Gold demand is building but gold fever is nowhere near

By the Aden Sisters: Gold demand is building but gold fever is nowhere near

You will recognize itwhen it comes because there’sno fever like gold fever.

Well, maybe the tech fever in the late 1990s was close. Keep in mind though, the gold market is small compared to stocks and bonds, which means it could easily spike up once the fever hits.

The 1970s saw gold rise tenfold. Today gold has only risen about 400% in nine years. This good solid, steady and consistent growth provides a very bullish backdrop for a further rise in gold.

In fact, it’s been almost two years now since we’ve seen a decent downward correction in gold. The March to November 2008 decline, when gold lost almost 30%, was the last great buying opportunity.

Gold’s risen nearly 80% since that November low without more than a 14% decline. This super rise caused the bull market to move into a stronger phase last September when the gold price reached the first record high that was well above the $1000+ record highs of 2008-09....read in full

When 10 billion people jump

By Kevin Bloom: The Population Reference Bureau, a United States research and data analysis body, has just released its latest forecasts on population growth in the coming decades. Put it this way: it’s going to get squashy.

In his book When a Billion Chinese Jump, author Jonathan Watts explores the consequences of the People’s Republic foregoing the faraway promises of socialist bliss for the more immediate joys of capitalist consumption. The title derives from a nightmare he had as a child – if all the men, women and children in China jumped at the same time, the world would be knocked off its axis – and alludes to the impact the most populous nation on Earth has on the planet’s diminishing resources...read on

Is SA's gold mining industry turning into Zimbabwe-Lite?

By Tim Cohen: Here’s an interesting factoid: despite having about half the world’s known gold reserves, South Africa will produce less gold this year than it did in 1906, when horses were the predominant form of public transport. But amazingly, the extraordinary decline of South Africa’s gold mining industry is not the subject of public outcries, parliamentary enquiries or even particularly of public comment.

Yet every year, less and less gold gets produced by an industry ravaged by increasing costs, lower ore grades, a hostile mining ministry whose priority is overwhelmingly focused on transformation rather than production and a largely disinterested public....read on

Soros favoured gold in Q2, cut US equities

By Aaron Pressman (Reuters): Billionaire investor George Soros in the second quarter stuck with his big bet on gold but slashed his holdings in dozens of major U.S. companies from Verizon Communications to Pfizer.

Soros also may have sold his entire holdings in Petroleo Brasileiro SA (PETR4.SA) (PBR.N).

In a quarterly securities filing on Monday, Soros Fund Management reported owning substantially fewer U.S. listed stocks than three months earlier. The fund listed $5.1 billion of equities as of June 30, down 42 percent from $8.8 billion at the end of March.

After a terrible quarter for the stock market that saw the Standard & Poor's 500 Index plunge 12 percent, Soros may have been anticipating further turbulence ahead....read on

By Julian D.W. Phillips: At the moment, it appears that the gold price is being linked to the state of the global economic growth or lack thereof. Is it? Or are there other factors that contribute to the rise in the demand for gold? A look at the different types of demand gives us perspective on the real influences on the gold price...read on

Ted Butler interviewed

Ted Butler interviewed on King World News......listen here

Gold hits six-week high on signs of faltering economy

From the Sydney Morning Herald:

Gold prices rose to a six-week high on signs the global economy is faltering, boosting demand for the metal as a protector of wealth.

Japan's economy grew at less than a fifth of the pace economists estimated last quarter, pushing it into third place behind the US and China. Manufacturing in the New York region expanded less than forecast in August, a report showed today. Gold prices have gained for two straight weeks on demand for the metal as a haven.

"There's a flight to safety going on," said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. "There's a world of uncertainty about the economy and people feel we might be slowing down."......read on

Harrods to sell gold bullion and coins over the counter

From the daily mail UK: As Britain's most prestigious department store, Harrods already prides itself on stocking luxury items.But now it has hit new heights of shopping decadence - by selling gold for the first time.The store yesterday made gold bars and coins available to the discerning shopper....read on

The Trade Deficit Nightmare

When they hear the word deficit, most Americans immediately think of the U.S. government budget deficit which is rapidly spiralling out of control. But that is not the only deficit which is ripping the U.S. economy to shreds. In fact, many economists commonly speak of the "twin deficits" that are destroying the U.S. financial system. So what is the "other deficit" that they are referring to? It is the trade deficit. Every single month, we buy much more stuff from the rest of the world than they buy from us. That means that every single month there is a massive outflow of wealth from the United States. Every single day, America becomes just a little bit poorer as Americans continue to run out and fill up their shopping carts with cheap plastic crap from China and dozens of other emerging economies. Not that trade is a bad thing. Trade can actually be a very good thing. But the gigantic trade imbalances that the United States has been running for years are absolutely bleeding us dry. Unfortunately, our politicians have just stood idly by as each month we continue to transfer massive amounts of wealth out of the United States.....read on

The Ecstasy of Empire: How Close Is America’s Demise?

By Paul Craig Roberts: The United States is running out of time to get its budget and trade deficits under control. Despite the urgency of the situation, 2010 has been wasted in hype about a non-existent recovery. As recently as August 2 Treasury Secretary Timothy F. Geithner penned a New York Times Column, “Welcome to the Recovery.”....read on