The World Financial Report – October 5th, 2010
October 5, 2010
- Nothing Scary about these Charts!: http://www.fgmr.com/nothing-scary-about-these-charts.html
- Silver over $22.50 – BULLISH!
- US$5,000 to US$10,000 per ounce in the next five to ten years, Peter Schiff
- As recommended by Harold Seigel on the WFROR. Precious metals experts from WWPM will be in Edmonton and area during November. If you would like to learn more about investing in precious metals book a private consultation or attend their free seminar by calling 1-866-623-2002. Don’t miss the bull market in precious metals call today!
HAROLD’S BIG FISH
-It is a Rainbow Trout, 32 inches long 20lbs. It was caught on 6X line which is the equivalent of thread, it is very light and fragile. I caught it on a extremely small black nymph. It took me 15 minutes to land the fish and it took 10 minutes to revive him, he was exhausted.
A 1lb to 2lbs rainbow trout is common, a 5lb rainbow is very impressive, a 10 lb rainbow is almost unheard of and my 20lb Rainbow is the largest Rainbow caught in the Frying Pan River, and is a fish that Fly Fisherman dream of.
Of all the fish that I have caught in my life, including Marlins, Sailfish, Northern Pike and Peacock Bass, this is by far my trophy fish. He fought me with every ounce of strength he had in his body, he wouldn’t give up and I respect that, so I released him. Harold Seigel
-CHART OF THE WEEK: Here’s The Invisible Stock Market Crash Only Gold Hoarders Can See. Dollars, euros, and yen are all just currencies you can price any asset in. Everything is cheap or expensive relative to the currency you hold.
Thus if gold is truly a world currency, then the S&P 500 index of U.S. stocks is dirt cheap when priced in it. For every ounce of gold, you can now buy more than five times the amount of stocks you could have ten years ago, as shown below. The tricky question is where this stocks-to-gold ratio will go over the next ten years. Read more here-http://www.businessinsider.com/chart-of-the-day-sp-500-gold-2010-9
-Shayne McGuire, director of global research and gold fund manager of the US$92.3-billion Teacher Retirement System of Texas, said pension funds should lift their exposure to gold, regardless of the outlook for prices. Read more here-http://www.financialpost.com/news/Bullion+another+boom+year/3592125/story.html and http://www.reuters.com/article/idUSLNE68Q01P20100927
-Gold offers investors the “best prospect” for returns amid speculation the U.S. will continue to buy more government debt to keep interest rates low and support the world’s biggest economy, according to Richard Duncan, author of the “The Corruption of Capitalism” and “The Dollar Crisis.”
“Gold will appreciate by 10 percent a year for the rest of our lives,” Duncan said at a conference organized by the CFA Institute in Singapore today. “With so much paper money being printed, gold holds the best prospect.” Read more here-http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKBDqni4PDJ0
-Peter Schiff, president and chief global strategist at Euro Pacific Capital thinks gold could reach US$5,000 to US$10,000 per ounce in the next five to ten years. “People are afraid of the debasement of all the currencies,” he told BusinessWeek. “What’s surprising is that gold is still as low as it is.” Read more here-http://business.financialpost.com/2010/06/01/gold-to-10000/
-We cannot take pleasure in the things that have caused gold to move above $1300. However, going forward we can take both pride and comfort in the fact that we have secured a solid foundation for our families. $1650 can now be seen over a very near horizon. Jim Sinclair
-John Paulson’s Scary Speech: Double Digit Inflation By 2012, Gold At $4,000. John Paulson scared the pants off of a packed audience at New York’s University Club recently as he warned them of huge changes in the economic environment in the years to come.
Given his expectation for further money printing by the Fed and that in 1980 the gold price rose by 100% more than the correlation implied Paulson noted that the price of gold could hit $2,400 based only on monetary expansion, and as high as $4,000 per ounce based on a projected overshoot. Lastly, he noted that 80% of his assets are denominated in gold. Read more here-http://www.businessinsider.com/john-paulson-gold-at-4000-double-digit-inflation-real-estate-2010 and http://www.businessinsider.com/paulsons-gold-bet-will-make-him-one-of-the-richest-billionaires-by-2015-2009-12
-More money printing means more U.S. dollar depreciation, which would obliviously be positive for gold. David Rosenberg-Gluskin/Sheff
-David Rosenberg: It may be overbought on a near-term technical basis, but gold now on the precipice of breaking above $1,300/oz is likely to remain in this secular uptrend for quite a while longer. We’re talking years. We’re still talking $3,000/oz. Gold has made this transition this year away from being a strict commodity towards a role befitting a monetary metal that is no government’s liability. Look at what is happening around the world.
When you look at gold in real items, or normalized by the money supply (U.S. or global), you can see that we have a way to go to get to the old highs nearly three decades ago. When you look at what prior bubbles did across asset classes, you can also see that this bull market in bullion also has a way to go before it even enters a manic stage, let alone bubble territory.
-David Galland: Is Gold in a Mania? As to where we are on this map today, it’s our contention that the public is still almost completely uninvolved in gold at this point. Increasingly, however, the institutions are.
