John Lothian Newsletter Metals Edition

January 30, 2012 - China New Year sets gold buying records; CME adds Deutsche Bank to gold custodian providers; C.bank gold holdings reach 6 year high

2012-01-30T16:33:00.002-06:00

Last Friday's most read stories were "Gold Bulls Ascendant Amid Biggest Rally Since 1980" by Nicholas Larkin from Bloomberg Businessweek, followed by "Gold hits seven-week high after US rate forecast" by Emiko Terazono from the Financial Times, and "Gartman: Starting To Turn Neutral On Gold" from Nasdaq.

Quote of the Day:

"Does this mean that gold has finally broken its ties with risk? One day clearly doesn't make a trend, and the sluggishness in equities ahead of the weekend was likely in part driven by profit-taking rather than a risk-off turn, especially given easing peripheral bond yields... Nevertheless, it is certainly an encouraging development and does increase the possibility that there is more to gold's rally. It may well be a clue that investors have shifted gears and are now starting to put more conviction behind their bullish gold outlook."

~ Edel Tully, UBS analyst from "Gold eases, stays in sight of 7-week highs"

Observations - Statistics - Commentary

China`s Dragon Lunar New Year sets gold buying records
Mineweb
The Year of the Dragon Lunar New Year holiday set a new record for gold buying among the Chinese with the gold buying boom anticipated to last until February 6th.
http://jlne.ws/wHBQzq

Why Are the Chinese Buying Record-Quantities of Gold?
Forbes
This month, the Hong Kong Census and Statistics Department reported that China imported 102,779 kilograms of gold from Hong Kong in November, an increase from October’s 86,299 kilograms.
http://jlne.ws/yzvpgE

CME adds Deutsche Bank to gold custodian providers
Market Watch
CME Clearing, a division of exchange-operator CME Group Inc. CME, added Deutsche Bank AG (DB, DBK.XE) London Branch to its gold custodian providers, the company said in a statement Friday. Deutsche Bank will provide gold custodian services on behalf of CME Clearing starting immediately, according to a CME Clearing...
http://jlne.ws/xlylUl

Central-bank gold holdings reach 6 year high: joining the dots
Mineweb
Central banks are holding more gold but they're holding very much more wood-pulp and although there may ultimately be a change in structure of a global reserve currency this may still be some time away.
http://jlne.ws/zGj3vB

JLN Metals Scorecard	1/27/2012

NYSE LIFFE US Total Volume	63,765

100 oz. Gold Futures Volumes
NYSE LIFFE US	1,184
CME/NYMEX (Globex + PNT)	315,787
CME/NYMEX Open Auction	7,584
NYSE LIFFE market share	0.37%
NYSE LIFFE US Electronic market share	0.37%

100 oz. Gold Futures Open Interest
CME/NYMEX	430,165
NYSE LIFFE US	1893
NYSE LIFFE US market share	0.44%

Mini Gold Volume
NYSE LIFFE US	6,116
CME E-micro Gold (10 Troy oz)	1,331
CME/NYMEX miNY	390
NYSE Liffe market share (Contracts)	78.04%
NYSE Liffe market share (Notional)	86.09%

5,000 oz. Silver Futures Volume
NYSE LIFFE US	12
CME/NYMEX	33,980
NYSE LIFFE US market share	0.04%

Mini Silver Volume
NYSE LIFFE US	2,327
CME/NYMEX miNY	117
CME/NYMEX E-mini	0
NYSE LIFFE US market share	95.21%

Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)	2
TOCOM Gold Futures* (1 kg / 32.15 ounces)	41,003
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)	9,007
TOCOM Silver Futures* (10 kg / 321.51 ounces)	810
MCX India* (1 kg / 32.15 ounces)	2,051
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg)	819
*Today's date

METAL ETFS	METAL ETFS
ProShares Ultra Silver	547,059
Powershares DB Base Metals Fund	72,385
Market Vectors Gold Miners GG	3,214,725
MARKET VECTORS JUNIOR	835,767
ProShares UltraShort Gold	98,107
ETFS Precious Metals Baskets Trust	706
iShares COMEX Gold Trust	820,488
iShares Silver Trust (ETF) historical prices	2,515,490
ETFS PHSYICAL PALLADIUM SHARES	7,971
ETFS PHYSICAL PLATINUM SHARES	20,055
ETFS GOLD TRUST	23,939
ETFS SILVER TRUST	36,864
Market Vectors Steel	12,170
ProShares Ultra Gold	38,400
ProShares UltraShort Silver	1,137,409
SPDR Gold Trust	3,035,357

Lead Stories

How Europe’s crisis could feed the commodity bulls
By Javier Blas - Financial Times
The eurozone debt crisis is a short-term bearish factor for commodities prices – both because of its impact on economic growth and on commodity trade finance.
http://jlne.ws/xIPymV

Investors Go Bargain Hunting in Gold, Silver Coins
By RHIANNON HOYLE - WSJ
Investors are loading up on gold and silver coins in what some say could be an early sign of a rally in precious-metal prices. In this case, individual investors may be ahead of professionals. After a steep decline in the value of gold and silver in the final month of last year, coin investors and collectors have been among the first to jump back into the markets and take advantage of what they see as bargain prices compared with the peaks of 2011.
http://jlne.ws/y2zA3h

FOCUS: Speculators Continue To Build Bullish Positions In Metals- CFTC
By Debbie Carlson - Kitco News
Speculators added to their bullish futures and options positions in U.S. precious and base metals as prices rose in late January, according to U.S. government data released late Friday.
http://jlne.ws/zIdOOu

