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Friday, January 27, 2012

January 27, 2012 - Gold Bulls Ascendant Amid Biggest Rally Since 1980; Commodities inflows at a nine-year low; Resource Corruption Fight Intensifies


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Yesterday's top stories were "Gold: The Real Fed Winner" by Ben Levisohn from the Wall Street Journal, followed by "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Times, and "China easing fires commodities bulls" by Jack Farchy and Javier Blas from the Financial Times.

Quote of the Day:

"The market attitude towards gold for most of January could be summed up in two words: cautious optimism. Investors were reluctant to add to positions aggressively as memories of the disappointment in Q4 lingered... A fresh catalyst was needed and we think the FOMC outcome on Wednesday fit the bill. More accommodative policy is a very good foundation for gold to build on the next move higher."

~ UBS from "Gold set for biggest rise in three months after Fed"


Observations - Statistics - Commentary

Gold Bulls Ascendant Amid Biggest Rally Since 1980
BusinessWeek
Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades.
http://jlne.ws/wnXOW1

Commodities inflows at a nine-year low
By Emiko Terazono - Financial Times
Commodities markets saw the weakest net inflow of funds in nine-years in 2011, as investors were deterred by volatility caused by European sovereign debt concerns, as well as worries over global economic growth and monetary tightening in China.
http://jlne.ws/wvE6kn

Resource Corruption Fight Intensifies
By Andrea Hotter - WSJ
The days of shady deals in the mining, oil or gas industries will be a thing of the past if Transparency International has its way. The global civil society organization is piling the pressure on corporates and governments alike to sign up to practises it believes will help eradicate the corruption that the organisation’s chair calls the “resources curse.”
http://jlne.ws/z7zFTb



JLN Metals Scorecard 1/26/2012


NYSE LIFFE US Total Volume 118,933


100 oz. Gold Futures Volumes
NYSE LIFFE US 777
CME/NYMEX (Globex + PNT)311,747
CME/NYMEX Open Auction16,901
NYSE LIFFE market share 0.25%
NYSE LIFFE US Electronic market share0.25%


100 oz. Gold Futures Open Interest
CME/NYMEX 433,710
NYSE LIFFE US 1721
NYSE LIFFE US market share 0.40%


Mini Gold Volume
NYSE LIFFE US 7,775
CME E-micro Gold (10 Troy oz)1,739
CME/NYMEX miNY 879
NYSE Liffe market share (Contracts)
74.81%
NYSE Liffe market share (Notional)
80.80%


5,000 oz. Silver Futures Volume
NYSE LIFFE US 18
CME/NYMEX 38,268
NYSE LIFFE US market share 0.05%


Mini Silver Volume
NYSE LIFFE US 2,880
CME/NYMEX miNY 148
CME/NYMEX E-mini 0
NYSE LIFFE US market share95.11%


Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)15
TOCOM Gold Futures* (1 kg / 32.15 ounces)
60,908
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)14,517
TOCOM Silver Futures* (10 kg / 321.51 ounces)710
MCX India* (1 kg / 32.15 ounces)43,882
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg) 1,187
*Today's date

METAL ETFSMETAL ETFS
ProShares Ultra Silver 470,892
Powershares DB Base Metals Fund 11,223
Market Vectors Gold Miners GG3,860,060
MARKET VECTORS JUNIOR1,239,202
ProShares UltraShort Gold 217,373
ETFS Precious Metals Baskets Trust6,460
iShares COMEX Gold Trust993,572
iShares Silver Trust (ETF) historical prices3,941,077
ETFS PHSYICAL PALLADIUM SHARES22,126
ETFS PHYSICAL PLATINUM SHARES36,341
ETFS GOLD TRUST 15,541
ETFS SILVER TRUST86,415
Market Vectors Steel 24,114
ProShares Ultra Gold 87,606
ProShares UltraShort Silver1,715,707
SPDR Gold Trust4,747,747


Lead Stories

Video - Gold Regains Some of Its Shine
By Francesca Freeman - WSJ
After a relatively appalling performance in the latter part of last year, gold has picked up its feet. Peaking at a seven-week high of $1,730.95 a troy ounce Thursday, the yellow metal has gained around 10% so far in January as investors regain their confidence in bullion.
http://jlne.ws/wuRgRC