David Rosenberg, who has a large following among the institutions, wrote today that he thinks the Mania stage is still well off, and that gold won’t really gain steam until it hits $3,000. This, despite his being a staunch deflationist. Read more here-http://www.caseyresearch.com/displayCdd.php?id=544
-Jeff Clark: Welcome to the Mania. With gold punching the $1,300 mark, thoughts of what a gold mania will be like crossed my mind. If we’re right about the future of precious metals, a gold rush of historic proportions lies ahead of us. Have you thought about how a mania might affect you? Not like this, you haven’t. Read more here-http://www.caseyresearch.com/displayCdd.php?id=546 and http://news.goldseek.com/GoldSeek/1285874424.php
-Five-fold rise in gold price ‘is not a bubble’, claims industry body. World Gold Council says its research proves the 10-year bull market is no illusion. Read more here-http://www.independent.co.uk/news/business/news/fivefold-rise-in-gold-price-is-not-a-bubble-claims-industry-body-2083144.html
-Gold’s rise has some warning of bubble. Read more here-http://www.theglobeandmail.com/globe-investor/golds-rise-has-some-warning-of-bubble/article1724976/
-Greg Hunter: Is gold in a bubble? Read more here-http://usawatchdog.com/is-gold-in-a-bubble/
-Gold, the ultimate bubble, but one that is far from bursting. Billionaire financier George Soros recently repeated his warning that gold is locked in the ultimate bubble but that hasn’t stopped him buying gold, here’s why. Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=112017&sn=Detail&pid=33
-$1,300? Some say gold may hit $2,300! “Gold is not just an inflation hedge anymore. It’s a systemic risk hedge,” said Valentijn van Nieuwenhuijzen, head of fixed income and economics at ING Investment Management in The Hague, Netherlands. “Whatever shock to the financial system you can think of materializing, that’s a reason to buy gold.” Read more here-http://money.cnn.com/2010/09/24/markets/thebuzz/index.htm
-Gold “Absolutely” Still a Buy: Metal Will Double in 5 Years, Frank Holmes Says. Watch more here-http://finance.yahoo.com/tech-ticker/gold-%22absolutely%22-still-a-buy-metal-will-double-in-5-years-frank-holmes-says-535459.html?tickers=GLD,GDX,GROW,NEM,AU,ABX,FCX
-U.S. Gold’s McEwen expects gold to reach $5,000. Watch here-http://www.gata.org/node/9068 and http://www.thestreet.com/video/10871050/outlook-for-5000-gold-prices.html#617946076001
-Chris Mack: How Realistic Is $5,000 Gold? Read more here-http://news.goldseek.com/GoldSeek/1285613308.php
-Rickards sees dollar collapse prompting new gold standard at +$5,000/oz. Watch here-http://www.gata.org/node/9067
-Gold could easily rise above $1,500 in the next year Barrick. Speaking on the sidelines of a London Bullion Market Association event, Barrick CFO Jamie Sokalsky said the yellow metal could easily outperform its current record highs. Read more here-http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=111779&sn=Detail&pid=34
-Gold May Advance to $1,350 in Three Weeks: Commerzbank Technical Analysis. Read more here-http://www.bloomberg.com/news/2010-09-29/gold-price-may-advance-to-1-350-within-three-weeks-technical-analysis.html
-Gold May Advance to $1,450 in a Year, According to LBMA Conference Survey. Read more here-http://www.bloomberg.com/news/2010-09-28/gold-may-advance-to-1-450-in-a-year-according-to-lbma-conference-survey.html and http://in.reuters.com/article/idINIndia-51764520100927?loomia_ow=t0:s0:a49:g43:r2:c0.200000:b37587424:z0
-Gold gurus at odds on price fortunes. Read more here-http://www.miningmx.com/news/gold_and_silver/Gold-gurus-at-odds-on-price-fortunes.htm
-Central Banks’ Gold Disposals Drop 40% in Accord, World Gold Council Says. Central banks and the International Monetary Fund sold about 94.5 metric tons of gold in the year that ended yesterday, the lowest amount under an agreement that began in 1999, according to data from the World Gold Council.
Eurozone banks disposed of 6.2 tons, led by Germany, Greece and Malta, while the International Monetary Fund sold 88.3 tons. The figure for the eurozone banks was 96 percent below last year’s 142 tons. The data run through Sept. 14 and the first year of the third five-year agreement ended yesterday.
Gold is heading for a 10th consecutive annual advance, the longest winning streak since at least 1920, spurring central banks globally to add the metal to reserves. Combined central bank holdings rose in every quarter since the second quarter of last year, data from the council show.
The Central Bank Gold Agreement was announced more than a decade ago because of concern that uncoordinated selling was destabilizing the gold market and driving down prices. Gold fell from a then-record $850 an ounce in 1980 to $253.83 in February 2001. Read more here-http://www.bloomberg.com/news/2010-09-27/eurozone-central-banks-sell-6-2-tons-of-gold-world-gold-council-reports.html and http://www.gata.org/node/9076
-Germany won’t sell gold for another year. Read more here-http://www.gata.org/node/9080
-How many other nations are misreporting gold reserves? Saudi Arabia did not buy new gold reserves in 2010 despite data from the World Gold Council that showed the kingdom had doubled its reserves during the first quarter, the central bank governor said on Sunday.
“We did not buy new gold. This was just a merge and reclassifying assets. This gold was under different accounts and was brought under one account,’ Muhammad al-Jasser told Reuters, declining to give more details. In June, the WGC data indicated that Saudi Arabia lifted its reported reserves to 322.9 tonnes from 143 tonnes, making it the world’s 16th largest holder of gold. Read more here-http://www.gata.org/node/9070 and http://www.gata.org/node/9094
-Philip Manduca Says There Has Never Been An Empire So Willing To Give Its Wealth And Power Away Like America. Gold going to 2,000 in next 12 months. Read and watch more here-http://www.businessinsider.com/philip-manduca-american-empire-2010-9
-Ambrose Evans Pritchard: Gold is the final refuge against universal currency debasement. States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Nothing like this has been seen since the 1930s. Read more here-http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8026324/Gold-is-the-final-refuge-against-universal-currency-debasement.html and http://www.gata.org/node/9073
-Competitive devaluations gain acceptance as justification for higher gold. Read more here-http://www.gata.org/node/9059
-Nepal will put FX reserves into gold and rig domestic market. Read more here-http://www.gata.org/node/9065
-John Williams on Dollar Crisis of Confidence & Gold. Read more here-http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/27_John_Williams_-_Dollar_Crisis-of-Confidence_%26_Gold.html
-Fed desire for inflation spurs gold, Hathaway tells King World News. Read more here-http://www.gata.org/node/9082 and http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/27_John_Hathaway_-_Money_on_the_Sidelines_Coming_Into_Gold.html
-A decade into gold’s ascent, Financial Times concedes its legitimacy. Read more here-http://www.gata.org/node/9074
-How much gold would China need in ‘rebalancing’ of world economy? Listen here-http://www.gata.org/node/9064
-Rising prices only spur gold purchases in China. Read more here-http://www.gata.org/node/9071
-Alasdair Macleod: The global politics of gold. Read more here-http://www.gata.org/node/9075
-Pat Heller: Supply squeeze in physical gold and silver may be heating up. Read more here-http://www.gata.org/node/9063
-2010 gold buffalo bullion coins sold out. The U.S. Mint suspended sales of its 1-ounce “American Eagle” gold coins after soaring commodity prices led collectors and investors to deplete supplies. It is the first time in two decades that the Mint halted sales of the coins, which are made of 22-carat gold from domestic mines.