HEARD ON THE STREET: Mining Rally Isn't Likely To Go Deep
By LIAM DENNING - WSJ
How much copper gets shipped through the Strait of Hormuz? Not much. Big Oil had a banner year in 2011, helped by energy prices buoyed by the Arab Spring and a flight to safety by investors. Conversely, last year wasn't kind to Big Mining: BHP Billiton ended 2011 down 27%; Rio Tinto, 32%. Now the positions have reversed. Exxon and Chevron are pretty flat for January, while BHP and Rio Tinto have jumped.
http://jlne.ws/zOC1MQ

China Seeks Refuge In Gold Amid Growing Pessimism
Forbes
Nervous investors are buying gold to escape plunging property and stock prices as well as an anticipated depreciation of the yuan.
http://jlne.ws/zxvPjJ

Gold eases, stays in sight of 7-week highs
By Amanda Cooper - Reuters
Gold eased on Monday, under pressure from a weaker euro, but was off session lows and still within sight of last week's seven-week highs, supported by evidence of improved investor demand.
http://jlne.ws/wZcmcp

MF Global Said ‘Never Been Stronger’ a Week Before Failure
By Zeke Faux and Phil Mattingly - Bloomberg
A week before MF Global Holdings Ltd. (MF) collapsed, its chief financial officer told Standard & Poor’s in an e-mail that the futures broker had “never been stronger.”
http://jlne.ws/y5xs9d

Futures & ETF News

Hang Seng Bank to List Yuan-Denominated Gold ETF: Report
ETF Trends
Hang Seng Bank is readying the first yuan-denominated gold exchange traded fund to be listed in Hong Kong, Dow Jones Newswires reported Monday.
http://jlne.ws/yJnmHg

Hang Seng Bank: To Launch Yuan-Denominated Gold Exchange-Traded Fund
FOX Business
Hong Kong -(Dow Jones)- Hang Seng Bank Ltd. (0011.HK) plans to launch Hong Kong's first yuan-denominated gold exchange-traded fund in a few weeks, the bank said Monday.
http://jlne.ws/AvcirC

Gold ETF Mass Exodus
International Business Times
Gold is enjoying an awesome January, rallying strongly out of its oversold late-December lows. But last month's hyper-pessimistic sentiment deserves some reflection before it totally fades from memory.
http://jlne.ws/xjJnk6

Investments

Hedge-Fund Bulls Add to Commodity Bets
By Whitney McFerron - Bloomberg
Hedge funds increased wagers on rising commodity prices to the most in two months and the rally in raw materials accelerated as the Federal Reserve pledged to keep borrowing costs low for three more years.
http://jlne.ws/xVXmeS

Silver looks more bullish than gold in near term: Deutsche Bank
Commodity Online
Silver prices could outperform Gold in the near-term but in longer-term the persistence of negative real interest rates will sustain the appeal of holding precious metals, said Deutsche Bank in a research note. Fed announcement resulted in a strong positive move in the silver price.
http://jlne.ws/ArCyxg

Gold Is The Hottest Currency In The World
Forbes
The price of gold is roaring back from its latest temporary correction, sending the bears into full withdrawal. If you sold your gold in December as it fell to $1525 an ounce, you’re probably feeling foolish at the incredible $210 rise to $1735– a 15% move in no time at all.
http://jlne.ws/yxCsSh

Production News

Indian companies to bid for gold, copper in Afghanistan
Mineweb
Keen to get an edge over rivals, an Indian consortium is seeking to explore for other minerals in the war-torn country, especially gold and copper.
http://jlne.ws/zCWTyL

Europe`s steel demand for steel to drop in 2012 - Kloeckner
Mineweb
In an interview with the Financial Times Deutschland published on Monday, Kloeckner & Co's CEO Gisbert Ruehl said he expects steel demand in Europe to drop significantly this year.
http://jlne.ws/AjzMCD

China's Jan 1-10 crude steel output rises 4% from Dec 21-31: CISA
Platts News
Crude steel output from all steelmakers was estimated by the China Iron and Steel Association at 1.6906 million mt/day over January 1-10, up 64,100 mt or 3.94% from December 21-31, state media reported Monday citing preliminary CISA data.
http://jlne.ws/yhXxPF

Reports, Macroeconomics & Inflation

Europe's debt crisis: At bursting point
The Economist
This grotesque map of the world, depicting Europe as a bloated balloon, caught my eye this week, and powerfully illustrates one of the factors in Europe's debt crisis. It depicts the countries of the world sized according to the amount of government spending*.
http://jlne.ws/wc4alA

Greek fury at plan for EU budget control
By Peter Spiegel and Kerin Hope - Financial Times
Greece’s finance minister angrily rejected a German plan for the eurozone to impose a budget overseer onto Athens in return for a new €130bn bail-out, saying it would improperly force his country to choose between “financial assistance” and “national dignity”.
http://jlne.ws/wQtDM1

EU Stumbles as Merkel Signals Greece Debt Deal Delay
By James G. Neuger and Jurjen van de Pol - Bloomberg
European leaders sparred with Greece over a second rescue program, clouding progress toward a permanent aid fund and tougher budget rules designed to stabilize the euro.
http://jlne.ws/xRwcOw

EU Stumbles as Merkel Signals Greece Debt Deal Delay
By James G. Neuger and Jurjen van de Pol - Bloomberg
European leaders sparred with Greece over a second rescue program, clouding progress toward a permanent aid fund and tougher budget rules designed to stabilize the euro.
http://jlne.ws/xRwcOw

