The Gold Investment
Gold Investing September 6th, 2009
The economic crisis the United States (U.S.) is an impact on society, not least for the Indonesian people. The panic over the impact of global crisis make investors turn to invest a lot of gold. Investment option gold today remains the most favorable votes than the other option given the nature of “immune” inflation.
Global investors will switch to cash and gold rather than the financial markets. The reason, global investors have lost confidence in the financial markets, capital, and debt securities from financial crisis in the United States. Someone make an investment because it is triggered by the need for the future.
It is estimated that up to the end of the year the gold price will fluctuate achieve the highest price, because the world financial market turbulence refers to the U.S. dollar is uncertain. From the past until now investment experts always say that gold is one of the safest types of investments and the most profitable.
Gold investing the same nature with investing funds to buy land and property in certain cities in Indonesia such as Bali and Yogyakarta, the price kept rising. Gold is also very good for diversification of investments after having investments in stocks, bonds, mutual funds, or property. Gold demand will rise if there are two things, the uncertain state conditions and inflation.
The most common form of gold is a bar-like coal-yield 95 percent or 99 percent (24 carat). These types considered most favorable for investment because whenever and wherever sold, the price to follow international standards. Another form is the coin which is a good idea when buying select products from leading manufacturers such as Maples, Krands, or Eagles. There is also a form of gold jewelry.
When we look at the gold price movement, the beginning of September gold price ranges from Rp. 243,500 and continued to weaken until September 5, 2008. Gold began to rise sharply on 18 September 2008, the trigger is: Rising world oil prices, rising oil prices led investors choose gold as a means of investment because gold is an alternative investment tool to protect the value of money.
Pound Declines Before Policy Makers Meeting
Forex September 6th, 2009
The pound lost versus several key-currencies today and specially versus its regional rival, the euro, as traders speculate that U.K.’s financial authorities will insist in quantitative easing measures to stimulate the British economy, affecting the sterling outlook in currency markets.
The British currency posted a declining session versus most of the 16 main traded currencies two days before a Bank of England policy makers meeting, where, according to analysts, the current asset purchasing program will not be suspended, declining even further attractiveness for the pound, as the recession in the U.K. remains rather significant and measures are necessary to attempt starting a faster economic acceleration in the country. Even if the real estate market is providing positive data in the U.K. since November, the sentiment regarding the economic future in the nation is rather misty, stopping the pound to advance in foreign-exchange markets.
U.K.’s central bank strategy is following a different, and dovish, path than most of the wealthy nation’s policy makers. While interest rate hikes talks are a global trend, in the U.K., quantitative easing extensions are still possible, and this has a intense impact in the pound’s rates.
EUR/GBP traded at 0.8979 as of 19:10 GMT from a previous reading of 0.8945 yesterday. GBP/USD traded at 1.5983 from 1.6090.
Yen Gains on U.S. Weak Housing Report
Forex September 6th, 2009
The yen managed to gain versus most of the 16 main traded currencies today after a negative U.S. housing report brought risk aversion up among investors, which opted for the safety provided by the Japanese currency.
The Japanese currency gained the most in four weeks versus the greenback as a pending home sales report frustrated forecasts and indicated a monthly drop of 16 percent, declining risk appetite and favoring the Japanese currency, even if the actual figures are still positive in the annual comparison. The only currency that manage to contain the yen’s advance was its neighboring South Korean won, as the emerging market currency is rated among the best bets for 2010 according to analysts. Speculations that Japanese investors would be repatriating assets today also helped the nation’s currency to post a splendid performance today.
U.S. housing data affected both the greenback and risk sentiment in trading markets, which is good for the yen, according to traders. Bets that the Federal Reserve will raise interest rates also declined, allowing the yen to become more attractive among the 6 main traded currencies in the short term.
USD/JPY dropped to 91.45 as of 17:00 GMT from a previous rate of 92.60 in the intraday chart. EUR/JPY touched 131.71 from 133.61.
Stocks start off 2010 with a rally
Stock Report September 6th, 2009
NEW YORK (CNNMoney.com) — Wall Street surged Monday, starting off the new year on a positive note, after a report showed manufacturing activity is picking up and the weak dollar propelled commodity prices and stocks.
The Dow Jones industrial average (INDU) rallied 156 points, or 1.5%. The S&P 500 index (SPX) rose 18 points, or 1.6%. The Nasdaq composite (COMP) gained 39 points, or 1.7%. All three major gauges closed at 15-month highs.
“The fact that stocks are up so much today is an encouraging sign, but we need to see a few days of follow through,” said Will Hepburn, chief investment officer at Hepburn Capital Management.
