Archive for the ‘Gold’ Category
Not saying much as above chart from FT shows that its flattish unlike the other Asean mkts. Seems the big local funds are buying.
Other Asean round-up news:
According to OSK-DMG while Indonesia will be increasing its oil production over the next few years but only a few offshore marine players here can benefit from this because of an Indonesian rule that protects jobs in the industry for Indonesians.
While rig builders here could stand to gain in the near term, it appears that the cabotage law in Indonesia is being expanded to include Indonesian shipyards as well, boding well for rig builders with Indonesian-based yards. Indonesia has cabotage rules requiring all work in the oil & gas sector to be done only by Indonesian-flagged vessels.
Thailand is the third biggest buyer of gold in Asia, after China and India having overtaken Vietnam.
Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce — gold’s price as I write this — its value would be about $9.6 trillion. Call this cube pile A.
Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?
(Apologies for not crediting where I got this from: feeling tired)
United States – 8,133.5 metric tons
Germany – 3,401.0
International Monetary Fund (IMF) – 2,846.7
Italy – 2,451.8
France – 2,435.4
China – 1,054.1
Switzerland – 1,040.1
Russia – 775.2
Japan – 765.2
Netherlands – 615.5
The Italians and French can issue bonds backed by gold if investors are unhappy with their finances.
As of the end of the third quarter, John Paulson had reduced his stake in Bank of America by about 30 million shares, to 137.8 million shares. And he cut his holdings in Citigroup by about 82.7 million shares, to 424 million shares. He had been buying BoA in early 2009 juz when Temasek was cutting its losses, losing in the process “US$4.6 billion loss on a US$5.9 billion dollar investment” according to a CNBC report.
Looks like he is no longer bullish on US banks.
George Soros sold over half of one million shares of SPDR Gold Trust to finish the quarter with 4.7 million shares. John Paulson maintained a 31.5 million share holding of the exchange traded fund through the quarter.
John Paulson remains bullish on gold while Soros is trimming his stake and laughing all the way to the bank. Remember he called gold a bubble in the making, and jumped into it earlier this year.