International

Chinese Gold Purchases Outperform Those of Indians

News Analysis: Chinese Gold Purchases outperform those of Indians in part due to a Import Restrictions imposed by the Indian Government. Efforts have been made to stop Smuggled Gold entering into India. This effort, conjoined with the currently ‘high’ price of the metal, has kept the average Indian Citizen out of the market. In China, its people are acquiring the Precious Metal at a higher rate than that of their Good Neighbor to the South.

Investors should evaluate at least Two Important Elements involving the Price of Gold. First, The current ‘Controlled Deflation’ Policies of Governments have all but eliminated CURRENT inflation; it being the “Touted” Reason to buy gold, some say. People  understand that Paper Money  can have vast Supply Increases by merely printing more [It is merely assorted fibers and ink] . While this activity is Inflationary, it temporarily solves monetary problem for Politicians [who are typically of  ‘Short-Term’ Outlook]. 

If some Monetary Policies of Nations of Profligate Spending continue, Inflation  results. For example, the “Beating of War Drums” which occur regularly for and in the Middle East are conducive to acquisition of Armaments by Governments. Such equipment is Exceedingly Expensive. Even the mere stationing of One Soldier in a War Zone in another country has a cost of approximately $1,000,000.00 per year! Smart National Leaders forgo costly Military Expenditures for “Dollar Diplomacy” [Wisely, they use a “Buck” rather than a ‘Bayonet’ to Achieve Their Goals; it is less costly].

Second, the Historic Value placed on Gold [as well as its current price] have led many countries to stockpile the metal continuously. Gold’s availability is known to be Finitely Limited and therefore has Historic Value and Present Value relative to World Demand for it. At a minimum it can be: fabricated into various saleable forms [such as dental crowns]; used in other products [especially electronics]; and, even Eaten.

As Asia increases in wealth, its citizens will most likely purchase Gold for Jewelry and Investment. Eventually, Gold’s value will also increase if  Monetary Policies of Nations of Profligate Spending continue. 

Having some Physical Gold in one’s Portfolio is a most conservative ‘Play’. To those more trusting individuals, Stock Certificates in Gold Producing Companies can add Long-Term Value to their Investment Assemblage.

The World Population is steadily increasing beyond its present 7,141,000,000 People. The fact that they may be chasing the “Sixty-Eight Foot Gold Cube” [171,300 Metric Tons in Circulation today], bodes well for the Future Value of  Gold. Reality.

Reference: http://www.dnaindia.com/money/report-china-may-topple-india-in-gold-demand-1919338

Zimbabwe Platinum Ores Need Refinement Locally

News Analysis:  Zimbabwe Platinum Ores need Refinement locally for Value-Added to the prices charged to Purchasers. The exporting of ores to another country allows the Recipient to gain the Price Point Advantage [once the Platinum is refined] not Zimbabwe. To build an efficient and large Smelter in Zimbabwe is estimated by some to cost $2,000,000,000.00+/-. Due to the fact that Zimbabwe’s Proven Platinum Reserves are vast, availability of Product supply to a Smelter/Refinery should be of little concern.

Chromium and Nickel are typically found as Secondary Metals, in Platinum Ore Groups. A Smelter will extract them as well as attendant Slag Materials. A Refinery can then finish the process by creating Platinum Bullion.

Establishing a Hallmark for the Zimbabwe Platinum Refinery would finish the Bullion Production Process. Reliable Assaying of Bullion Contents by an Internationally Approved Laboratory would guarantee Platinum Purity. Over time, an International Hallmark could be recognized by others for a Zimbabwe Platinum Refinery.

Investors may want to consider creating an offer for the funding of such a Smelter/Refinery in Zimbabwe. Platinum Ore is in abundant supply in Zimbabwe; Potential Substantial Profits are also.

Reference: http://allafrica.com/stories/201311140602.html?viewall=1

Bermuda’s Reinsurance Companies Want to Take Over Governments’ Insurance Coverages

News Analysis: Bermuda’s Reinsurance Companies want to take over Governments’ Insurance Coverages for the Profit Potential therein. To their credit, these Companies are being Pro-Active in seeking Certain “Insurable” areas of coverage currently offered by Nations.

Since the Bermuda Reinsurance Industry is trying to find growth, it is engaging in Due Diligence to find Profitable Opportunities with Acceptable Levels of Risk.

