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Monday, November 13, 2006

Monday Charts of Gold, Silver and Copper

Some information below taken from US Global Investors Alert for Nov 10, 2006 …

China’s central bank chief said the country was eyeing “lots of instruments” as alternatives to US dollar reserves. Along with the combined dollar weakness, this news sent gold soaring almost $18 on Thursday.

China’s move to diversify its reserves could potentially underpin gold demand for years to come, according to Dennis Gartman, a respected investment newsletter writer. China has about 1 percent of its reserves in gold and Gartman expects this to rise to 5 to 6 percent in the next 15 years. Such a move would suck up TWO YEARS worth of global gold production.

Investment in South Africa’s mining sector has slowed as legislation over the government taking control of mineral rights and rules regarding black economic empowerment (BEE) have contributed to delays in mineral development.

In India, the rules regarding custody of securities were amended to allow the outsourcing of safekeeping of bullion to outside agencies, thus paving the way for the launch of exchange-traded gold funds in the country.

Now for silver ...

Silver looks even more bullish than gold. Read my recent MaMs (Examples HERE, HERE and HERE) for why.

Now here's copper ...

Copper prices came under pressure this week after London Metal Exchange inventories gained 7,000 metric tons, or 5 percent, and an analyst forecast calling for a 30-percent price decline next year to $2.40 a pound.

Keep your eye on: Reuters reports Peru's mining unions are preparing to strike over compensation issues. Union leaders will meet on Nov. 22-23 to determine further action. Peru produces 7.6 percent of the world's gold, 3 percent of the world's copper and 1.7 percent of the world's zinc.

This week, in, I plan to write more about silver. Stay tuned!

Check out my new gold and energy blog at