Luke Burgess - Angel Publishing

Commodities Rebound After Broad Sell Off

Commodities opened higher this morning after a broad decline overnight as investors continue to focus on a slow worldwide economic recovery.

Both stocks and commodities have performed fairly well since early March as the investment community grew more hopeful that the now two-year-long rally would soon be coming to and end. But disappointing economic reports, including those that showed high levels of unemployment and low consumer confidence, continue to worry investors.

Metal and energy prices were hit hardest in Asia last night amid increasing fears that a delay in the economy's recovery will keep a lid on demand for basic materials.

Strength in the US dollar, which makes commodities less appealing for foreign buyers, also curbed demand.

Crude oil for August delivery fell to $60.01 per barrel, the lowest level since May 19th, while natural gas prices hit their lowest level since mid-2002. Natural gas continues to be one of the worst performing commodities over the past several months. Gasoline also fell to a two-month low of $1.6290 per gallon. Hopefully for consumers, this drop in prices will be reflected at the pump.

Gold prices also touched a two-month low of $904.80 an ounce, while silver fell well below $13 to $12.74 an ounce. In other precious metals, platinum fell to $1093.20 an ounce, while palladium dropped to $233.00 an ounce.

Base metals also sold off broadly. Copper fell to $2.1420 per pound while aluminum dropped to $0.7225 per pound.

Despite last night's sell off, both metals and energies opened higher this morning. Forward month crude oil prices were last seen up 1.1% to $61.06 per barrel, while natural gas was up 1.2% to $3.427 per Mcf.

Precious metals were also seen higher this morning with gold up 0.6% to $914.40 an ounce and silver up 0.2% to $12.875 an ounce.

Luke Burgess
Managing Editor, Gold World

P.S. With commodities hitting multi-month lows, there could never be a better time to invest in the gold bull market. And I've got one blockbuster opportunity with potential to pay off 50-to-1 or more. My colleague Greg McCoach just told his readers about a tiny $0.30 gold stock that controls a very large land position in an area where over 180 million ounces of gold have been discovered. In fact, he believes this small company is sitting right over “one of the most compelling gold finds of the last 14 years.” There's a lot to this story, so of course I don't have the time to go into here. But if you're interested in learning more about Greg's incredible new gold stock, just click on the following link: http://www.angelnexus.com/o/web/13619

Banks to Stop Accepting California's IOUs

Last week, the state of California began issuing IOUs — or “individual registered warrants” — to hundreds of thousands of its creditors. State Controller John Chiang said that without IOUs, California would run out of cash by the end of this month.

But now a group of the biggest US banks, including Bank of America, Citigroup, Wells Fargo, and JP Morgan, say that they will stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.

Meanwhile, Fitch Ratings dropped California's bond rating from A to BBB amid the budget deadlock.

Oil Prices Fall Below $64 a Barrel

Oil prices sank to a five-week low under $64 a barrel in overnight trading as investors remained concerned over the global economy.

Crude for August delivery fell 2.6% to $63.85 per barrel as Asian investors focused on dismal unemployment figures from the U.S. and Europe last week. Oil prices have dropped from an eight-month high over $73 a barrel last week after bleak consumer confidence and jobs numbers in the United States fueled doubts about a rally that has doubled the price of crude since March.

Meanwhile in other energies, natural gas prices sank around $3.50 per Mcf and RBOB Gasoline futures were trading below $1.75 per gallon. Gold prices were just above $920 an ounce, silver fell to near $13 per ounce, while the US Dollar Index was last seen at 81.055.

Who Owns Most of the World's Gold?

With gold prices getting ready to soar, we've decided to find out who owns the most bullion in the world.

It's no surprise that governments, central banks, and investment funds are world's largest holders of gold reserves. These organizations know gold is the ultimate store of value that protects against inflation and offers a safe haven during times of economic and geopolitical turmoil.

To find out who owns the most gold in the world, we referred to data from the International Monetary Fund's International Financial Statistics Report.

The 10 biggest gold owners in the world:


Rank	Owner	Tonnes	Share of Foreign Reserves
10	Netherlands	612.5	61.4%

The Netherland central bank, De Nederlandsche Bank, oversees the Dutch national finances, including the country's 612.5 tonnes of gold reserves. The Dutch gold is currently worth over $20 billion and accounts for 61.4% of the country's foreign reserves.


