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  • Gold Stocks To Play QE3 [View article]
    DON'T MISS TOMORROW'S GOLD & SILVER RALLY..
    10/04/2012.
    Oct 4, 2012. 04:25 PM | Likes Like |Link to Comment
  • Pershing Gold - Don't Bet On The Project, Bet On The People [View article]
    ACT NOW BEFORE IT'S TOO LATE .
    GOLD & SILVER the way to go.
    Here are some of the key steps the European Central Bank has taken to ease Europe's financial crisis and provide a spark to the weak economy.

    UNLIMITED BOND BUYS: The ECB announced Sept. 6 that it is willing to purchase the bonds of heavily indebted countries and lower their borrowing costs - if they first ask for help from the eurozone bailout fund.

    Bond purchases would drive bond prices up and interest yields down in the open market. Governments could then take advantage of those lower yields when they sell bonds to pay off old bonds that are coming due.

    The ECB's plans have already helped lower borrowing costs in bond markets, at least temporarily, for Spain and Italy. High borrowing costs were threatening to push those countries into a financial collapse that could break apart the shared European currency.

    One caveat: a country that wants help must first apply for a bailout to the eurozone rescue fund, the European Stability Mechanism - and agree to take specific steps to reduce its deficit.

    So far, the leading candidate - Spain - has been reluctant to do that because Prime Minister Mariano Rajoy does not want economic policy dictated by outsiders. But he may have no choice in the end.

    The ECB says that by lowering borrowing costs, it will bring market interest rates more in line with its low benchmark rate. That means it can say the action falls within the bank's legal mandate to carry out monetary and interest rate policy. It's forbidden to use its monetary powers to support government finances directly.

    CHEAP LOANS TO BANKS: The ECB made an unlimited amount of cheap, three-year loans available to banks on two occasions since late last year. In December, 523 banks borrowed (EURO)489 billion ($608.17 billion) and in February 800 banks borrowed (EURO)530 billion. The more than (EURO)1 trillion action helped to relieve stress on banks, especially those that were having difficulty borrowing from other banks.

    The long duration of the loans gave banks security that they would have the money they needed until 2015. Another key feature was looser collateral requirements that let banks post different types of securities in return for loans. That gave them more chances to obtain money - but increased the ECB's risk of losses as it takes on shakier securities.

    The loans provided indirect relief to heavily indebted countries that were facing high borrowing costs in bond markets. Some banks took the cheap money and started buying higher-yielding government bonds with it. That raised bond prices and lowered bond interest rates, which equates to lower borrowing costs for struggling countries, such as Spain and Italy.

    LOWER INTEREST RATES: The ECB has cut its key interest rate by a quarter percentage point three times since November. The so-called main refinancing rate is now at a record low of 0.75 percent. That is what the bank charges on credit it offers to eurozone banks. The rate strongly influences interest rates on the loans banks provide to each other, businesses and consumers.

    The ECB has lowered the rate it pays banks for depositing their money with the ECB overnight to zero. That increases the incentive for banks to lend money to each other or to businesses rather than park it with the ECB.

    RESERVE CUT: In December, the ECB cut the amount that banks must keep on reserve with it, from 2 percent of their assets to 1 percent. That freed some (EURO)100 billion for the banks to use elsewhere.
    Oct 4, 2012. 04:20 PM | Likes Like |Link to Comment
  • Gold Stocks To Play QE3 [View article]
    GOLD & SILVER go long.
    Here are some of the key steps the European Central Bank has taken to ease Europe's financial crisis and provide a spark to the weak economy.

    UNLIMITED BOND BUYS: The ECB announced Sept. 6 that it is willing to purchase the bonds of heavily indebted countries and lower their borrowing costs - if they first ask for help from the eurozone bailout fund.

    Bond purchases would drive bond prices up and interest yields down in the open market. Governments could then take advantage of those lower yields when they sell bonds to pay off old bonds that are coming due.

    The ECB's plans have already helped lower borrowing costs in bond markets, at least temporarily, for Spain and Italy. High borrowing costs were threatening to push those countries into a financial collapse that could break apart the shared European currency.

