Tag: london

Carlos Slim Catches Gold Fever

Carlos Slim Catches Gold Fever

Carlos Slim beat both Warren Buffett and Bill Gates in stock market performance last year. The reason: a hell-bent plan to start a brand-new gold and silver mining company in Mexico. Slim’s publicly disclosed holdings jumped 37% to $70 billion in 2010, according to data compiled by Bloomberg . Meanwhile, Buffett helped return a 22% gain for Berkshire Hathaway last year, and Gates’ Microsoft fell, hurting his overall annual returns even as he spread his investments into other sectors… The World’s Richest Man catches gold fever Slim — who made his fortune by building one of the world’s biggest telecommunication empires — has recently been making significant investments in gold and silver, particularly with a focus on precious metal mining in Mexico. Carlos Slim became the world’s richest man in 2010 with an estimated net worth of $55 billion. And a new spin-off mining company may help him widen his lead atop the global wealth list… Back in August, Slim’s holding company, Grupo Carso, S.A.B. de C.V., announced it would spin off a new precious metal mining company that would be focused on gold and silver mining in Mexico. The news added billions to Slim’s already ridiculous fortune as the plan to spin off the new company sent shares of Grupo Carso soaring in 2010, making it his best-performing asset last year. The new company (called Minera Frisco) produced nearly 200,000 ounces of gold and 5.5 million ounces of silver from its Mexican projects in 2010. Frisco recently reported plans to spend nearly $750 million this year to ramp up gold and silver production. The company estimates production from new mines in Mexico will more than double the company’s gold production to 440,000 ounces and nearly quadruple its silver production to 19.1 million ounces in 2011. Shares of Minera Frisco began trading Mexican Stock Exchange at the beginning of this year. But Slim and his family received nearly 80% of the new shares of Minera Frisco, and the stock is very thinly traded. Most analysts and investors will most likely avoid covering or owning this stock… However, there are many suitable alternative companies with a focus on gold and silver mining in Mexico. The largest of Minera Frisco’s publicly-traded competitors is the London-based silver major Fresnillo plc (LON: FRES) . Fresnillo plc Exchange: Symbol London: FRES P/E 39.76 Share Price 1,450 GBX Divided 5.90 GBX Market Cap 10.41 Billion GBP Yield 1.12% Fresnillo is the …

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Buying Blood in the Streets: A How-To Guide

Filed in BP, Gold, Gold Market, o, target by on January 31, 2011 0 Comments
Buying Blood in the Streets: A How-To Guide

There’s no cash in the ATMs, there’s something like 5,000 prisoners roaming the streets and there’s no security. — May Sadek, man on the street, Cairo In my financial trading service Crisis & Opportunity , I seek maximum returns by buying stocks when fear is the highest, and selling them when the panic dissipates. It might sound crude and insensitive to buy stocks in places where people are literally dying, but it works; and by supporting the stock market when everyone is fleeing, you are reducing the panic— which is a positive for financial stability. Baron Von Rothschild is credited with saying, “The time to buy is when blood is running in the streets.” He’s been re-quoted by everyone from Mobius to Rockefeller. But through extensive research, I uncovered this bit from The New York Times circa 1931… It has been reported during the aftermath of the Franco-Prussian War, when the French had been defeated and the mob was looting Paris, a friend of his asked, “What are you going to do to protect your interests in this dreadful hour?” The Baron said to him, “Can you keep a secret?” He replied, “Yes.” The Baron said, “Well, if the truth must be told, I am protecting myself by buying real estate.” His friend responded, “Do you mean to say you are buying real estate with the gutters of Paris running with blood and the city in the hands of a mob?” Rothschild said, “Yes, my friend, I mean that very thing, and that is the only time, when the gutters are running with blood, that you can buy real estate at 50 cents on the dollar.” Istanbul to Constantinople Buying blood in the streets has become a hoary Wall Street platitude because it is extremely profitable. The thing about revolutions is that the countries don’t disappear… Sure, governments come and go, the names and lines on maps change and are redrawn— but the people and resources remain. I can name a number of countries off the top of my head that had post-revolution stock market booms: South Korea, Indonesia, Malaysia, Sri Lanka, Russia, South Africa… the list goes on. When you invest in foreign markets that are in crisis, you get a bounce-back on both the equity side and the currency side. Here is an example: In 1998, the people of Indonesia took to the streets and threw off long-term dictator Suharto. The market crashed, and the currency went from 350 to the dollar to over 15,000 before it stopped trading altogether. One of the Indonesian blue chips— P.T. Telecom — fell from the low $30s to $1.50. The currency now trades at 9,047 rupiah to the dollar. If you put $10,000 in TLK at $1.50 and held it to the top, you would have made $366,000 on the share price— plus another 30% or so on the currency…

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‘Warming’ up to junk science

Filed in Bank Gold, euro, gld, Gold, Gold Spot Market, o by on December 29, 2010 0 Comments

For three years in a row, global warming models have predicted – erroneously – that Europe would have warm, snow-free winters. Meanwhile climatologist Piers Corbyn warned London of a white Christmas weeks ago. His models have been far more accurate than the UN-approved “science,” but he’s ignored. Why? Because Corbyn’s research shows the sun has far more to do with climate patterns than your Prius does. Unfortunately, there’s no money to be made at places like the Potsdam Institute studying things like the sun. No legislature can regulate excessive solar output, and there are no jobs to hand out at the Department of Sunshine Control. Until they can, you’ll just have to keep scraping the global warming off your windshield.

