Wednesday London Gold Report

"Scope for Gold at $2400" as US Monetary Policy "Designed to Weaken the Dollar" 

from Ben Traynor, from Ben Traynor

THE SPOT gold price climbed back above $1715 an ounce Wednesday morning, around ten Dollars up from last week's close, as stocks, commodities and the Euro also edged higher and US Treasuries dipped, ahead of today's Federal Reserve policy announcement.

Silver meantime edged above $33.20 an ounce this morning, a slight gain on where it started the week.

Several analysts have predicted the Fed will today announce open-ended Treasury bond purchases worth $45 billion a month. In September the Fed announced it will buy $40 billion of mortgage-backed securities a month, while its maturity extension program Operation Twist, through which it sells shorter-dated bonds to buy longer-dated ones, ends this month.

Nigeria: Country Joins U. S. to Promote Investment in Thermal Power Generation

Nigeria and the United States Governments are working together to advance private-sector-led investment in the formers gas-fired electricity generation sub-sector.

Accordingly, relevant agencies of both countries in the power sector have been involved in ways to engineer private investment in the sector via attractive and sustainable investment models.

The Project Manager in charge of Energy and Climate Change at the United States Agency for International Development (USAID), Imeh Okon, said at a workshop organised for power sector officials on enhancing natural gas-fired electricity generation investment by the Nigerian Electricity Regulatory Commission (NERC) in Lagos that such efforts were initiated with consideration to the strategic importance of thermal power generation to Nigeria.

Tuesday London Gold Market Report

"Massive, Open-Ended Stimulus" Expected from Fed, More QE "Could See Gold Rally" 

from Ben Traynor, BullionVault

THE WHOLESALE gold price rose to $1712 an ounce Tuesday morning in London, a few Dollars above where they started the week, while stocks edged higher and US Treasury bonds fell ahead of tomorrow's Federal Reserve policy decision.

Mahama wins Ghana election

Mahama Victory Celebration

Accra -  Ghanaian incumbent John Dramani Mahama was on Sunday declared the winner of closely fought presidential polls, but the opposition alleged fraud in a nation that has been seen as a model of African democracy.

The electoral commission announced the result after a day of twists and turns linked to the vote on Friday and Saturday, with the stakes especially high in a country with a booming economy fuelled partly by newly discovered oil.

Results compiled by local media had early on Sunday pointed to a Mahama win, leading the opposition to strongly reject them, alleging fraud and claiming it had evidence that its candidate, Nana Akufo-Addo, was the real winner.

Libya sees a Future in Olive Oil

Libya is turning to olive oil -- the green gold of the Mediterranean -- to compete with its North Africa neighbors, conquer European markets and diversify its hydrocarbon-dependent economy.
“Libya has decided to promote the quality of its olive production to make its olive oil more competitive and increase exports to Europe,” an official of the export promotion center in Tripoli told AFP.
“The center’s new strategy involves all stakeholders in the production chain of the olive tree, particularly the private sector to boost its productivity and conquer foreign markets,” said Taher al-Zweibek.
Libya ranks as the world’s 12th largest olive oil producer, accounting for 0.25 percent of global production, according to the UN Food and Agriculture Organization (FAO).

Monday’s London Gold Market Report

Gold "Respecting Uptrend", Berlusconi Speaks of "Desperation" at Returning to Public Life after Monti Announces Resignation Plan

from Ben TraynorBullionVault

SPOT MARKET gold bullion prices rose to one-week highs above $1710 an ounce Monday morning, while European stock markets fell following news that Italy's prime minister plans to resign.

"Gold continues to consolidate its gains from August-September, and is still respecting its long term uptrend," says the latest technical analysis from bullion dealing Scotiabank.

Africa's Natural Resources - Going for Gold

Caroline Kende-Robb
Africa Progress Panel

Countries rich in mineral wealth have an unprecedented opportunity to make a breakthrough in development - a breakthrough that could transform millions of lives.

Rising natural resource revenues could underpin investment in productive infrastructure, decent education and health systems, job creation, smallholder agriculture, and programs to alleviate poverty, vulnerability and insecurity that blight so many lives in Africa.

To date, though, the risks associated with natural resources provide an antidote to undue optimism. The alternative outcomes have been painfully apparent.

Instead of financing high quality education, natural resource revenue is often siphoned into private bank accounts of national elites. Instead of creating jobs, supporting productive investment, and creating opportunities for the many, revenues from oil, gas and metals can fuel speculative bubbles in property markets, create windfall gains for the elite, widen disparities, and leave the poor even further behind.

"Corruption and weak governance are critical issues for Africa's oil, gas, and mining sector," said Kofi Annan, Former Secretary-General of the United Nations and Chair of the Africa Progress Panel, at aconsultation meeting  last Wednesday in Geneva.