China Pushes Global Financial Role for Shanghai
WSJ
China's top economic planning body set new targets on Monday in its effort turn the city of Shanghai into a global financial hub, including a more than doubling of trading volume in financial markets and a greater openness to derivatives such as foreign-exchange products.
http://jlne.ws/zO0S12

Miscellaneous News

Sumerian gold jar, other relics returned to Iraq
By Aseel Kami - Reuters
A 6,500-year-old Sumerian gold jar, the head of a Sumerian battle axe and a stone from an Assyrian palace were among 45 relics returned to Iraq by Germany on Monday.
http://jlne.ws/Aw3x7v

Park this in your vault: Classic car returns outpaced gold
The Tell - MarketWatch
Classic cars showed an impressive performance in 2011 — one that outpaced gold, according to the Historic Automobile Group International (HAGI), an independent research house and think tank specializing in the rare classic motorcar sector.
http://jlne.ws/w094Ae

Physicals & Company News

12 companies join German commodity alliance
Reuters
Twelve German companies have joined the new German alliance aimed at securing raw materials supplies in the face of growing competition for key commodities, the Federation of German industry BDI said on Monday.
http://jlne.ws/yuHgAI

Harmony Gold sells Evander
Reuters
Harmony Gold said on Monday it would sell Evander Gold Mines for 1.7 billion rand ($219 million) to junior miners Pan African Resources and Witwatersrand Consolidated Gold Resources Limited.
http://jlne.ws/zOBWUQ

U.S. Steel to Sell Serbian Unit for 'Nominal' Price
By MIA LAMAR - WSJ
U.S. Steel Corp. said Monday it plans to sell its Serbian unit to the Serbian government for a "nominal" price, booking a loss on the sale. In 2003, the U.S. steelmaker by production bought the then-bankrupt state-owned Sartid steel mill from the Serbian government for $33 million.
http://jlne.ws/yvli68

Buyers are pouncing on Jaguar Mining
optionMONSTER via Yahoo! Finance
Traders area digging for gold in Jaguar Mining.The mining company received a $1 billion acquisition offer from China Shandong Gold in November, valuing JAG at $9.30 a share and prompting a strategic process ...
http://jlne.ws/w1pHTt

January 27, 2012 - Gold Bulls Ascendant Amid Biggest Rally Since 1980; Commodities inflows at a nine-year low; Resource Corruption Fight Intensifies

2012-01-27T16:17:00.000-06:00

Yesterday's top stories were "Gold: The Real Fed Winner" by Ben Levisohn from the Wall Street Journal, followed by "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Times, and "China easing fires commodities bulls" by Jack Farchy and Javier Blas from the Financial Times.

Quote of the Day:

"The market attitude towards gold for most of January could be summed up in two words: cautious optimism. Investors were reluctant to add to positions aggressively as memories of the disappointment in Q4 lingered... A fresh catalyst was needed and we think the FOMC outcome on Wednesday fit the bill. More accommodative policy is a very good foundation for gold to build on the next move higher."

~ UBS from "Gold set for biggest rise in three months after Fed"

Observations - Statistics - Commentary

Gold Bulls Ascendant Amid Biggest Rally Since 1980
BusinessWeek
Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades.
http://jlne.ws/wnXOW1

Commodities inflows at a nine-year low
By Emiko Terazono - Financial Times
Commodities markets saw the weakest net inflow of funds in nine-years in 2011, as investors were deterred by volatility caused by European sovereign debt concerns, as well as worries over global economic growth and monetary tightening in China.
http://jlne.ws/wvE6kn

Resource Corruption Fight Intensifies
By Andrea Hotter - WSJ
The days of shady deals in the mining, oil or gas industries will be a thing of the past if Transparency International has its way. The global civil society organization is piling the pressure on corporates and governments alike to sign up to practises it believes will help eradicate the corruption that the organisation’s chair calls the “resources curse.”
http://jlne.ws/z7zFTb

JLN Metals Scorecard	1/26/2012

NYSE LIFFE US Total Volume	118,933

100 oz. Gold Futures Volumes
NYSE LIFFE US	777
CME/NYMEX (Globex + PNT)	311,747
CME/NYMEX Open Auction	16,901
NYSE LIFFE market share	0.25%
NYSE LIFFE US Electronic market share	0.25%

100 oz. Gold Futures Open Interest
CME/NYMEX	433,710
NYSE LIFFE US	1721
NYSE LIFFE US market share	0.40%

Mini Gold Volume
NYSE LIFFE US	7,775
CME E-micro Gold (10 Troy oz)	1,739
CME/NYMEX miNY	879
NYSE Liffe market share (Contracts)	74.81%
NYSE Liffe market share (Notional)	80.80%

5,000 oz. Silver Futures Volume
NYSE LIFFE US	18
CME/NYMEX	38,268
NYSE LIFFE US market share	0.05%

Mini Silver Volume
NYSE LIFFE US	2,880
CME/NYMEX miNY	148
CME/NYMEX E-mini	0
NYSE LIFFE US market share	95.11%

Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)	15
TOCOM Gold Futures* (1 kg / 32.15 ounces)	60,908
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)	14,517
TOCOM Silver Futures* (10 kg / 321.51 ounces)	710
MCX India* (1 kg / 32.15 ounces)	43,882
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg)	1,187
*Today's date

