Morning Market Roundup: China Buying Massive Amounts of Gold, Eurozone Bailout Fund Finale
- Posted on January 31, 2012 at 9:58am by
Becket Adams
- Print »
- Email »
Here’s what’s important in the financial world this morning:
China: China has been keeping itself busy buying up enormous amounts of gold, according to a recent Forbes report. This month alone, China has “imported 102,779 kilograms of gold from Hong Kong in November, an increase from October’s 86,299 kilograms.”
Given that Beijing does not release gold trade figures, the Hong Kong numbers are the best indicator anyone has to go on. Analysts believe China bought as much as 490 tons of gold in 2011, double the estimated 245 tons in 2010, according to Forbes.
EU: The eurozone finalized its bailout fund on Monday after 25 of 27 EU member states signed off on a €500 billion permanent European Stability Mechanism rescue fund. The U.K. and the Czech Republic did not sign it.
The European Central Bank was pleased by the agreement after expressing its desire for the euro governments to get their finances in order.
“It is the first step towards a fiscal union. It certainly will strengthen confidence in the euro area,” ECB President Mario Draghi said.
(Related: Banks Fall as Greek Tragedy Takes Center Stage.)
Japan: Japan’s industrial production rose higher than expected in December to 4 percent. Continuous gains are unlikely with the declining global demand and a strengthening yen. Other surprising increases included a 0.5 percent rise in household spending and unemployment, which increased to 4.6 percent from November’s 4.5 percent.
Honda’s fiscal quarter three operating profit dropped 65 percent to ¥44.3 billion ($580 million), falling short of ¥81.2 billion expectations. For the year, the company sees its full-year operating profit also dropping 65 percent to ¥200 billion vs. a ¥283 billion estimate. This is the lowest level the company has seen in three years and they attributed it to the natural disasters in Japan and Thailand and the strong yen.
[Editor’s note: portions of the above is from a cross post that originally appeared on Wall St. Cheat Sheet.]
Comments (31)
Sign In To Post Comments! Sign In
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 707 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 558 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 374 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 366 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 363 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 366 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 374 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- President Obama Issues Major ‘Green Energy’ Executive Order 291 Comments
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 149 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 366 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
roadhog
Posted on January 31, 2012 at 2:49pmHold gold
Report Post »ChasVoice
Posted on January 31, 2012 at 2:11pmAre YOU Ready for Your Sons & Daughters to Die for the Corporatist State?
Read more: http://chasvoice.blogspot.com/2011/11/are-you-ready-for-your-sons-daughters.html#ixzz1l44Dw1cu
Report Post »I am 'We the People
Posted on January 31, 2012 at 4:21pmIt is not corporatist, that is an incorrect term. It is the game of thrones, and don’t confuse the book by george r.r. martin. These are global power plays that hurt us, and they play the games between themselves. The overall goal is a world government. You cannot have a free people in their system, but the people need to think themselves free. It is a dangerous game, and one of the players is the remaining “nobles” from the ottoman empire, previously known as babylon. One of the Noble groups today is know as the muslim brotherhood, they were a creation from within the ottoman empire.
I won’t provide all the connections here, but they are around to be had. Don’t mock me for the lack of information provided in this post. I don’t have enough characters to include a fraction of the links to my statements.
BTW, Glenn Beck may want to do a segment on this…especially the “fall of babylon” phrases in the bible, may not be so arbitrary, they may be specific…hmm something to think about.
Report Post »Sam Brown
Posted on January 31, 2012 at 1:30pmGold is bought by countries in preperations for war. Currency becomes worthless so the only way to buy what you need is with gold. Gold in this country will be stolen by the politicions ..again. They will need it when they crash your USD to back a new currency. You will be a traitor if you don’t give them your gold for the new script.
