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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: FED To Slash Rates Again
MarketWatch has just put out notice that they expect the FED to cut rates at least another half point next week. This will more than likely occur because equities will expect it and they will crash if the FED withholds. This should curtail the USD's rise and provide further support to ESL's claim that ECU has bottomed.
Lastly below, is an article from VietmanNet Bridge that states that gold shops have reported sales 8 times greater than normal. It also reports, not surprisingly, that domestic prices have been moving completely independently of international (fraudulent NY COMEX) prices.
Busy week - VHF
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Throwing caution to the wind
Bernanke stays aggressive with another rate cut next week
WASHINGTON (MarketWatch) -- Continuing to pull out all the stops in its effort to restore stability to financial markets and cushion the economy, the Federal Reserve is expected to slash interest rates again when it meets next week -- and leave the door wide open for further cuts, analysts said Friday.-
The aggressive stance is needed because financial market conditions remain hostile to growth and the outlook for the economy grows darker by the day.-
The Fed is expected to lower its overnight federal funds target rate by half of a percentage point to 1%, the lowest level since June 2004.
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Josh Shapiro, chief economist at MFR Inc, said the level of short-term interest rates is not the biggest obstacle facing the economy and a rate cut would mainly be aimed at sentiment. It is just one of several buttons the Fed is pushing at the same time.
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Confidence is at low ebb because a recession appears baked into the cake.
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"The combination of what is now a global recession and a still-fragile banking sector will lead the Fed to cut the funds rate," said Richard Moody, chief economist at Mission Residential.
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Growth in the July-through-September quarter is now expected to be below zero, and the forecast for the fourth quarter could be the weakest growth rate in 18 years.
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"This is big-time. The economic forecast is remarkably weak," said Brian Sack, a former Fed staffer who's now a Fed watcher with Macroeconomic Advisors.
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Financial markets continue to be roiled in the wake of the dramatic events of recent months, including the disappearance of major U.S. investment banks Lehman Brothers, Bear Stearns and Merrill Lynch.
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"[Fed Chairman Ben] Bernanke has said that it is important for central banks to be aggressive in times of stress," said Dean Maki, head of U.S. economics research at Barclays Capital.
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The Fed has initiated an alphabet soup of programs to pour liquidity into frozen markets -- so far to some, if modest, success.
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| Gold market tests investors’ patience |
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16:55' 24/10/2008 (GMT+7) |
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VietNamNet Bridge – The domestic gold price yesterday afternoon unexpectedly soared as people rushed to purchase gold, but slightly decreased this morning. Domestic prices seem to be moving completely independently of international prices.
Saigon Jewellery Company (SJC) announced the transaction prices for this morning at VND16.55-16.77mil/tael (purchase and sale) in Hanoi. In HCM City, the company quoted the sale price at VND16.75mil/tael. Thang Long trademark gold of Bao Tin Minh Chau Company and PNJ-DAB of Phu Nhuan Jewellery Company both had the quoted prices at VND16.65-16.82mil/tael (purchase and sale) this morning. The price level of Thang Long trademark gold saw the decrease of VND80,000/tael over yesterday afternoon.
The gap between the purchase and sale prices has extended to VND200,000/tael, which is explained as aiming to protect gold trade companies.
The gold price was VND16.4-16.5mil/tael yesterday morning. The low prices prompted people to purchase gold. However, the price unexpectedly soared to VND16.9mil/tael in the afternoon, or VND1.5mil/tael higher than the world’s price.
The noteworthy thing was that the world’s price just increased slightly by $10/oz yesterday afternoon over the morning to $735/oz, but the domestic price soared by VND400,000/tael ($24). In general, for every $100/oz price increase in the world’s market, the domestic price increases by no more than VND150,000/tael.
The gold market proved to be very bustling yesterday. Big gold companies reported double the turnover of ordinary days, while smaller companies said yesterday’s sales were eight times more than ordinary days.
On the world’s market, the gold price fell down further on October 23, slipping under the $700/oz threshold just after the opening of the New York market at 9 pm Hanoi time. However, a few minutes later it recovered, thereafter hovering around $720/oz. At 9 am on October 24, the spot price was at $717.2/oz. |
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