The UK Pound to Reach Parity with US$ and Euro?

An interesting article from ArabianMoney.net The editor muses that the currency traders will soon start, if they haven't already, marking down the value of the Pound vs. the $US and the Euro and that investors should exit UK Pound denominated investments. Note in the comments section of the article where both the editor and readers agree that all currencies are ugly and the only alternative to currencies is gold.

UK pound heading towards dollar and euro parity:

Foreign exchange dealers have decided to slaughter the UK pound. This morning’s press attacks appear the start of a sustained campaign to drive sterling much lower and profit from the process. And who can blame the forex guys for backing a one-way bet, and probably one the British Government secretly endorses......read on

Goldman: The Fed Needs To Print $4 Trillion In New Money

From ZeroHedge.com:

With just over a week left to the QE2 announcement, discussion over the amount, implications and effectiveness of QE2 are almost as prevalent (and moot) as those over the imminent collapse of the MBS system. Although whereas the latter is exclusively the provenance of legal interpretation of various contractual terms, and as such most who opine either way will soon be proven wrong to quite wrong, as in America contracts no longer are enforced (did nobody learn anything from the GM/Chrysler fiasco for pete's sake), when it comes to printing money the ultimate outcome will certainly have an impact. And the more the printing, the better. One of the amusing debates on the topic has been how much debt will the Fed print....Is the case for $10,000 gold becoming clearer?.......read on

Is Your Stimulus Leaking? - Niall Ferguson discusses

In the following video noted historian Niall Ferguson notes that in today's inter-connected global economic system govt. stimulus programs tend to "leak" into places they were not designed to go. Such as commodities, precious metals and emerging markets. Whilst Niall is discussing the US situation it is also, if not more so, relevant to Australia. If it was not for China embarking on the world's biggest stimulus program in September 2008, and much of that stimulus "leaking" into demand for Australian coal, gas and minerals Australia would have not avoided recession, no mater what Batman and Kevin would have liked you to believe at the time.

KWN Weekly Metals Wrap

King World News weekly precious metals market review.......listen here

The Money Stone - Gold Mining in Ghana

Ben Davies speech

Thanks to Jesse for capturing this speech by one of the precious metal and finance industries rising stars. Jesse's post can be found here. As an intro here is some of Ben Davies's opening remarks.....

Remarks by Ben Davies,
CEO, Hinde Capital, London

Economics has sought to blend epistemology, physics, mathematics, and behavioral science to try to measure uncertainty. They aim to try to predict when we might have an economic collapse, but no model has been created that manages this with much confidence, if any at all. How do you measure a risk that is unmeasurable?

No, there is nothing certain about economic predictions. Donald Rumsfeld, the former U.S. defense secretary, unwittingly declared it so at a NATO press conference in 2002, when he responded to a question on intelligence gathering:

"It's not the certainties that make life interesting; it's the uncertainties. There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things we know we don't know. But there are also unknown unknowns -- the things we don't know we don't know."

Ridicule aside, I do think it was brilliant piece of polemic, irrespective of one's political persuasion. Without knowing it, Rumsfeld could actually be the poster child for a new line of economic thought that tries to draw parallels from physics -- the Heisenberg Uncertainty Principle.

In quantum physics this principle states that certain pairs of physical properties, such as position and momentum, cannot be simultaneously known to arbitrarily high accuracy........read in full

Jim Rogers sees Gold at $2,000 and says Silver the Better Buy

Investment Guru Jim Rogers sees Gold hitting US$2,000/oz in the near future off the back of increased money printing. Also he rightly points out that even though Gold will go higher, Silver still at only 60% of its all time high is the better buy of the two.

Silver Exports From China May Slump by 40% This Year

Bloomberg News

Oct. 19 (Bloomberg) -- Silver exports from China, the world’s largest, may drop about 40 percent this year as domestic demand from industry and investors climbs, according to Beijing Antaike Information Development Co.

Shipments may decline from about 3,500 metric tons in 2009, said Feng Juncong, chief analyst at the state-owned Antaike, without providing a specific forecast. Customs data show exports plunged almost 60 percent to 970 tons in the first eight months. Cancellation of an export rebate in 2008 is also hurting shipments, she said.

Reduced exports may bolster prices that are trading near a 30-year high on speculation that governments worldwide will take further steps to stimulate their economies, weakening currencies and increasing demand for assets that are a store of value. China, the third-largest producer after Peru and Mexico, revoked export rebates in August 2008 to curb use of natural resources.

“There is huge demand in China this year and that has affected exports, which were already hurt after the tax rebate was abolished,” said Ng Cheng Thye, head of bullion at Standard Bank Asia. “The demand is coming from all areas, including jewelry, investment and fabrication and this has resulted in a physical market shortage in the Far East.”

The metal for immediate delivery touched $24.92 an ounce on Oct. 14, the highest price since September 1980, and traded at $24.2750 at 2:28 p.m. in Singapore. Industrial applications for silver, including electrical conductors and batteries, represent about half global demand.

“There are Chinese investors now hoarding silver, along with other resources, amid anticipation of higher inflation,” Feng said. “China is short of resources so these investors believe the metals will be more valuable in the future.”........read in full

Jim Rickards interviewed on ForeclosureGate and Gold

Jim Rickards interviewed by Eric King of King World News......listen here

Demand Side Fundamentals

From Gold-Eagle.com:

The precious metals space is poised for robust gains in the long term on the back of strong supply- and demand factors. Declining mine production for precious metals has resulted in a tight supply scenario over the past few years, triggering prices. Key producers including South Africa, the U.S., Australia and Russia are showing signs of a gradual shortfall in potential output, creating a global supply deficit. Two other reasons have coerced prices to attain present levels: the upturn in industrial activities post recession and the return of investors due to subside in volatility. With demand remaining strong, a flat to negative supply scenario augurs well for precious metals.....read on