goods.  Read more here-

http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=53382&sn;=Detail

COMMODITIES-GLOBAL FOOD CRISIS

-BMO’s Coxe hangs tough and optimistic on future of commodity stocks. BMO Financial Guru Don Coxe advises that gold and gold stocks become more attractive each week that global food and fuel costs rise along with writedowns on bank balance sheets.  Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=53951&sn;=Detail

-The Race Is On to Produce Increased Volumes of Rare Earth Metals.  Read more here-http://www.resourceinvestor.com/pebble.asp?relid=43162

-U.N. Issues Warning on Food Crisis.  Read more here-http://www.nytimes.com/2008/06/04/world/04food.html?partner=rssyahoo&emc;=rss&pagewanted;=print

-Report forecasts higher food prices for next decade.  Read more here-http://www.iht.com/articles/2008/05/29/business/food.php

OIL-GASOLINE

-Soros Says Oil `Bubble,’ Market Basics May Trigger Recession. Billionaire investor George Soros said an oil price “bubble” is working with fundamentals in the market that may lead to a recession in the world’s largest economy.  Read more here-http://www.bloomberg.com/apps/news?pid=20601087&sid;=awcupddOAymk&refer;=home

-Shocked! How the oil crisis has hit the world. British pensioners who cannot afford to heat their homes. European hauliers and fishermen whose livelihoods are under threat. Palestinians forced to fill up their cars with olive oil. Americans asked to go down to a four-day week.

All around the world, in a multitude of ways, the soaring price of oil is hurting rich and poor alike. For the lucky ones, it is simply a matter of changing their lifestyle. But those most vulnerable to the price of oil have been driven on to the streets in angry protests, which raise a fundamental question: what can we do to survive in a world where a barrel of oil costs $130.  Read more here-http://www.independent.co.uk/environment/green-living/shocked-how-the-oil-crisis-has-hit-the-world-837477.html?service=Print

-Double, double, oil and trouble. Is it “peak oil” or a speculative bubble? Neither, really.  Read more here-http://www.economist.com/displaystory.cfm?story_id=11453090

-Brazilian Oil Finds May Cost a Record $240 Billion to Develop. Brazil’s oil discoveries, including the Western Hemisphere’s largest in three decades, may cost $100 billion more to develop than the industry’s most costly field.

The Tupi deposit and nearby offshore prospects probably will cost $240 billion to exploit, said Peter Wells, director of U.K. research firm Neftex Petroleum Consultants Ltd. and a former Royal Dutch Shell Plc exploration manager. The total exceeds the $136 billion estimate for Kazakhstan’s Kashagan field, led by Eni SpA, and would be enough to fund the U.S. space program for 14 years.  Read more here-http://www.bloomberg.com/apps/news?pid=20601087&sid;=aPxoq_nbbUbM&refer;=home

-China Has a Role in Higher Oil Prices. You can give a much stronger answer to Fed Vice Chairman Donald Kohn’s objection that the low interest-rate driven declining foreign-exchange value of the dollar has played only “a small” role in the oil price rise, that David T. King in his accompanying op-ed “Oil Is Up Because the Dollar Is Down” shows to be half of the oil price rise since 2002.

Indeed much of the other half of the oil price rise is due to the third of world oil demand due to the U.S. and to U.S.-dollar-linked China. China accounts for 40% of all new oil demand that sets the marginal price of oil. China has hurt itself and the world by being the only major net oil importer to subsidize domestic oil product prices, a policy usually practiced only by the net oil exporters.

China still hasn’t adjusted its pricing policy, though it hasn’t been a net oil exporter since 1993. This has the same effect as if China had suddenly depreciated the U.S. dollar and thereby made the U.S. Fed’s rate-cutting binge play an even bigger role in depreciating the dollar and driving up oil prices for everybody.  WSJ

-Gas prices: Another record closer to $4. The national average price for a gallon of regular unleaded gasoline rose to new highs, inching ever closer to $4 a gallon, according to AAA.  Read more here-http://money.cnn.com/2008/06/05/news/economy/gas_prices/index.htm

-High gas prices hit consumers worldwide.  Read more here-http://news.yahoo.com/s/ap/20080531/ap_on_bi_ge/price_at_the_pump_4&printer;=1;_ylt=Ajg.dm0Xd2P_bp650l8BTeFv24cA