METAL ETFS	METAL ETFS
ProShares Ultra Silver	470,892
Powershares DB Base Metals Fund	11,223
Market Vectors Gold Miners GG	3,860,060
MARKET VECTORS JUNIOR	1,239,202
ProShares UltraShort Gold	217,373
ETFS Precious Metals Baskets Trust	6,460
iShares COMEX Gold Trust	993,572
iShares Silver Trust (ETF) historical prices	3,941,077
ETFS PHSYICAL PALLADIUM SHARES	22,126
ETFS PHYSICAL PLATINUM SHARES	36,341
ETFS GOLD TRUST	15,541
ETFS SILVER TRUST	86,415
Market Vectors Steel	24,114
ProShares Ultra Gold	87,606
ProShares UltraShort Silver	1,715,707
SPDR Gold Trust	4,747,747

Lead Stories

Video - Gold Regains Some of Its Shine
By Francesca Freeman - WSJ
After a relatively appalling performance in the latter part of last year, gold has picked up its feet. Peaking at a seven-week high of $1,730.95 a troy ounce Thursday, the yellow metal has gained around 10% so far in January as investors regain their confidence in bullion.
http://jlne.ws/wuRgRC

CEO's 'Name On The Line' With Formation Of McEwen Mining; Goals Include S&P 500
By Allen Sykora - Kitco News
Rob McEwen certainly has plenty of motivation to build up the mining company that carries his name and started trading on the New York and Toronto stock exchanges Friday.
http://jlne.ws/yzhtK1

Greece and the euro: An economy crumbles
The Economist
The banners at the entrance to the Bank of Greece museum in Athens promise a “fascinating journey through Greece’s modern economic and monetary history”. How could any passer-by resist? Inside the museum ranks of glass cases enclose an array of coins and old bank notes, as well as the paraphernalia used to make them. The bills range from 5 drachma up to 100m drachma, a reminder that Greece has had problems with inflation in the past.
http://jlne.ws/wmx94R

Gold set for biggest rise in three months after Fed
By Jan Harvey - Reuters
Gold rose on Friday, heading for its best weekly performance since late October after the Federal Reserve signalled its ultra-loose monetary policy would continue, keeping the dollar under pressure and the opportunity cost of holding bullion low.
http://jlne.ws/wt67ln

Futures & ETF News

Gold ETFs Surge On Fed Outlook - ETF News And Commentary
Nasdaq
Although the American economy seems to be holding its own to start the year, significant risks remain to growth. European worries are always a step away and still high American unemployment and
http://jlne.ws/w1qIaO

ETF Fund Flows: GLD Nets $481.1 Million
Nasdaq
Investors poured $481.1 million into the SPDR Gold Shares ETF (NYSEArca:GLD) in the wake of the Fed's decision to extend its easy-money policies until 2014.
http://jlne.ws/y4hPrr

Toyota's Hybrid Tech May Pressure Rare Earth ETF
ETF Trends via Yahoo! Finance
Rare earth metals, along with the related exchange traded fund, have been in the news in recent years due to supply concerns. However, the sub-sector has been a weak performer, and now Toyota (NYSE: TM - News) ...
http://jlne.ws/xpNP6R

Iron ore swaps extend gains ahead of China`s return
Mineweb
Iron ore forward swaps extended gains early Friday, reflecting hopes that spot prices will bounce back when China returns next week from its Lunar New Year break.
http://jlne.ws/xVZTBW

Investments

Gartman: Starting To Turn Neutral On Gold
Nasdaq
Dennis Gartman, the macro trader and editor of the Gartman Letter, is looking at rising equity prices and slowly turning neutral on gold. During a panel on the macroeconomy at...
http://jlne.ws/x0QSyb

Video - Investors Abandoning Copper, Cotton, Crude and other Commodities Amid Plunging Prices
WSJ
Amid plunging prices and soaring volatility, investors and traders reduced bets on 13 key commodity contracts by 19% in 2011. Jerry DiColo reports on Markets Hub.
http://jlne.ws/zNGmD4

Barclays: Tin increase 17% and zinc by 18% so far in 2012
Commodity Online
Tin’s fundamental backdrop offers solid support for its strong showing relative to most other base metals so far this year, said Barclays Capital in a research note.
http://jlne.ws/yW0dl7

Production News

US aluminium export increases 10% in 2011: USGS
Commodity Online
The United States continued to be slightly reliant upon Aluminium imports in 2011, as domestic primary production increased from that in 2010 but still remained at significantly lower levels than in 2008, although exports of scrap continued to increase, said the Institute U.S. Geological Survey (USGS) in a research note.
http://jlne.ws/zlSExa

Reports, Macroeconomics & Inflation

Tensions rise over eurozone firewall
Financial Times
Fresh signs of tension between France and Germany over the eurozone rescue emerged on Friday, as expectations rise that a deal to restructure Greece’s sovereign debt could be agreed as early as this weekend.
http://jlne.ws/yVoKTb

Fitch Cuts Italian, Spanish Ratings by Two Notches
By Mark Deen - Bloomberg
Fitch Ratings cut the credit ratings of Italy, Spain and three other euro-area countries, saying they lack financing flexibility in the face of the regional debt crisis.
http://jlne.ws/znSgT4

Emergency loans helped avert ‘major, major credit crunch’
By Ralph Atkins and Patrick Jenkins - Financial Times
Europe avoided a “major, major credit crunch” thanks to €489bn of emergency three-year loans to eurozone banks provided by the European Central Bank last month, the bank’s governor said on Friday.
http://jlne.ws/yGMvls

Euro zone may need to help Greece more: Juncker in paper
Reuters via Yahoo! Finance
Euro zone members may have to increase their financial support for Greece if Athens and the private sector do their part to address the country's debt crisis, Eurogroup head Jean-Claude Juncker told a ...
http://jlne.ws/wEk2hw