CEO's 'Name On The Line' With Formation Of McEwen Mining; Goals Include S&P 500
By Allen Sykora - Kitco News
Rob McEwen certainly has plenty of motivation to build up the mining company that carries his name and started trading on the New York and Toronto stock exchanges Friday.
http://jlne.ws/yzhtK1

Greece and the euro: An economy crumbles
The Economist
The banners at the entrance to the Bank of Greece museum in Athens promise a “fascinating journey through Greece’s modern economic and monetary history”. How could any passer-by resist? Inside the museum ranks of glass cases enclose an array of coins and old bank notes, as well as the paraphernalia used to make them. The bills range from 5 drachma up to 100m drachma, a reminder that Greece has had problems with inflation in the past.
http://jlne.ws/wmx94R

Gold set for biggest rise in three months after Fed
By Jan Harvey - Reuters
Gold rose on Friday, heading for its best weekly performance since late October after the Federal Reserve signalled its ultra-loose monetary policy would continue, keeping the dollar under pressure and the opportunity cost of holding bullion low.
http://jlne.ws/wt67ln


Futures & ETF News

Gold ETFs Surge On Fed Outlook - ETF News And Commentary
Nasdaq
Although the American economy seems to be holding its own to start the year, significant risks remain to growth. European worries are always a step away and still high American unemployment and
http://jlne.ws/w1qIaO

ETF Fund Flows: GLD Nets $481.1 Million
Nasdaq
Investors poured $481.1 million into the SPDR Gold Shares ETF (NYSEArca:GLD) in the wake of the Fed's decision to extend its easy-money policies until 2014.
http://jlne.ws/y4hPrr

Toyota's Hybrid Tech May Pressure Rare Earth ETF
ETF Trends via Yahoo! Finance
Rare earth metals, along with the related exchange traded fund, have been in the news in recent years due to supply concerns. However, the sub-sector has been a weak performer, and now Toyota (NYSE: TM - News) ...
http://jlne.ws/xpNP6R

Iron ore swaps extend gains ahead of China`s return
Mineweb
Iron ore forward swaps extended gains early Friday, reflecting hopes that spot prices will bounce back when China returns next week from its Lunar New Year break.
http://jlne.ws/xVZTBW


Investments

Gartman: Starting To Turn Neutral On Gold
Nasdaq
Dennis Gartman, the macro trader and editor of the Gartman Letter, is looking at rising equity prices and slowly turning neutral on gold. During a panel on the macroeconomy at...
http://jlne.ws/x0QSyb

Video - Investors Abandoning Copper, Cotton, Crude and other Commodities Amid Plunging Prices
WSJ
Amid plunging prices and soaring volatility, investors and traders reduced bets on 13 key commodity contracts by 19% in 2011. Jerry DiColo reports on Markets Hub.
http://jlne.ws/zNGmD4

Barclays: Tin increase 17% and zinc by 18% so far in 2012
Commodity Online
Tin’s fundamental backdrop offers solid support for its strong showing relative to most other base metals so far this year, said Barclays Capital in a research note.
http://jlne.ws/yW0dl7


Production News

US aluminium export increases 10% in 2011: USGS
Commodity Online
The United States continued to be slightly reliant upon Aluminium imports in 2011, as domestic primary production increased from that in 2010 but still remained at significantly lower levels than in 2008, although exports of scrap continued to increase, said the Institute U.S. Geological Survey (USGS) in a research note.
http://jlne.ws/zlSExa


Reports, Macroeconomics & Inflation

Tensions rise over eurozone firewall
Financial Times
Fresh signs of tension between France and Germany over the eurozone rescue emerged on Friday, as expectations rise that a deal to restructure Greece’s sovereign debt could be agreed as early as this weekend.
http://jlne.ws/yVoKTb

Fitch Cuts Italian, Spanish Ratings by Two Notches
By Mark Deen - Bloomberg
Fitch Ratings cut the credit ratings of Italy, Spain and three other euro-area countries, saying they lack financing flexibility in the face of the regional debt crisis.
http://jlne.ws/znSgT4

Emergency loans helped avert ‘major, major credit crunch’
By Ralph Atkins and Patrick Jenkins - Financial Times
Europe avoided a “major, major credit crunch” thanks to €489bn of emergency three-year loans to eurozone banks provided by the European Central Bank last month, the bank’s governor said on Friday.
http://jlne.ws/yGMvls