Todays' London Gold Market Report

Momentum in Gold "Unlikely to Come Back Until New Year", Survey Shows Traders Less Bullish on Gold

from Ben Traynor BullionVault

FRIDAY morning saw the gold price drop below $1700 an ounce again, while stock markets, commodities and the Euro all fell ahead of the final US nonfarm payrolls release of 2012.

According to several sources the consensus forecast among analysts ahead of the report was for 93,000 jobs added in November, with the official unemployment rate expected to hold steady at 7.9%.

"US payroll data will be the main number focus today but there's probably two reasons why we might expect less reaction than normal," says Standard Bank analyst Steve Barrow.

"The first is that the markets are clearly fixated by the fiscal cliff and it is doubtful that any data is going to have a significant impact until the cliff is sorted. Secondly, economic growth this quarter will be written off due to the impact of [Hurricane] Sandy."

An Analysis of the Enormous Growth Opportunities in African Economy

One of the biggest business stories of this year has been the recognition by investors and the Obama administration that the African continent is one of the best places on the globe to bring your investment dollars.

That’s the message of a long analysis of the African market on the CNN Money site yesterday, saying that it would be a big mistake for investors to be scared off from Africa because of a fear of government instability.

“One of the main knocks against investing in Africa is the risk of political instability and coup d’etats, but investors need to realize that Africa is a big continent with 54 countries,” said Peter Thoms, founder and portfolio manager of Africa Capital Group, a Coronado, Calif.-based investment firm that manages Africa-focused portfolios for U.S.-based investors.. “What happens on the ground in Mali doesn’t affect South Africa much because all the different countries still have very domestic economies that aren’t too interrelated yet. That gives you built-in diversification.”

Tanzania: DHL to Facilitate Trade Growth in Tanzania, Africa

THE Vice President Dr Mohamed Gharib Bilal is expected to inaugurate the DHL House, the company's courier and transit facility, at the Julius Nyerere International Airport, in Dar es Salaam on Friday.

DHL Express Tanzania Managing Director Blaise De Souza said the modern courier and transit facility, which has been built to international specifications and quality would help his company to achieve its goals of enhancing express delivery services (EDS) to customers.

"This facility will help us provide local businesses exporters and importers with vital reliable links to regional and international markets as well as supply chains. As you are aware, EDS are catalysts for trade and investment with enabler and multiplier effects for the wider socioeconomic development of a country.

Africa Is Opening Up and it’s Time for Business

Attendees at Friends of Africa Conference

Somaliland Sun- The night was full of smiles and laughter, hand shakes, business card swaps and an overwhelming feeling of optimism and drive. Being on the "inside" of modern Africa you feel one of the privileged. Privileged in the sense that I know the potential that Africa offers, the truth, the politics, the stability and the gains to be had all round, not just for foreign investment but most importantly for the Africans themselves. I am beginning to build an understanding of just how progressive the continent is, and also how BIG.

There are more than 50 countries in the African continent, each one has its own feel, its own opportunities for business, its own music, art, passions, agriculture, technologies, minerals, retail, construction. No longer should Africa be tarred with a mud hut and machete stereotype. No, Africa is a CONTINENT, not just ONE country with just ONE problem, no like any continent (America, South America, Europe...) it is full of diversity, change, retail, resources and an eagerness to grow.

Ghana To House Largest Solar Power Plant In Africa

Conceptual rendering of 155MW Nzema solar power plant in Ghana.

155 MW is big. That’s a huge power plant. And that’s the size of the power plant planned for construction in Ghana. It will be the largest solar power plant in Africa when completed, which should be in October 2015. It will also be one of the largest in the world. The UK’s Blue Energy is the company behind this behemoth of a solar power plant. It has projected that the project will create hundreds of jobs in Ghana (200 permanent jobs and 500 jobs at the height of construction). Additionally, it should boost Ghana’s electricity capacity by 6%. “Construction on the Nzema project is due to begin near the village of Aiwiaso in western Ghana by the end of 2013, with the installation of some 630,000 PV modules,” the UK’s Guardianwrites. “The power plant, which at the time of planning would be the fourth biggest of its kind in the world, will be the first major scheme to claim payments from Ghana’s feed-in tariff incentive scheme, created by the government in 2011.

Africa: Ripe for Investment

December 5, 2012 NEW YORK (CNNMoney) -- When it comes to investing around the globe, most investors take a detour around Africa, but experts say that's a mistake.

Over the past decade, Africa has been the second-fastest growing economy in the world, with GDP accelerating more than 5% a year on average, according to the World Bank.

And even as the global economy has slowed in recent months, growth in Africa has largely remained on track, with the World Bank predicting the continent could be on "the brink of an economic takeoff, much like China was 30 years ago, and India 20 years ago."