Greece Edges Towards Debt Deal
By ALKMAN GRANITSAS And COSTAS PARIS - WSJ
Talks between Greece and its private sector creditors over a €100 billion ($131 billion) debt write-down edged towards an agreement, with bond holders seemingly willing to accept lower yields on their future holdings of Greek debt, a source close to the talks said Friday.
http://jlne.ws/zfs8ZU

Investors cue up Portugal as the next Greece
By Emelia Sithole-Matarise and Anirban Nag - Reuters
Investors are betting that after cap-in-hand Greece comes Portugal, selling off its stocks and bonds in the belief that the euro zone laggard cannot avoid a default without a second bailout.
http://jlne.ws/zADr9Z

Physicals & Company News

Rio Tinto Eyes Oyu Tolgoi Control
By Robb M. Stewart - WSJ
Rio Tinto expects to replace some directors and management at Ivanhoe Mines after grabbing majority control of the Canadian mining company, and may seek direct ownership in the massive Oyu Tolgoi copper and gold project in Mongolia.
http://jlne.ws/w5V6SM

RUSAL may cut aluminium output 6% in next 18 months
Mineweb
Despite reporting last week that it had no plans to follow rival Alcoa's lead in cutting production, the Russian firm said Friday it could cut output by 6% in the next 18 months.
http://jlne.ws/ysIffg

January 26, 2012 - Gold: The Real Fed Winner; China easing fires commodities bulls; South Africa Miners Warn of Regulations' Impact

2012-01-26T15:44:00.001-06:00

Yesterday's top stories were "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Insider, followed by "Gold Futures, ETFs Tell Different Tales" by David Cottle from the Wall Street Journal, and "Behold the most valuable gold vault in the world" from Commodity Online.

Quote of the Day:

"A lot of people had thrown the towel on gold and you see it turn like this with a wicked vengeance."

~ Matt Zeman, head trader and strategist at Kingsview Financial from "Gold Jumps Firmly Above $1,700"

Observations - Statistics - Commentary

Gold: The Real Fed Winner
By Ben Levisohn - WSJ
Who said the gold rally is dead? The SPDR Gold Shares Trust, the largest exchange-traded product dedicated to the precious metal, jumped 2.72% yesterday, its largest one-day move since Jan. 3. Gold bugs should thank the Fed.
http://jlne.ws/xjEJ5u

Fed announcement boosts markets
By Jamie Chisholm - Financial Times
A renewed belief among traders that the US Federal Reserve stands ready to support financial assets is helping contain festering eurozone worries and the fallout from a hit-and-miss corporate earnings season.
http://jlne.ws/zv5xHF

China easing fires commodities bulls
By Jack Farchy and Javier Blas - Financial Times
The government-induced credit crunch in the Chinese commodities industry is ending, according to western traders, triggering a wave of bullishness about the outlook for industrial raw materials.
http://jlne.ws/zI1g3Q

South Africa Miners Warn of Regulations' Impact
By DEVON MAYLIE - WSJ
Platinum miners in South Africa said Thursday they will struggle to grow production as the country's mineral department tightens safety regulations. Anglo American Platinum Ltd. and Lonmin PLC both reported a fall in mined output in the final three months of calendar 2011, citing increased safety-related work stoppages imposed by the country's Department of Mineral Resources.
http://jlne.ws/z2kHwL

JLN Metals Scorecard	1/25/2012

NYSE LIFFE US Total Volume	136,046

100 oz. Gold Futures Volumes
NYSE LIFFE US	439
CME/NYMEX (Globex + PNT)	301,867
CME/NYMEX Open Auction	8,591
NYSE LIFFE market share	0.15%
NYSE LIFFE US Electronic market share	0.15%

100 oz. Gold Futures Open Interest
CME/NYMEX	434,997
NYSE LIFFE US	1680
NYSE LIFFE US market share	0.38%

Mini Gold Volume
NYSE LIFFE US	8,347
CME E-micro Gold (10 Troy oz)	2,894
CME/NYMEX miNY	916
NYSE Liffe market share (Contracts)	68.66%
NYSE Liffe market share (Notional)	78.76%

5,000 oz. Silver Futures Volume
NYSE LIFFE US	1
CME/NYMEX	53,611
NYSE LIFFE US market share	0.00%

Mini Silver Volume
NYSE LIFFE US	3,622
CME/NYMEX miNY	179
CME/NYMEX E-mini	0
NYSE LIFFE US market share	95.29%

Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)	0
TOCOM Gold Futures* (1 kg / 32.15 ounces)	67,146
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)	21,197
TOCOM Silver Futures* (10 kg / 321.51 ounces)	578
MCX India* (1 kg / 32.15 ounces)	N/A
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg)	1,830
*Today's date

METAL ETFS	METAL ETFS
ProShares Ultra Silver	605,518
Powershares DB Base Metals Fund	36,483
Market Vectors Gold Miners GG	5,341,478
MARKET VECTORS JUNIOR	1,091,834
ProShares UltraShort Gold	284,354
ETFS Precious Metals Baskets Trust	2,234
iShares COMEX Gold Trust	1,509,642
iShares Silver Trust (ETF) historical prices	6,052,254
ETFS PHSYICAL PALLADIUM SHARES	53,551
ETFS PHYSICAL PLATINUM SHARES	19,540
ETFS GOLD TRUST	45,871
ETFS SILVER TRUST	123,968
Market Vectors Steel	29,185
ProShares Ultra Gold	105,081
ProShares UltraShort Silver	1,894,723
SPDR Gold Trust	7,113,652

