Queen's Newsreel

Loading...

Monday, November 19, 2012

Soros Buying Gold as Record Prices Seen on Stimulus: Commodities

After today I will give Gold a rest. QB


Gold’s 12-year rally, the longest in at least nine decades, is poised to continue in 2013 as central bank stimulus spurs investors from John Paulson to George Soros to accumulate the highest combined bullion holdings ever.
The metal will rise every quarter next year and average $1,925 an ounce in the final three months, or 12 percent more than now, according to the median of 16 analyst estimates compiled by Bloomberg. Paulson & Co. has a $3.62 billion bet through the SPDR Gold Trust (GLD), the biggest gold-backed exchange- traded product, and Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show.
Gold’s 12-year rally, the longest in at least nine decades, is poised to continue in 2013 as central bank stimulus spurs investors from John Paulson to George Soros to accumulate the highest combined bullion holdings ever. Photographer: Chris Ratcliffe/Bloomberg
Audio Download: AIS Capital’s Hummel Sees `Sunset for Dollar,’ Nov. 19
Central banks from Europe to China are pledging more steps to boost growth, raising concern about inflation and currency devaluation. Investors bought 247 metric tons through ETPs this year, exceeding annual U.S. mine output. While both sides said talks Nov. 16 between President Barack Obama and Congress over the so-called fiscal cliff were “constructive,” the Congressional Budget Office has warned the U.S. risks a recession if spending cuts and tax rises aren’t resolved.
“We see gold as a hedge against the follies of politicians,” said Michael Mullaney, who helps manage $9.5 billion of assets as chief investment officer at Fiduciary Trust in Boston. “It’s a good time to garner some protection in portfolios by having some real asset like gold.”

Longest Streak

Gold advanced 10 percent to $1,723.79 in London this year, headed for a 12th consecutive annual gain, the longest streak in data compiled by Bloomberg going back to 1920. Prices reached a record $1,921.15 in September 2011. The Standard & Poor’s GSCI gauge of 24 commodities gained 1 percent and the MSCI All- Country World Index (MXWD) of equities climbed 7.9 percent. Treasuries returned 2.8 percent, a Bank of America Corp. index shows.

Why Are We Watching the Gold Trade So Closely?



Purple Palace Abandoned Shows China Shadow-Banking Risk

Niu Dianqing stopped his motorbike at a construction site in China’s Inner Mongolia one morning last month. The front door was locked.
Sculptures of horses stand in Genghis Khan Square in the new district of Kangbashi in Ordos, Inner Mongolia, China. Designed for 300,000 people, Kangbashi, the new urban center of Ordos prefecture, may have only 28,000 residents, Bank of America-Merrill Lynch said last year. Photographer: Nelson Ching/Bloomberg
Residential apartment buildings stand in the new district of Kangbashi in Ordos, Inner Mongolia, China. Photographer: Nelson Ching/Bloomberg
A general view shows the skyline of the Dongsheng district of the inner Mongolian city of Ordos. Photographer: Ed Jones/AFP/Getty Images
A cement truck drives down a street in the new district of Kangbashi in Ordos, Inner Mongolia, China. Photographer: Nelson Ching/Bloomberg
“They said they will pay me this month, but it seems I’m fooled again,” said Niu, who supplied nets for protecting workers from falling off bamboo scaffolding at the half- completed Purple Palace, a development including a luxury hotel and three residential buildings in the city of Ordos. “The doorman was still here last week, but now even he’s gone.”
Special Report: Banking in the Shadows
The developer, Ordos Jin’ao Property Development Co., owes a lot more than the 10,000 yuan ($1,604) Niu is trying to collect, and it isn’t only suppliers who are out of the money. Dozens of investors nationwide have put 445 million yuan of savings into funding Purple Palace’s construction.
The two-year investment vehicles they purchased, called trusts, promised an annual interest rate of at least 10 percent and return of principal in March 2013. With at least 1,000 similar projects having ground to a halt this year in Ordos, where over-investment has resulted in a building boom gone bust, tens of thousands of investors risk default.
“The risks are significant there, and something must be done by the government to stop potential defaults of property trusts from spreading nationwide,” said Lian Ping, an economist at Shanghai-based Bank of Communications Co. “Trusts have become too large to fail.”