    One caveat: a country that wants help must first apply for a bailout to the eurozone rescue fund, the European Stability Mechanism - and agree to take specific steps to reduce its deficit.

    So far, the leading candidate - Spain - has been reluctant to do that because Prime Minister Mariano Rajoy does not want economic policy dictated by outsiders. But he may have no choice in the end.

    The ECB says that by lowering borrowing costs, it will bring market interest rates more in line with its low benchmark rate. That means it can say the action falls within the bank's legal mandate to carry out monetary and interest rate policy. It's forbidden to use its monetary powers to support government finances directly.

    CHEAP LOANS TO BANKS: The ECB made an unlimited amount of cheap, three-year loans available to banks on two occasions since late last year. In December, 523 banks borrowed (EURO)489 billion ($608.17 billion) and in February 800 banks borrowed (EURO)530 billion. The more than (EURO)1 trillion action helped to relieve stress on banks, especially those that were having difficulty borrowing from other banks.

    The long duration of the loans gave banks security that they would have the money they needed until 2015. Another key feature was looser collateral requirements that let banks post different types of securities in return for loans. That gave them more chances to obtain money - but increased the ECB's risk of losses as it takes on shakier securities.

    The loans provided indirect relief to heavily indebted countries that were facing high borrowing costs in bond markets. Some banks took the cheap money and started buying higher-yielding government bonds with it. That raised bond prices and lowered bond interest rates, which equates to lower borrowing costs for struggling countries, such as Spain and Italy.

    LOWER INTEREST RATES: The ECB has cut its key interest rate by a quarter percentage point three times since November. The so-called main refinancing rate is now at a record low of 0.75 percent. That is what the bank charges on credit it offers to eurozone banks. The rate strongly influences interest rates on the loans banks provide to each other, businesses and consumers.

    The ECB has lowered the rate it pays banks for depositing their money with the ECB overnight to zero. That increases the incentive for banks to lend money to each other or to businesses rather than park it with the ECB.

    RESERVE CUT: In December, the ECB cut the amount that banks must keep on reserve with it, from 2 percent of their assets to 1 percent. That freed some (EURO)100 billion for the banks to use elsewhere.
    Oct 4, 2012. 04:15 PM | 1 Like Like |Link to Comment
  • Should Silver ETF Investors Buy SLV Or PSLV? [View article]
    Here are some of the key steps the European Central Bank has taken to ease Europe's financial crisis and provide a spark to the weak economy.

    UNLIMITED BOND BUYS: The ECB announced Sept. 6 that it is willing to purchase the bonds of heavily indebted countries and lower their borrowing costs - if they first ask for help from the eurozone bailout fund.

    Bond purchases would drive bond prices up and interest yields down in the open market. Governments could then take advantage of those lower yields when they sell bonds to pay off old bonds that are coming due.

    The ECB's plans have already helped lower borrowing costs in bond markets, at least temporarily, for Spain and Italy. High borrowing costs were threatening to push those countries into a financial collapse that could break apart the shared European currency.

    One caveat: a country that wants help must first apply for a bailout to the eurozone rescue fund, the European Stability Mechanism - and agree to take specific steps to reduce its deficit.

    So far, the leading candidate - Spain - has been reluctant to do that because Prime Minister Mariano Rajoy does not want economic policy dictated by outsiders. But he may have no choice in the end.

    The ECB says that by lowering borrowing costs, it will bring market interest rates more in line with its low benchmark rate. That means it can say the action falls within the bank's legal mandate to carry out monetary and interest rate policy. It's forbidden to use its monetary powers to support government finances directly.

    CHEAP LOANS TO BANKS: The ECB made an unlimited amount of cheap, three-year loans available to banks on two occasions since late last year. In December, 523 banks borrowed (EURO)489 billion ($608.17 billion) and in February 800 banks borrowed (EURO)530 billion. The more than (EURO)1 trillion action helped to relieve stress on banks, especially those that were having difficulty borrowing from other banks.

