Emerging market central banks boost gold holdings in July

http://www.gata.org/node/10365

Keynesian policies are dooming the world economy

...and causing asset bubbles in emerging countries and commodity markets.



http://www.youtube.com/watch?v=qa3BiujaI3M&feature=player_embedded

Guild Investment market commentary

http://www.guildinvestment.com/ARThome.aspx?ModuleId=0&Itemid=374&SType=F

Jim Sinclair interview on markets, currencies, and gold

I suspect 1% of my blog readers will listen to this rather long, but incredibly insightful interview of Jim Sinclair, and I expect fewer people to even know who Jim Sinclair is, but I would also wager the other 99% within 5 years will regret not listening to him. The guy's track record is impressive, but his disseminated experience as a trader is invaluable. Click on the little microphone icon to hear the interview.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/2/15_Jim_Sinclair.html

The true story about him hiring an imposter to act like a big Saudi investor walking into the COMEX exchange was hilarious. "How do I turn these paper gold contracts into physical gold?" The big gold short must have crapped in his pants when he heard the question.

Sinclair's blog/website is linked in the sidebar as http://jsmineset.com/.

Felix Zulauf on markets

His recent track record is impressive.

http://pragcap.com/guru-outlook-felix-zulauf

Emerging market central banks

Where are sovereign central banks of emerging market countries investing their reserves? Traditionally, it's been US Treasuries. They are now diversifying away from USDollar-denominated assets.

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100002252/china-gold-and-the-civilization-shift/

With central banks from India, Sri Lanka, and Mauritius already purchasing gold from the IMF, other sovereign central banks are also rumored to be stepping up to the gold window. This includes China, Germany, and Russia.

http://www.bloomberg.com/apps/news?pid=20601083&sid=at5XsdLU.68w

Dubai defaults on its debt

Dubai, once the poster child of excess in the Middle East, is defaulting on its debt. Equities and bond markets worldwide were rocked on the news. Unfortunately, this won't be an isolated case going forward, as many emerging and developed countries are on the brink (including the US).

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRsjlClzl500

Happy Thanksgiving.

Emerging markets stepping up to the gold window

Foreign central banks are snapping up gold bullion for their reserves for several reasons. Foremost is their diversification away from the USDollar, as too much exposure to the sinking dollar has caused their asset values in reserves to decline. Their economies are stronger relative to developed countries, so they need to boost their gold reserves accordingly to reflect their newfound economic health. In other words, their strong currencies need to be backed by gold vs. the USDollar.

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=8970ea5d-3ab9-4ad2-87a8-f76cca63c961

In the past, central banks could sell their gold holdings, in order to suppress the price of gold, as low gold prices enable sovereign governments to borrow at low interest rates. This support allows governments to run perpetual deficits and reduces their debt obligations in the form of low-yielding bond issuance.

But with mounting fears that governments worldwide are reckless in their deficit spending--debasing ALL currencies in the process, gold as re-emerged as a safe haven for monetary store of value.

In another article, the Reserve Bank of India hinted at buying the balance of the IMF's planned 403.3 tons of gold, of which 201.3 tons remain. India purchased 200 tons two weeks ago in a surprise move, as most observers expected China to buy the bulk of the planned sale. However, purchase of the IMF gold by ANY central bank is bullish for the yellow metal, as it further validates central bank net buying--not net selling.

http://www.mydigitalfc.com/plan/india-plans-buy-more-gold-imf-410