Rank	Owner	Tonnes	Share of Foreign Reserves
9	Japan	765.2	2.1%

Although Japan is ninth largest gold owner in the world, its 765.2 tonnes of gold accounts for just 2.1% of the nation's total foreign reserves. On the open market, Japan's gold reserves would fetch approximately $25.4 billion and are managed by the Bank of Japan.


Rank	Owner	Tonnes	Share of Foreign Reserves
8	Switzerland	1040.1	37.1%

Conducting Switzerland's monetary policy is the Swiss National Bank, which oversees the country's 1,040.1 tonnes of gold. The gold is believed to be stored in huge underground vaults near the federal Parliament building in Berne, but the Swiss National Bank treats the location of the gold reserves as a secret. With the world's eighth largest reserve of the yellow metal, Switzerland's stockpile would fetch approximately $34.5 billion in today's gold market, accounting for 37.1% of the country's foreign reserves.

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Rank	Owner	Tonnes	Share of Foreign Reserves
7	China	1054.0	1.8

The world's most populous country also has the world's seventh largest gold reserve. With a population of 1.33 billion, the country holds about $26 worth of gold per person, worth a total of almost $35 billion. The Chinese gold accounts for only 1.8% of the nation's total foreign reserves.


Rank	Owner	Tonnes	Share of Foreign Reserves
6	SPDR Gold Shares ETF	1,120.6	n/a

Originally listed on the New York Stock Exchange in 2004, SPDR Gold Shares has been one of the fastest growing ETFs in the world. SPDR Gold Shares now trade on the Singapore Stock Exchange as well as the Tokyo Stock Exchange. All of the Trust’s gold is held by the Custodian, HSBC Bank, in their London vault except when the gold has been allocated in the vault of a sub-custodian.


Rank	Owner	Tonnes	Share of Foreign Reserves
5	France	2,450.7	72.6%

The Banque De France is responsible for France's gold holdings, which have been reported at about 2,450.7 tonnes by the International Monetary Fund. With the fifth largest gold reserve in the world, France's amount to about $81.3 billion, accounting for 72.6% percent of the country's foreign reserves, which is the second highest percentage of gold in foreign reserves on our top ten list.


Rank	Owner	Tonnes	Share of Foreign Reserves
4	Italy	2,451.8	66.5%

The Italian National Bank, Banca D'Italia, manages the country's large gold holdings, which account for 66.5% of its foreign reserves. With approximately 2,451.8 tonnes of gold in reserve, Italy's holdings are very close to France's and are also worth approximately $81.3 billion at current prices.


Rank	Owner	Tonnes	Share of Foreign Reserves
3	International Monetary Fund	3,217.3	n/a

The International Monetary Fund oversees the global financial system by following the macroeconomic policies of its member countries 185 member countries. It is an organization formed to stabilize international exchange rates and facilitate development and offers highly leveraged loans mainly to poorer countries. The IMF's gold policies have changed in the last quarter century, but the reserves remain in place for use in stabilizing international markets and aiding national economies. The IMF's official policy on gold as it is stated on the organization's website is governed by the following principles:

As an undervalued asset held by the IMF, gold provides fundamental strength to its balance sheet. Any mobilization of IMF gold should avoid weakening its overall financial position.
The IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies.
The IMF has a systemic responsibility to avoid causing disruptions to the functioning of the gold market.
Profits from any gold sales should be used whenever feasible to create an investment fund, of which only the income should be used.


Rank	Owner	Tonnes	Share of Foreign Reserves
2	Germany	3,412.6	69.5%

The Deutsche Bundesbank, Germany's central bank, is the most influential member of the European System of Central Banks. With a hefty 3,412.6 tonnes of gold reserves, which are valued at about $113.2 billion at current prices, Germany's gold accounts for almost 70% of the country's total foreign reserves.


Rank	Owner	Tonnes	Share of Foreign Reserves
1	United States	8,133.5	78.3%

The United States holds the largest gold reserve in the world. With 8,133.5 tonnes, the US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is reported to be held in the world famous United States Bullion Depository in Fort Knox, Kentucky, although there is some controversy that suggests otherwise. The remainder of the US reserves are held at the Philadelphia Mint, the Denver Mint, the West Point Bullion Depository and the San Francisco Assay Office.