Euro zone may need to help Greece more: Juncker in paper
Reuters via Yahoo! Finance
Euro zone members may have to increase their financial support for Greece if Athens and the private sector do their part to address the country's debt crisis, Eurogroup head Jean-Claude Juncker told a ...
http://jlne.ws/wEk2hw

Greece Edges Towards Debt Deal
By ALKMAN GRANITSAS And COSTAS PARIS - WSJ
Talks between Greece and its private sector creditors over a €100 billion ($131 billion) debt write-down edged towards an agreement, with bond holders seemingly willing to accept lower yields on their future holdings of Greek debt, a source close to the talks said Friday.
http://jlne.ws/zfs8ZU

Investors cue up Portugal as the next Greece
By Emelia Sithole-Matarise and Anirban Nag - Reuters
Investors are betting that after cap-in-hand Greece comes Portugal, selling off its stocks and bonds in the belief that the euro zone laggard cannot avoid a default without a second bailout.
http://jlne.ws/zADr9Z


Physicals & Company News

Rio Tinto Eyes Oyu Tolgoi Control
By Robb M. Stewart - WSJ
Rio Tinto expects to replace some directors and management at Ivanhoe Mines after grabbing majority control of the Canadian mining company, and may seek direct ownership in the massive Oyu Tolgoi copper and gold project in Mongolia.
http://jlne.ws/w5V6SM

RUSAL may cut aluminium output 6% in next 18 months
Mineweb
Despite reporting last week that it had no plans to follow rival Alcoa's lead in cutting production, the Russian firm said Friday it could cut output by 6% in the next 18 months.
http://jlne.ws/ysIffg

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Thursday, January 26, 2012

January 26, 2012 - Gold: The Real Fed Winner; China easing fires commodities bulls; South Africa Miners Warn of Regulations' Impact


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Yesterday's top stories were "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Insider, followed by "Gold Futures, ETFs Tell Different Tales" by David Cottle from the Wall Street Journal, and "Behold the most valuable gold vault in the world" from Commodity Online.

Quote of the Day:

"A lot of people had thrown the towel on gold and you see it turn like this with a wicked vengeance."

~ Matt Zeman, head trader and strategist at Kingsview Financial from "Gold Jumps Firmly Above $1,700"


Observations - Statistics - Commentary


Gold: The Real Fed Winner
By Ben Levisohn - WSJ
Who said the gold rally is dead? The SPDR Gold Shares Trust, the largest exchange-traded product dedicated to the precious metal, jumped 2.72% yesterday, its largest one-day move since Jan. 3. Gold bugs should thank the Fed.
http://jlne.ws/xjEJ5u

Fed announcement boosts markets
By Jamie Chisholm - Financial Times
A renewed belief among traders that the US Federal Reserve stands ready to support financial assets is helping contain festering eurozone worries and the fallout from a hit-and-miss corporate earnings season.
http://jlne.ws/zv5xHF

China easing fires commodities bulls
By Jack Farchy and Javier Blas - Financial Times
The government-induced credit crunch in the Chinese commodities industry is ending, according to western traders, triggering a wave of bullishness about the outlook for industrial raw materials.
http://jlne.ws/zI1g3Q

South Africa Miners Warn of Regulations' Impact
By DEVON MAYLIE - WSJ
Platinum miners in South Africa said Thursday they will struggle to grow production as the country's mineral department tightens safety regulations. Anglo American Platinum Ltd. and Lonmin PLC both reported a fall in mined output in the final three months of calendar 2011, citing increased safety-related work stoppages imposed by the country's Department of Mineral Resources.
http://jlne.ws/z2kHwL


JLN Metals Scorecard 1/25/2012


NYSE LIFFE US Total Volume 136,046


100 oz. Gold Futures Volumes
NYSE LIFFE US 439
CME/NYMEX (Globex + PNT)301,867
CME/NYMEX Open Auction8,591
NYSE LIFFE market share 0.15%
NYSE LIFFE US Electronic market share0.15%


100 oz. Gold Futures Open Interest
CME/NYMEX 434,997
NYSE LIFFE US 1680
NYSE LIFFE US market share 0.38%


Mini Gold Volume
NYSE LIFFE US 8,347
CME E-micro Gold (10 Troy oz)2,894
CME/NYMEX miNY 916
NYSE Liffe market share (Contracts)
68.66%
NYSE Liffe market share (Notional)
78.76%