The coins also contain small amounts of alloy for hardening. In a memo to dealers dated Aug. 15, Cathy Laperle, a Mint official, said: Due to the unprecedented demand for American Eagle Gold One Ounce Bullion coins, our inventories have been depleted.
We are therefore temporarily suspending all sales of these coins. We are working diligently to build up our inventory and hope to resume sales shortly.” Read more here-http://www.gata.org/node/9084 and http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKIgT9DddcYY and http://www.gata.org/node/9093
-John Embry gold and bonds commentary. Read more here-http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_092410_pg321Emb.pdf
-Martin Armstrong gold commentary. Read more here-http://www.martinarmstrong.org/files/Gold%20an%2011%20Year%20High%20for%202010%2009-17-2010.pdf
-Bob Chapman gold commentary. Read more here-http://news.goldseek.com/InternationalForecaster/1285521000.php and http://news.goldseek.com/InternationalForecaster/1285771233.php
-World According to Gold: Here comes Tokyo Rose. Read more here-http://www.321gold.com/editorials/west/west093010.html
-Two speculations on the monetary endgame in hyperinflation and gold. Read more here-http://www.gata.org/node/9072
-Jordan Roy-Byrne: Don’t Get Shaken Off the Gold Bull. Read more here-http://www.321gold.com/editorials/roy_byrne/roy_byrne092910.html and http://news.goldseek.com/GoldSeek/1285740480.php
-Murray Pollitt: As intervention fails, only gold market has a pulse. Read more here-http://www.gata.org/node/9101
-Broken system could lead to $1800-$2000 gold this year or next Turk. MineWeb interviews GoldMoney’s James Turk. Listen here-http://www.gata.org/node/9095 and http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=112057&sn=Detail&pid=33
-Gary North: Gold audit is a red-alert threat to the regime. Read more here-http://www.gata.org/node/9077
-Robert Moore: Selling gold that grows on trees. Read more here-http://www.gata.org/node/9056
-BNN’s interview with GATA Chairman Murphy posted at network archive. Watch more here-http://www.gata.org/node/9061
-GATA Chairman Murphy interviewed by GoldSeek and ‘Financial Physician’. Listen here-http://www.gata.org/node/9096
-Bill Murphy gold commentary. Read more here-http://news.goldseek.com/LemetropoleCafe/1285848300.php
-Gold Through the Ages Civilization’s Love Affair with the Yellow Metal. Read more here-http://www.usfunds.com/interactive/gold-through-the-ages/
-ATMs That Sell Gold Bars Are Coming Soon to America. Read more here-http://www.cnbc.com/id/39381947 and http://in.reuters.com/article/idINIndia-51769820100927
Gold to silver ratio at 80 to 1 with gold at $1,650 the silver price would be $20.63
Gold to silver ratio at 70 to 1 with gold at $1,650 the silver price would be $23.57
Gold to silver ratio at 60 to 1 with gold at $1,650 the silver price would be $27.50
Gold to silver ratio at 50 to 1 with gold at $1,650 the silver price would be $33.00
Gold to silver ratio at 40 to 1 with gold at $1,650 the silver price would be $41.25
Gold to silver ratio at 30 to 1 with gold at $1,650 the silver price would be $55.00
Gold to silver ratio at 20 to 1 with gold at $1,650 the silver price would be $82.50
Gold to silver ratio at 15 to 1 with gold at $1,650 the silver price would be $110.00
-US Mint Announces 33% Price Increase on Silver American Eagle Premiums! The United States Mint has officially raised their wholesale pricing above spot on American Silver Eagles to all authorized dealers from $1.50 to $2.00, an increase of a whopping 33%. This news comes on the heels of a significant silver spot price rally over the last month to a new thirty year record over $22 per ounce.
The impact of this news is significant and has already affected dealer pricing across the country within hours, as prices on Silver American Eagles have jumped over $0.50/oz industry wide. The year 2010 will go down as a record year for Silver Eagle sales, as the United States Mint has already sold more than 25 million coins year-to-date. Tarek Saab
-Gold Ratio to Silver Falls Below 60 for the First Time Since October 2009. Read more here-http://www.bloomberg.com/news/2010-09-29/gold-ratio-to-silver-falls-below-60-for-the-first-time-since-october-2009.html and http://www.bloomberg.com/news/2010-09-29/gold-silver-ratio-drops-to-less-than-60-for-first-time-since-october-2009.html
-CHART OF THE WEEK: Think Gold Is Making A Move? Here’s The Metal That’s Really On Fire. While everyone is focused on gold’s massive surge, the reality is there is another precious metal outperforming the yellow one. Silver is shooting up too, with its rise at 29% for 2010, according to Bespoke Investment Group. That beats gold’s 20% rise for the year thus far. The price ratio of gold to silver has fallen as a result. Read more here-http://www.businessinsider.com/chart-of-the-day-silver-versus-gold-2010-9
-Here’s the current gold/silver ‘bubble’ chart compared against fifty historic bubbles from days gone past. The chart shows that this current bull market in the precious metals is barely off the ground compared to other bubbles. Nick Laird via Ed Steer-Casey Research-Read more here-http://www.sharelynx.com/chartstemp/BubbleComparisons.php and http://v3.caseyresearch.com/images/50-Bubbles-orig-100925.gif
-Silver may soon challenge long term resistance at $22.38/oz (weekly close) a price level last seen nearly exactly 30 years ago on 26th of September 1980. A close above this level would be very bullish and could see silver challenge the psychological round numbers of $25/oz and $30/oz.