    The long duration of the loans gave banks security that they would have the money they needed until 2015. Another key feature was looser collateral requirements that let banks post different types of securities in return for loans. That gave them more chances to obtain money - but increased the ECB's risk of losses as it takes on shakier securities.

    The loans provided indirect relief to heavily indebted countries that were facing high borrowing costs in bond markets. Some banks took the cheap money and started buying higher-yielding government bonds with it. That raised bond prices and lowered bond interest rates, which equates to lower borrowing costs for struggling countries, such as Spain and Italy.

    LOWER INTEREST RATES: The ECB has cut its key interest rate by a quarter percentage point three times since November. The so-called main refinancing rate is now at a record low of 0.75 percent. That is what the bank charges on credit it offers to eurozone banks. The rate strongly influences interest rates on the loans banks provide to each other, businesses and consumers.

    The ECB has lowered the rate it pays banks for depositing their money with the ECB overnight to zero. That increases the incentive for banks to lend money to each other or to businesses rather than park it with the ECB.

    RESERVE CUT: In December, the ECB cut the amount that banks must keep on reserve with it, from 2 percent of their assets to 1 percent. That freed some (EURO)100 billion for the banks to use elsewhere.
    Oct 4, 2012. 04:12 PM | Likes Like |Link to Comment
  • Natural Gas Hits New High For The Year Of $3.29 In Anticipation Of Winter Demand [View article]
    with temperatures falling from their summer highs and consequent cooling demand set to wane, bigger storage builds are likely to prevail in the near future.

    Moreover, there are apprehensions that should natural gas stay over the $3.00 per MMBtu barrier, utilities that took advantage of the beaten down prices to switch to the commodity from the more costly coal, could revert back to the latter. This demand loss may further inflate natural gas inventories.
    Sep 28, 2012. 06:00 PM | Likes Like |Link to Comment
  • Natural Gas Hits New High For The Year Of $3.29 In Anticipation Of Winter Demand [View article]
    The U.S. Energy Department's weekly inventory release showed a larger-than-expected increase in natural gas supplies, as domestic consumption – reflecting air conditioning demand – declined with temperatures falling from their summer highs. Additionally, production level remained strong.
    Sep 28, 2012. 05:58 PM | Likes Like |Link to Comment
  • Silver's Stealth Rally [View article]
    BNP Paribas looks for gold to rise in the fourth and first quarters, although the bank has revised its forecasts minimally. The metal has been rallying for several weeks first on expectations for more U.S. quantitative easing, followed by an announcement of more easing measures Thursday, as well as accommodation in Europe and China. Additional market liquidity and higher risk appetite support a positive price forecast, BNP says. “In addition, open-ended QE will exert downside pressure on the U.S. dollar, which tends to be negatively correlated with gold (although the relationship has been unstable since 2009), and may also raise inflationary expectations,” says Anne-Laure Tremblay, precious-metals strategist. The bank looks for Chinese buying to rebound and says official-sector demand should remain strong. BNP forecast $1,795 gold in the fourth quarter and $1,865 in the first quarter of 2013.

    By Allen Sykora of Kitco News; asykora@kitco.com



    Market Nuggets: BNP Paribas Looks For Further Declines In Gold/Silver Ratio
    Friday September 14, 2012 11:34 AM

    BNP looks for the gold/silver ratio to keep declining, which would mean silver outperforms gold, but adds that investment demand will be the key for the metal. “The gold/silver ratio has declined from close to 59 at the start of August to near 51 currently, and we expect the downward trend to continue,” BNP says. However, beyond investment demand, other fundamental influences are soft, the bank says. In particular, BNP points to weakening industrial-production growth in the third quarter and growing mine supplies. BNP forecasts $39.15 silver in the fourth quarter and $42.60 in the first quarter of 201
    Sep 14, 2012. 01:02 PM | 1 Like Like |Link to Comment
  • Latest EIA Data Shows Resilient U.S. Natural Gas Production [View article]
    Market analysts have warned that without strong late-summer and early-autumn cooling demand, gas inventories will reach the limits of available capacity later this year.