5,000 oz. Silver Futures Volume
NYSE LIFFE US 1
CME/NYMEX 53,611
NYSE LIFFE US market share 0.00%


Mini Silver Volume
NYSE LIFFE US 3,622
CME/NYMEX miNY 179
CME/NYMEX E-mini 0
NYSE LIFFE US market share95.29%


Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)0
TOCOM Gold Futures* (1 kg / 32.15 ounces)
67,146
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)21,197
TOCOM Silver Futures* (10 kg / 321.51 ounces)578
MCX India* (1 kg / 32.15 ounces)N/A
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg) 1,830
*Today's date

METAL ETFSMETAL ETFS
ProShares Ultra Silver 605,518
Powershares DB Base Metals Fund 36,483
Market Vectors Gold Miners GG5,341,478
MARKET VECTORS JUNIOR1,091,834
ProShares UltraShort Gold 284,354
ETFS Precious Metals Baskets Trust2,234
iShares COMEX Gold Trust1,509,642
iShares Silver Trust (ETF) historical prices6,052,254
ETFS PHSYICAL PALLADIUM SHARES53,551
ETFS PHYSICAL PLATINUM SHARES19,540
ETFS GOLD TRUST 45,871
ETFS SILVER TRUST123,968
Market Vectors Steel 29,185
ProShares Ultra Gold 105,081
ProShares UltraShort Silver1,894,723
SPDR Gold Trust7,113,652


Lead Stories

Gold Jumps Firmly Above $1,700
By TATYANA SHUMSKY - WSJ
Gold futures rallied further Thursday, cementing their position above $1,700, as the Federal Reserve's forecast that interest rates are set to remain low for three more years emboldened investors.
http://jlne.ws/zLcq47

Video - Fed Rate Decision: Bad for Banks, Good for Gold
TheStreet.com
Stephanie Link, director of research for TheStreet, breaks down the Fed's latest rate decision and what it means for stocks.
http://jlne.ws/wm0MxI

Miners reap rewards in mineral sands
By Emiko Terazono - Financial Times
The prices of mineral sands, derived from sludge from the beaches of Australia and Africa, have continued their ascent, with miners signing 2012 contracts worth triple or quadruple those of a year ago.
http://jlne.ws/w5OAkp

Vale to appeal R$9.8bn Brazil tax ruling
By Samantha Pearson - Financial Times
Vale, the world’s biggest producer of iron ore, has vowed to appeal a series of rulings on back taxes in Brazil that could cost the miner R$9.8bn ($5.6bn) as part of a long-running dispute over its overseas profits.
http://jlne.ws/yPOQ4o


Futures & ETF News

Gold Miner ETFs Soar After Fed's Low-Rate Pledge
ETF Trends via Yahoo! Finance
Exchange traded funds tracking gold miners surged Wednesday on heavy trading volume after the Federal Reserve announced its commitment to maintaining low interest rates until late 2014 and the prospect...
http://jlne.ws/xPXZLu

S&P launches multiple contract version of the S&P GSCI index
Platts News
S&P Indices has launched the S&P GSCI Multiple Contract Index, a long-only index which provides more diverse exposure along the commodity market futures curve than the existing S&P GSCI index, Standard & Poor's said Thursday.
http://jlne.ws/yIakD9

Iron ore swaps rise on hopes of China restocking
Mineweb
Prices of iron ore forward swaps rose on Thursday as investors bet Chinese steelmakers are likely to replenish stockpiles at the end of the Lunar New Year break.
http://jlne.ws/xkbyeJ


Investments

Technicals, ETF And Coin Buying Show Bullish Trend For Silver: Credit Suisse
Nasdaq
Technicals, ETF And Coin Buying Show Bullish Trend For Silver: Credit Suisse
http://jlne.ws/wAz48Z

Gold seen rising in 2012, 12th year of rally
Reuters
Gold's record-breaking rally of the last decade is set to extend into this year and next as monetary policy stays loose and central banks build reserves, a Reuters poll showed on Thursday.
http://jlne.ws/xv5jiN


Production News

Zinc Risks a Temporary Glut
By FRANCESCA FREEMAN - WSJ
Zinc may be the black sheep of base metals this year amid expectations that increases in mining capacity will pressure prices. However, the outlook could brighten should some of those expansion plans be put on hold because of weak demand and problems getting project financing. Longer term, analysts expect prices may rise as mines close, shrinking supply.
http://jlne.ws/zBvgic