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Weekend Report on Gold, Silver and Crude Oil | Live Stock Trading …

Filed in Bank Gold, Gold, Indonesian Gold, o, silver by on December 27, 2010 0 Comments

Gold Bullion prices moved sideways at 1390 oz in London last Wednesday, little changed as World stock markets also held the Flat Line but WTI Crude jumped to 90.8 on falling inventory. Silver Bullion traded in 1000 oz wholesale bars …

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Single Trader Dominates Copper in London Metals Exchange

Filed in commodities, copper, New Gold, o, silver, South African Gold, Spot Gold, Zinc by on December 24, 2010 0 Comments
Single Trader Dominates Copper in London Metals Exchange

Filed under: Market Matters , Commodities , ETF Over the years there have been some strange goings on in the commodity markets. One episode that comes to mind is the attempt by the Hunt brothers of Texas to corner the silver market in the 1970s. Now we have another strange occurrence. The Financial Times reported that one trader holds 80% to 90% of the copper in the London Metals Exchange (LME) warehouses, valued at about $3 billion. We do know that JPMorgan Chase ( JPM ) is a big player in the copper market. Whether JPMorgan increased its holdings is not known. Continue reading Single Trader Dominates Copper in London Metals Exchange Single Trader Dominates Copper in London Metals Exchange originally appeared on BloggingStocks on Fri, 24 Dec 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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I Want Me Gold

I Want Me Gold

The price of physical gold hit a three-month high in London this morning on news that the Chinese were not going to hike interest rates. Most traders were expecting the Chinese to hike rates to stave off inflation, which is now at a 28-month high of 5.1%. In an effort to hedge against this inflation, Chinese retail investors are turning to gold. In Friday’s Wealth Daily , Luke Burgess wrote: China’s gold imports to jump 457% this year. The Shanghai Gold Exchange recently revealed China’s gold imports jumped almost fivefold in the first 10 months of this year. And even though China is the world’s #1 producer, the country is expected to import 9.2 million ounces of gold this year as inflation concerns lifts investment demand. Albert Cheng, managing director of the World Gold Council’s Far East department, said at a recent conference in Shanghai that China’s gold investment demand may reach 150 tons this year — a 42.9% increase compared to 2009. New renminbi gold contract Demand is so high in China that the Hong Kong bullion exchange will launch the first international gold contract denominated in renminbi in the spring of 2011. According to The Financial Times , “The new contract comes as China pushes for greater international use of the currency and as Hong Kong’s precious metals industry seeks to take advantage of booming gold demand on the mainland.” The exchange expects trading volume will see a 20% increase when the renminbi gold bars hit the market. Currency flees China In light of Chinese inflation fears, the renminbi is flowing out of the mainland and into Hong Kong. Deposits jumped 45% in October from September to US$32.5 billion— helped along by currency restrictions, which were lifted in July. Demand is expected to increase so much that the Hong Kong government set up a high-security gold vault for overseas investors to store their gold. The tale of three charts The combination of currency wars and inflation in China means that both gold and oil are on the verge of breaking out. The U.S. Dollar Index is at a crossroads… As you can see, the Dollar Index against a basket of currencies is in a long-term downward trend and below its 200-day moving average. At the same time, there is support at 76. I expect it will trade in this range for the rest of 2011 as the fight between global flight to safety and the bond vigilantes work themselves out. Oil pushing a breakout We have a new range for crude as it is bouncing between $87 and $91 a barrel. As the global economy gets back on track, we should see oil breakout above $91. The Wall Street Journal ‘s survey of economists raised their projection for GDP growth to 2.6% for 2011, up from 2.4%. Both FedEx and UPS are gearing up for their busiest day ever today; UPS expects to ship 16 million packages up 13% from last year. Shipping companies are leading indicators. I want me gold The price of gold continues to stair-step higher. There are a number of things that could drop the price of gold: A massive new discovery on the scale of Spain’s discovery of South American gold mine could swamp demand; Or governments could tie…

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WikiLeaks cables name UK banker as middleman in Kazakh corruption ring

Filed in Bank Gold, barclays, Gold, Gold Spot Market, o, sov, ubs by on December 13, 2010 0 Comments
WikiLeaks cables name UK banker as middleman in Kazakh corruption ring