The record quarterly high of $32.20/oz (on 31/12/1979 see chart below) will also be looked at by chartists and technically minded traders. Long term, the nominal high of $50/oz remains quite possible given the favourable supply demand dynamics.
Silver 42 Year (Weekly). Silver remains undervalued on an historical basis and is undervalued even against gold. While gold has begun to receive some interest from retail investors, silver remains the preserve of relatively few contrarian investors and the media and financial press rarely if ever covers silver. And yet silver is quite likely in the intermediate stage of a bull market that may rival that of the 1970s. See chart here-http://www.goldcore.com/images/mu/goldcore_bloomberg_chart2_30-09-10.PNG
Gold (orange), Silver (yellow) and Gold/ Silver Ratio (white) 40 Years. Many analysts believe that silver’s ratio to gold will revert to its mean average in recent history below 50:1. Even if gold only remained at some $1,300/oz this would see silver rise to some $26/oz ($1,300oz/50=$26/oz). See chart here-http://www.goldcore.com/images/mu/goldcore_bloomberg_chart3_30-09-10.PNG
A quarterly close for silver today near the $22/oz level will be bullish technically as it will be the second highest quarterly close ever. Chart watching traders may see the record quarterly high of over $32/oz as the next level of real resistance.
While the record high in January 1980 is often attributed to the Hunt Brothers cornering the market it should be remembered that there are thousands of more billionaires in the world today, not to mention hundreds of powerful hedge funds, many of which could again attempt to corner the silver market.
Silver is unique in terms of being both a monetary and an industrial metal. Silver is priced at some 22/oz today. The average nominal price of silver in 1979 and 1980 was $21.80/oz and $16.39/oz respectively. In today’s dollars and adjusted for inflation that would equate to an inflation adjusted average price of some $60/oz and $44/oz in 1979 and 1980.
It is for this reason that we believe silver will be valued at over $50/oz in the coming years. Portfolio diversification with non-correlated assets is essential now more than ever and investors should consider a allocation to silver. Goldcore
-David Levenstein: The Recent Move in Silver is Just a Preview of What We Can Expect in the Future. Read more here-http://www.kitco.com/ind/Levenstein/sep302010.html and http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=111694&sn=Detail&pid=32
-Richard Daughty: Undervalued Silver in a Government Spending Frenzy. Read more here-http://news.silverseek.com/SilverSeek/1285291090.php
-David Morgan: Silver supply set for supply deficit. Read more here-http://www.miningweekly.com/article/silver-heading-for-supply-deficit-morgan-2010-09-28
-The Economist on silver. Read more here-http://www.economist.com/node/17151109?story_id=17151109&fsrc=rss
-Explosive short squeeze in gold and silver, James Turk tells King World News. Read more here-http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/24_James_Turk_-_Explosive_Gold_and_Silver_Short_Squeeze.html and http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/28_James_Turk_-_Upside_Explosion%2C_The_Short_Squeeze_Is_On.html and http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/30_James_Turk_-_Silver_%2423%2C_Gold_%241%2C335_by_the_End_of_the_Week.html
-James Turk Big Money Continues Buying Dips. Read more here-http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/23_James_Turk_-_Big_Money_Continues_Buying_Dips.html and http://www.gata.org/node/9055
-Weekly precious metals review at King World News sees rally continuing. Listen here-http://www.gata.org/node/9066
-Silver shines, poses bigger risk than gold. Read more here-http://in.reuters.com/article/idINIndia-51777820100928
-Can an ETF Collapse? Yes, buy physical precious metals not an ETF. Read more here-http://boganassociates.com/whitepapers.html
CHARTS OF THE WEEK-QUOTES-QUICK HITS
-CHART OF THE WEEK: Where Every Major Country Is In The Global Debt Cycle. Societe Generale has mapped out the world by each country’s place in the global debt cycle. The cycle starts with countries paying down debt, followed by growth with little debt, then a rapid increase in leverage, closing with the bubble bursting.
Every major developed country fits on a part of the chart. Right now, the U.S. is starting over, paying down debt and a long way from the growth portions of the cycle. At the opposite end of the spectrum are Brazil and China, ramping up growth and increasing debt. Read more here-http://www.businessinsider.com/chart-of-the-day-world-debt-cycle-2010-9
-Last week, the National Bureau of Economic Research (the official arbiter of recession dates) declared that the recession that began in December 2007 (Chart of the Day declared that the recession was ‘underway’ back in early January 2008), ended in June 2009 (Back in June 2009, Chart of the Day stated that the recession would ultimately be declared to have ended in June 2009 plus or minus one month).
For some perspective on the recession just past (a.k.a. the Great Recession), today’s chart illustrates the duration of all US recessions since 1900. There are a couple points of interest of the 22 recessions that occurred over the past 110 years, the most recent recession is tied for fifth in terms of duration. It is also worth noting that the recession just passed was above average in duration and the longest since the Great Depression. Read more here-http://www.chartoftheday.com/20100924.htm?T
-It is now clear that we never did have an organic recovery on our hands in the U.S. growth is slowing down and deflation, not inflation, is the primary risk. David Rosenberg-Gluskin/Sheff
-We have an unbelievably tumultuous financial market backdrop on our hands; the equity market has experienced six (!) mini bull and bear markets so far this year. David Rosenberg-Gluskin/Sheff
-“We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness.” Guido Mantega-Brazil’s Finance Minister
-We think it has to be understood that over 80% of the economic growth we saw from the lows of 2009 in real GDP was due to the massive amounts of federal government stimulus and the huge inventory swing. David Rosenberg-Gluskin/Sheff
-US Is ‘Practically Owned’ by China: Analyst. The US supremacy as the top world economy will end sooner than many people believe, so gold is a better investment than the dollar despite it hitting a new record, Tom Winnifrith, CEO at financial services firm Rivington Street Holdings, told CNBC.com.
The US trade deficit and debt continue to grow and the authorities are reluctant to address the problem, preferring to print money, Winnifrith said. “America is practically owned by China,” he said. He reminded of the fact that in 1900, sterling was the world’s reserve currency but by 1948, that was no longer the case as the British Empire collapsed.
