Invest with Barclays and watch it sell you short


Barclays Puts
ETF Portfolios
To Good Use

Securities Lending Helps
Juice Returns, Revenue;
Potential for Conflicts

By Tom Lauricella
The Wall Street Journal
Friday, February 16, 2007

Barclays Global Investors has become a dominant force in the business of running exchange-traded funds, partly on the appeal of the low fees it charges investors on these mutual-fund-like products.

Another aspect of its business that is less well-known to ETF investors: Barclays actively engages in securities lending -- loaning out the stocks and bonds in its iShares ETF portfolios. The loans are highly lucrative, bringing in millions of dollars a year for Barclays in addition to the fees it gets for managing the funds.

James Turk offers World Gold Council the evidence it missed


4:25p Monday, February 19, 2007

Dear Friend of GATA and Gold:

In an interview with the Financial Times on January 15, James Burton, chief executive officer of the World Gold Council, remarked that he had "seen no evidence" that central banks were working together to suppress the price of gold. This is understandable enough, given that the head of the gold council must spend most of his time draping exquisite jewelry on fashion models at advertising shoots.

Bank of Nova Scotia identified as Indian gold ETF custodian


From Business Standard, New Delhi
Tuesday, February 20, 2007

UTI Mutual Fund today launched its gold exchange traded fund, becoming the second fund house in the country after Benchmark AMC to offer this asset class investment.

The new fund offer, with a minimum investment of 20,000 rupees, would be available between March 1 and 12 and would be listed on the National Stock Exchange on March 26.

Who will get China -- the Chinese or Wall Street?


1:17a ET Monday, February 19, 2007

Dear Friend of GATA and Gold:

An insightful and even profound analysis of the U.S.-China relationship has been written by Gabriel Ash for Sanders Research Associates in Dublin. Ash's conclusion:

"One must see the American fixation with floating the renminbi in the light of the history of U.S. control of the world monetary system rather than the trade balance. Many economists challenge the very premise that the renminbi is undervalued. Others fear that an exchange rate readjustment would damage the U.S. economy, raising inflation and interest rates and potentially tipping the U.S. into a severe recession.

Mining companies looking for takeovers find prospects growing thin


By Craig Wong
Canadian Press
Monday, February 19, 2007

VANCOUVER -- Mining companies, flush with cash from record metal prices, may be on the hunt for Canadian acquisitions to build scale or add new development projects, but the list of high-grade prospects is beginning to look thin.

Report of Russian firm's bid for AngloGold disputed


From Reuters
Sunday, February 18, 2007

LONDON -- A source close to Polyus Gold denied on Sunday a newspaper report that Russia's top gold miner had approached Anglo American to buy a stake in Anglo Gold Ashanti.

Stephen Roach: Global TIC-tock


By Stephen S. Roach
Friday, February 16, 2007

The US Treasury's latest report on international capital flows came as a shocker. Net foreign inflows into longer-term US securities fell to just $15.6 billion in December 2006 -- the weakest monthly reading in nearly five years. This stands in sharp contrast to America's enormous external financing needs -- about $3.5 billion of foreign capital inflows each business day required to fund a current account deficit that was running at close to an $875 billion annual rate in the first three quarters of 2006. Does an external financing shortfall of this magnitude finally spell trouble for the seemingly Teflon-like US dollar?

Central banks face rising pressures from politicians


By Simon Kennedy and Matthew Benjamin
Bloomberg News Service
Monday, February 19, 2007

When politicians tried to pressure former European Central Bank President Wim Duisenberg, he used to say: "I hear, but I do not listen." These days, a growing number of central bankers worldwide are hearing a lot -- and some are listening.

Richard Russell agrees with GATA: Central banks rig gold


11:23p ET Sunday, February 18, 2007

Dear Friend of GATA and Gold:

Nine years after proprietor Bill Murphy, soon to start the Gold Anti-Trust Action Committee, started screaming that the price of gold was being suppressed by collusion on the commodities exchanges, the king of technical analysis of the markets and the most venerable of U.S. financial letter writers, Richard Russell, has fully concurred.

Will U.S. dollar coins build acceptance of monetary debasement?


1p ET Sunday, February 18, 2007

Dear Friend of GATA and Gold:

While replacing the U.S. dollar bill with dollar coins would be more efficient for the Treasury Department, and while there is plenty of precedent in other countries for it (in Canada and the European Union the smallest paper currency note is for five of the basic currency units), gold and silver sympathizers probably can't help wondering if there might not be more to it in the United States.