Colombia to Get $10 Billion in Mining, Energy Investments, Cardenas Says
By Heather Walsh and Alaa Shahine - Bloomberg
Colombia, South America’s third- largest oil producer, expects about $10 billion in international investment in crude, mining and energy projects this year, Mines Minister Mauricio Cardenas said.
http://jlne.ws/zuFNR6

China's 2011 iron ore imports from India down 24%, up for most other sources
Platts News
China's imports of Indian iron ore in 2011 fell 24% year on year to 73.3 million mt, the biggest drop among sources that supplied the country with more than 1 million mt of product last year, detailed data released Thursday by China's General Administration of Customs showed.
http://jlne.ws/zPDXZo

Guyana to target corruption amid gold mine boom
Associated Press via Yahoo! News
Guyana's mining minister says he plans to hire dozens of new inspectors to curb illegal activity prompted by a boom in the South American country's gold mining industry.
http://jlne.ws/zqwRTy

Aquino: Philippines to have clear mining policy
Associated Press via Yahoo! News
President Benigno Aquino III says the Philippine government will have a clear-cut policy on its mining industry by next month amid complaints from foreigners that inconsistent rules have stymied investments.
http://jlne.ws/yzPtDB


Regulatory News

Holzer Holzer & Fistel, LLC Announces Investigation into Kinross Gold Corporation
Business Wire via Yahoo! Finance
Holzer Holzer & Fistel, LLC is investigating potential violations of the federal securities laws by Kinross Gold Corporation . The investigation focuses on whether a series of statements made between February 16, 2011 and January 17, 2012, inclusive, regarding Kinross's business, its prospects and its operations were materially false and misleading at the time they were made.
http://jlne.ws/vZFTng


Reports, Macroeconomics & Inflation

World Bank gives $27 billion to shield emerging markets from the euro
Nasdaq
The World Bank is making $27 billion in funding available over the next two years for countries of emerging Europe and Central Asia impacted by the euro zone crisis.
http://jlne.ws/zU7Tbp

Czech central bank agrees on loan to IMF
Associated Press via Yahoo! News
The board of the Czech central bank has conditionally approved a loan to the International Monetary Fund as part of efforts to stabilize the European debt crisis.
http://jlne.ws/x1iTMB

Federal Reserve Formally Targets 2% U.S. Inflation
Forbes
Central bank gives explicit target for price monitoring after committing to low rates until 2014.
http://jlne.ws/ypTQzm

Federal Reserve unlikely to raise rates until 2014
Chicago Tribune
The Federal Reserve went further than ever Wednesday to assure consumers and businesses that they'll be able to borrow cheaply well into the future.
http://jlne.ws/wGXNiI

Bernanke Makes Case for More Bond Buying
By Caroline Salas Gage and Craig Torres - Bloomberg
Ben S. Bernanke laid the groundwork for a third round of large-scale asset purchases should unemployment remain higher than the Federal Reserve would like while inflation falls below a newly-established target.
http://jlne.ws/ziEvk1

Portuguese bonds hit as traders fear default
By David Oakley and Peter Wise - Financial Times
Friday the 13th may be an unlucky omen for Portugal. On that day, almost two weeks ago, Standard & Poor’s became the last rating agency to downgrade Lisbon to junk, marking the moment for many investors when default looked inevitable for Portugal as well as Greece.
http://jlne.ws/xCr3Nw


Miscellaneous News

Tin Gains as Prospect of Low Fed Rates Boosts Speculation of Higher Demand
By Agnieszka Troszkiewicz - Bloomberg
Tin climbed the most in almost four months in London as prospects of low U.S. interest rates at least until 2014 boosted speculation of increased demand for the metal used in mobile phones, plasma screens and cars.
http://jlne.ws/wT5nzs


Physicals & Company News

CME Clearing Aims to Compete in Europe as Trading Volume Expands, CEO Says
By Nandini Sukumar - Bloomberg
CME Group Inc. (CME)’s European clearinghouse this month processed more than half the volume of last year’s trades, as it steps up competition in the region.
http://jlne.ws/A2Divi

Polyus, Polymetal Owners Said to Weigh Russian Gold Merger
By Yuliya Fedorinova and Ilya Khrennikov - Bloomberg
The billionaire owners of Polyus Gold International Ltd. and Polymetal International Plc (POLY) are considering merging the Russian gold miners as Polyus seeks a primary listing in London, two people with knowledge of the matter said.
http://jlne.ws/whL7S4