Lead Stories

Gold Jumps Firmly Above $1,700
By TATYANA SHUMSKY - WSJ
Gold futures rallied further Thursday, cementing their position above $1,700, as the Federal Reserve's forecast that interest rates are set to remain low for three more years emboldened investors.
http://jlne.ws/zLcq47

Video - Fed Rate Decision: Bad for Banks, Good for Gold
TheStreet.com
Stephanie Link, director of research for TheStreet, breaks down the Fed's latest rate decision and what it means for stocks.
http://jlne.ws/wm0MxI

Miners reap rewards in mineral sands
By Emiko Terazono - Financial Times
The prices of mineral sands, derived from sludge from the beaches of Australia and Africa, have continued their ascent, with miners signing 2012 contracts worth triple or quadruple those of a year ago.
http://jlne.ws/w5OAkp

Vale to appeal R$9.8bn Brazil tax ruling
By Samantha Pearson - Financial Times
Vale, the world’s biggest producer of iron ore, has vowed to appeal a series of rulings on back taxes in Brazil that could cost the miner R$9.8bn ($5.6bn) as part of a long-running dispute over its overseas profits.
http://jlne.ws/yPOQ4o

Futures & ETF News

Gold Miner ETFs Soar After Fed's Low-Rate Pledge
ETF Trends via Yahoo! Finance
Exchange traded funds tracking gold miners surged Wednesday on heavy trading volume after the Federal Reserve announced its commitment to maintaining low interest rates until late 2014 and the prospect...
http://jlne.ws/xPXZLu

S&P launches multiple contract version of the S&P GSCI index
Platts News
S&P Indices has launched the S&P GSCI Multiple Contract Index, a long-only index which provides more diverse exposure along the commodity market futures curve than the existing S&P GSCI index, Standard & Poor's said Thursday.
http://jlne.ws/yIakD9

Iron ore swaps rise on hopes of China restocking
Mineweb
Prices of iron ore forward swaps rose on Thursday as investors bet Chinese steelmakers are likely to replenish stockpiles at the end of the Lunar New Year break.
http://jlne.ws/xkbyeJ

Investments

Technicals, ETF And Coin Buying Show Bullish Trend For Silver: Credit Suisse
Nasdaq
Technicals, ETF And Coin Buying Show Bullish Trend For Silver: Credit Suisse
http://jlne.ws/wAz48Z

Gold seen rising in 2012, 12th year of rally
Reuters
Gold's record-breaking rally of the last decade is set to extend into this year and next as monetary policy stays loose and central banks build reserves, a Reuters poll showed on Thursday.
http://jlne.ws/xv5jiN

Production News

Zinc Risks a Temporary Glut
By FRANCESCA FREEMAN - WSJ
Zinc may be the black sheep of base metals this year amid expectations that increases in mining capacity will pressure prices. However, the outlook could brighten should some of those expansion plans be put on hold because of weak demand and problems getting project financing. Longer term, analysts expect prices may rise as mines close, shrinking supply.
http://jlne.ws/zBvgic

Colombia to Get $10 Billion in Mining, Energy Investments, Cardenas Says
By Heather Walsh and Alaa Shahine - Bloomberg
Colombia, South America’s third- largest oil producer, expects about $10 billion in international investment in crude, mining and energy projects this year, Mines Minister Mauricio Cardenas said.
http://jlne.ws/zuFNR6

China's 2011 iron ore imports from India down 24%, up for most other sources
Platts News
China's imports of Indian iron ore in 2011 fell 24% year on year to 73.3 million mt, the biggest drop among sources that supplied the country with more than 1 million mt of product last year, detailed data released Thursday by China's General Administration of Customs showed.
http://jlne.ws/zPDXZo

Guyana to target corruption amid gold mine boom
Associated Press via Yahoo! News
Guyana's mining minister says he plans to hire dozens of new inspectors to curb illegal activity prompted by a boom in the South American country's gold mining industry.
http://jlne.ws/zqwRTy

Aquino: Philippines to have clear mining policy
Associated Press via Yahoo! News
President Benigno Aquino III says the Philippine government will have a clear-cut policy on its mining industry by next month amid complaints from foreigners that inconsistent rules have stymied investments.
http://jlne.ws/yzPtDB

Regulatory News

Holzer Holzer & Fistel, LLC Announces Investigation into Kinross Gold Corporation
Business Wire via Yahoo! Finance
Holzer Holzer & Fistel, LLC is investigating potential violations of the federal securities laws by Kinross Gold Corporation . The investigation focuses on whether a series of statements made between February 16, 2011 and January 17, 2012, inclusive, regarding Kinross's business, its prospects and its operations were materially false and misleading at the time they were made.
http://jlne.ws/vZFTng

Reports, Macroeconomics & Inflation

World Bank gives $27 billion to shield emerging markets from the euro
Nasdaq
The World Bank is making $27 billion in funding available over the next two years for countries of emerging Europe and Central Asia impacted by the euro zone crisis.
http://jlne.ws/zU7Tbp

Czech central bank agrees on loan to IMF
Associated Press via Yahoo! News
The board of the Czech central bank has conditionally approved a loan to the International Monetary Fund as part of efforts to stabilize the European debt crisis.
http://jlne.ws/x1iTMB

Federal Reserve Formally Targets 2% U.S. Inflation
Forbes
Central bank gives explicit target for price monitoring after committing to low rates until 2014.
http://jlne.ws/ypTQzm

Federal Reserve unlikely to raise rates until 2014
Chicago Tribune
The Federal Reserve went further than ever Wednesday to assure consumers and businesses that they'll be able to borrow cheaply well into the future.
http://jlne.ws/wGXNiI