The top ten largest owners of gold in the world are reported to control a total of 24,258.3 tonnes, or over 855 million ounces. At current spot prices, this gold would be worth approximately $804.35 billion and represents about 15.4% of all the gold ever mined.

We continue to urge all Gold World readers to buy and hold both gold and silver in anticipation of significantly higher precious metal prices.

Good Investing,

Luke Burgess
Managing Editor, Gold World
Investment Director, Secret Stock Files

P.S. The most powerful governments, central banks, and investment groups in the world are still holding their gold reserves in anticipation of a significant rally in prices. This puts a virtual lock on Greg McCoach's latest gold investment recommendation... which yields 2x the profits made by gold. In other words, every time gold goes up 1%, you're paid 2%... or every time gold goes up 10%, you're paid 20%. To learn more on how you can profit from Greg's new investment vehicle, just follow this link.

______________________________________

From Gold World's Gold and Guns blog...

Gold Opens Lower Ahead of July 4th Holiday
Gold Prices Last Seen Below $935 an Ounce

Gold prices opened lower this morning below $935 an ounce as the US dollar found strength ahead of the July 4th holiday in America. Markets are thin today, as many had already abandoned their desks early to headed for the nearest cookout.

Gold for August delivery was last seen at $933.30 an ounce, down $8 from this morning's open. Silver prices were also down $0.31 to $13.44 an ounce while oil fell to $67.68 a barrel and the US Dollar Index rose to 80.505

Traders may be a bit reluctant to be long commodities ahead of tomorrow's market closure, but this morning's jobs figure may force an adjustment in thinking.

— Luke Burgess

Gold Opens Lower Ahead of July 4th Holiday

Traders may be a bit reluctant to be long commodities ahead of tomorrow's market closure, but this mornings jobs figure may force an adjustment in thinking.

— Luke Burgess

GFMS Gold

Don't own gold yet? Don't worry...

Because even at $940 an ounce, gold prices are still positioned to surge by three... four... or even five times!

In fact, if gold prices perform even half as well as they did during the bull market of the 1970s, the yellow metal will explode to over $2,500 in a matter of months.

The world's top gold consultant agrees...

GFMS Ltd. (formerly known as Gold Fields Mineral Services) recently echoed Gold World's longstanding rationale for higher gold prices and predicted a new price record within the next few weeks.

GFMS Executive Chairman Philip Klapwijk wrote in a recent report, “Looking at the second half of 2009, investment demand, and especially its western elements, which includes activity in ETFs, futures and the OTC market, is expected to remain the driving force behind gold price movements.”

The independent consultancy group, which pulls information from over 15,000 contacts across 49 countries around the world, predicted that identifiable gold investment will exceed 1,500 tonnes by the end of this year. This estimate would represent a significant 36% increase over identifiable gold investment demand in 2008.

In dollar terms, GMFS expects gold investment demand to increase 57% over last year to nearly $50 billion.

As a result of this surge in investment demand, GFMS expects gold prices to break through the nominal high of $1,032 an ounce, which was set back in Spring 2008.

GFMS reported that global gold demand will experience a massive increase this year, particularly from net investment and official coins components as a result of rising fears over the long-term inflation threat in western nations. This is the same idea proposed to readers of Gold World over the past several years.

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Investment demand has been one of the main reason for the rally in gold that has taken the precious metal from around $250 in early 2001 to around $940 today.

Total identifiable gold investment during the first quarter of this year totaled 595.9 tonnes, a historical high and increase of 248% compared to the first quarter of 2008. In dollar terms, this represented a net inflow of $17.4 billion, up from $5.1 billion (or 42%) a year earlier. Investment demand figures for the second quarter of 2009 won't be out for a few more weeks.

At the same time, silver prices are expected to outperform gold for the same reason.

In the latest quarterly report, GFMS pointed out that investment demand accounted for only 50 tonnes in 2008. However, silver investment demand was quite strong in the first quarter as investors mobbed the metal as a cheaper alternative to gold.