“America is doing what Britain did,” Winnifrith said. “America spends much more than it can afford and it’s not addressing the issue.” In 1832, China and India were the world’s two largest economies and by 2032, they will regain that status, he predicted.
“The 200 years when Britain and the US were the top two economies were an aberration and that will change,” Winnifrith said. “The decline of empires has happened much faster than folks think. I believe that gold will be a far better bet in 20 years than the dollar,” he added. Read more here-http://www.cnbc.com/id/39376706
-U.S. Economy “Close to a Destructive Tipping Point,” Glenn Hubbard Says. “America is very close to a destructive tipping point,” co-authors Glenn Hubbard and Peter Navarro warn in their new book Seeds of Destruction. “We must change how we conduct our politics and economics or we will inevitably go the way of all once-great nations and suffer an irreversible decline.” Watch here-http://finance.yahoo.com/tech-ticker/u.s.-economy-%22close-to-a-destructive-tipping-point%22-glenn-hubbard-says-535457.html
-Roubini: We’re In For More Financial Crises In Just The Next Decade. Read more here-http://www.businessinsider.com/roubini-crises-decade-2010-9
-Roubini Sees High Risk of a U.S. Recession, Says Japan ‘Anemic’. Read more here-http://www.bloomberg.com/news/2010-09-27/roubini-sees-high-risk-of-a-u-s-recession-says-japan-s-economy-anemic-.html
-Obama Stimulus Made Economic Crisis Worse, `Black Swan’ Author Taleb Says. Read more here-http://www.bloomberg.com/news/2010-09-25/-black-swan-author-taleb-says-obama-s-stimulus-made-economic-crisis-worse.html
-Ken Fisher Dubs New Normal Idiotic, Sees Great Decade Ahead. Read more here-http://www.bloomberg.com/news/2010-09-28/ken-fisher-dubs-new-normal-idiotic-sees-good-returns-over-next-decade.html
-CNBC Europe explains the Plunge Protection Team in action. Read more here-http://www.gata.org/node/9081
-Dow `Super Boom’ to Drive Average to 38,820 by 2025, Hirsch Says. The Dow Jones Industrial Average will surge to 38,820 in an eight-year “super boom” beginning in 2017, according to Jeffrey A. Hirsch, editor in chief of the “Stock Trader’s Almanac.” Read more here-http://www.bloomberg.com/news/2010-09-27/dow-super-boom-will-drive-average-to-38-820-stock-trader-s-almanac-says.html
-Ex-Physicist Leads Flash Crash Inquiry. The long-awaited report on the so-called flash crash, in partnership with the Commodity Futures Trading Commission, is due to be published in the next two weeks. Read more here-http://www.nytimes.com/2010/09/21/business/economy/21flash.html?_r=3&dbk=&pagewanted=print
-Waddell & Reed E-Mini Trades Said to Help Trigger May 6 Crash. U.S. regulators have concluded that Waddell & Reed Financial Inc.’s trading of Standard & Poor’s 500 Index futures spooked traders on May 6, turning an orderly selloff into a crash that erased $862 billion from the value of American equities in less than 20 minutes, according to two people with direct knowledge of the findings. Read more here-http://www.bloomberg.com/news/2010-09-30/waddell-reed-e-mini-trades-are-said-to-have-helped-trigger-may-6-crash.html
-Michigan, Florida Lead 34 States With Drop in Median Income, Census Says. Read more here-http://www.bloomberg.com/news/2010-09-28/michigan-florida-lead-34-states-with-drop-in-median-income-census-says.html
-Savers told to stop moaning and start spending. Savers should stop complaining about poor returns and start spending to help the economy, a senior Bank of England official warned today. Read more here-http://www.telegraph.co.uk/finance/personalfinance/savings/8028884/Savers-told-to-stop-moaning-and-start-spending.html
-10 things you’ll be paying more for soon. Read more here-http://www.walletpop.com/blog/2010/09/30/10-things-youll-be-paying-more-for-soon/
-10 most overpriced products you should avoid. Read more here-http://www.walletpop.com/blog/2010/09/27/10-most-overpriced-products-you-should-avoid/?icid=sphere_copyright
-Trade in on our national pastime. Just about every Canadian has a box of old hockey cards or knows someone who does. As our national pastime, it seems only fitting that on Canada Day someone coughed up US$75,000 on eBay for a single hockey card depicting Bobby Orr, one of our most popular sports legends.
