One thing is sure is AUY at $13 is a better buy than at $17.Since a few years Central Banks are net buyers .AUY will increase production during the next years..Gold collapsed last friday by $84.At the same times Goldman Sachs cut iteverything is perfect and gold is obsolete. .I do not understand. Is it possible that there are some manipulation.Just a rationnal opinion.s 2013 price forecast for the second time in six weeks — to $1,545 an ounce from $1,610 — and predicted that average prices would tumble even more in 2014, adjusting the forecast to $1,350 from $1,490.Some European countries,Japan,China, U.S. have a very high level of debts.Suddently some try to make believe people that everything in the world is perfect.Just a rational opinion.
Is Gold About to Make a Comeback?
The gold market continues to disappoint investors as the price of gold continues to trade down. Moreover, the leading gold ETF SPDR Gold Shares (NYSEMKT: GLD) hasn’t been performing well and since the beginning of the year the ETF lost more than 10.8% of its gold holdings on account of the decline in demand for gold as an investment. The ETF’s price fell by 4.8% during the year to reach $152.81. This decline serves as an indicator for the drop in demand for gold as an investment. The launch of QE3, in which the Fed purchases each month $85 billion worth of long term securities, haven’t pull up the price of gold. People are still worried that US dollar will lose its value.
A recent article claims that several States in the U.S are moving towards gold as a legal tender. If these steps will be implemented (if these States will be able to bypass the legal issues involved) the price of gold might eventually resume its rally. If the U.S economy will pull back – the recent U.S employment report raised the concerns regarding the progress of the U.S economy – the price of gold might rally. In the meantime, the U.S dollar remains strong against leading currencies such as the Japanese yen and Euro. The decision of Bank of Japan to augment its asset purchase program is making the Fed’s asset program look conservative. The situation in Europe including the recent debt crisis in Cyprus is keeping the Euro weak. These events are likely to keep the U.S dollar from tumbling down in the near future. If the USD will remain robust, the chances of gold price rising become less likely.
The Bottom Line
I still think the gold market isn’t likely to make a comeback. This is likely to keep pulling down shares of these gold producers. Even if these companies will raise their production level, their profit margin will continue to dwindle, which will pull back investors from these stocks.
Goldman Sachs cut its 2013 price forecast for the second time in six weeks — to $1,545 an ounce from $1,610 — and predicted that average prices would tumble even more in 2014, adjusting the forecast to $1,350 from $1,490. Société Générale in France released a similar message last week, claiming that the gold price is in bubble territory
Write on Google :World aluminum production statistics. You click on :World Aluminium — Primary Aluminium Production.You will have a world map .China produces 47% of world production
Alcoa is the largest multinational investor in China’s aluminum industry, with an investment of nearly $800 million since 1993. Alcoa locates its Asia Pacific Headquarters in Beijing, with its plants, trading companies and offices in Beijing, Shanghai, Qinhuangdao, Kunshan, Suzhou, Guangzhou and Hong Kong, manufacturing and selling sheets, fasteners, automotive components and aerospace products for packaging, printing, commercial transportation, consumer electronics, industrial products, automotive and aerospace markets. As of July 31, 2012, Alcoa China has 11 legal entities employing 1005 people.
Europe Makes It Easy to Buy Gold
By Jim Cramer03/23/13 - 10:00 AM EDT
TheStreet Premium Services
The Europeans make some decisions simple and easy, a decision like whether to buy gold or not.
For most of the last five months, since gold peaked in October, the precious metal has been only a so-so place to be. The SPDR Gold Shares (GLD), the ETF I like to recommend for those who want exposure to gold, peaked in October at $174 and has been trending down ever since selling off to as low as $151 a month ago.
Until this week it seemed like gold, which has been a monster performer for more than a decade, had finally lost its luster. The drift down looked to be the beginning of something larger and the collapse of the gold stocks en masse seemed to be forecasting the halcyon days of the GLD were over. The great multiyear bull market, alas, was ending.