-Americans’ Record $4 Gasoline Price Remains Bargain in Europe. Read more here-http://www.bloomberg.com/apps/news?pid=newsarchive&sid;=aB9b2rPXKVBY

CREDIT CRISIS

-Fed auctions $75 billion to banks to ease credit woes, total is $435 billion since December.  Read more here-http://biz.yahoo.com/ap/080506/fed_credit_crisis.html?.v=2&printer;=1

-Derivatives Traders Signal Bank Woes Likely to Worsen.  Read more here-http://www.bloomberg.com/apps/news?pid=20601087&sid;=a4FnKND7aXCY&refer;=home

-Leave it to Wall Street to profit from its own distress. Merrill Lynch & Co., Citigroup Inc. and four other U.S. financial companies have used an accounting rule adopted last year to book almost $12 billion of revenue after a decline in prices of their own bonds. The rule, intended to expand the “mark-to-market” accounting that banks use to record profits or losses on trading assets, allows them to report gains when market prices for their liabilities fall.  Read more here-http://www.gata.org/node/6339

-Banks’ credit crisis solutions have echoes of 1929 Depression. As banks look to shore up their balance sheets in the wake of the credit squeeze, Philip Aldrick asks whether it is all short-term trickery. We are in the midst of the worst financial crisis since the 1930s,” warns the eminent financier George Soros in his latest book, The New Paradigm for Financial Markets.

It’s a rather extreme view, but the man who broke the Bank of England is not alone in his dark funk. At a recent event, one banker laced Soros’s sentiment with a little gallows humour, ruefully predicting “10 years of depression followed by a world war”.  Read more here-http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/01/cccrisis101.xml

U.S. RECESSION

-Will the Credit Crunch Lead to Recession?  Read more here-http://www.resourceinvestor.com/pebble.asp?relid=43316

-Americans Unload Prized Belongings to Make Ends Meat. Engagement Rings, Family China and Heirlooms are sold to Pay for Food and Gas.  Read more here-

http://abcnews.go.com/Business/Economy/story?id=4750846&page;=1

-Slow economic times mean pay cuts for many workers.  Read more here-http://www.usatoday.com/money/economy/2008-06-01-commission-tips-pay-income_N.htm?loc=interstitialskip

-America’s recession could slip into depression. Read more here-http://waldo.villagesoup.com/print/Print.cfm?StoryID=116955

-Fat pensions spell doom for many cities. Vallejo, Calif., took the extreme step of filing for bankruptcy to get out of generous obligations to public employees. Other cities and states are watching.  Read more here-http://money.cnn.com/2008/06/02/pf/retirement/vallejo.moneymag/index.htm?postversion=2008060305

INTEREST RATES

-Trichet Says ECB May Consider Raising Rates in July. Read more here-

http://www.bloomberg.com/apps/news?pid=20601087&sid;=aqQ4r70Qq5yE&refer;=home

-Bernanke Says Rate `Well Positioned,’ Watching Dollar. Read more here-http://www.bloomberg.com/apps/news?pid=20601087&sid;=ay75h.mme3Sk&refer;=home

INFLATION

-Bernanke Says Inflation Much Higher Than Fed Wants. Read more here-

http://www.bloomberg.com/apps/news?pid=20601068&sid;=a6duOndpDE7Y&refer;=home

-Russia 2008 Inflation May Accelerate to 14%, IMF Says. Read more here-http://www.bloomberg.com/apps/news?pid=20601013&sid;=axKBXVsNZZzM&refer;=emergingmarkets

-Commodity costs inflate Kodak prices. The company is raising prices by as much as 20% on a range of products, due to the soaring expense of raw materials.  Read more here-

http://money.cnn.com/2008/05/30/technology/kodak.ap/index.htm

U.S. DOLLAR-EURO

-Dollar crisis looms, says Nobel laureate Mundell. A major dollar crisis could come within five years and China is discussing reforms to the global monetary system to protect its $1.6-trillion (U.S.) reserves pile, says Nobel Prize-winning economist Robert Mundell.  Read more here-http://www.reportonbusiness.com/servlet/story/RTGAM.20080603.wmundell0603/BNStory/Business/home or http://www.gata.org/node/6345

-U.S. dollar faces threats to its reign. War spending, trade deficits, and devaluation against foreign currencies weigh on the greenback.  Read more here-

http://www.csmonitor.com/2008/0604/p15s01-wmgn.html?page=1

-Waiting for the Dollar’s Next New Low. The dollar is in a major bear market, and is losing purchasing power day after day because of debasement and inflation. Continue to avoid it. Hold gold and/or silver instead.  James Turk-Read more here-http://goldmoney.com/en/commentary-print.html