Lundin Mining Is Looking 'Off Beaten Path' for Acquisition
BusinessWeek
Lundin Mining Corp., the Canadian copper and zinc producer that was the target of two aborted takeovers last year, is looking to make an acquisition in 2012 valued at as much as $500 million.
http://jlne.ws/wCNHG5

Anaconda Mining Appoints New Chief Financial Officer
CNW Group via Yahoo! Finance
Anaconda Mining Appoints New Chief Financial Officer
http://jlne.ws/xMzdeH

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Wednesday, January 25, 2012

January 25, 2012 - Gold Futures, ETFs Tell Different Tales; India Gold Importers Defer Orders; Commitment to accuracy of CFTC data in doubt


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Yesterday's top stories were "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Insider, followed by "Gold Tells Tale Of Aussie Banks" by Geoffrey Rogow from the Wall Street Journal, and "Interview: Want A Read On Emerging Market Gold? Follow the Japanese—Frank Holmes" by Daniela Cambone from Kitco News.

Quote of the Day:

"There's a few things in the months ahead that could be supportive for gold prices. We note that despite all the crisis engulfing Europe last year, it is a U.S. fiscal mini-crisis over the budget ceiling that virtually gave the biggest boost to gold prices. So if you're looking for potential upside in gold and other precious metals this year, you probably need to look to the U.S."


~ Nic Brown, head of commodities research at Natixis from "Gold falls for a second day ahead of Fed"


Observations - Statistics - Commentary

Gold Futures, ETFs Tell Different Tales
By David Cottle - WSJ
As ever, crisis years have been good ones for gold. Back before credit crunched, the metal was looked at as a rather risible relic and priced accordingly. In 2005, it was in the doldrums at $400 or so per ounce. But things have changed. Those paper assets everyone was so fond of are toxic objects of suspicion now, in a world where even the bedrock of triple-A credit ratings has shifted. And gold is up at $1600.
http://jlne.ws/wHRS7T

India Gold Importers Defer Orders After Tax Changes
By BIMAN MUKHERJI And DEBIPRASAD NAYAK - WSJ
Gold importers in India are postponing purchases following the government's decision last week to impose import tax at 2% of the value of the bullion, instead of the previous practice of a flat rate on the weight, industry executives said Wednesday.
http://jlne.ws/AhkRrv

Commitment to accuracy of CFTC data in doubt
By Gregory Meyer - Financial Times
As a tool for divining commodity markets, Commitments of Traders reports lie somewhere between hard statistics and reading chicken entrails. The weekly reports from the US Commodity Futures Trading Commission identify long, short and spread positions held by different types of trader.
http://jlne.ws/xxXTTq


JLN Metals Scorecard 1/24/2012


NYSE LIFFE US Total Volume 92,273


100 oz. Gold Futures Volumes
NYSE LIFFE US 158
CME/NYMEX (Globex + PNT)173,355
CME/NYMEX Open Auction8,779
NYSE LIFFE market share 0.09%
NYSE LIFFE US Electronic market share0.09%


100 oz. Gold Futures Open Interest
CME/NYMEX 427,032
NYSE LIFFE US 1683
NYSE LIFFE US market share 0.39%


Mini Gold Volume
NYSE LIFFE US 4,386
CME E-micro Gold (10 Troy oz)1,645
CME/NYMEX miNY 3,550
NYSE Liffe market share (Contracts)
45.78%
NYSE Liffe market share (Notional)
42.88%


5,000 oz. Silver Futures Volume
NYSE LIFFE US 0
CME/NYMEX 30,643
NYSE LIFFE US market share 0.00%


Mini Silver Volume
NYSE LIFFE US 2,702
CME/NYMEX miNY 57
CME/NYMEX E-mini 0
NYSE LIFFE US market share97.93%


Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)5
TOCOM Gold Futures* (1 kg / 32.15 ounces)
38,076
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)12,106
TOCOM Silver Futures* (10 kg / 321.51 ounces)470
MCX India* (1 kg / 32.15 ounces)30,344
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg) 907
*Today's date