Natural Catastrophe Risk versus Economic Catastrophe Risk are both covered by this Vital Industry. Through increased Technology, additional data is available for the proper assessment of Catastrophes [Natural or Economic]. The recent Typhoon  in the Philippines, as an example,  suggests that such a Large Event might be covered if there were Insurance [Reinsurance] Policies.  Insurance Coverage  could aid a stricken area substantially. Economic Catastrophes are becoming more known through Internet Cyber-Attacks, for example, against huge Data Bases, for one. The loss of Pertinent Information could destroy its owner’s Economic Viability. Reinsurance would help against Catastrophic Loss.

When Evaluating the need for Insurance and Reinsurance, Governments, Corporations, and Individuals should remember: “Stormy Days Will Occur”. Reality. 

Reference: http://www.royalgazette.com/article/20131114/BUSINESS04/131119876

Airline Passengers’ Behavior Screening of Little Value

News Analysis: Airline Passengers’ Behavior Screening is of little value. The United States General Accounting Office has determined the Process of “Next-To-No-Value”. All too often, Important Criteria in establishing such a methodology may be ignored. As examples: “Are passengers exhausted and are acting differently because of this?” or “Are they irritable because of incessant crying by a baby during their flight?” or “Did the Airline Food ‘not agree with them?”. These simple Realities of Flight Situations occur daily. Would A Transportation Security Agency [TSA] Officer be aware of these Conditions Precedent to his first sight of a passenger at an airport? Absolutely not. It is highly likely that these ‘TSA’ “Behaviorists” place little value on such realities anyway.

Many people are of the firm idea that the Overwhelming Amount Of Money spent on “Airport Security” is in reality a “Job Employment Project” by the U.S. Federal Government. ‘TSA’ employees would be considered ‘Unemployed’ without their hire by this Agency [and be shown as such on Federal Labor Statistics]. This reality would be of great embarrassment to the ‘White House’ in Washington, D.C. of course.

One must ask: For the Billions of Dollars spent EACH YEAR on “Airport Security” for “Catching ‘Terrorists'” [as this Federal Program was initially touted], how many REAL “Terrorists” are captured by ‘TSA’, EACH YEAR?

A Government can Ill-afford to Squander Away Scarce Monies, especially when it has a $17,000,000,000,000.00+ Deficit on its books. Reality.

Reference: http://tinyurl.com/kfzqpk8

Canadian Government’s Successful Budget Concept Should be Studied by Other Nations

News Analysis: Canadian Government’s successful Budget Concept was actualized by a Steadfast Discipline. This occurred through increasing Private Business Momentum [thereby increasing tax receipts] as well as containing Irrelevant Spending. Now, the country’s Deficit has been greatly reduced. It now offers Survivability if another Global Turndown were to occur.

All too often, Economic Downturns are ‘attacked’ by Governments through Profligate Spending. What is not understood by the Country Leaders is the fact: The amount spent may be less important than to which that money is allocated.

A Country sometimes panders to its  leader’s desire to attain “Celestial Standing” in the nation’s history. If it has Weak Legislators, they act as his Minions and create an ill-conceived law. So, a Program is  Ordered TO HIS Citizens;  ‘Named’ in his honor, it feeds his ego but does nothing but Delay Economic Recovery. It is a definite Economic  Impediment if it is poorly designed and executed. The timing cannot be worse:  Continued unemployment and low earnings of the citizenry are compounded by additional Personal Expenditures Mandated by the Program.

Fortunately, for Canadians, their Government is far more Prescient than that of some Nearby Nations.

Reference: http://tinyurl.com/k5nzzzu

Customs Union, Led By Russia, Increases Other Nations’ Interest

News Analysis:  Customs Union, led by Russia, increases other Nations’ interest by offering Economic Growth Possibilities not to be ‘matched’ by the European Union. The Voluminous Natural Resources of the Custom Union Signatories, if added to, by other interested countries, would be ‘One of a Kind’. The shared interests of China and India offer the Customs Union enormous business opportunities not available in Europe. A Economic Triumvirate as such, would be a Powerhouse second to none.

The Best Economic Future for the Nations contemplating the Customs Union lies in their becoming its Members. Reality.

Reference: http://www.bne.eu/storyf5521/Central_Asia_states_press_ahead_with_moves_to_join_Customs_Union

Global Warming Impacts Russia

News Analysis: Global Warming impacts Russia in various ways. Consider the Positive: The Russians adaptation to this change may provide them with Financial Opportunities Galore in this “Land of Plenty”. To wit: Shrinking Ice Levels in the Arctic Ocean allow for a greater number of Vessels and Faster Ship Travel from Europe to Asia and vice versa; Warmer waters should bring additional species of fish into the area for harvesting; Surface Mining, for smaller operations in particular, may be enhanced by the lack of ice in many areas; New methods in Agronomy might allow for Short Season Farming where Perma-frost is abating; Investors might also consider investing in “River Craft” Boat Yards. Siberian Transportation by this method will become more advantageous; due to both lack of ice in certain areas as well as higher water levels thereon.