Silver investment demand is anticipated to be such that it could account for between one quarter and one fifth of total consumption in 2009. Meanwhile, silver supply is expected to decline this year, with mine output, scrap and government sales all softening.

The investment shift from paper assets to precious metals will continue pushing prices higher and eventually skyrocket prices into the classic parabolic spike. We continue to urge all Gold World readers to buy and hold both gold and silver in anticipation of significantly higher precious metal prices.

Good Investing,

Luke Burgess
Managing Editor, Gold World
Investment Director, Secret Stock Files

P.S. GFMS has a near flawless reputation of making accurate predictions about the gold market. This is what makes the organization the world's preeminent precious metals consultant. If the group is right again, gold prices are almost guaranteed to go higher. This puts a virtual lock on Greg McCoach's latest gold investment recommendation... which yields 2x the profits made by gold. In other words, every time gold goes up 1%, you're paid 2%... or every time gold goes up 10%, you're paid 20%. To learn more on how you can profit from Greg's new investment vehicle, just follow this link.

______________________________________

From Gold World's Guns and Gold blog...

Did the Royal Canadian Mint Get Ripped Off for $13.2 Million?
Mystery Still Surrounds 17,500 Ounces of Gold Missing From the Royal Canadian Mint

The Royal Canadian Mint, which has been touted as one of the most secure facilities in Canada, may have been the victim of a $13.2 million (CDN$15.3 million) gold heist, an audit concluded Monday.

The mint called in external auditors last month to investigate a significant discrepancy between the mint's 2008 financial accounting of its precious metal holdings and its actual stockpile.

Auditors concluded that approximately 17,500 troy ounces of gold, or about 0.32% of the mint's fiscal 2008 throughput, is indeed missing.

A report published by the auditors concluded that, “the unaccounted-for difference in gold does not appear to relate to an accounting error in the reconciliation process, an accounting error in the physical stock count schedules, or an accounting error in the record-keeping of transactions during the year.”

It is still unclear whether any gold is physically missing from the inventory. The gold may have been lost through the refining process. The auditor suggested a review of the technical processes used in the various aspects of refining.

Errors in reconciling the financial records and the physical stockpile of precious metal in previous years may also be the source of the missing gold. However, the auditors concedes “it would be difficult to complete such a review due to the passage of time, the availability of supporting documentation and the turnover of mint staff.”

Of course foul play has not been ruled out. On June 9th, the Canadian government asked the Royal Canadian Mounted Police to probe a possible heist, after mint officials signaled that the audit was not likely to reconcile the discrepancy.

The mystery surrounding the 17,500 ounces of missing gold is still being investigated.

— Gold World Research Team

Did the Royal Canadian Mint Get Ripped Off for $13.2 Million?

The Royal Canadian Mint, which has been touted as one of the most secure facilities in Canada, may have been the victim of a $13.2 million (CDN$15.3 million) gold heist, an audit concluded Monday.

The mint called in external auditors last month to investigate a significant discrepancy between the mint's 2008 financial accounting of its precious metal holdings and its actual stockpile.

Auditors concluded that approximately 17,500 troy ounces of gold, or about 0.32% of the mint's fiscal 2008 throughput, is indeed missing.

A report published by the auditors concluded that, “the unaccounted-for difference in gold does not appear to relate to an accounting error in the reconciliation process, an accounting error in the physical stock count schedules, or an accounting error in the record-keeping of transactions during the year.”

It is still unclear whether any gold is physically missing from the inventory. The gold may have been lost through the refining process. The auditor suggested a review of the technical processes used in the various aspects of refining.

Errors in reconciling the financial records and the physical stockpile of precious metal in previous years may also be the source of the missing gold. However, the auditors concedes “it would be difficult to complete such a review due to the passage of time, the availability of supporting documentation and the turnover of mint staff.”

Of course foul play has not been ruled out. On June 9th, the Canadian government asked the Royal Canadian Mounted Police to probe a possible heist, after mint officials signaled that the audit was not likely to reconcile the discrepancy.

The mystery surrounding the 17,500 ounces of missing gold is still being investigated.