Bernanke Makes Case for More Bond Buying
By Caroline Salas Gage and Craig Torres - Bloomberg
Ben S. Bernanke laid the groundwork for a third round of large-scale asset purchases should unemployment remain higher than the Federal Reserve would like while inflation falls below a newly-established target.
http://jlne.ws/ziEvk1

Portuguese bonds hit as traders fear default
By David Oakley and Peter Wise - Financial Times
Friday the 13th may be an unlucky omen for Portugal. On that day, almost two weeks ago, Standard & Poor’s became the last rating agency to downgrade Lisbon to junk, marking the moment for many investors when default looked inevitable for Portugal as well as Greece.
http://jlne.ws/xCr3Nw

Miscellaneous News

Tin Gains as Prospect of Low Fed Rates Boosts Speculation of Higher Demand
By Agnieszka Troszkiewicz - Bloomberg
Tin climbed the most in almost four months in London as prospects of low U.S. interest rates at least until 2014 boosted speculation of increased demand for the metal used in mobile phones, plasma screens and cars.
http://jlne.ws/wT5nzs

Physicals & Company News

CME Clearing Aims to Compete in Europe as Trading Volume Expands, CEO Says
By Nandini Sukumar - Bloomberg
CME Group Inc. (CME)’s European clearinghouse this month processed more than half the volume of last year’s trades, as it steps up competition in the region.
http://jlne.ws/A2Divi

Polyus, Polymetal Owners Said to Weigh Russian Gold Merger
By Yuliya Fedorinova and Ilya Khrennikov - Bloomberg
The billionaire owners of Polyus Gold International Ltd. and Polymetal International Plc (POLY) are considering merging the Russian gold miners as Polyus seeks a primary listing in London, two people with knowledge of the matter said.
http://jlne.ws/whL7S4

Lundin Mining Is Looking 'Off Beaten Path' for Acquisition
BusinessWeek
Lundin Mining Corp., the Canadian copper and zinc producer that was the target of two aborted takeovers last year, is looking to make an acquisition in 2012 valued at as much as $500 million.
http://jlne.ws/wCNHG5

Anaconda Mining Appoints New Chief Financial Officer
CNW Group via Yahoo! Finance
Anaconda Mining Appoints New Chief Financial Officer
http://jlne.ws/xMzdeH

January 25, 2012 - Gold Futures, ETFs Tell Different Tales; India Gold Importers Defer Orders; Commitment to accuracy of CFTC data in doubt

2012-01-25T17:26:00.001-06:00

Yesterday's top stories were "Protesters In Chicago Leave CME Group Chairman A Golden Toilet" from the Business Insider, followed by "Gold Tells Tale Of Aussie Banks" by Geoffrey Rogow from the Wall Street Journal, and "Interview: Want A Read On Emerging Market Gold? Follow the Japanese—Frank Holmes" by Daniela Cambone from Kitco News.

Quote of the Day:

"There's a few things in the months ahead that could be supportive for gold prices. We note that despite all the crisis engulfing Europe last year, it is a U.S. fiscal mini-crisis over the budget ceiling that virtually gave the biggest boost to gold prices. So if you're looking for potential upside in gold and other precious metals this year, you probably need to look to the U.S."

~ Nic Brown, head of commodities research at Natixis from "Gold falls for a second day ahead of Fed"

Observations - Statistics - Commentary

Gold Futures, ETFs Tell Different Tales
By David Cottle - WSJ
As ever, crisis years have been good ones for gold. Back before credit crunched, the metal was looked at as a rather risible relic and priced accordingly. In 2005, it was in the doldrums at $400 or so per ounce. But things have changed. Those paper assets everyone was so fond of are toxic objects of suspicion now, in a world where even the bedrock of triple-A credit ratings has shifted. And gold is up at $1600.
http://jlne.ws/wHRS7T

India Gold Importers Defer Orders After Tax Changes
By BIMAN MUKHERJI And DEBIPRASAD NAYAK - WSJ
Gold importers in India are postponing purchases following the government's decision last week to impose import tax at 2% of the value of the bullion, instead of the previous practice of a flat rate on the weight, industry executives said Wednesday.
http://jlne.ws/AhkRrv

Commitment to accuracy of CFTC data in doubt
By Gregory Meyer - Financial Times
As a tool for divining commodity markets, Commitments of Traders reports lie somewhere between hard statistics and reading chicken entrails. The weekly reports from the US Commodity Futures Trading Commission identify long, short and spread positions held by different types of trader.
http://jlne.ws/xxXTTq

JLN Metals Scorecard	1/24/2012

NYSE LIFFE US Total Volume	92,273

100 oz. Gold Futures Volumes
NYSE LIFFE US	158
CME/NYMEX (Globex + PNT)	173,355
CME/NYMEX Open Auction	8,779
NYSE LIFFE market share	0.09%
NYSE LIFFE US Electronic market share	0.09%

100 oz. Gold Futures Open Interest
CME/NYMEX	427,032
NYSE LIFFE US	1683
NYSE LIFFE US market share	0.39%

Mini Gold Volume
NYSE LIFFE US	4,386
CME E-micro Gold (10 Troy oz)	1,645
CME/NYMEX miNY	3,550
NYSE Liffe market share (Contracts)	45.78%
NYSE Liffe market share (Notional)	42.88%

5,000 oz. Silver Futures Volume
NYSE LIFFE US	0
CME/NYMEX	30,643
NYSE LIFFE US market share	0.00%