Africa's natural resources are certainly a big driver of the growth, but an even bigger factor is the continent's rising consumer class.

"The consumer demand in Africa is enormous," said Larry Seruma, managing principal at Nile Capital Management and manager of the Nile Pan Africa Fund (NAFAX), the only U.S. mutual fund to focus exclusively on the continent of Africa.

Today’s London Gold Market Report

Weakness in Gold "Being Caused by Futures Market", "Mounting Risk" Britain Will Lose Triple-A Rating 

from Ben Traynor, BullionVault

THE WHOLESALE MARKET gold price traded just above $1700 an ounce during Wednesday morning in London, having risen back above that level in the earlier Asian session, though they remained near one-month lows.

Silver hovered just above $33 an ounce this morning, down 1.3% on the week, while stocks and commodities edged higher.

US and German government bond prices gained, while longer-dated UK gilts fell ahead of the chancellor's Autumn Statement in London, at which he will unveil the latest UK economic projections.

A day earlier, gold fell through $1700 an ounce on Tuesday for the first time in nearly a month.

Today’s London Gold Market Report

Weakness in Gold "Non-Sustainable", China, Investors and Central Banks "Happy to Buy on Dips"

from Ben Traynor BullionVault

SPOT MARKET prices to buy gold rose back above $1705 an ounce during Tuesday morning's London session, though it remained below where it started the week following falls overnight, while stock markets also edged higher along with the Euro after European leaders welcomed progress on Greece's debt buyback program.

Silver meantime fell to around $33.30 an ounce, still above last week's low, as other commodity prices also dipped.

Earlier on Tuesday spot gold fell to $1700 an ounce, its lowest level since the first week of November. Gold priced in Euros meantime fell to its lowest level since mid-August this morning.

"Clearly the situation has eased with respect to the Euro debt crisis, or market players are ignoring it," says a note from Commerzbank.

Ghana leads business boom

Stroll through any town in Ghana and it is impossible to miss a South African presence. There are Engen garages, Stanbic branches and ATMs in all the major towns and MTN signs are as ubiquitous as Coca-Cola. The 21000m2 Accra Mall, recently sold by private equity group Actis to the Pretoria-based Atterbury Property Group for $65-million (for an 85% share), would not look out of place in Centurion or Sandton. Three of the biggest tenants in the mall are Game, Mr Price and a Shoprite that stocks a range of South African products at prices that would not seem out of place in some of the more expensive European capitals.

For South African expats, Shoprite is the go-to store for Five Roses, boerewors and Cape wines, not to mention the latest issue of Huisgenoot and other South African magazines. Nearby is a Woolworths and the head offices for Gold Fields and AngloGold Ashanti.

The Accra Mall was opened in 2008 fully let and now attracts 13 000 shoppers a week, according to Actis head of real estate David Morley. "The development of the Accra Mall came at a time when Ghanaians still sourced even basic goods from London and Johannesburg. Now they can buy products locally with pride."

Louis van der Watt, chief executive officer of Atterbury, says the mall's occupancy is running at 100%. The return on investment is higher than can be achieved in South Africa and is dollar based. "That's a double whammy. The return has to be higher for the assumed risk, although I think risk in South Africa is currently higher [than in Ghana]," he says.

Atterbury has already started building a second shopping mall in Accra, the 3 0000m2 Westhills development. It has purchased four sites in Accra, all for mall development. It already has plans to double to size of the Accra Mall to 4 0000m2.

Today’s London Gold Market Report

Gold "Remains in Long Run Uptrend", Euro Gains After Merkel Comments on Greece

BullionVault from Ben Traynor

SPOT MARKET gold prices fell back below $1715 an ounce Monday morning in London, more-or-less in line with where they were two weeks ago after failing to hold gains made during Asian trading.

"Gold is still following its long term uptrend from 2008 lows," say technical analysts at Scotiabank, "with support from the uptrend at $1632."

Silver fell back to around $33.50 an ounce, also in line with last week's close, while stocks edged higher and commodities were broadly flat.

Euro gold prices meantime came close to one-month lows as the Euro rose to a one-month high against the Dollar after comments from German chancellor Angela Merkel that suggested more Greek debt might eventually be written down.

China in Africa; lifting the surge of cooperation

By: John Pa Baimba Sesay - IA, Beijing, Chinaon December 2, 2012.

As we read this piece, the Chinese people must be going through some sort of political transition, moving from one political administration to another. This transition will see a new set of political leaders assuming the leadership mantle of the People’s Republic of China. Despite what you may think, China is a great country that has made great impact in world’s development.  It is a country I have appreciated in recent times, more so, when one takes a look at the level of support they continue pouring into Africa. China’s support to Africa has often come through the Import-Export Bank of China, which is the world’s third largest export credit agency, with a mandate to implement state policies in industry, foreign trade and economy, finance and foreign affairs.