Gold Prices Bounce Back After 6-Week Low

After hitting a six-week low of $913.20 an ounce overnight, gold for August delivery is up slightly to $923.80 an ounce this morning as the US dollar fell against the euro and Japanese yen.

Concerns about reserve diversification away from US assets caused a drop in the dollar against the euro ahead of the Federal Reserve's monthly meeting, after Moody's said that America's AAA rating could be at risk if the dollar was challenged as the world's main reserve currency.

In other precious metals, silver at $13.80 an ounce, platinum was down slightly to $1,167.00 an ounce, while palladium strengthened to $233.50 an ounce.

Satire: US Gold Reserves to be Sold to Cash4Gold.com

The Onion, a satirical news organization, posted a funny video over the weekend that reported on an emergency White House economic plan to sell the US national gold reserves for cash through precious metal buyers Cash4Gold.com. And even though the news brief is fake, there are some hard truths in it on how the US government and Federal Reserve would like the American public to view gold.

To watch the news brief from The Onion's website, just click on the image above or cut and paste the following link into your internet browser's address bar: http://www.theonion.com/content/video/us_to_trade_gold_reserves_for

If you've never seen any of The Onion's fake news videos, I highly recommend taking the time to watch a few of them. They're all pretty funny. Some of my favorites include:

Gold Vending Machines

In today's market, gold bullion can be bought from dealers, jewelers, auctions, private investors, and now from gold vending machines.

German gold bullion dealer TG-Gold-Super-Market says it plans to install as many as 500 gold vending machines throughout Germany, Austria, and Switzerland this year.

The Stuttgart-based company aims to introduce the gold vending machines in train stations, airports, shopping malls, and anywhere else retail interest for gold bullion is likely.

The new gold vending machines will sell small 1, 5, and 10-gram gold bars as well as South African Gold Kuggarand Coins. TG-Gold-Super-Market says each vending machine will hold up to 1,500 pieces of gold bullion.

Prices for bullion from the vending machines will be about 30% higher than market prices and will be updated every 10 minutes to keep pace with gold spot prices.

Interest in gold has risen during the financial crisis, particularly in Germany.

Thomas Geissler, owner of TG-Gold-Super-Market, said, "German investors have always preferred to hold a lot of personal wealth in gold, for historical reasons. They have twice lost everything. Gold is a good thing to have in your pocket in uncertain times."

Retail demand for gold worldwide reached an estimated 108 tonnes in 2008, up 200% from 36 tonnes in 2007 and up 286% from 28 tonnes in 2006.

Indian Gold Imports Fall in May

India imported 17.8 tonnes of gold in May, representing an 11% decline compared to April and a 39% drop from May 2008.

Gold imports to India have been relatively down for the first half of 2009. Between January and May, India has imported only 39.6 tonnes of gold, compared to 115 tonnes of the precious yellow metal in the same period last year.

India did not import any gold during February or March due to lack of demand in the domestic market following higher gold prices. High prices continue to stifle demand in India.

Oil Prices Surge Above $71

Crude oil for July delivery surged to $71.65 per barrel this morning as an unexpectedly large decline in U.S. oil inventories confirmed that supplies are beginning to tighten.

Light, sweet crude traded nearly $1 higher this morning on the New York Mercantile Exchange at set a year-to-date high. Oil prices have increased 70% since hitting a low of $42.19 in February.

U.S. Dollar ETFs

The value of the US dollar is falling fast.

And there are several forces currently at work that will surely continue eating away at the American currency's purchasing power over the next several months.

A major fear for dollar bulls right now is China.

The Chinese government holds approximately $2 trillion in US dollar assets, which has been accumulated through decades of exports to America and massive purchases of US Treasuries.

But because of skyrocketing US debt and government spending, Chinese officials are signaling that the country may loosen its ties to the dollar, and pushing to make the yuan a reserve currency that can rival the greenback. As a result, both Treasuries and the US dollar could weaken considerably.

The foremost concern is, however, inflation; or, at the very worst, hyperinflation, where consumer prices can double in a matter of hours.

US national public debt in the is currently over $11 trillion... and is growing by about $3 million each minute!

The total financial obligation of the United States – including social security and government-sponsored health care systems – is over $70 trillion!

To put that figure into perspective, to pay back a debt of this size at $1 million per day would take 191,781 years!