Report Post »umreb78
Posted on January 31, 2012 at 3:18pmTwo metals worthy of healthy investment…AU protected by massive amounts of PB…
Report Post »cloudsofwar
Posted on January 31, 2012 at 3:58pmwell the guvment can’t take my gold……….. because i don’t have any.
Report Post »DD313
Posted on January 31, 2012 at 1:14pmIf we go by the current prices of gold and silver as compared to the price of alcoholic beverages, the latter gives you far more bulk for the buck. One silver war nickel (containing $.07 in silver when minted) is today worth about $1.75, a pre-1965 dime about $2.65, a pre-1965 quarter about $6.60, and a pre-1965 half about $13.20. A 1965-70 40% silver half is worth about $3.50, while a 40% silver 1971-76 Ike Dollar is worth $7. Pre-1936 silver dollars are worth about $28. The smallest current .1 oz. $5 gold coin is worth $170. Premiums which collectors will pay for rarer and high quality coins aside, silver seems the best buy as a hedge against inflation or economic collapse.
Report Post »DD313
Posted on January 31, 2012 at 11:59amThe historic ratio of the value of gold to silver in the USA was 16-1. In 1932 gold was $22+/ounce while silver was $1.29. In 1933, after FDR demanded that all citizens turn in their gold coins, the price was upped to $35/ounce while silver remained the same. In 1965, silver was removed from dimes, nickels, and quarters, and reduced in the mostly non-circulating half dollars (Through 1970). After that, we uncoupled the dollar from fixed gold and silver prices to let it “float”. In actuality, the precious metals prices floated, while the dollar sank. The ratio is now close to 50-1, so which is the better buy?
Report Post »DD313
Posted on January 31, 2012 at 12:08pmMy bad, actually, silver was removed from nickels struck during the Second World War in 1946.
Report Post »ZeldaZick
Posted on January 31, 2012 at 12:10pmAll true, but in a “survivalist” setting, try buying a loaf of bread with an oz of Gold! Sure for large purchases like land, machines ect. but for every day stuff, I still contend that silver is better.
Report Post »Anonymous T. Irrelevant
Posted on January 31, 2012 at 10:50amThe Golden Rule-”He who has the most gold, makes the rules.”
Report Post »garyM
Posted on January 31, 2012 at 10:42amI‘ll bet Mitt Romney’s man who runs his blind trust has bought lots of gold, of course Romney don’t know what the man who runs his blind trust has done right?
Report Post »MittensKittens
Posted on January 31, 2012 at 11:11amYep, that’s the real “fools” gold!
Report Post »garyM
Posted on January 31, 2012 at 10:40amI heard a man say one time he wanted to learn how to die broke, no problem, when we die and we all will lest Jesus return first, it is appointed to man once to die and after that the judgment. When our life is over, we are automatically broke because all the gold and silver in the world can’t help us any, we can’t spend it. What good is it? Maybe that’s why God says not to lay treasures up for yourselves on this earth you think???
Report Post »Detroit paperboy
Posted on January 31, 2012 at 10:36amChina is buying massive amounts of gold, our Criminal Federal Government is buying PAPER AND INK……… If we dont stop this criminal govt . Soon , by cutting it by 75% across the board, we are Doomed for sure……our founding fathers warned us about this very thing !!!! They had seen it all before !
Report Post »garyM
Posted on January 31, 2012 at 10:30amThe Chinese must be watching Beck, Beck and Soros are endorsing Romney, Beck is agreeing with Pelosi. Man you never know what the day will bring!
Report Post »elrond3737
Posted on January 31, 2012 at 10:54amBeck is for Santorum. However, he is not very hard on Romney. I wish he would spend 2 weeks ripping Romney like he did Gingrich.
Report Post »garyM
Posted on January 31, 2012 at 12:14pmYou don’t think Beck is really for Romney and just not saying it to prevent losing his GBTV customers do you and for being partial to his Mormon buddies as he says all faiths should join together, we’re all Americans, the truth lives here right. Recon why he never has run any negatives on Romney? duh!