Investors, who might consider Siberian Opportunities must take a point of view that: “The Drinking Glass is ‘Half-Full’; rather than ‘Half-Empty'”. That Concept, in conjunction with “Thinking Outside The Box”, Due Diligence, Adequate Capitalization, and Tenacity will lead them to Financial Success in Russia. The World Belongs to the Aggressive.

Reference: http://barentsobserver.com/en/nature/2013/11/russia-most-affected-global-warming-12-11

Aluminum and the “Law of Supply and Demand”

News Analysis:  The “Law of Supply and Demand” [LSD] remains unassailable even regarding Non-Ferrous Aluminum.  The Bauxite Mining-Aluminum Smelting capacities of countries has far exceeded demand for the Metal. Since the ‘Supply’ Portion of ‘LSD’ has not been effectively curtailed, logic would dictate the ‘Demand’ Side be addressed. 

The light weight of Aluminum, in general, and more specifically the ‘Hybrid’ Aluminum-Lithium [which is even lighter] have been making steady in-roads in aircraft fabrication. As Metallurgists invent even lighter Aluminum Alloys the products should increase in Aircraft fabrication.

Ship Construction is another important market on the “Demand Side’ of Aluminum. Primarily “Plate Stock” in designation [rather than typical ‘Sheet Stock’ for aircraft’ fabrication] much greater tonnage can be ‘digested’ through its use in this industry. Since Saline-Induced Corrosion is substantially mitigated by using Non-Ferrous Aluminum, its acceptability should be enhanced.

Additionally, its ease of being machined and/or formed may reduce ‘Touch Labor” as compared to Steel.

Demand for Aluminum is a viable proposition for the Automobile Industry. Sheet stock is lighter in weight than steel [which has been the mainstay of automobile fabrication].  By merely adding or substituting totally, body components with Aluminum, better fuel saving is realized by drivers. Great tonnage of current Aluminum Stockpiles could readily be absorbed by this Industry.

Railroad “Box-Cars” made from Aluminum would consume vast amounts of the metal. The cars, then as-made, would be lighter and allow a Locomotive to pull more of them than heavier Steel cars. 

If the Government and Aluminum Supply Holders emphasize these other Demand uses, “Equilibrium” can be achieved. These “Demand” Industries are the largest potential consumers of the Metal. To resolve the current “Supply” Problem quickly, they should not be ignored.

Reference: http://www.bjreview.com.cn/business/txt/2013-11/11/content_577151.htm

Peruvian “Pisco” Prominence Predominates: European Union Declares

News Analysis: Peruvian “Pisco” has been designated as the originator of the Grape Alcohol. Chile had contested Peru’s claim to creation, but lost. The increasing popularity of this drink with its “Bird” name is increasing.

Pisco is made by distilling Grape Juice in Copper Pot Stills. It is then aged in barrels and later bottled. Customer internationally range from France, America, Argentine, Russia, Colombia, United, Kingdom, Germany, Spain, Poland, and others.

The ‘interesting’ Drink is helping Peru and Chile [another Pisco Producer] earn additional foreign revenues.  As the popularity of Pisco increases around the Globe [especially in China], both countries will earn handsomely. Entrepreneurs should consider investing in companies in the two producing countries which create Pisco.

Reference: http://santiagotimes.cl/eu-decision-peru-birthplace-pisco-leaves-sour-taste/

Mariel, Cuba, Readies Its Deep Draft Harbor for Greater Commerce

News Analysis: Mariel, Cuba, readies its Deep Draft Harbor for arrival of larger ships. It  is merely 35 kilometers [22 miles] west of  Havana’s International Airport. As such, Global Customers will find it convenient to engage in discussions, in Mariel, with the Cubans.

The Archaic U.S. Embargo should be immediately trashed as a Worthless Anachronism of past Myopic “Cold War” Thinking. Beyond hurting the Cuban People, it created an “Ogre Image” of America. Such maintained “Juvenile” Behavior by the United States has harmed, and is presently harming,  relations with other countries in both Central and South America [and elsewhere as well].

The Administration in Washington, D.C. should realize that International Trade leads to increased wealth for Countries. America needs jobs NOW for its citizens as well as more inflow of funds from increased commerce. Negative rhetoric creates no jobs; Willing trade, amongst nations, does.

There is no “Insignificant Country” when it comes to importance of Global Commerce. A Large Beach is made from many Small Grains of Sand.

Reference: http://tinyurl.com/kwoq43n