America must continue creating new debt money to pay the interest on its current debt. The increase in credit creates more interest debt and subsequent inflation. And with such a massive debt looming over the country, inflation is less speculation and more of a guarantee.

How to Profit from a Falling US Dollar

There are many different investment vehicles and products that will increase in value of the US dollar crumbles. But shorting the US dollar can get a bit tricky when you get into the more involved investment products. However, there are several products on the market today that are so easy to buy and sell that they could actually be your very first investment.

Here are the three of the most popular and easy investments that will profit as the global purchasing power of the US dollar erodes.

SPDR Gold Shares [NYSE: GLD]

Gold as been accepted as a store of value throughout human history because of its beauty, durability, divisibility, consistency, and rarity. Owning gold is always an asset and can never be considered a liability since there is no future obligation to any entity arising from past transactions or events. This makes gold the ultimate hedge against any fiat currency like the US dollar.

The SPDR Gold Shares [NYSE: GLD] is one of the easiest ways for investors to own gold. SPDR Gold Shares is the largest and most popular gold ETF in the world. Its share price reflects one tenth the current spot price of gold bullion.

iShares Silver Trust [AMEX: SLV]

Silver has also been historically accepted as a precious metal and used as a medium of exchange and store of value for the same reasons as gold. Today, however, silver is used much more frequently for industrial and electronic applications. This means that during economic deflationary periods, silver is less of a monetary metal. However, during times of inflation, silver shines brighter with monetary appeal.

iShares Silver Trust [AMEX: SLV] is the largest and most popular silver ETFs on the market today. Its market price reflects the current spot price of silver bullion.

PowerShares DB US Dollar Index Bearish Fund [NYSE: UDN]

As the value of the US dollar is eaten away by inflation, investors move their cash assets into other currencies. This effectively results in an immediate decline in value.

One of the easiest and best ways to short the US dollar directly is with the PowerShares DB US Dollar Index Bearish Fund [NYSE: UDN]. This ETF shorts US Dollar Index, which measures the performance of the US Dollar against a basket of currencies; the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona, and Swiss franc.

End Thoughts

Now more than ever, it is vital to guard your money and investments. Since 2001, the value of the US dollar (as measured by the US Dollar Index) has fallen as much as 42%. And with the massive $70 trillion total financial obligation of the United States, a continued devaluation of the US dollar is imminent as a result of expanding credit and inflation. I urge you to take any necessary steps to prepare yourself against a significant decline in the US dollar.

Good Investing,

Luke Burgess
Managing Editor, Gold World
Investment Director, Secret Stock Files

Editor's Note: The ETFs mentioned in this article are very safe positions against the US dollar. But if you're looking for a bit more upside, my colleague Greg McCoach recently uncovered a new gold exploration company that he says has "one of the most compelling gold finds of the last 14 years". To learn more about this incredible gold discovery, just continue reading here.

China Increases Gold Reserves to 961 Tonnes

China’s State Administration of Foreign Exchange reported this week that the country’s gold reserves increased to 960.77 tonnes (33.89 million ounces) by the end of April, making it now the fifth largest holder in the world. At the same time, monetary gold in China has grown from 33.724 billion to 66.984 billion yuan ($9.8 billion).

Gold is considered to be one of the main foreign assets held by countries, along with foreign exchange reserves and IMF balances, but its value in China's reserves is less than 2%. Over the past six years, China has been buying gold through its State Administration of Foreign Exchange in an attempt to diversify the nations foreign exchange reserves.

Insurance Giant Buys Gold for the First Time in 152 Years

Gold got a significant endorsement today from one of the world's largest insurance companies.

Northwestern Mutual Life Insurance Co., the third-largest life insurer in the United States, has bought gold for the first time in the company's 152-year history to hedge against continued declines in other asset classes.

The insurance giant has accumulated about $400 million in gold over the past several months. Northwestern Mutual Chief Executive Officer Edward Zore was quoted in Bloomberg saying, "Gold just seems to make sense; it's a store of value... The downside risk is limited, but the upside is large. We have stocks in our portfolio that lost 95 percent." Gold "is not going down to $90."

