RGL-t as per PM to A on it: Wife, RPD-t- & Over the weekend
I asked Al on it: Did like the Dual Trade Way...so: "Hi Chucka,RGL-t ...Royal Gold Inc. last closed @$ 19.55 certainly qualifies for the over $3.00
It is described at Yahoo in a blurb or two as a ROYALTY COMPANY in GOLD at RGLD the Audio Blurb explains what a ROYALTY COMPANY does: a Great Listen, by News Letter Writer at MarketMavens.com Flourainne takes the Other Royalty Company again in the Blurb -Repadre Capital so it is late and she told me to: SAY INFLATION this month! Say ABX turns up.( Grin )
biz.yahoo.com
COMMODITY PRICES SHOULD BE WATCHED -- Jul 5 2002
Jul 05, 2002 (The San Diego Union-Tribune - Knight Ridder/Tribune Business News via COMTEX) -- COMMODITY PRICES SHOULD BE WATCHED: The other day, a San Diego purchasing manager almost ruined my lunch: He told me that prices for many industrial commodities are definitely creeping up.At a time of widespread excess industrial capacity, that is surprising and could be alarming. But on second reflection, I considered it something not to worry about. Yet."How could commodity prices start to rise in a world saddled with overcapacity?" asks economist Michael Swanson of Wells Fargo. He wonders if higher commodity prices will eventually show up in the consumer price index.And if the Federal Reserve will take those higher prices into account when it considers the long-delayed interest rate hike.It's true that the Fed has created a veritable ocean of liquidity, marked by short-term interest rates at 40-year lows. That, combined with weak profits, may tempt companies to try to raise prices, and some commodity indexes have started to edge upward.On the other hand, one shouldn't give too much credence to commodity prices.First, there is a lot of hanky-panky in the commodity trading pits that distorts prices. Then there are noneconomic factors: Bad growing weather may push up prices of agricultural commodities, for example.And bad politics push up industrial commodity prices. Best example: steel tariffs. "Steel prices have jumped 25 percent with the recent tariffs," says Swanson.And there are cartels: OPEC would like to see oil prices at high levels.Overseas activities can affect commodity prices in a global economy."Seemingly unrelated events like Argentina freezing bank accounts and reducing the amount of corn exported can have a big impact on U.S. commodity prices," says Swanson.But commodity prices go up and down, often on rumors, some of doubtful validity. On Wednesday, for example, corn prices fell on a feeling that a break in the Midwest heat wave will boost the crop. Bulls had been praying for crop failure.Gasoline prices also fell Wednesday in commodities pits. Speculators decided that refiners have produced enough fuel to satisfy holiday driving requirements. American refineries have been producing gas at a fast pace of late.Rising industrial commodity prices have a bright side. They are good for profits. "Usually, earnings rise when commodity prices are rising," says Edward Yardeni of Prudential Financial. He is betting that industrial commodity prices will rise, along with profits.But economists don't think higher commodity prices will find their way into consumer and producer price indices. Ian Morris of New York's HSBC Securities says that high productivity, low wage growth and high industrial overcapacity, among other things, will drive inflation downward this year.He is looking for the core CPI (the consumer price index excluding food and energy) to go down to 2.25 percent by the end of this year and 1.75 percent by the end of next year."The consensus outlook for inflation remains pretty tame," says Randell E. Moore, executive editor of Kansas City-based Blue Chip Economic Indicators, which polls economists each month for their forecast for the current and following year.The consensus of 52 economists currently is that the CPI will only rise 1.7 percent this year and 2.5 percent next year. That's benign.The big worry is all that liquidity sloshing around out there. With one eye on Japan's inability to head off deflation, the Fed has created the liquidity to fight possible deflation here. But easy money could ignite inflation. It bears watching.By Don BauderTo see more of The San Diego Union-Tribune, or to subscribe to the newspaper, go to uniontrib.com(
The San Diego Union-Tribune. Distributed by Knight Ridder/Tribune Business News. |