METAL ETFSMETAL ETFS
ProShares Ultra Silver 242,285
Powershares DB Base Metals Fund 47,987
Market Vectors Gold Miners GG2,217,148
MARKET VECTORS JUNIOR525,399
ProShares UltraShort Gold 103,516
ETFS Precious Metals Baskets Trust1,023
iShares COMEX Gold Trust234,917
iShares Silver Trust (ETF) historical prices2,014,750
ETFS PHSYICAL PALLADIUM SHARES47,162
ETFS PHYSICAL PLATINUM SHARES29,857
ETFS GOLD TRUST 12,362
ETFS SILVER TRUST46,898
Market Vectors Steel 42,915
ProShares Ultra Gold 32,933
ProShares UltraShort Silver828,961
SPDR Gold Trust1,857,089


Lead Stories

The IMF's latest forecast: Perverse austerity
The Economist
The International Monetary Fund sharply lowered its global economic outlook today and warned that an intensified euro crisis could tip the world back into recession. Its latest forecast is for the world to grow 3.3% this year and the advanced countries 1.2%, sharply lower than it saw just four months ago. Those numbers, it warns, are predicated on a comprehensive solution to Europe’s crisis.
http://jlne.ws/wjRouu

Walter Energy Buyers Seen as BHP-ArcelorMittal Converge on Cheap: Real M&A
By Tara Lachapelle - Bloomberg
Walter Energy Inc. (WLT) may finally lure buyers willing to bet on a recovery in coal prices with the industry’s cheapest stock. After losing almost half its value in the past year, the producer of steelmaking coal sold for 9.3 times earnings this week, according to data compiled by Bloomberg.
http://jlne.ws/xCs4p3

Kazakhstan, Mongolia Increased Bullion Reserves in December, IMF Data Show
By Nicholas Larkin - Bloomberg
Kazakhstan and Mongolia added to their gold reserves in December as the precious metal advanced for an 11th consecutive year, according to the International Monetary Fund.
http://jlne.ws/xSHqbP

Behold the most valuable gold vault in the world
Commodity Online
Much has been said about the secretive vault situated 80 feet below ground level at 33 Liberty street, which contains over 20% of the world's Gold (allegedly*), currently estimated at over $350 billion.
http://jlne.ws/yqQtzV

Gold falls for a second day ahead of Fed
By Amanda Cooper - Reuters
Gold eased for a second day on Wednesday, ahead of the U.S. Federal Reserve's monetary policy decision and its first longer-term policy forecasts, and under pressure from the dollar's strength against the euro.
http://jlne.ws/yYH3Dq


Futures & ETF News

Measuring the Impact of Gold ETFs
By John Spence - ETF Trends
Bullion holdings of gold exchange traded funds are sometimes used to gauge the demand and sentiment for the precious metal. However, the relationship between ETF holdings and the price of gold isn’t clear-cut and may not be a reliable indicator for short-term moves, according to Wall Street analysts.
http://jlne.ws/wWgquT

Gold ETFs Battle Technical Resistance; All Eyes on Fed Decision
By Tom Lydon - ETF Trends
Gold exchange traded funds were lower before Wednesday’s announcement from the Federal Reserve on interest rates and the economy. Precious metal ETFs could see a volatile session as Fed chief Ben Bernanke also holds a press conference following the central bank’s announcement.
http://jlne.ws/zPlvkh

The 10 Most Profitable ETFs In The World
By Jared Cummans - Yahoo! Finance
The ETF industry has long been known for the many advantages that it offers over competing mutual funds and other investment vehicles. One of the most significant upsides that exchange traded products have is their relatively low expenses; investors can gain exposure to asset classes of all kinds for a reasonable price.
http://jlne.ws/yxITuV


Investments

Gold Proving Safest Commodity as Goldman Forecasts Record: Riskless Return

By Debarati Roy - Bloomberg
Gold provided the best returns of all commodities in the past five years when adjusted for volatility, and Goldman Sachs Group Inc. says the rally will continue as options traders signal no change in the metal’s relatively low risk.
http://jlne.ws/x1uzMX

Copper and tin top picks among base metals in Q2: Sucden
Platts News
Sucden Financial maintained a 'neutral to bearish' outlook for most base metals, with copper and tin the notable exceptions, in its Quarterly Metals Report issued Wednesday.
http://jlne.ws/ylPwb5


Production News

Rio Tinto Boss Says Doing Business in the U.S. Is Hard
By Andrea Hotter - WSJ
It’s all very well the U.S. President saying his administration wants to create more jobs, and quite another doing it. So says the chief executive of global diversified miner Rio Tinto PLC, who says his firm is constantly stymied from doing business in the U.S. due to a series of bureaucratic obstacles.
http://jlne.ws/z2PwZM