The move may prompt other insurance companies to follow suit. It makes sense for insurance companies to hold gold since gold is always an asset and can never be considered a liability.

Gold prices are up slightly today to $980 an ounce.

- luke

Middle East Gold Sales Drop 27%

Middle east gold sales fell 27% during the first quarter of 2009, compared to the same period of last year, as worldwide economic concerns and higher gold prices turned some buyers away.

The region's jewelry sector made the largest contribution to the drop in gold sales, although both jewelery and investment demand recorded similar declines. About 90% of the total consumer sales demand is in the form of jewelry.

In the UAE, total gold sales dropped 31% from 24.2 tonnes during 1Q2008 to 16.6 tonnes in 1Q2009. UAE gold jewelery sales declined 33% from 21.9 tonnes to 14.6 tonnes, while net retail investment recorded a more modest 15% decline from 2.3 to 2.0 tonnes.

Saudi Arabian gold jewelry sales fell 23% during 1Q 2009 compared to year-earlier levels but net retail investment rose 8%. Meanwhile, other Gulf Countries recorded a decline in total tonnage of a similar magnitude to the UAE and Saudi Arabia, with Kuwait being the main source of weakness.

- luke

Investing in Commodity ETFs

Commodities across the board are sporting solid gains as the market is focused on new signs of global economic stabilization and a weaker US dollar.

In the energy market, crude oil prices rose above $60 per barrel last week, the first time in five months, before pulling back. Meanwhile, natural gas prices have increased as much as 35% since the beginning of the month.

As for precious metals, gold and silver prices have increased appromixately 14% and 33% respectively since mid-January. Even platinum, which many analysts expected to underperform this year, has increased as much as 33% since the beginning of 2009.

Less glamorous commodities, like grains, meats, and softs, have also experienced significant increases over the past several weeks. In the grain market, wheat, corn, and soybeans are all at or nearing year-to-date highs. Meanwhile, softs have been the best performer in the general commodity market. Cotton, orange juice, and coffee are up pretty big over the last few weeks. The softs market is lead by sugar. Sugar is on top of a nearly two-year high, increasing as much as 88% since June 2007.

An easy way to take advantage and profit from broad moves in the commodity market is by. . .

Investing in Commodity ETFs

Broad-based commodity ETFs attempt to track the value of a basket of commodities by holding the actual commodity in storage or by purchasing futures contracts.

Commodities are a separate asset class from stocks and bonds, so these ETFs can provide extra diversification in a portfolio.

Stake Your Claim in the Stimulus Goldmine

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There are a handful of broad-based commodity ETFs on the market for investors to choose from. They include:

Dow Jones-AIG Commodity Index Total Return ETN [NYSE: DJP]
ELEMENTS Rogers International Commodity Index ETN [NYSE: RJI]
ELEMENTS S&P Commodity Trends Indicator ETN [NYSE: LSC]
Goldman Sachs Commodity Index (GSCI) Total Return Index ETN [NYSE: GSP]
GreenHaven Continuous Commodity Index Fund [AMEX: GCC]
GS Connect S&P GSCI Enhanced Commodity Total Return Strategy Index ETN [NYSE: GSC]
iShares GSCI Commodity-Indexed Trust ETF [NYSE: GSG]
PowerShares DB Commodity Long ETN [NYSE: DPU]
PowerShares DB Commodity Index Tracking Fund [NYSE: DBC]

There are also a few leveraged broad-based commodity ETFs, including PowerShares DB Commodity Double Long ETN [NYSE: DYY] and ProShares Ultra DJ-AIG Commodity ETF [NYSE: UCD], which offer double the gains or losses.

Before investing in any of the commodity ETFs or ETNs, there are a few things you should know.

What to Look Out for When Investing in Commodity ETFs and ETNs

Broad-based commodity ETFs that use futures contracts usually have uninvested cash. Issuers generally put this money into interest-bearing government bonds. The interest on the bonds is used to cover the expenses of the ETF and to pay dividends to the holders.

Commodity ETNs (exchange-traded notes) are non-interest-paying debt instruments whose prices each fluctuate with an underlying commodities index. It's important to note ETNs are subject to the solvency of the issuer because they are debt obligations.

