Posted on 01/16/2008 4:53:09 PM PST by bjs1779
NEW YORK, Jan 16 (Reuters) - Gold prices fell sharply to a one-week low on Wednesday in choppy trading as funds frantically liquidated positions to cover margin calls amid steep losses, triggering a broad sell-off in commodities.
A sharply higher dollar versus the euro after hawkish comments from a European Central Bank official and signs of slowing demand for physical gold from top consumer India also weighed heavily on gold.
With a recovering dollar, sliding energy prices and little support from buyers, the weakness in gold prices was expected to continue into Thursday, dealers said. "Today was the day traders, because of the significant move in the price of gold, had to answer margin calls. And it spread to other commodities. Nothing was immune from long liquidation today," said George Nickas, precious metals broker with FC Stone in New York. "This most likely will continue into tomorrow before the dust settles," Nickas said.
Bullion dropped sharply in overnight trade as weaker oil prices encouraged investors to take profits after a failed run at record highs above $914 per ounce on Tuesday.
Losses were extended as the euro tumbled nearly 2 cents against the dollar, making dollar priced gold dearer for non-U.S. investors.
Gold was quoted at $885.60/886.30 in New York at 2:15 p.m. EST (1915 GMT), down more than 2.5 percent from $899.50/900.20 quoted late in New York on Tuesday, after trading in a wide band of $877.80 to $899.25.
The most-active gold contract for February delivery at the COMEX division of the New York Mercantile Exchange settled down $20.60, or 2.3 percent, at $882.00 an ounce.
(Excerpt) Read more at guardian.co.uk ...
You’re reading old information. Here’s a news piece from late in December:
Buffet buying majority stake in industrial firm
AFP ^ | 12/25/07 | AFP
Posted on 12/25/2007 4:18:13 PM PST by mdittmar
- US billionaire investor Warren Buffet is reportedly paying 4.5 billion dollars for a majority stake in Marmon Holdings Inc., an industrial conglomerate owned by one of America’s richest families.
Buffet’s Berkshire Hathaway Inc. is acquiring 60 percent of the industrial firm from Chicago’s Pritzker family, which has owned Marmon for more than 50 years, The Wall Street Journal reported online.
Marmon, whose businesses range from plumbing products to electrical wire and cable, boasts seven billion dollars in annual revenue and more than 125 operating units, the daily said. Its biggest unit is the railroad tank car maker Union Tank Car.
Berkshire will buy the rest of the company in stages by 2014, it said, adding that the final price tag will depend on Marmon’s future performance.
It is Berkshire’s biggest acquisition outside of the insurance industry, the Journal said.
The deal is part of a series of asset sales by the Pritzkers, who are restructuring their holdings to settle an internal family dispute over control, the daily reported.
Marmon chairman Tom Pritzker said Buffet’s reputation for being a hands-off owner made him the ideal partner for the company.
“His philosophy is very consistent with our goals,” Pritzker was quoted as saying.
Buffet told the Journal he plans to keep Marmon’s chief executive, Frank Ptak, at the helm, and plans to add some “bolt-on acquisitions.”
This probably is not the beginning of the inevitable collapse in commodity markets — but it might be!
See post #21 on this thread.
Just ask Ron Paul
We should because our politicians are addicted to spending money that we don't have. But there is no way in heck we will be able to pay down our national debts if we went back to the dollar standard again.
Did Ron Paul have a solution?
I’ll do some checking on that. Buffett would sell his own mother for a buck.
I thought Warren sold off his entire position in PetroChina months ago...?
That could be. But I posted a source, so I hope you do too : )
Thanks
The Baltic bulk dry shipping index (tracking costs to ship raw materials like iron ore, fuel, etc.) has been plummeting since mid-November. Off about 30% of peak.
This is significant as the index is the one true indicator of demand for products as it reflects the movement of ships and raw materials for manufacturing on a global scale. It’s basically a bid system for a finite, inelastic inventory of international cargo holds. Demand is diving, indicating that less freight is on the move in all regards.
China is cutting back on raw materials and with the cutback will come a significant reduction in its energy demands. I see this as the best confirmation of a significant economic slowdown, if not a presently active recession. At best, some serious moderation in commodities as demand is showing serious slackening and speculators will be racing to clear positions and take profit. At worst, this condition will slide us rapidly into a hard recession.
See also:
http://bigpicture.typepad.com/comments/2008/01/baltic-dry-ship.html
All the sharp and astute investors who bought Nazdog in March, 2000, now have a chance to find their way out of the sub-basement.
How about Bloomberg? Scroll down about half way...
Buffett Warning Warren Buffett, the billionaire chairman of Omaha, Nebraska- based Berkshire Hathaway Inc., said in October investors should be ``cautious'' about China's soaring stocks. His company sold all its PetroChina shares the same month.
John123: We should because our politicians are addicted to spending money that we don't have.
Sure, while the economy contracts like a prune to a raisin, everybody standard of living plummets like a 747 with no fuel to turd world status, the fat cats in DC will still take care of themselves.
I have a much better idea. VOTE their ass out
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