    The storage surplus to last year will have to be cut by at least another 150 billion cubic feet in the 13 weeks left before winter withdrawals begin to avoid breaching the government's 4.1 trillion cubic feet estimate of total capacity.
    Sep 6, 2012. 04:38 PM | Likes Like |Link to Comment
  • Oil Likely To Drop This Fall: It's A Good Time To Consider Airlines [View article]
    The report that the IEA, whose chief recently dismissed the need for a release, was in the industry journal Petroleum Economist, cited unnamed sources.
    Aug 24, 2012. 04:37 PM | Likes Like |Link to Comment
  • Natural Gas: This Stubbornly Resilient Supply [View article]
    storage remains at record highs for this time of year
    and at 79 percent full, a level not normally reached until
    mid-September. Producing-region stocks, which lost 6 bcf last
    week, are at 83 percent of estimated capacity.
    Concerns remain that the storage overhang could drive prices
    to new lows later this summer if inventories climb to levels
    that would test the government's 4.1-tcf estimate of capacity.
    The EIA estimates that gas inventories will climb to 3.954
    tcf by the end of October.
    Aug 15, 2012. 12:21 PM | Likes Like |Link to Comment
  • What Caused Natural Gas To Tumble? [View article]
    The Wyoming Oil and Gas Conservation Commission this month gave Ciris Energy the green light to use an experimental method to produce more coalbed methane in the Powder River Basin.
    Called ISBC, or in-situ bioconversion of coal, the process involves injecting “nutrients” into a coal seam, in order to stimulate the microbes that make the gas.
    “Based on what we’ve seen in our small field tests and lab tests, we would expect to see increased gas within 45 to 90 days,” said Ciris Petroleum Engineer Phil Thayer. “It will take significantly longer than that to see how effective we’ve been, but we should see our process working within 45 to 90 days.”
    Ciris has drilled 15 wells on a 160-acre site in the Antelope area of the basin, in a field that was used for standard coalbed methane production. Some of wells will be for injecting nutrient-laced water into the coal seam, while four are monitoring wells. The company has a permit for 17 wells.
    Ciris is a startup company out of Centennial, Colo., applying bio and other new technologies to the energy industry. While this first project is smaller in scale, Ciris hopes the innovative method will lead to a transformation in the gas industry by allowing coalbeds, many too deep for conventional mining, to become significant producers
    Ciris Vice President of Operations Brian Ault told the commission they anticipate obtaining three to eight percent of the total BTUs in the coal. Ault said, however, that even more of the coal’s energy could be tapped by simply continuing the process.
    “With the data that we have, we don’t see it would stop as long as our nutrients and tracers, as long as we can continue to optimize those as necessary,” Ault said. “As long as we do that, it’s hard for us to understand why we would stop at that percentage. We ought to be able to continue to produce there; but, just for production purposes, that’s where we’ve cut it off.”
    The method is being touted as more green and environmentally friendly. Unlike traditional coalbed methane production, where water trapped in the coal seam is released, in this process it’s brought to the surface, the nutrients are added, and then pumped back into the seam as the carrying agent.
    “So we’re basically maintaining a steady state condition, and under those circumstances none of the injectate … the injected water, should actually leave the pattern,” Thayer explained.
    The nutrients are apparently the same as what activates the native microbes naturally.
    “For this project, we’re going to be using all of the native microbes that are there,” said Ciris Chief Science Officer Laurie LaPat-Polasko.
    “And so the question you may ask is why aren’t we seeing a lot of gas if the coal’s there and the microbes are there, why isn’t it happening right now?” LaPat-Polasko remarked. “The nutrients are limited, and the microbes aren’t going to make an effort to degrade the material unless they have sufficient nutrients to do that. And so we’re going to be injecting, just like your body needs nutrients, we’re going to give them the nutrients to allow them to metabolize, and therefore produce gas.”
    Concerns have been raised about the impact on ground water quality, as well as potentially dangerous structural changes in the underground coalbed.
    “The impact on the coal structurally, it’s minimal. There won’t be subsidence or anything like that,” Ault told the commission. “The bugs don’t consume the coal, and we don’t liquid mine the coal. There’s nothing like that. The structure of the coal will stay intact, actually by us continuing to put the produced water back into the reservoir.”
    Ault further said they have to meet Department of Environmental Quality standards on water quality.
    “We also, very notably, conserve the aquifer for future use,” Ault stated. “And based on our permit through the DEQ, at no time will the aquifer go from a Class III water aquifer to anything below that. We have to maintain the water quality at all times, based on the approved permit.”
    The coal industry, Bureau of Land Management, and other mineral owners have concerns, however, about lowering the BTUs from coalbeds to a point where, while still containing significant energy, they’re too depleted to economically develop.
    “Are there baseline samples that have been taken relating to that coal seam in particular, so you have actual hard evidence of that impact going forward?” asked State Land Director Ryan Lance. “The coal industry’s concern relates to that. Do you have that baseline data in place for this particular coal seam, and will you continue to monitor the actual impact on the BTUs and structural integrity of that coal seam?”
    “For BTU content … we took a core from … the producing well that actually is in the middle of the four injection wells. We took a core, and we’re going to analyze that and get the BTU content,” Ault said, adding Ciris would work with the commission, the BLM and the state in utilizing that information.
    Commissioner Don Basko queried Ault on the timing of the project, noting the low price of natural gas.
    “One would think that this isn’t the best time to be working on a marginal gas project, based on commodity prices and sales,” Basko commented.
    “One would agree that this isn’t the best time to be working on a natural gas project, based on commodity price and such,” Ault replied. “We would anticipate significant additional development, even potentially LNG [liquid natural gas] markets. If it works as good as our model and our laboratory results we’ve seen, we would have to find a significant market, maybe even to the point of allowing exports ... I would anticipate, and this is a dream of mine, that if this is successful, we would have cars and trucks going over I-80, I-70, up and down I-25, running on natural gas, so that market has yet to be established.”
    Aug 6, 2012. 07:08 PM | 1 Like Like |Link to Comment
  • EIA Natural Gas Inventory: +30bcf. Futures -0.26% to $2.44.  [View news story]
    The nation's natural gas supplies rose last week, the government said Thursday.