The 1966-67 Topps USA Test #35 rookie card, said to be one of less than 100 that were produced, had been graded as being in near-mint condition by independent grading service Sportscard Guarantee Co. (SGC). Read more here-http://www.financialpost.com/Trade+national+pastime/3577640/story.html
-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://www.rarecoloreddiamonds.com/HistoricalPriceTrackingsystem.html
-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://www.rarecoloreddiamonds.com/watchnow.html and http://www.b-tv.com/features/watch-now.html?id=326
-Colored diamond auction results from Sotheby’s Important Jewels sale, Sept 28 2010, New York. Read more here-http://www.sothebys.com/app/live/lot/LotResultsDetailList.jsp?event_id=29878&sale_number=N08667
-LOT 165-PLATINUM AND FANCY YELLOW-BROWN DIAMOND RING, BULGARI, FRENCH. Description-The emerald-cut diamond of fancy yellow-brown color weighing 8.59 carats, flanked by near colorless baguette diamonds, size 6¾, signed Bulgari, maker’s mark, French assay mark. Estimate-40,000-60,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 64,900 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=165
-LOT 210-FANCY YELLOW DIAMOND RING. Description-The cushion modified brilliant-cut diamond of fancy yellow color weighing 2.84 carats, flanked by trapeze-cut near colorless diamonds weighing approximately .40 carat, mounted in 18 karat gold and platinum, size 5¼. Estimate-15,000-20,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 18,750 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=210
-LOT 211-COLORED DIAMOND AND DIAMOND NECKLACE. Description-Round diamonds of yellow hue weighing approximately 12.00 carats, small round and baguette diamonds weighing a total of approximately 10.00 carats, mounted in platinum, length 15½ inches. Estimate-18,000-22,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 26,250 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=211
-LOT 283-18 KARAT GOLD, FANCY YELLOW DIAMOND, NEAR COLORLESS DIAMOND AND EMERALD RING. Description-The round diamond of fancy yellow color weighing 3.48 carats, framed by round near colorless diamonds weighing approximately 3.75 carats, accented by round emeralds, mounted in 18 karat white and yellow gold, size 6¼. Estimate-20,000-30,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 25,000 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=283
-LOT 360-FANCY DARK GRAY-YELLOWISH GREEN DIAMOND RING. Description-The cushion-shaped fancy dark gray-yellowish green diamond weighing 5.55 carats, flanked by cut-cornered rectangular modified brilliant-cut diamonds of pink hue weighing approximately .35 carat, framed by round diamonds weighing approximately .90 carat, mounted in platinum and gold, size 6¾. Estimate-15,000-20,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 28,750 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=360
-LOT 363-PLATINUM, 18 KARAT PINK GOLD AND FANCY LIGHT PINK DIAMOND RING. Description-The pear-shaped diamond of fancy light pink color weighing 2.15 carats, accented by near colorless marquise-shaped diamonds and round diamonds, size 6. Estimate-75,000-100,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 134,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=363
-LOT 380-FANCY INTENSE YELLOW DIAMOND RING. Description-The cut-cornered rectangular modified brilliant-cut diamond of fancy intense yellow color weighing 10.29 carats, flanked by triangular-shaped diamonds weighing approximately 1.65 carats, mounted in platinum and 18 karat gold, size 6¾. Estimate-160,000-180,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 254,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=380
-LOT 411-FANCY YELLOW DIAMOND RING. Description-The cut-cornered rectangular modified brilliant-cut diamond of fancy yellow color weighing 9.10 carats, flanked by half-moon-shaped diamonds weighing approximately 1.15 carats, mounted in platinum and 18 karat gold, size 6. Estimate-80,000-100,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 116,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=411
-LOT 412-PAIR OF PLATINUM, 18 KARAT GOLD AND FANCY INTENSE YELLOW DIAMOND EARRINGS. Description-Set with pear-shaped diamonds of fancy intense yellow color weighing 1.25, 1.23, 1.10, 1.10, 1.07, 1.07, 1.02, and 1.01 carats, framed by small near colorless round diamonds. Estimate-55,000-75,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 86,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=412
-LOT 429-PLATINUM AND COLORED DIAMOND RING. Description-The round diamond of fancy brown-yellow color weighing 10.45 carats, framed by baguette near colorless diamonds weighing approximately 1.70 carats, size 6½. Estimate-50,000-70,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 74,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=429
-LOT 476-FANCY INTENSE YELLOW DIAMOND RING. Description-The cut-cornered rectangular modified brilliant-cut diamond of fancy intense yellow color weighing 17.97 carats, flanked by trapeze-cut diamonds weighing approximately 3.00 carats, mounted in 18 karat gold and platinum, size 6. Estimate-400,000-600,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 482,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=476
-LOT 477-FANCY YELLOW DIAMOND RING. Description-The cut-cornered rectangular modified brilliant-cut diamond of fancy yellow color weighing 9.07 carats, flanked by triangular-shaped brilliant-cut diamonds weighing approximately 2.00 carats, size 6¾. Estimate-100,000-150,000 USD. Lot Sold-Hammer Price with Buyer’s Premium: 128,500 USD. Read more here-http://www.sothebys.com/app/live/lot/LotDetail.jsp?sale_number=N08667&live_lot_id=477
-Argyle pink diamonds August newsletter. Read more here-http://www.rarecoloreddiamonds.com/articles/wp-content/uploads/2010/09/APD-Pink-News-.pdf
-Pink Diamond most expensive to be auctioned in Canada. It’s pink and about the size of a Chiclet. But it’s going to cost some buyer millions of dollars. The auction of an extremely rare pink diamond has caught the attention of global collectors, being billed as the most expensive diamond auctioned in Canada.
The auction value of the diamond has been placed anywhere from $2.5 million to $3 million. “It’s interesting to hold something so valuable and tiny in your hands, that in your whole lifetime you would never earn what this is worth,” says Duncan Parker, the president of the Canadian Gemological Association, who was holding the gem earlier. “This is really extraordinary stuff.”
Parker and Kashif Kahn, the chief operating officer of Toronto based Circa Auctions are holed up at the Park Hyatt Hotel in Toronto on a Tuesday afternoon. The two are previewing the diamond, along with millions of dollars worth of other gemstones in advance of the auction at the hotel on Oct 3. Read more here-http://www.thestar.com/printarticle/864560 and http://www.diamonds.net/news/NewsItem.aspx?ArticleID=32635
-A large pink diamond is hoped to fetch between $6 million to $7 million at a Sotheby’s sale in Hong Kong. The diamond is a IIa type, rectangular modified brilliant-cut 6.43 carat, fancy vivid pink of VS2 clarity. The diamond’s estimate is a $933,000-$1.08 million per carat value for the rare stone. However, the selling price may even suppress the estimate.
Fancy-color diamonds tend to achieve high prices at auctions in Hong Kong, making the place a favorite of auction houses. Last December, a 5.00-carat cushion-shaped fancy vivid pink potentially flawless, type IIa diamond ring sold for 10.78 million at Christie’s Jewels sale in Hong Kong.
At $2.1 million per carat, it was the most paid per carat for a diamond at an auction as well as the highest price for a pink diamond. It was bought by a private Asian buyer. The 6.43-carat diamond is set in a Van Cleef & Arpels ring, flanked by a cluster of pear-shaped and brilliant cut diamonds. Read more here-http://www.idexonline.com/portal_FullNews.asp?id=34521 and http://www.bloomberg.com/news/2010-09-30/emperor-s-seal-pink-diamond-lead-210-million-hong-kong-sale.html
-Rio Tinto’s Diamonds Debut at The World Expo In Shanghai. Rio Tinto’s diamonds from its Argyle Diamond Mine in Western Australia have made their debut in mainland China with the official unveiling of a contemporary fashion jewelry collection and a unique diamond encrusted kookaburra.