And then the Europeans stepped in to stem the decline with the absolute dumbest, most bone-headed plan I have ever seen to tax the depositors, the small-time depositors, of a poor country that is inundated with hot money, perhaps hot laundered money from the oligarchs of Russia. That's right, the Europeans with the help of the IMF reminded you just how stupid the concept of the euro is and how it is untenable both to own the euro and now to keep it in a European bank. Their moronic plan for Cyprus gave you a super reason to go right back into gold.
Now, before I tell you how I think you are getting still one more fantastic chance to buy the precious metal, let me just say that I don't want to fall prey to the notion that what should happen will happen. I think that if I had money in a European bank I would just say "to heck with it, I am going to put it in an American bank. Who the heck needs this worry?" I would particularly feel that way if I were wealthy and had the ability to wire the money with a keystroke to JPMorgan Chase (JPM), where I have my money now, even with all of the
Can Alcoa compete with chinese producers that sell at a loss?China government has trillions of dollars thanks to commercial trade surplus with U.S. Excerps :Meanwhile, Alcoa had faced internal competition from within China, as Chinese producers have played a major role in keeping aluminum prices depressed.. Similarly, Alcoa has taken steps to emerge victorious in the long run, but as long as Chinese aluminum producers keep prices down, the short-term prospects for the industry look bleak.
KGI.TO is down today $0.37 on high volune 1,063,394 and yesterday the volume shares traded was 1,002,300 .Maybe KGI.TO has hoisting or production problems I do not know but it has no producing properties in Quebec.So far there is no news about production problems .
The head of Germany's central bank is warning that the government debt crisis in the euro countries "isn't over" despite the easing of financial market turmoil over the past several months.
Bundesbank President Jens Weidmann underlined Tuesday that the European Union needs to move ahead with reforms to keep troubles in the banking system from dragging down government finances — the proposed so-called "banking union."
Weidmann said a "central pillar" of the new system would be to have a way to restructure or wind down busted banks, with losses absorbed by shareholders and creditors before taxpayers are asked to pay. EU leaders are expected to come up with a concrete proposal this year.
Market pressure on indebted governments such as Spain and Italy fell after the European Central Bank offered in September to buy the bonds issued by troubled members of the 17-strong group of EU countries that use the euro, if they promise to take steps to reduce their deficits. No bonds have been bought, but the mere offer has sent governments' bond-market borrowing cost down.
Weidmann warned that was only a temporary relief. He said governments needed to fix the underlying problems — including pro-growth reforms at the national level and the troublesome link between broken banks and governments who have to borrow more to fix them. He opposed the ECB's bond purchase offer in his role as one of 23 members of the ECB's governing council, saying it got the central bank too involved in propping up government finances and lowered the pressure on politicians to passe politically difficult reforms.
"The crisis is not over, despite the temporary calm on financial markets," he said, adding that reforms in France were "floundering" and remained uncertain in Cyprus and Italy. France has rejected sharp budget cuts as a way to reduce its deficit, which is above the European Union limit of 3 percent of gross domestic product.
The Bundesbank head urged faster reforms at the European level and in the financially troubled countries, saying "only governments, and not the central bank system" can solve the crisis.
The German central bank also said it was stocking up on financial reserves against the possible risks of the ECB's policies.
The system of the ECB and 17 national central banks faces additional risk as it loans more money and takes on more securities as collateral. The eurozone system has expanded its outstanding loans by making massive low-cost crisis loans to banks. It will take on even more risk if it ever carries through on the bond-purchase offer.
The Bundesbank on Tuesday handed over its €664 million in profits to the German Treasury. The bank's income is primarily from interest on its holdings — in pre-crisis 2008, it made a profit of €6.3 billion. The 2012 profit reflected the €14.4 billion in provisions the bank had to make against possible losses on the assets it holds as part of the European system of central banks headed by the ECB. Last year it set aside €7.7 billion in income as reserves.
European leaders have agreed to use central bank profits on Greek government bonds to help eke out Greece's financing needs. However, the Bundesbank didn't say how much of its profits came from Greek bonds.
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KGI.TO is down $0.15 .I thought the market had anticipated the loss because hoisting rates was previously lower. Net loss before income taxes for the quarter ended January 21, 2013 of $5.7 million ($0.08 per share).