    The Energy Department's Energy Information Administration reported that natural gas in storage grew by 30 billion cubic feet to 2.606 trillion cubic feet for the week ended May 4.

    Analysts expected a rise of 31 billion to 35 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

    The inventory level was 44.5 percent above the five-year average of 1.803 trillion cubic feet, and 44.2 percent above last year's level of 1.807 trillion cubic feet, according to the government data.


    Read more: http://bit.ly/J0luaZ
    May 10, 2012. 11:00 AM | Likes Like |Link to Comment
  • The Profitable Side Of Natural Gas [View article]
    US DATA: wk 30-Mar EIA Natural Gas Storage +42 bcf to 2479 bcf.
    Apr 5, 2012. 01:11 PM | Likes Like |Link to Comment
  • The Profitable Side Of Natural Gas [View article]
    The Energy Department's Energy Information Administration reported that natural gas in storage grew by 42 billion cubic feet to 2.479 trillion cubic feet for the week ended March 30.

    Analysts expected a rise of 33 billion to 37 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

    The inventory level was 60.5 percent above the five-year average of 1.545 trillion cubic feet, and 55.7 percent above last year's level of 1.592 trillion cubic feet, according to the government data.
    Apr 5, 2012. 01:01 PM | Likes Like |Link to Comment
  • Natural Gas: Evidence Of A Bottom? [View article]
    The latest gas-storage report showed an increase in the week ending March 16, marking the earliest that stockpiles of the fuel have grown in the winter/spring season since 2007.

    Total storage levels rose by 11 billion cubic feet last week, and inventory now stands at 2.38 trillion cubic feet, a record for this time of year. The inventory level is 54% above the five-year average.
    Mar 22, 2012. 05:08 PM | Likes Like |Link to Comment
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