Report Post »umreb78
Posted on January 31, 2012 at 3:14pmWow, Gary…Where are you getting your “news”. Beck has annhialated Newt, has expressed serious reservations with Romney, and has endorsed (okey, he doesn’t “endorse”, he supports) Santorum. You been spending alot of time at MSNBC, the NYT, Media Matters, HuffPo, or the KOS? Just womdering where you got such an idea.
Report Post »bullcrapbuster
Posted on January 31, 2012 at 6:52pmYabut Garym you are just a mormon hater and that’s ok, it is who you are. Forgive me if I must discount any ad hominem attacks that you make against Glenn or Romney. Most of the people that frequent the Blaze respect Glenn Beck for his efforts to present the truth. Many may not agree with his religious beliefs, Glenn has worked hard to bring people,religious and non religious,together in a common cause to save freedom and the American constitution. He and as he often repeats, his viewers have made large in roads into bringing forward the cause of freedom,truth and open discussion. Those of us that follow Glenn are for the most part strong willed and we keep ourselves informed. We all want what is best for America. As a Canadian I am not blind to the fact sooner rather than later,what happens to the USA happens to us. Anyhoo Glenn has been a blessing to me and my wife as he has awakened us to the cause of freedom and our personal responsibility in preserving such.
Report Post »HKS
Posted on January 31, 2012 at 10:14amI suppose that’s why they are kicking ourass, they see what’s ahead.
Report Post »TXPilot
Posted on January 31, 2012 at 10:27amWell, it’s about what I expect. China is buying tons of gold, and not only is the US not buying any, but the government continues to perpetuate the lie that there’s actual gold in Fort Knox. Anyone with common sense, knows that our greedy, lying politicians sold it off years ago, to help cover their illicit spending. For years now, our currency has been based on nothing but a lie, and soon we will all find out that in the end, lies aren’t worth the paper they are printed on.
Report Post »Sirfoldallot
Posted on January 31, 2012 at 10:38am& they r buying our DEBT, lol, lmao.
Report Post »TAKE_AMERICA_BACK
Posted on January 31, 2012 at 10:14amThe fiat currencies of the world are becoming more and more worthless everyday. China is playing it smart and we should do the same.
Report Post »SamIamTwo
Posted on January 31, 2012 at 10:08amMust be buying on the dips as I do. LOL
go to yahoo and pull up the daily gold chart and you can see massive selling. SOROS trying to keep it down. He had more than a basket full and is a player in Gold.
Report Post »let us prey
Posted on January 31, 2012 at 10:30amSoros plays in everything. In recent years China has been buying gold,silver, platinum,copper,steel, and what ever they can use for leverage. China has been using the plan of export-led growth, which requires it to keep their exports so cheap. This keeps it’s currency undervalued and they buy the dying dollar. they will have plenty of precious metals to keep them lucrative. We have fake stimulus money. Thanks obumbler.
Report Post »lel2007
Posted on January 31, 2012 at 10:07amWhat’s in your wallet?
Report Post »lukerw
Posted on January 31, 2012 at 10:06amHint: You are behind in your Gold purchases!
Report Post »Abraham Young
Posted on January 31, 2012 at 10:06amThey ain’t stoopid. They must be reading Peter Schiff or runtogold.com
Report Post »SamIamTwo
Posted on January 31, 2012 at 10:09amthey’ve been buying for a couple of years or more. many nations, except US, are bulking up.
Report Post »fancydancy
Posted on January 31, 2012 at 10:22amIt is so sad that our politicians won’t do the hard thing to keep us all safe as they WANT to be re-elected to fill their pockets and egos so they will let our country collapse…or so we are told…but they have grandchildren, too, so why would they not be fiscally responsible? Do they promise us and then get to DC and find out info that the rest of us don’t know and HAVE to fall in line because it is worse than any of us know? I wish I knew or maybe I really don’t. :-(
Report Post »