Sorghum Liquor

Trusts, targeting people with at least 1 million yuan to invest in alternatives to low-yielding bank accounts, are the fastest-growing segment of China’s nebulous world of shadow banking. They make up more than a quarter of the country’s estimated $3.35 trillion in non-bank lending, according to an Oct. 16 report by UBS AG chief China economist Tao Wang, or about 45 percent of the country’s gross domestic product.
Shadow banking worldwide is a $67 trillion industry whose size “can create systemic risks,” the Financial Stability Board said in a Nov. 18 report. The business in China, which includes banks’ off-balance-sheet vehicles such as commercial bills and entrusted loans, as well as underground lending by individuals, flourishes because more than 90 percent of the nation’s 42 million small companies can’t get bank loans.




35 comments:

Queenbee said...

When you read things like these it makes you wonder what would be an event to drive up the price since they are already front running Bennie and the Inkjets.

"Paulson & Co. has a $3.62 billion bet through the SPDR Gold Trust (GLD), the biggest gold-backed exchange- traded product, and Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show."

To me this is a financial black market and totally unregulated.

"Shadow banking worldwide is a $67 trillion industry whose size “can create systemic risks,” the Financial Stability Board said in a Nov. 18 report. The business in China, which includes banks’ off-balance-sheet vehicles such as commercial bills and entrusted loans, as well as underground lending by individuals, flourishes because more than 90 percent of the nation’s 42 million small companies can’t get bank loans."

It's another reason why a recovery cannot get any traction.

Queenbee said...

There is no crisis. It is a political scare tactic.

A Short Video Primer on the US Debt and Deficit

Mammoth said...

Queenbee, thank you for the 6:41 p.m. linkey from yesterday, re: $100 Silver. Yes we will get there, but who knows when? And will a loaf of bread be $10/loaf then?

Like a broken record, I will say it again: There will be no economic recovery until thee are jobs. and there will be few new decent-paying jobs (in America) until Manufacturing returns to the US from china, vietnam, etc.

Queenbee said...

Mammoth a wise man once told me the pendulum never stops. It will swing our way again some day, but by then we could dead. At least those of us over 50.

Queenbee said...

GAW I have been thinking about a Prius, but there is a lot of negative reviews about the length of the battery and replacement costs. Do you know anything about this? I am sure all hybrids have a limited shelf life. Maybe I am just reading the disgruntled ones.

Queenbee said...

I was watching NC and Butler play in Hawaii and a commercial came on for 5 hour energy. They had the girl in pink for breast cancer awareness as they are donating some pennies for every purchase. None of that bothered me until I thought "We don't even have the time to sit down and have a cup of coffee anymore. Just chug one of these drinks in the car on the way to work.

Queenbee said...

I won't say I have never used the product, but only a couple of times. I don't drink much coffee like I did when I was working, but I love the aroma and the chit chat that accompanies it.

Queenbee said...

Back on topic if these big money players are front running gold that should give you a indication of what is ahead. Massive money printing. Take a look at that link I posted at 9:08am and it sheds some light on the deficits that they warn will send us over a cliff. Utter nonsense IMO.

Anonymous said...

I am actually grateful to the holder of this site who has shared this impressive article at at this time.
Feel free to visit my weblog ... Antalya villas for sale

Anonymous said...

If you are going for most excellent contents like myself,
simply go to see this web site every day for the reason that it provides feature contents, thanks
my web site: Wohnungen kaufen Antalya

Anonymous said...

If some one desires expert view regarding running a blog afterward i suggest him/her to pay a visit
this weblog, Keep up the pleasant work.
Feel free to surf my web-site diablo 3 gold farming

Anonymous said...

Good day! This is kind of off topic but I need some help from an established blog.

Is it difficult to set up your own blog? I'm not very techincal but I can figure things out pretty fast. I'm thinking
about making my own but I'm not sure where to begin. Do you have any tips or suggestions? Thank you
Also visit my webpage ... tattoo removal

Anonymous said...

hey there and thank you for your info – I have
certainly picked up something new from right here.
I did however expertise some technical points using this site, since I experienced to reload the web site lots of times previous to I
could get it to load properly. I had been wondering if your web host is OK?
Not that I am complaining, but sluggish loading instances times will very frequently
affect your placement in google and could damage your high-quality
score if advertising and marketing with Adwords. Anyway
I am adding this RSS to my email and could look
out for much more of your respective fascinating
content. Make sure you update this again soon.
Also visit my web-site ; skin bleaching

Anonymous said...

Hi, this weekend is pleasant in support of me, since this point in time i am reading this enormous informative post here at my house.
my page: how to lose man boobs fast

Anonymous said...

