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Driven to Bankruptcy
As auto
manufacturers across the globe go to their respective governments, carrying
empty fuel tanks hoping for a bail out, the shine has definitely dulled
on platinum and palladium. Tumbling car sales in North
America and Europe have contributed to a dramatic shift in investor sentiment
towards these metals, which play a vital role in diesel and petrol catalysts
in reducing emissions. Johnson Matthey said it expected demand from carmakers
in North America for platinum to dip by 36% this year and palladium
by 20%. This news coincides with Republican Senators in the US attacking
carmaker's pleas for another $25bn bail out on top of the $25bn already in
place for the big three US manufacturers. Senators argued that they should
consider bankruptcy protection instead. Their European counterparts have
approached Brussels for a €40bn bail out from the European Investment
Bank (EIB.) The EIB are planning to produce a proposal before a 2nd
December meeting of European finance ministers, which could prove pivotal. Platinum
is currently trading at $829 down from $2290 in March. Palladium is trading
at $212 from a high of $540, also in March. Given the economic turmoil and
supply cutbacks that are inevitable as a consequence in the Platinum and
Palladium markets, pricing is difficult but a return of risk appetite
could see the metals rise to $1400 and $300 respectively over the next 6
months.
Barclays Board
Chastened
A partial retreat by
Barclays over their plans to raise £7bn in capital from Middle Eastern
investors failed to dampen shareholder anger. The bank had planned to issue
£500m of securities to Qatar Holding and Sheikh Mansour Bin Zayed Al Nahyan,
a member of the Abu Dhabi royal family, but was forced into a limited retreat
after leading investors, including Legal and General and Aviva threatened to
vote against the capital raising at next week's shareholder meeting. However,
the limited action has failed to assuage investors furious that the capital
raising ignored the pre-emption rights that were designed to protect their
investments from dilution and would leave the Middle Eastern investors with
nearly a third of the bank. More good news followed when Alistair Darling,
the British Chancellor, issued a warning to shareholders in banks that they
should not expect favourable treatment if they tried to change their bail out
terms.
$40 for a Barrel of
Oil
Fu Chengyu, the head
of China National Offshore Oil Corporation said that oil companies expect oil
prices to fall due to decreasing demand and will cancel most planned
investment projects. A meeting in Beijing predicted that oil could fall to
$40 a barrel.
Precious Metals
Gold is currently $735.60
(11.45GMT) down from a close in New York of $740. Silver is $9.48; Platinum $829
and Palladium $212.
Gold Investments
63 Fitzwilliam Square
Dublin 2
Ireland
Ph +353 1 6325010
Fax +353 1 6619664
Email info@gold.ie
Web www.gold.ie
Gold Investments
No. 1 Cornhill
London
EC3V 3ND
United Kingdom
Ph +44 (0) 207 060 4653
Fax +44 (0) 207 8770708
Email info@goldassets.co.uk
Web www.goldassets.co.uk
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Mission
Statement
Gold and Silver Investments
Limited hope to inform our clientele of important financial and economic
developments and thus help our clientele and prospective clientele
understand our rapidly changing global economy and the implications for
their livelihoods and wealth.
We focus on the
medium and long term global macroeconomic trends and how they pertain to
the precious metal markets and our clienteles savings, investments and
livelihoods. We emphasise prudence, safety and security as they are of
paramount importance in the preservation of wealth.
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Gold and Silver
Investments Ltd. have been awarded the MoneyMate and Investor Magazine
Financial Analyst of 2006.
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