Apr
09
2008
Excuse our cynicism, but shouldn’t this story be dead already?
The IMF, which has the worlds third largest holdings of gold bullion, has announced yet again plans to sell some of their gold holdings. As we reported before, in our Feb 29th Gold Market Update:
Our belief that the latest International Monetary gold proposal story was more spin than reality is seen in the fact that the IMF said on Thursday that no timetable has been set for the sale of a limited portion - about 12.9 million ounces (403.3 tonnes) - of the IMF’s gold stocks of 103.4 million ounces. The news was not widely reported unlike the previous ‘news’. In a background paper, the IMF said if the gold was sold on the market, as opposed to off-market transactions, the sales would be phased over time to avoid market disruptions, as recommended by an independent panel.
Factsheet - Gold in the IMF : http://www.imf.org/external/np/exr/facts/gold.htm
What is more interesting here, is not the obvious rehashing of an old story, but the changing spin it is given this time around. Continue Reading »
Apr
01
2008
The London Independent leads with the headline “The Great Depression” today.
1.1 million Ohio residents alone recieve food stamps, nearly 10% of the Ohio population, and more are elegible.
…and this is no April Fools.
Continue Reading »
Apr
01
2008
Equity and Bond investments relative value
Equities (as at 31/3/2008)
|
Equities
|
Level
|
Change YTD
|
Div Yield
|
P/E
|
|
ISEQ
|
6153
|
-11.3%
|
3.3%
|
7.0
|
|
FTSE100
|
5693
|
-11.8%
|
4.3%
|
11.4
|
|
S&P 500
|
1315
|
-10.4%
|
2.3%
|
19.9
|
|
EuroStoxx 50
|
3030
|
-17.8%
|
4.5%
|
10.3
|
|
Nikkei 225
|
12800
|
-16.3%
|
1.7%
|
14.2
|
Source: Dolmen Securities Ltd
Are equities cheap?
The P/E ratio of equity markets should be an indicator of fair market value.
Continue Reading »
Mar
28
2008
Jim Grant, founder and editor of the highly respected Grants Interest Rate Observer and one of the world’s leading experts on US and international interest rates and financial markets appeared on Bloomberg’s “Taking Stock” on Tuesday, March 24. He is very bearish on bonds, calling them ‘risk without return’ and quite bullish on Gold and Silver.
Gold is a Hedge Against Depredations of Our Financial Masters and a Dollar Based Calamity; In Coming Years Stocks to Struggle and Silver is the Silver Lining.
Just yesterday it was reported that South Korea’s National Pension Service plans to no longer purchase U.S. Treasuries - is this evidence of a broader trend?