Hello, i think that i saw you visited my blog thus i
came to “return the favor”.I am trying to find
things to improve my website!I suppose its ok to use some of your ideas!
!
Also visit my weblog :: cheap jerseys

Anonymous said...

Hi there to every body, it's my first visit of this web site; this webpage contains awesome and truly fine data designed for visitors.
My website birmingham dermatologist

Anonymous said...

Hi there to every body, it's my first visit of this web site; this webpage contains awesome and truly fine data designed for visitors.
my web page - birmingham dermatologist

Anonymous said...

Howdy just wanted to give you a brief heads up and let you know a few of
the images aren't loading properly. I'm not sure why but I think its a linking issue.

I've tried it in two different browsers and both show the same outcome.
Here is my web-site to have

Anonymous said...

Very nice article, totally what I was looking for.
my webpage - foro.pazinterior.net

Anonymous said...

I'm really enjoying the design and layout of your website. It's a very easy on the eyes which makes it much more enjoyable for me to come here and
visit more often. Did you hire out a developer
to create your theme? Exceptional work!
Visit my web blog ... bleaching skin

Anonymous said...

Thanks a bunch for sharing this with all folks you really
realize what you are talking about! Bookmarked. Kindly
additionally seek advice from my site =).

We will have a link change agreement between us
Look into my weblog - tattoo removal

Anonymous said...

I am really enjoying the theme/design of your web site.
Do you ever run into any browser compatibility problems?

A small number of my blog visitors have complained
about my website not working correctly in Explorer but looks
great in Opera. Do you have any ideas to help fix this problem?



Also visit my web site - michael kors mens watches
my page: michael kors perfumes

Anonymous said...

Somebody necessarily lend a hand to make seriously posts I'd state. This is the very first time I frequented your web page and thus far? I amazed with the analysis you made to create this actual publish incredible. Wonderful task!

Feel free to visit my webpage - cruise vacation

Anonymous said...

I'm extremely impressed with your writing abilities and also with the layout to your blog. Is this a paid topic or did you customize it yourself? Anyway stay up the nice high quality writing, it is rare to peer a nice blog like this one nowadays..

My blog post - michael kors watches

Anonymous said...

I am genuinely delighted to glance at this web site posts which contains lots of
valuable data, thanks for providing such information.



My web-site ... reality shows

Anonymous said...

Heya i am for the primary time here. I came
across this board and I to find It really helpful & it helped me out much.
I'm hoping to provide something back and aid others like you aided me.

Feel free to visit my web page ... michael kors bag
my webpage > michael kors history

Anonymous said...

Very nice article, exactly what I wanted to find.



my site michael kors

Anonymous said...

Women with absolute and original freedom who
celebrate life have always inspired me. It is quite just like having your a
pair of jeans over loaded. The majority of kids spaces usually are over-stimulating.
With these could possibly quite possibly likewise end in tender hip and legs plus your feet.
http://theindependentcollective.net/members/allencull/activity/186813

Anonymous said...

Howdy! I just wish to offer you a huge thumbs up for the
excellent information you have right here on this post.

I will be coming back to your website for more soon.


my blog: michael kors chain tote

Anonymous said...

It's genuinely very complicated in this busy life to listen news on TV, therefore I just use the web for that purpose, and get the latest news.

Also visit my webpage; Michael Kors Outlet

Anonymous said...

Hi there! Do you use Twitter? I'd like to follow you if that would be okay. I'm absolutely enjoying
your blog and look forward to new updates.


Feel free to surf to my web page Michael Kors Outlet Store

Anonymous said...

You really make it seem so easy with your presentation but I find this topic to be actually something which I think I would never understand.
It seems too complicated and extremely broad for me.

I'm looking forward for your next post, I'll try to get the hang of it!


Stop by my web page cheap nike air max

Anonymous said...

Very good article. I'm facing some of these issues as well..

Have a look at my page ... air max 90

Anonymous said...

If you want to increase your experience simply keep visiting this web site and be updated with the newest information
posted here.

My weblog - karen millen coats

Anonymous said...

Uncalled for to say, it was and even now is a video games changer in
typically the industry today. For heavy people and walkers, Nike Shocks NZ 2.
0 SI is definitely great. But then have you look at of why all of always talk about it?
Company also contains some special collections, air max, Nike Pro, Nike+, Mercurial and many others.
http://www.indiadealsonline.com/user.php?login=heikerega