He said the first few trading sessions of a new year are typically positive and that he wants to see several more days of gains on strong trading volume before he’s willing to say that the rally has recharged.
Stocks fell Thursday in a thinly traded session on the last day of 2009. All financial markets were closed Friday in observance of New Year’s Day.
The last month of 2009 saw stocks churning in a narrow range, managing modest gains, but not really charging ahead like in earlier months.
The market lost some momentum in November and December, Hepburn said. That slowdown coincided with the dollar beginning to firm up and investors opting to close the books early after a difficult year.
A tumultuous 2009 ended with substantial gains. The S&P 500 gained 23.4%, the Dow industrials gained 18.8% and the Nasdaq composite gained 44%.
Stocks are up even more substantially since bottoming in March at the height of the financial market crisis. After closing at a 12-year low on March 9, the Dow gained 59% and the S&P 500 gained 65% through year end. After closing at a 6-year low on the same date, the Nasdaq gained 79%.
Tuesday brings reports on factory orders, pending home sales and auto and truck sales.
Economy: The Institute for Supply Management’s manufacturing index rose to 55.9 in December from 53.6 in November, signifying a wider expansion in the sector. Economists surveyed by Briefing.com thought it would rise to 54.3. Stronger reports were also released in Asia, adding to bets that the global manufacturing sector is recovering.
A separate report from the U.S. government showed that construction spending fell 0.6% in November versus forecasts for a drop of 0.5%. Spending fell 0.5% in October.
On the move: Gains were broad based, with 27 of 30 Dow issues rallying, led by Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500), Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), IBM (IBM, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Wal-Mart Stores (WMT, Fortune 500).
In other news, Swiss drugmaker Novartis AG plans to take control of Alcon (ACL) by paying $38.5 billion to buy the 77% of the eye care products maker it doesn’t already own. The deal involved Novartis buying out Nestle SA’s 52% stake in Alcon for $28 billion in cash and then merging with Alcon to access the remaining 23% held by minority shareholders.
Alcon shares fell nearly 6%.
Bernanke defends Fed policy: The Federal Reserve chairman said Sunday that the central bank’s decision to keep interest rates very low between 2002 and 2006 was appropriate and not the cause of the housing market bubble.
He said regulation would have been a better way to avert the collapse that ensued when home prices crumbled, leading to massive foreclosures, billions in losses for banks and the worst financial crisis since the Great Depression.
The Senate is currently considering Bernanke’s nomination by President Obama for another term as Fed chairman. The Senate Banking Committee already gave its approval last month. His current term ends on Jan. 31.
World markets: Asian markets gained, with the exception of the Hong Kong Hang Seng. In Europe, London’s FTSE 100 rose 1.6%, France’s CAC 40 added 2% and the German DAX rallied 1.5%.
Commodities and the dollar: The dollar tumbled versus other major currencies.
The weaker dollar gave a lift to dollar-traded commodities.
COMEX gold for February delivery settled up $22.10 to $1,118.30 an ounce. Gold closed at an all-time high of $1,218.30 an ounce earlier this month.
U.S. light crude oil for February delivery gained $2.15 to settle at $81.51 a barrel on the New York Mercantile Exchange, the highest close since October 2008.
Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.81% from 3.84% late Thursday. Treasury prices and yields move in opposite directions.
Market breadth was positive. On the New York Stock Exchange, winners beat losers four to one on volume of 1.02 billion shares. On the Nasdaq, advancers topped decliners by over three to one on volume of 1.92 billion shares.
Euro to Fall Versus Commodity Linked Currencies
Forex September 6th, 2009
The euro may extend last month’s decline versus emerging markets and commodity linked currencies as the economic recovery expected for the beginning of 2010 may rise appeal for riskier assets, damping demand for the European single currency in foreign-exchange markets.
After currencies like the South African rand and the Norwegian krone benefited from a rise in demand for energetic and metallic commodities, the attractiveness for the European common currency suffered another strike, as some of its country members are struggling to adjust their current accounts and stabilize their banking systems. A less appealing euro combined with positive forecasts for a global recovery in 2010 will cause Asian stock markets to rally, rising also demand for raw materials as manufacturing production accelerates worldwide, providing support for the Canadian and the Australian dollar to beat the euro in the short-mid term, as well as emerging countries currencies like the Brazilian real and the Chilean peso, which ranked in 2009 among the best performers versus the euro.
Even if optimism is strong, its not guaranteed that such trends will last for a longer period, as economic recovery pace and the drivers behind it are not well defined and structure, allowing room for the euro to rebound if the current scenario changes slightly.
EUR/AUD traded at 1.5800 as of 20:10 GMT from an opening rate this year at 1.5935.