There are also dramatic differences in the structures of ETFs and ETNs, leading to potential differences in performance and tax treatment. This is something investors should look out for.

In contrast to stocks and bonds, commodities are not income generating. So ownership of commodities, even via ETFs or ETNs, is a pure bet on prices. The expenses charged by the ETF and ETN providers, and those in the cost of storing hard assets or trading futures, eat away at the underlying value of the fund.

Before the global recession hit, the industrialization of BRIC (Brazil, Russia, India, and China) and other fast-growing nations was boosting demand for commodities and driving up prices. Commodity prices have generally declined over the past several months as fears of sluggish economic growth gripped the globe. However, with new signs of world economic stabilization, commodities are starting to come back into the limelight. Investing in commodity ETFs and ETNs is a great way to take advantage of broad moves in the sector.

Good Investing,

Luke Burgess
Editor, Gold World
Investment Director, Secret Stock Files

P.S. Investing in commodity ETFs is a great way to diversify your portfolio. But there's one natural resource that no commodity ETF or ETN holds. This natural resource is the most important commodity known to man. And one company is on the cusp of virtual monopoly. This report will explain all the details, including how this company will exploit their vast resources to take this commodity market by storm, and generate serious returns for its shareholders.

Oil Prices Hit $60 Per Barrel

Crude oil prices rose above $60 per barrel this morning, before pulling back, as the market focused on new signs of economic stabilization and a weaker US dollar.

Crude oil futures for June delivery touched $60.08 per barrel early this morning. This is the first time oil prices have been over $60 per barrel in five months.

Oil prices were largely supported by a surge in Chinese investment spending, which included a big advance in transportation spending.

Crude prices were also boosted by a drop in the value of the US dollar against many foreign currencies. An increasing appetite for risk investment put broad-based selling pressure on the US dollar today. As a result, the US dollar index, a measure of value against six world currencies, hit a three and a half month low.

Meanwhile, gold for June delivery was up to $920 an ounce today.

- luke

Gold Miners See Falling 1Q Profit

Some of the world's top gold miners experienced significantly lower profits during the first quarter of 2009 as production costs increased and the market experienced a 2% decline in the average price of gold.

Barrick Gold [NYSE: ABX, TSX: ABX], the world's largest gold producer, reported a 28% drop in first-quarter profit to $371 million ($0.42 per share) from $514 million ($0.58 per share) during the same period a year earlier. The Toronto-based company said that it produced 1.76 million ounces of gold in the first quarter at a total cash cost of $484 an ounce, an increase from $395 a year earlier. Last year, the company produced 7.66 million ounces of gold at a total cash cost of $443 per ounce.

Newmont Mining [NYSE: NEM, TSX: NMC] also reported lower first-quarter profit. Net income tumbled 48% to $189 million ($0.40 per share) compared to $365 million ($0.80 per share) during the same period last year. The first quarter saw equity gold sales of 1.27 million ounces at costs applicable to sales of $435 per ounce. The company is maintaining its previously announced 2009 equity gold sales outlook of between 5.2 and 5.5 million ounces at costs applicable to sales of between $400 and $440 per ounce.

Other major gold mining companies such as Goldcorp [NYSE: GG, TSX: G] and Kinross Gold [NYSE: KGC, TSX: K] will report first quarter financial results next week.

- luke

Gold Futures Fall Under $900/oz

Gold futures were unable to hold onto the $900 level this morning as the U.S. dollar found strength amid the panicky swine flu scare, according to media reports.

Swine fever boosted the value of the U.S. dollar against major currencies on reported fears that the flu will pressure global economic recovery efforts. The dollar's muscle drove gold for June delivery fell 2% overnight to open at $889.30 this morning.

The World Health Organization raised its pandemic alert to level 4 from level 3 and warned of a "significant risk", prompting intensified concern about the spread of swine flu. Major media outlets reported that the new strain of the H1N1 influenza virus heightened the appetite for the greenback as a safe haven. However, I would call the U.S. dollar anything but "safe" right now considering Uncle Sam's massive construction of debt over the past several decades.

As worries over pig flu increased and airline and tourism-related stocks got hit, stock markets across the globe fell. The Nikkei was down almost 3% and was followed by losses of 2% or more in most European stock markets.

- luke