Salon.com > gold

Boston bombings add to market turbulence

Tue, 16 Apr 2013 11:28:00 +0000

LONDON (AP) — The sense of caution in financial markets continued Tuesday after deadly bombings at the finish line in the Boston Marathon.

Investors have been spooked over recent trading sessions by the declines recorded in commodity prices — not just gold — as well as a run of disappointing economic data from the U.S. and China, the world's two-largest economies.

Monday's explosions in Boston, which killed three people, provided investors a stark reminder of the threats posed by terrorists to a fragile global economic recovery.

"The Boston bombings have only added to the sense of unease amongst investors .... equity markets have slipped in the past few days on worries that the U.S. and Chinese economies have hit an air pocket of economic activity," said Neil MacKinnon, global macro strategist at VTB Capital.

In Europe, the FTSE 100 index of leading British shares was down 0.5 percent at 6,312 while Germany's DAX fell 0.4 percent to 7,6745. The CAC-40 in France was 0.5 percent lower at 3,690.

Wall Street was poised to recoup some of Monday's heavy losses with both Dow futures and the broader S&P 500 futures up 0.6 percent. How they actually open could hinge on a raft of U.S. corporate earnings and economic data that are due before the bell. Inflation and industrial production figures are likely to garner the most attention.

Gold prices plummet to 2-year low

Mon, 15 Apr 2013 18:19:00 +0000

BRUSSELS, Belgium — Gold is usually seen as a safe haven for investors in times of trouble, but it seems the euro crisis may have turned financial wisdom on its head again.

The price of gold dropped as low as $1,384.60 an ounce on Monday, its lowest level in more than two years.

The news comes after leaked documents last week revealed that the European Commission advised Cyprus to sell off 400 million euro ($524 million) from its gold reserves, which spooked markets big time, triggering fears that other, bigger euro-zone debtors could also be pressured to dump their bullion on the market.

Stan Shamu, market strategist at IG Markets in Melbourne, said that gold's losing value can largely be blamed on fears stemming from that news.

“This is after ECB President Mario Draghi put pressure on Cyprus to sell its excess gold reserves to help fund the bailout and plug a 6 billion euro gap," he wrote in a note to investors that the Wall Street Journal obtained.

"Although Cyprus is yet to decide how it’ll fund the gap, these comments have rattled investors and caused the selloff," Shamu added.

The troubled states of southern Europe hold major gold stocks. Italy has the world's fourth largest reserves — worth around 95 billion euro ($125 billion). Spain, Portugal and Greece hold around 30 billion euro ($39 billion) more.

Putting some of that on the market could put a sizeable hole in their debts, but fear of a fire sale would also push down prices which is why, until last week's leaked EU plan for Cyprus, no one has been planning to sell.

The euro zone impact on the gold crisis has been compounded by other factors — fears of a Chinese economic slow down have hit a range of commodities, including gold.

There is also a growing view that the gold had risen to unrealistic levels, especially due to the lack of inflation risks in the world economy. Conversely increased confidence in the US economy many have persuaded some investors to switch from metal to shares.

Silver, platinum and copper prices have also tumbled. Of course, investors have predicted the economic collapse of gold for years, and many investors had long given up on gold and other precious metals, ABC News reported. Last week, Goldman Sachs also predicted gold prices would tumble.

Though Cyprus' gold sale by itself would not be significant, the potential sale has created fears that other indebted euro zone nations could also be under pressure to sell their reserves.

"If Cyprus can break the gold market, then [there are] many reasons to be worried, with Slovenia, Hungary, Portugal, Spain and Italy in line," Milko Markov, an investment analyst at SK Hart Management, told the Guardian.

Tennessee GOPer floats return to the gold standard

Mon, 03 Dec 2012 22:08:00 +0000

Rep. John Duncan Jr. believes that the U.S. should return to the gold standard in order to "protect our money" from the threat of inflation.

Appearing on "The Mike Church Show," Duncan, R-Tenn., responded to Church's question about the relationship between the fiscal cliff and the Federal Reserve. "Isn’t the fiscal cliff and our fiscal malaise at least partly to blame on the Federal Reserve and our reckless monetary policy?" Church asked. "Wouldn’t it be prudent for Republicans to gently begin urging their fellow citizens to return to gold?"

"Yes, I agree with you completely," Duncan responded. He continued: "The best way to protect our money and keep us from facing things like I mentioned a few minutes ago about our pensions and so forth becoming almost worthless is to return to a gold standard or non-inflationary policies."

Beck-backed gold fraud?

Thu, 29 Nov 2012 17:05:00 +0000

If you’ve ever listened to conservative talk radio, you’ve probably heard of Goldline, the precious metal seller endorsed by Glenn Beck, Sean Hannity and others. But critics allege that Goldline is misleading its consumers, much like the talkers they sponsor.

The company’s business model was built on systemically swindling and scaring its mostly elderly clientele into purchasing overpriced gold coins, prosecutors in California alleged, leading the company to settle for $4.5 million in refunds to its customer. The city attorney in Santa Monica, where the company is based, brought 19 criminal fraud charges against the company that were later dropped, but a Los Angeles judge last year instructed the company to foot the bill for a court-appointed monitor, who was tasked with ensuring the company revealed its price markups and stopped misleading consumers.

Gabby Douglas wins gold in all-around

Thu, 02 Aug 2012 20:52:00 +0000

In the 2011 Visa Championships, Gabrielle Douglas fell off the balance beam as she tried to conclude a nearly flawless routine with two back handsprings. The fall stunned her. Though she managed to land on her feet, the slip hurt her in the overall standings. She finished seventh, jeopardizing her chance to participate in the 2011 World Championships in Tokyo.

The experience galvanized Douglas. "I learned about being a competitor," she said. "No one is going to feel sorry for you. No one is going to be like, 'Ooh, you fell.'” Today, Douglas, also known as the “Flying Squirrel,” went on to become the first African-American woman to win the all-around gold medal at the Olympics. To celebrate the victory, Salon offers a few videos of the new champion.

Douglas talking about her training regimen and what she eats, -- ice cream and a brownie after competing.

Salon.com > gold

Boston bombings add to market turbulence

Gold prices plummet to 2-year low

More GlobalPost

Who will be the next Cyprus?

Tennessee GOPer floats return to the gold standard

Beck-backed gold fraud?

Gabby Douglas wins gold in all-around