Reports, Macroeconomics & Inflation

Greece Debt Exchange Would Be a Default, S&P's Chambers Says
BusinessWeek
Greece is likely to default in the first half of this year, an event that's poised to leave the country with a "very high" debt burden, according to John Chambers of Standard & Poor's .
http://jlne.ws/AAj978

Can Europe stomach Greek default? Depends on flavor
Reuters via Yahoo! News
LONDON (Reuters) - The euro zone is inching closer to breaking its long-held taboo against a Greek default, but can still escape financial market mayhem and a body blow to the euro. It all comes down to whether the default is controlled or chaotic. Officials have been talking to private bondholders for nearly seven months to get them to share the burden of a second international bailout of...
http://jlne.ws/wLeRFR

ECB Said to Oppose Losses on Its Greek Debt
Bloomberg
The European Central Bank remains firmly opposed to any restructuring of its Greek bond holdings as the debt was acquired for monetary policy purposes, according to two people familiar with the Governing Council's stance.
http://jlne.ws/wZydb5

Greece Private-Sector Creditors Meet in Paris
By GRÁINNE MCCARTHY - WSJ
Greece's private-sector creditors are meeting in Paris Wednesday in a bid to "determine the next course ahead" in talks to help ease the ailing country's debt burden, according to a person familiar with the matter.
http://jlne.ws/y7a17y

Banks prepare for hefty take-up of 3-year ECB cash
By Marius Zaharia - Reuters
Shifts in demand at European Central Bank cash tenders this week are pointing towards a large take-up of three-year loans by euro zone banks in February, strengthening the case for lower short-term interest rates in the near term.
http://jlne.ws/xYmNlK

World Bank Will Boost Lending To CEE Countries Affected By Euro Zone Crisis
Nasdaq
World Bank Will Boost Lending To CEE Countries Affected By Euro Zone Crisis
http://jlne.ws/zdEO0N

Denmark's AAA to Survive Record Private Debt, Fitch, S&P Say
BusinessWeek
Denmark, home to the world's biggest household debt burden, won't lose its top credit rating any time soon as stable public finances and a current account surplus offset the risks, Fitch Ratings and Standard & Poor's said.
http://jlne.ws/wf88aG


Miscellaneous News

Illinois AG sues S&P over ratings fraud
By William Spain - MarketWatch
Illinois Attorney General Lisa Madigan on Wednesday sued Standard & Poor's for what she alleges is its "fraudulent role" in giving high ratings to the mortgage-backed investments that ultimately contributed to the financial crash.
http://jlne.ws/yLlDdH


Physicals & Company News

Heard on the Street: Small Miners Must Dig Deep in Australia
By CYNTHIA KOONS - WSJ
For Australia's smaller miners, how much they extract from the earth this year depends on how much they can extract from their banks. Unfortunately, sources of funding are getting tighter.
http://jlne.ws/ySvlcz

Polish Treasury, KGHM CEO Appear Divided Over How to Spend Cash
By Marynia Kruk - WSJ
The rift between Poland’s new Treasury minister and the chief executive of Polish copper-mining company KGHM Polska Miedz SA, in which the ministry holds a controlling stake, appeared to widen Tuesday.
http://jlne.ws/xZjK2Z

Tata Steel Plan Could Hit 200 European Jobs
By ALEX MACDONALD - WSJ
In light of weak European demand for its tube products, India-based Tata Steel Ltd. proposed Wednesday a recovery plan for its tubes business that may result in 200 job losses at four sites in the U.K. and the Netherlands.
http://jlne.ws/zpAksw

Greed and Fear Exert Their Pull on Mining Stocks
By Andrea Hotter - WSJ
Investors are starting to adopt a more positive attitude towards mining stocks, ending a period in which miners saw their valuations slide, the chief executive of Rio Tinto PLC said Wednesday.
http://jlne.ws/zImItB

Alcoa Expanding Aluminum Lithium Capabilities to Meet Growing Aerospace Demand for Its Industry-Leading Alloys
Business Wire via Yahoo! Finance
Alcoa today announced it is expanding its aluminum lithium capacity and capabilities at three locations around the world to meet growing demand in the aerospace market for its newest alloys.
http://jlne.ws/xCNMGA

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