Bogoslaw : Gold Price Spikes As Investors Focus on Hard Assets
Look at the price of gold this week, surging to an all-time high above $1,060 an ounce on Oct. 8. That’s what more investors are talking about and putting money into these days. That wouldn’t have turned heads a year ago, when the world was staring into the economic abyss with the credit markets frozen and all asset prices in freefall. But now, with the stock market up 58% since March and growing confidence that an economic recovery is taking shape, what’s the allure? Read more
Monthly Trends Favour Rally In Equities, Aluminium And Euro
Equity investors have had many reasons to believe in Santa Claus given the traditional Christmas rally in share prices and while this year the month has not started off well, Barclays Capital’s analysis of monthly trends shows both median and average returns have a decidely positive skew in December.
The Toronto Stock Exchange has been the best with 11 straight years of December gains and the FTSE has risen for five straight years, while Barclays sees all exchanges having a better than 50% chance of posting a gain this time around with the exception of the Shanghai Composite index.
India’s Sensex Index and the FTSE are regarded as having an 83% chance of finishing this month higher, while the Dow Jones and S&P500 indices are rated around 70% chances, the All Ords 75%, but the Nikkei just a 63% chance and the NASDAQ Composite and Germany’s DAX just 57% chances of gaining.
Similarly base metal prices generally perform well in December, the group noting aluminium tends to be the standout with a median gain of 1.86%. It gives the metal a 71% chance of gaining this time around. Copper is rated as only a 50% chance of finishing the month higher, while both gold and silver are rated as slightly higher than 50% chances of gaining.
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MINExpo reaffirms strength of mining industry
On the opening day of MINExpo INTERNATIONAL on Monday, senior mining executives described the state of the mining industry as positive both in the US and globally, as growth in the developing world continues to fuel demand for coal, minerals and the equipment needed to mine them. Yesterday, IM spoke with the Presidents of Caterpillar, Caterpillar Mining, Atlas Copco Mining and Construction, Sandvik Mining and Construction and others, who were also confident of the industry’s strength.That was also the consensus from chief executive officers of US coal, mineral and mining equipment companies here in Las Vegas to attend MINExpo INTERNATIONAL, the world’s largest mining exhibition. The quadrennial exhibition is hosted by the National Mining Association (NMA), the Washington, D.C.-based trade group for the US mining and machinery industry.
“MINExpo 2008, which is our biggest show ever and sold out the fastest, is a confident statement about near-term conditions in our industry,” said NMA President and CEO Hal Quinn. “Our member companies expect US coal exports to triple over the next two years, global demand for metals to increase more than 5% in each of the next three years, and world demand for mining equipment to increase by about 6% annually over the same period.” Read more
Mining industry stock mired in summer doldrums
The nation’s mining industry is mired in summer doldrums after a long and profitable run, dragged down by volatile prices and fears of a global economic slowdown.
Share of coal, gold and copper mining companies have fallen, some drastically, in the past month despite fairly strong second-quarter earnings. Experts are trying to determine if it’s a short-term correction or something worse. “I think people are starting to read into it that it’s more than just the U.S. (economy),” HSBC Global Research analyst Victor Flores said Tuesday.
Barnard Jacobs Mellet analyst Patrick Chidley said it’s difficult for some investors to believe a U.S. economic slowdown won’t affect the rest of the world. “These things have a tendency to feed on themselves,” he said. “That’s the problem; there’s too much negative sentiment out there.”
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Mining industry stock mired in summer doldrums
The nation’s mining industry is mired in summer doldrums after a long and profitable run, dragged down by volatile prices and fears of a global economic slowdown.
Share of coal, gold and copper mining companies have fallen, some drastically, in the past month despite fairly strong second-quarter earnings. Experts are trying to determine if it’s a short-term correction or something worse. “I think people are starting to read into it that it’s more than just the U.S. (economy),” HSBC Global Research analyst Victor Flores said Tuesday.
Barnard Jacobs Mellet analyst Patrick Chidley said it’s difficult for some investors to believe a U.S. economic slowdown won’t affect the rest of the world. “These things have a tendency to feed on themselves,” he said. “That’s the problem; there’s too much negative sentiment out there.”
Read more