The new and innovative diamond pieces were showcased at the Australian pavilion at the World Expo in Shanghai, at an event that celebrated the unique partnership between Rio Tinto’s diamonds business and Chow Tai Fook, China’s leading diamond jewelry retailer. Read more here-http://www.diamonds.net/news/NewsItem.aspx?ArticleID=32669
-Mysterious, Rare Red Diamond on Display. Among colored diamonds, red is particularly rare, and mysterious, since no one knows for certain the origin of the color within the stone. One of the three known red diamonds weighing more than 5 carats (1 gram), an emerald-cut stone about the size of a small fingertip rests against a gray background in an American Museum of Natural History display case. This stone, known as the Kazanjian Red Diamond, has a dark hue resembling that of a garnet or a ruby, and in its nearly century-long history, it has been mistaken for the latter. Read more here-http://www.livescience.com/environment/rare-red-diamond-100928.html
-Ben Davies: The World Monetary Earthquake, The Dash From Cash. “Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.” Read more here-http://www.gata.org/node/9089 and http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/28_Ben_Davies_-_The_World_Monetary_Earthquake.html
-Dollar nears debt crisis, depreciation, China adviser warns. The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank.
Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore today. “Such a huge amount of debt is terrible,” Yu said. “The situation will be worsening day by day. I think we are one step nearer to a U.S. dollar crisis.” Read more here-http://www.gata.org/node/9088
-Ambrose Evans-Pritchard: Fed is out of control, arranging debt default by stealth. Part 1-http://www.gata.org/node/9083 Part 2-http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100007777/shut-down-the-fed-part-ii/
-World currency war has begun, Brazil’s finance minister says. An “international currency war” has broken out, according to Guido Mantega, Brazil’s finance minister, as governments around the globe compete to lower their exchange rates to boost competitiveness. Read more here-http://www.gata.org/node/9085
-Japan signals determination to rig currency market. Read more here-http://www.gata.org/node/9069
-Bud Conrad: Japan Is Starting the Currency Crisis Manipulation. I have expected the credit crisis of private mortgage debt implosion to lead to a government debt and currency crisis. New signs appeared this week as Japan intervened to keep its currency from rising more (below 83 yen/$ seems to have been the trigger for the action).
Reuters estimates that the single-day intervention on September 15 could be as high as $20 billion. The immediate cause is China’s investing in Japan that has driven the yen currency higher, and the question is what the consequences could be. Read more here-http://www.caseyresearch.com/displayCdd.php?id=545
-South Korea reportedly intervenes to slow currency’s rise. Read more here-http://www.gata.org/node/9079
-Argentina edges ahead in devaluation race; capital controls next. Read more here-http://www.gata.org/node/9078
-Bank of Canada will follow Fed in any devaluation. Read more here-http://www.gata.org/node/9058
-On the Secret Committee to Save the Euro, a Dangerous Divide. Read more here-http://online.wsj.com/article/SB10001424052748703467004575464113605731560.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
-U.S.-China relationship has messed up the world, Davies tells King World News. Listen here-http://www.gata.org/node/9099
-Ron Paul talks about Eliminating the Fed. Watch here-http://www.foxbusiness.com/on-air/money-rocks/index.html and http://www.gata.org/node/9097 and http://www.gata.org/node/9098
KRUGMAN-DEFAULT IS COMING
-I think it’s fair to say that a majority of economists believe that excessive private debt played a key role in getting us into this economic mess, and is playing a key role in preventing us from getting out. So, how does it end? A naive view says that what we need is a return to virtue: everyone needs to save more, pay down debt, and restore healthy balance sheets.
The problem with this view is the fallacy of composition: when everyone tries to pay down debt at the same time, the result is a depressed economy and falling inflation, which cause the ratio of debt to income to rise if anything. That is, we’re living in a world in which the twin paradoxes of thrift and deleveraging hold, and hence in which individual virtue ends up being collective vice.
So what will happen? In the end, I’d argue, what must happen is an effective default on a significant part of debt, one way or another. The default could be implicit, via a period of moderate inflation that reduces the real burden of debt; that’s how World War II cured the depression. Or, if not, we could see a gradual, painful process of individual defaults and bankruptcies, which ends up reducing overall debt.
And that’s what is happening now: as this story in today’s Times points out, the main force behind the gratifying decline in consumer debt appears to be default rather than thrift. So basically, we can do this cleanly or we can do this ugly. And ugly is the way we’re going. Read more here-http://krugman.blogs.nytimes.com/2010/09/25/default-is-in-our-stars/?src=twt&twt=NytimesKrugman
VOLCKER-FINANCIAL SYSTEM IS BROKEN
-In a bleak assessment delivered at the Federal Reserve Bank of Chicago’s 13th annual International Banking Conference, Mr. Volcker said: The reason we are all here is that the financial system is broken. We can use that term in late 2008, and I think it’s fair to still use the term, unfortunately.
We know that parts of it are absolutely broken, like the mortgage market which only happens to be the most important part of our capital markets. Read more here-http://dealbook.blogs.nytimes.com/2010/09/24/volcker-financial-system-is-broken/
-Volcker Spares No One in Broad Critique. Former Federal Reserve Chairman Paul Volcker scrapped a prepared speech he had planned to deliver at the Federal Reserve Bank of Chicago on Thursday, and instead delivered a blistering, off-the-cuff critique levelled at nearly every corner of the financial system. Read more here-http://blogs.wsj.com/economics/2010/09/23/volcker-spares-no-one-in-broad-critique/
WHITNEY-STATES MAY NEED BAILOUT NEXT
-Whitney Says States May Need Federal Bailout in Next 12 Months. The U.S. government will face pressure to bail out struggling states in the next 12 months, said Meredith Whitney, the banking analyst who correctly predicted Citigroup Inc.’s dividend cut in 2008.