David Leigh London Guardian Dec 13, 2010 A British tycoon is identified by US diplomats as the man at the centre of one of America’s worst recent corruption scandals, in which large bribes were allegedly handed over in the ex-Soviet state of Kazakhstan. Robert Kissin, a UK banker and commodity trader, is alleged to be the key middleman who handled a $4m (£2.5m) secret payment. According to leaked US diplomatic dispatches released by WikiLeaks, the cash was moved through a Barclays bank account set up in London on behalf of an offshore shell company registered in the Isle of Man, where true ownerships are easier to conceal. The money was designed to help Texas oil services company Baker Hughes make corrupt payments to Kazakh state oil chiefs in return for a lucrative $219m contract, according to the company’s subsequent admissions. Full article here Stock up for the Holidays with eFoods Direct and get FREE Shipping!

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Irish Relief Fleeting as `Day of Reckoning’ Nears

Borrowing costs for Europe’s most indebted nations are at record highs as Ireland’s capitulation in accepting a bailout of its banking industry stokes concern that other countries also will have to seek aid. “It’s no longer taboo to speak about a restructuring,” said Johannes Jooste, a portfolio strategist at Bank of America Corp.’s Merrill Lynch Global Wealth Management (*at least their in good hands !) Irish Relief Fleeting as `Day of Reckoning’ Nears Borrowing costs for Europe’s most indebted nations are at record highs as Ireland’s capitulation in accepting a bailout of its banking industry stokes concern that other countries also will have to seek aid. The average yield for 10-year debt from Greece, Ireland, Portugal, Spain and Italy reached 7.57 percent today, a euro- era record. The average premium investors demand to hold those securities instead of German bunds widened to as much as 492 basis points, the highest level of 2010. The average cost of insuring against default by the five nations using credit- default swaps reached a record 517 basis points on Nov. 23. “It’s no longer taboo to speak about a restructuring,” said Johannes Jooste, a portfolio strategist at Bank of America Corp.’s Merrill Lynch Global Wealth Management in London, which oversees about $1.4 trillion for clients. “The fact that bond yields continue to rise and put pressure on countries that have to fund from the market makes investors less and less confident, and it’s bringing forward the day of reckoning.” The Nov. 22 relief rally after Irish Prime Minister Brian Cowen conceded that the nation needed financial support proved transient. Irish 10-year bond yields fell 4 basis points, before jumping 104 basis points as of 3:13 p.m. in London today, exceeding 9 percent for the first time since 1995. The euro’s respite was more fleeting; the bailout inspired a 0.8 percent gain for the currency before it slumped to …

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GASP! Climate Change could ruin Thanksgiving

Filed in Bank Gold, Gold, o by on November 25, 2010 0 Comments
GASP! Climate Change could ruin Thanksgiving

From the “nothing escapes the clutches of global warming” department comes this farce: Here’s the ah, er, beef: “Climate change could affect meat quality in two ways,” Gregory, a professor in animal welfare physiology at the University of London’s Royal … Continue reading →

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German Chancellor Merkel’s Comment Triggers Euro Sell Off

Filed in Debt, euro, o, South African Gold, Spot Gold by on November 23, 2010 0 Comments
German Chancellor Merkel’s Comment Triggers Euro Sell Off

Filed under: Major Movement , International Markets , From the Boards , Financial Crisis , Currency In Europe, German Chancellor Merkel stated that the euro is facing “An extraordinarily serious situation” in the wake of Ireland’s debt problems, as quoted in the Wall Street Journal . Her words sparked a sharp sell off in the euro. It traded at $1.34, down from $1.3624 on Monday. Analyst Ian Stannard with BNP Paribas in London said: “This is likely to be the start of a bigger move lower for the euro.” Continue reading German Chancellor Merkel’s Comment Triggers Euro Sell Off German Chancellor Merkel’s Comment Triggers Euro Sell Off originally appeared on BloggingStocks on Tue, 23 Nov 2010 16:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Investegate |Gold Bullion Secs Announcements | Gold Bullion Secs …

Filed in Australian Gold, Gold, o by on November 8, 2010 0 Comments

SIGNED on behalf of Gold Bullion Securities Limited. By: …………………………………………………… Dated: 05 November 2010. This information is provided by RNS. The company news service from the London Stock Exchange. END. MSCLLFLILELTIII …

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Gold's Performance to Continue to Lag the Stock Markets

Filed in African Gold, Bank Gold, euro, Gold, Gold Futures, Indonesian Gold by on October 26, 2010 0 Comments

THE PRICE OF PHYSICAL gold bullion rallied 1.2% against the Dollar and 0.8% against the Euro in Asian and early London trade on Monday, rising as buying poured into the market aft…… Gold Futures Decline as Investment Dema. …

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