New Chinese subs raise questions
CIGA Eric
“Chinese academic engineering literature cited by a prominent Western defense magazine supports the fact ‘that the PLA has also been researching fuel cell AIP engine technology — with the PLA having benefited via Chinese academics from several conferences with German fuel cell technology experts,” the report said, citing Jane’s Defense Weekly.
The addition of an AIP system could allow a Chinese submarine to operate underwater for up to 30 days on battery power, and would make the Song and Yuan submarines inaudible to existing US surveillance networks-and US subs,” the report said.
Source: taipeitimes.com
Gold, Agriculture, Are `Safest Long Positions,’ Deutsche Bank’s Lewis Says
CIGA Eric
One cannot apply the previous manias as measuring tools for the current price adjustment in gold. The size (& speed) of this adjustment is heavily influenced by the size of debt burden created during previous expansion. The greater the debt burden, the greater upward adjustment in the price of gold.
Forecasts such as $2,000 or $3,800 will soon be recongized as far too low. For further discussion on long-term equilibrium prices please review:
Source: gold-and-silver-approaching-critical
Source: federal-debt-held-by-foreign
Lewis’s call for higher gold prices echoes forecasts from other investors and analysts including Jim Rogers, who has said it may jump to $2,000 an ounce over the long term. Myles Zyblock, chief institutional strategist at RBC Capital Markets, said last month gold may soar to $3,800 within three years as it follows the pattern of previous “investment manias.”
Gold would need to rise to more than $1,455 an ounce to surpass its all-time high in real terms as measured by producer prices, Lewis said, according to a copy of remarks to clients in Tokyo today. Adjusted for changes in consumer prices, the metal would need to advance to $1,880 an ounce to reach the level seen at the beginning of the 1980s, he wrote in the remarks.
“The gold price would need to hit $2,100 to represent the most powerful rally in percentage terms, and surpass the 1976- 1980 gold-price rally, when prices surged by just over 720 percent,” Lewis wrote in the speech.
Source: bloomberg.com
Hi Jim,
In today’s KITCO Market Nuggets, Swedish bank SEB joins the $1600 gold group. Better late than never. You were the only one willing to stick his neck out and put his money where his mouth is.
Regards,
CIGA Sharree
Market Nuggets: SEB Commodity Research Looks For $1,600 Gold In First Quarter
11 November 2010, 9:20 a.m.
By Allen Sykora Of Kitco News
(Kitco News) –SEB Commodity Research says it now looks for gold to hit $1,600 a troy ounce in the first quarter of 2011. The Swiss bank notes gold has tended to be strong lately even as the dollar also firmed. This occurred as worries about sovereign debt in Europe picked up again, SEB says. Borrowing costs for some nations are rising after European leaders agreed to revise the Lisbon treaty to devise a permanent debt-crisis mechanism, SEB says. Meanwhile, the consequences of another round of quantitative easing in the U.S. are “beginning to sink in,” SEB says. This has spurred criticism over inflation concerns and may encourage countries with trade surpluses to invest elsewhere, with gold one of the alternatives, SEB says. “We are now seeing two examples of extreme measures used as conventional tools–U.S. QE2 and the European permanent debt crisis mechanism,” SEB says. “This is a long-term bullish issue for gold since it adds liquidity and devalues paper money. Thus our already bullish strategic view has strengthened and we now expect gold prices to reach $1,600/ozt in Q1-11.”
Jim,
Americans are a proud bunch, but will they be as proud by beating the French with austerity measures that dictate one must wait till the age of 69 to retire?!
The best social security plan now may be determined by how much Gold you have in your hands!
CIGA "The Gordon"
The co-chairmen of the panel appointed by the sitting Administration suggested reducing Social Security spending by raising the retirement age to 68 in about 2050 and 69 in about 2075.
