Derivatives market grows by a quarter in just six months

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By Gillian Tett
The Australian, Sydney
Monday, November 20, 2006

http://www.theaustralian.news.com.au/story/0,20867,20785202-36375,00.htm...

The global derivatives market surged by almost a quarter to $US370 trillion in the first half of this year as bankers, investors, and companies turned to these complex instruments to manage their risks or place speculative bets on markets.

At the end of June, the face value of all outstanding derivatives contracts in the global over-the-counter (OTC) market had risen 24 percent or $70,000 billion, according to the Bank for International Settlements in Basel. The latest figures mean the derivatives world has almost quadrupled in size since the start of the decade, with a face value on its contracts 30 times the size of the US economy.

Freeport-McMoRan pays 33% premium to acquire Phelps Dodge

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From Reuters
Sunday, November 19, 2006

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reut...

NEW YORK -- Freeport-McMoRan Copper & Gold Inc. said on Sunday it agreed to acquire Phelps Dodge Corp. for $25.9 billion in cash and stock, creating the world's largest publicly traded copper company.

Growth in demand will prevent crash in mineral prices, World Bank says

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By David Uren
The Australian, Sydney
Sunday, November 20, 2006

http://www.theaustralian.news.com.au/story/0,20867,20786046-643,00.html

Surpluses in mineral supply will emerge in 2008, but continued growth in demand and rising mining costs will stop prices from dropping back to their level of the 1990s, according to the World Bank.

The bank says long-term demand growth will remain strong, while the industry faces challenges in raising its supply.

GATA's reception in New Orleans draws conference notables

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2:11a CT Sunday, November 19, 2006

Dear Friend of GATA and Gold:

GATA's reception Saturday evening during the New Orleans Investment Conference drew more than 130 people, including conference notables Mark Faber, Frank Veneroso, Bob Bishop, Brien Lundin, John Embry, Peter Grandich, Ian McAvity, David Tice, and James Turk.

The reception was held at Latrobe's on Royal, the former Louisiana State Bank building on Royal Street in the French Quarter (or, en francais, le Vieux Carre). Latrobe's has some fascinating architecture and it was gloriously made up.

New York museum shows glory of gold, if not central banking

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7:25p CT Friday, November 17, 2006

Dear Friend of GATA and Gold:

Here's a story about the opening of a fascinating exhibit about gold at the American Museum of Natural History in New York, but it contains a terrible error. It reports that all the gold ever mined totals "330 million tons." The World Gold Council estimates that the total gold mined as of 2001 was only "145,000 tonnes," and yearly gold production since then has been less than 3,000 tonnes.

Gartman flees argument with Veneroso on gold price suppression

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7p CT Friday, November 17, 2006

Dear Friend of GATA and Gold:

From GATA's point of view, the most interesting part of the 2006 New Orleans Investment Conference so far was today's exchange between GATA consultant Frank Veneroso of Veneroso Associates and Dennis Gartman, editor of the Gartman Letter. They had been invited to discuss, among other things, whether the gold market is manipulated.

New Congress seen likely to favor dollar devaluation

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By Jephraim P Gundzik
Asia Times, Hong Kong
Saturday, November 18, 2006

http://www.atimes.com/atimes/Global_Economy/HK18Dj02.html

Last week's sweeping victories for Democrats in the US mid-term elections could prompt significant economic policy changes in the United States over the next 24 months.

Boosting US exports will top the Democrats' economic agenda. In addition to stepped-up efforts aimed at prying export markets open, the 110th Congress may pressure the increasingly pliant administration of President George W Bush to reverse course on exchange-rate policy and encourage the depreciation of the dollar. Intensifying trade disputes, the sliding value of the dollar and  weakening US demand could produce a sharp slowdown in Asia's export and economic growth next year.

Dollar will remain primary reserve currency, Fed official tells bankers

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Fed's Fisher Says Dollar
Likely to Stay Main Currency

By Christopher Anstey
Bloomberg News Service
Friday, November 17, 2006

http://quote.bloomberg.com/apps/news?pid=20601087&sid=aNFLnbUh1BSU

WASHINGTON -- Federal Reserve Bank of Dallas President Richard Fisher said the dollar is likely to remain the world's top currency in central bank reserves because of U.S. growth rates and success in containing inflation.

GATA chairman reaches national radio audience in Canada on Saturday

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Blender Media Press Release
via CNNMatthews
Friday, November 17, 2006

http://www.ccnmatthews.com/news/releases/show.jsp?action=showRelease&sea...

VANCOUVER, British Columbia -- "Market Matters," a nationally syndicated radio program on the Corus Radio Network, is featuring Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA). Murphy will be discussing collusion against a free market in gold, precious metals, currencies, and related securities.

Choking on hedge book, Newcrest stalls payment by 2 years

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Newcrest Defers Gold Hedges
to Gain Exposure to Spot Price

From Reuters
Friday, November 17, 2006

http://asia.news.yahoo.com/061117/3/2t1im.html

SYDNEY -- Australia's Newcrest Mining Ltd. said on Friday it had restructured its hedge book by deferring 1.6 million ounces of gold in order to get better exposure to market bullion prices. The company said the purpose of the restructure was to achieve a better balance of exposure to spot gold prices and to reduce the percentage of production hedged for any one year.