U.S. Global Report (excerpts)
Six of the ten worst-performing groups were commodity-related groups, as commodity prices continued to decline in expectation of a slowing global economy. The six groups were down in the range of 29 percent to 22 percent, and included diversified metals & mining, coal & consumable fuel, oil & gas refining & marketing, steel, fertilizer & agricultural chemicals and construction & farm machinery.
( NOTE: NOT fell 24% from approx. $1.70 to $1.30)
and..
For the week, spot gold closed at $835.50 per ounce down $43.25 or 4.92 percent. Gold equities, as measured by the XAU Gold & Silver Index (11) fell 18.95 percent for the week. The U.S. Trade-Weighted Dollar Index (12) surged 4.37 percent.
and...
Commodities have fallen 10.4 percent this week, the most since 1956 as poor U.S., EU and Chinese data show economic conditions slowing much more than forecast. Copper had its biggest weekly loss in two decades and platinum suffered its worst quarterly fall in 21 years on weak auto demand.
gold news...
An official from Barclays Capital called current times a “perfect storm” in the gold market that could propel the price of gold to record highs in the next six months citing renewed interest by hedge funds to get into gold as a safe haven.
Merrill Lynch Chief U.S. Economist David Rosenberg said that gold will be a safe haven and a “useful hedge against inflation as well as deflation.” He reiterated also that gold is far off its inflation adjusted peak from 1980. His team sees “more upside than downside risk to bullion.”
Notable investor Marc Faber dismisses the idea that any bailout of the financial system will help the U.S. avert a recession. Any rally on the news he said will be temporary and “an opportunity” to sell. Dr. Faber also recommended that investors should have physical gold as part of their portfolio.
-----------------
When I spoke to the office this week, and I mentioned 'rough day for the markets' Denise responded that she doesn't follow the day to day changes in share price and sounded very upbeat. Good advice, unless one is able to take advantage of low price to buy more, it may be better just to concentrate on the continuing positive fundamental developments of our baby NOT.
BK
