Cycles guru Martin Armstrong looks ahead to 2011.....read his report here
Tuesday, January 11, 2011
Stock market plunge in Bangladesh causes riots
From The Financial Express (of Bangladesh)
By: ANM Hamidullah
The rot started many months ago, the market finally crumbled Sunday. Between Sunday and Monday, the Bangladesh stock market lost more than 15%. For a small economy such as Bangladesh, a loss of wealth of almost US$ 7.5 billion, even on paper, is remarkable. Given the fact that many small investors flocked into the market lured by easy profit, the ripple effects would be wide-spread.
In 2010 alone, the market appreciated by 100%. In the three years (2007-2010), the average return was over 50%. The market appreciated so fast lately that the inactivity during the first part of the decade was overshadowed by the performance of the last three years, resulting in an average annual return of over 30% during this decade. Despite the current corrections, the magnitude of the return is still stupendous. In other words, nothing to feel sorry about the last two days' loss. After all in a market-based Lassiez Faire economy, nobody has the right to determine how others invest on their free own will.
However, last two years has brought in clueless investors in the market. These are investors with limited capital, limited knowledge and limited risk-taking capacity. Most diverted their funds from essential or productive activities. Most left their day jobs to ponder in the market. In other words, these people had no business partaking in this risky game. We shall keep hearing about the plight of the retired government officials, days together in the future.....read on
By: ANM Hamidullah
The rot started many months ago, the market finally crumbled Sunday. Between Sunday and Monday, the Bangladesh stock market lost more than 15%. For a small economy such as Bangladesh, a loss of wealth of almost US$ 7.5 billion, even on paper, is remarkable. Given the fact that many small investors flocked into the market lured by easy profit, the ripple effects would be wide-spread.
In 2010 alone, the market appreciated by 100%. In the three years (2007-2010), the average return was over 50%. The market appreciated so fast lately that the inactivity during the first part of the decade was overshadowed by the performance of the last three years, resulting in an average annual return of over 30% during this decade. Despite the current corrections, the magnitude of the return is still stupendous. In other words, nothing to feel sorry about the last two days' loss. After all in a market-based Lassiez Faire economy, nobody has the right to determine how others invest on their free own will.
However, last two years has brought in clueless investors in the market. These are investors with limited capital, limited knowledge and limited risk-taking capacity. Most diverted their funds from essential or productive activities. Most left their day jobs to ponder in the market. In other words, these people had no business partaking in this risky game. We shall keep hearing about the plight of the retired government officials, days together in the future.....read on
Gold for Oil - India may pay for Iranian oil with gold
From The Times of India:NEW DELHI: India is determined to ensure steady crude oil supplies from Iran and is even considering settling payments with gold in the short term before the two countries agree on a mutually accepted currency and a bank to clear the transactions.
"We have written a letter to NIOC ( National Iranian Oil Company )) asking it to suggest a bank where US sanctions are not applicable," a government official involved in the matter said requesting anonymity.
Another official said India could settle crude oil import transaction using gold in the short term, while efforts to resolve the deadlock continue. An Indian delegation, including officials from ministries of external affairs, finance and petroleum, will visit Tehran next week to thrash out the payment issue, officials said.
India's crude oil imports from Iran faced an impasse after the Reserve Bank of India declared that a regional clearinghouse that involved the Iranian central bank could no longer be used to settle oil and gas transactions between the two countries.
Oil industry officials are keenly awaiting a solution as India imports 80% of the 184 million tonne of crude oil it refines every year, and Iran accounts for 16% of these purchases, making it the second-biggest supplier, after Saudi Arabia.....read on
Monday, January 10, 2011
Record gold output could put 2010 China consumption at 600 tonnes
Author: Lawrence WilliamsFrom Mineweb.com
Chinese 2010 gold output is estimated by government sources at around 340 tonnes for 2010, a new record, suggesting the country's total consumption may have reached close to 600 tonnes.
China, already the world's largest gold producer, looks to have further increased its mine production in 2010. According to the country's Ministry of Industry and Information Technology, it is expected t to reach a new record of around 340 tonnes or more - a more than 8% increase over the 2009 figure of 319,980 tonnes. This is now the 6th successive year in which the country has raised its gold output.
Actual output for the first 11 months of the year, according to official figures, was 308.39 tonnes, up 9.2% on the same period in 2009.
Given that China also imported a record tonnage of gold this gives yet another indication of the growing importance of Chinese demand on the global gold sector.....read on
LBMA - FORECAST 2011 PREDICTS PRICE OF $1457 FOR GOLD
The London Bullion Market Association
13/14 Basinghall Street, London EC2V 5BQ
Tel: +44 (0)20 7796 3067 Fax: +44 (0)20 7796 2112 www.lbma.org.uk
Friday 7 January 2011
PRESS NOTICE
FORECAST 2011 PREDICTS PRICE OF $1457 FOR GOLD
Following are tables summarising the results of Forecast 2011, the LBMA’s annual survey on the direction of precious metal prices for the coming year. A total of 24 contributors have given us their estimates for the high, low and average price for 2011 for gold, silver, platinum and palladium, based on the London fixings, with a brief commentary on the major influences and activity for each metal covered.
In 2011, Forecast contributors predict rises for all precious metals for the second year in a row.
Their average gold forecast is US$1,457, a 19.0% increase on the 2010 average price, similar to
the forecast of $1,450 made by delegates at the 2010 LBMA Precious Metals Conference in
Berlin last September. Analysts predict that the average silver price will be $29.88, a 48.0%
rise on the 2010 average price.
The average 2011 Platinum price is forecast to rise 12.6% from the average 2010 price, to
$1,813 and palladium shows no sign of slowing down with an average 2011 price prediction of
$814.65, a 54.8% increase on last year’s bumper average price.
2010 was a very good year for LBMA forecasters. Their average gold price prediction of
$1,199, a 23.4% increase on the 2009 price, was just $26 lower than the actual average price of
$1,225. All metals rose as predicted, although silver and palladium exceeded almost everyone’s
expectations.
The full survey, including specially written commentaries and a deeper look at the historical
performance of the Forecast, will be published in mid January and will also be posted on the
LBMA website......read in full
Robert Kiyosaki: "Silver is the biggest sleeper of all"
From late last year Robert Kiyosaki discusses silver with Alex Jones of infowars.com
Robert Kiyosaki explains how to value the US$ against real money of Gold & Silver
An interesting video from Robert Kiyosaki (of Rich Dad, Poor Dad fame) from late last year explaining that you can only know the value of the $ by comparing it to other "stuff" like gold, silver & oil.
Legislation proposes Utah adopt a gold-based system
From The Salt Lake Tribune:Imagine paying your next parking ticket in gold Krugerrands or renewing your driver license using American Gold Eagles.
A proposal in the Utah Legislature would require the state to allow just that, requiring government agencies to accept gold for transactions, and creating a parallel monetary policy for intrastate commerce tied to the price of gold.
Under the legislation that has been drafted, Utah residents could mint their own gold or silver coins, a storehouse would be created to stockpile the precious metal and the Utah Defense Force, an arcane state militia that may be called and armed by the governor, would be responsible for securing the inventories.
“I think it has merit,” said Rep. John Dougall, R-Highland, who had the proposal brought to him by a constituent and committed to opening a bill file. Another representative will probably end up sponsoring the legislation.
“Fundamentally, what it comes down to is people’s concern about the fundamentally reckless policies at the federal reserve and what it does long-term to the financial standing of the country and giving folks another choice of monetary tools for their financial transactions,” Dougall said......read on
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