-Paulson committed to dollar as reserve currency.  Read more here-http://www.reuters.com/article/idUSL0244883920080602

-Al-Assaf, Paulson Agree on Saudis Keeping Dollar Peg.  Read more here-http://www.bloomberg.com/apps/news?pid=20601087&sid;=ay8XOXdaLAOg&refer;=home

-There is no excuse for Britain not to join the euro.  Read more here-http://www.ft.com/cms/s/0/4232f4e6-3109-11dd-bc93-000077b07658.html

CONSUMER CONFIDENCE LOW WORLDWIDE

-Canadian consumer confidence wanes on gas-price hikes. Read more here-

http://www.cbc.ca/money/story/2008/06/02/consumerconfidence.html

-Personal bankruptcies in Canada reached their highest level in more than four years in April. Read more here-

http://www.globeinvestor.com/servlet/story/RTGAM.20080604.wbankruptcy0604/GIStory/

-Britons’ Confidence Reaches Lowest Level Since Thatcher Quit. period of consumer confidence dropping and if that carries on, people start changing their purchasing behavior.”  Read more here-

http://www.bloomberg.com/apps/news?pid=20601068&sid;=ay8rcTIQllJA&refer;=home

-Consumers pick home over flying; avoided trips cost economy billions. Read more here-http://www.usatoday.com/money/industries/travel/2008-05-29-fly-delays-hassles_N.htm?loc=interstitialskip

REAL ESTATE

-CEO declares ‘depression’ in housing. Toll Brothers head says market could fall by 20% and recovery could be up to three years away.  Read more here-

http://money.cnn.com/2008/06/04/real_estate/toll_depression.ap/index.htm?postversion=2008060414

-America’s house prices are falling even faster than during the Great Depression. Read more here- http://www.economist.com/PrinterFriendly.cfm?story_id=11465476

-Home Prices Fall in 23 U.S. Cities as Defaults Rise. Read more here-http://www.bloomberg.com/apps/news?pid=20601213&sid;=a1GftpGS76j4&refer;=home

-Home prices fall 2.5% in U.K. Decline in May is biggest one-month drop in home prices on record, according to Nationwide Building Society survey.  Read more here-

http://money.cnn.com/2008/05/29/news/international/uk_home_prices.ap/index.htm

-Up to a million in U.K. headed for negative equity in their home.  Read more here-http://ftadviser.com/FinancialAdviser/Mortgages/News/article/20080605/450e8976-307f-11dd-95d6-0015171400aa/Up-to-a-million-headed-for-negative-equity.jsp

CELEBRITY FORECLOSURES

-Ed McMahon fighting foreclosure on his Beverly Hills home. http://news.yahoo.com/s/ap/20080604/ap_on_en_tv/people_ed_mcmahon&printer;=1;_ylt=At5DNSH6DHSbpmAxyK4dH2m2GL8C

 

-Holyfield facing foreclosure

http://www.cnn.com/video/#/video/showbiz/2008/06/06/dnt.holyfield.foreclosure.wsb

GEOPOLITICAL NEWS

-’Miracle’ needed to reach peace deal: top Palestinian negotiator. Read more here-

http://www.cbc.ca/world/story/2008/06/04/palestinian-negotiator.html

-Syria says Israel should face nuclear checks. Read more here-http://www.breitbart.com/print.php?id=080603112019.ics2×60l&show;_article=1

-Ahmadinejad says Israel will soon disappear. Read more here-http://www.breitbart.com/print.php?id=080602124328.f6eyi8y1&show;_article=1

-Iraq hits milestones on U.S. troop deaths, oil.  Read more here-http://www.reuters.com/article/idUSL01687040

-US paying allies to fight war in Iraq. Read more here-http://timesofindia.indiatimes.com/articleshow/msid-3087326,prtpage-1.cms

© 2012, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The GoldBugg Report – June 10, 2008
Posted by Worldwide Precious Metals on Tuesday, June 10, 2008

Subscribe to
receive timely
information on
precious metals.

• Home
• About Us
• Info Request
• Open An Account
• Bullion
• Newsroom
• Testimonials
• Contact Us
• Client Login
• Sitemap