While saying a bailout might not be politically viable, Whitney joined investor Warren Buffett in raising alarm bells about the potential for widespread defaults in the $2.8 trillion municipal bond market. She said state and local issuers have taken on too much debt and that the gap between public spending and revenue is unsustainable.
“People will think the federal government will bail these states out,” Whitney, 40, the founder of Meredith Whitney Advisory Group Inc., said in an interview on Bloomberg Television’s “In the Loop.” “It’s going to be an incredibly divisive issue.”
Whitney’s comments coincide with her release of a report rating the financial health of the 15 largest U.S. states measured by gross domestic product, according to Fortune magazine. The report, which Whitney said took two years to complete and hasn’t been released publicly, ranks California’s finances the worst, with New Jersey, Illinois and Ohio tied for second-worst.
The longest recession since the Great Depression has left states facing budget gaps of $72 billion next fiscal year, according to a July report by the National Conference on State Legislatures. State pension funds face deficits of more than $1 trillion, according to the Pew Center on the States. The amount of municipal debt outstanding has increased about 90 percent in the last decade, according to Federal Reserve data. Read more here-http://www.bloomberg.com/news/2010-09-30/whitney-says-states-may-need-federal-bailout-in-next-12-months.html
U.S. BANK FAILURES CLIMB TO 127
-Regulators shut banks in Florida, Washington state. Regulators on Friday shut down small banks in Florida and Washington state, bringing to 127 the number of U.S. bank failures this year on a wave of loan defaults and economic distress.
The Federal Deposit Insurance Corp. took over Haven Trust Bank Florida of Ponte Vedra Beach, Fla., with $148.6 million in assets and $133.6 million in deposits, and North County Bank, based in Arlington, Wash., with $288.8 million in assets and $276.1 million in deposits. Read more here-http://apnews.myway.com/article/20100925/D9IEMB381.html and http://www.bloomberg.com/news/2010-09-25/banks-in-florida-washington-are-seized-as-failures-this-year-climb-to-127.html
-Banks Keep Failing, No End in Sight. Since WaMu Fell, 279 Lenders Have Collapsed; Lost Jobs, Curtailed Lending and the Big Get Bigger. Read more here-http://online.wsj.com/article/SB10001424052748704760704575516272337762044.html?mod=WSJ_hpp_MIDDLTopStories
-Government seizes 3 middle-man credit unions. The federal regulator watching over credit unions on Friday placed three major middle-man type credit unions, beleaguered by toxic assets, into conservatorship, giving the government control over 70% of the market.
The National Credit Union Administration will issue $35 billion in bonds backed by the government to fund the federal rescue and prop up the bad assets that had been owned by the three corporate credit unions. Read more here-http://money.cnn.com/2010/09/24/news/economy/credit_union_takeover/index.htm and http://online.wsj.com/article/SB10001424052748703499604575512254063682236.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
IRISH BANK BAILOUT
-Ireland Says Bank Bailout May Hit 50 Billion Euros. Ireland is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp., raising the cost of repairing the financial system to as much as 50 billion euros ($68 billion).
“The Irish banking system is at rock bottom today,” Finance Minister Brian Lenihan said today in a Bloomberg Television interview in Dublin. He rejected speculation Ireland will need outside help. “It can only revive from now because it’s recapitalized and reformed,” he said.
Ireland’s deteriorating finances fueled investor concerns that it would become the first government after Greece to tap the 750 billion-euro rescue fund set up by the European Union and International Monetary fund to stanch the debt crisis. Read more here-http://www.bloomberg.com/news/2010-09-30/anglo-irish-allied-irish-may-need-as-much-as-19-6-billion.html
-Ireland Prices Bank Rescue; Deficit at 32% of GDP. Ireland’s central bank has put a 34 billion euro price on bailing out stricken Anglo Irish Bank under a worst case scenario and said Allied Irish Banks needs to raise an additional 3 billion euros by the end of the year.
The country’s budget deficit will balloon to 32 percent of gross domestic product this year, but Ireland aims to cut it to the European Union-agreed 3 percent by 2014, the Finance Ministry said. Read more here-http://www.cnbc.com/id/39432372
-Home Prices in U.S. Cooled in July After Tax Credit Expired. Home prices in 20 U.S. cities rose at a slower pace in July from a year earlier as the end of a government tax credit hurt sales. Read more here-http://www.bloomberg.com/news/2010-09-28/u-s-home-prices-cooled-in-july-after-tax-credit-ended-case-shiller-says.html
-New U.S. Home Sales Hold at Second-Lowest Level Ever. Fewer U.S. new homes than forecast were sold in August, signaling the housing market remains depressed even as mortgage rates dropped. Read more here-http://www.bloomberg.com/news/2010-09-24/sales-of-u-s-new-homes-held-at-second-lowest-level-on-record.html
-Distressed Homes Sell at 26% Discount in U.S. as Supply Swells. Homes in the foreclosure process sold at an average 26 percent discount in the second quarter as almost one-fourth of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc. Read more here-http://www.bloomberg.com/news/2010-09-30/distressed-u-s-homes-sell-at-26-discount-as-foreclosure-supply-increases.html
-Foreclosure Flaws May Delay Recovery by Slowing Home-Price Fall. Read more here-http://www.bloomberg.com/news/2010-09-27/foreclosure-flaws-may-delay-u-s-recovery-by-slowing-drop-in-home-prices.html
-JPMorgan Based Foreclosures on Faulty Documents, Lawyers Claim. JPMorgan Chase & Co. faces a legal challenge next month that could cast doubt on thousands of foreclosures after a mortgage executive at the bank said she didn’t verify documents used to justify home seizures. Read more here-http://www.bloomberg.com/news/2010-09-27/jpmorgan-based-home-foreclosures-on-faulty-court-documents-lawyers-claim.html and http://www.washingtonpost.com/wp-dyn/content/article/2010/09/29/AR2010092907798.html
© 2013, Worldwide Precious Metals Canada Ltd.
The World Financial Report – October 5th, 2010
Posted by Worldwide Precious Metals on Tuesday, October 5, 2010
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