Mini Silver Volume
NYSE LIFFE US	2,702
CME/NYMEX miNY	57
CME/NYMEX E-mini	0
NYSE LIFFE US market share	97.93%

Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)	5
TOCOM Gold Futures* (1 kg / 32.15 ounces)	38,076
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)	12,106
TOCOM Silver Futures* (10 kg / 321.51 ounces)	470
MCX India* (1 kg / 32.15 ounces)	30,344
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg)	907
*Today's date

METAL ETFS	METAL ETFS
ProShares Ultra Silver	242,285
Powershares DB Base Metals Fund	47,987
Market Vectors Gold Miners GG	2,217,148
MARKET VECTORS JUNIOR	525,399
ProShares UltraShort Gold	103,516
ETFS Precious Metals Baskets Trust	1,023
iShares COMEX Gold Trust	234,917
iShares Silver Trust (ETF) historical prices	2,014,750
ETFS PHSYICAL PALLADIUM SHARES	47,162
ETFS PHYSICAL PLATINUM SHARES	29,857
ETFS GOLD TRUST	12,362
ETFS SILVER TRUST	46,898
Market Vectors Steel	42,915
ProShares Ultra Gold	32,933
ProShares UltraShort Silver	828,961
SPDR Gold Trust	1,857,089

Lead Stories

The IMF's latest forecast: Perverse austerity
The Economist
The International Monetary Fund sharply lowered its global economic outlook today and warned that an intensified euro crisis could tip the world back into recession. Its latest forecast is for the world to grow 3.3% this year and the advanced countries 1.2%, sharply lower than it saw just four months ago. Those numbers, it warns, are predicated on a comprehensive solution to Europe’s crisis.
http://jlne.ws/wjRouu

Walter Energy Buyers Seen as BHP-ArcelorMittal Converge on Cheap: Real M&A
By Tara Lachapelle - Bloomberg
Walter Energy Inc. (WLT) may finally lure buyers willing to bet on a recovery in coal prices with the industry’s cheapest stock. After losing almost half its value in the past year, the producer of steelmaking coal sold for 9.3 times earnings this week, according to data compiled by Bloomberg.
http://jlne.ws/xCs4p3

Kazakhstan, Mongolia Increased Bullion Reserves in December, IMF Data Show
By Nicholas Larkin - Bloomberg
Kazakhstan and Mongolia added to their gold reserves in December as the precious metal advanced for an 11th consecutive year, according to the International Monetary Fund.
http://jlne.ws/xSHqbP

Behold the most valuable gold vault in the world
Commodity Online
Much has been said about the secretive vault situated 80 feet below ground level at 33 Liberty street, which contains over 20% of the world's Gold (allegedly*), currently estimated at over $350 billion.
http://jlne.ws/yqQtzV

Gold falls for a second day ahead of Fed
By Amanda Cooper - Reuters
Gold eased for a second day on Wednesday, ahead of the U.S. Federal Reserve's monetary policy decision and its first longer-term policy forecasts, and under pressure from the dollar's strength against the euro.
http://jlne.ws/yYH3Dq

Futures & ETF News

Measuring the Impact of Gold ETFs
By John Spence - ETF Trends
Bullion holdings of gold exchange traded funds are sometimes used to gauge the demand and sentiment for the precious metal. However, the relationship between ETF holdings and the price of gold isn’t clear-cut and may not be a reliable indicator for short-term moves, according to Wall Street analysts.
http://jlne.ws/wWgquT

Gold ETFs Battle Technical Resistance; All Eyes on Fed Decision
By Tom Lydon - ETF Trends
Gold exchange traded funds were lower before Wednesday’s announcement from the Federal Reserve on interest rates and the economy. Precious metal ETFs could see a volatile session as Fed chief Ben Bernanke also holds a press conference following the central bank’s announcement.
http://jlne.ws/zPlvkh

The 10 Most Profitable ETFs In The World
By Jared Cummans - Yahoo! Finance
The ETF industry has long been known for the many advantages that it offers over competing mutual funds and other investment vehicles. One of the most significant upsides that exchange traded products have is their relatively low expenses; investors can gain exposure to asset classes of all kinds for a reasonable price.
http://jlne.ws/yxITuV

Investments

Gold Proving Safest Commodity as Goldman Forecasts Record: Riskless Return
By Debarati Roy - Bloomberg
Gold provided the best returns of all commodities in the past five years when adjusted for volatility, and Goldman Sachs Group Inc. says the rally will continue as options traders signal no change in the metal’s relatively low risk.
http://jlne.ws/x1uzMX

Copper and tin top picks among base metals in Q2: Sucden
Platts News
Sucden Financial maintained a 'neutral to bearish' outlook for most base metals, with copper and tin the notable exceptions, in its Quarterly Metals Report issued Wednesday.
http://jlne.ws/ylPwb5

Production News

Rio Tinto Boss Says Doing Business in the U.S. Is Hard
By Andrea Hotter - WSJ
It’s all very well the U.S. President saying his administration wants to create more jobs, and quite another doing it. So says the chief executive of global diversified miner Rio Tinto PLC, who says his firm is constantly stymied from doing business in the U.S. due to a series of bureaucratic obstacles.
http://jlne.ws/z2PwZM

Reports, Macroeconomics & Inflation

Greece Debt Exchange Would Be a Default, S&P's Chambers Says
BusinessWeek
Greece is likely to default in the first half of this year, an event that's poised to leave the country with a "very high" debt burden, according to John Chambers of Standard & Poor's .
http://jlne.ws/AAj978

Can Europe stomach Greek default? Depends on flavor
Reuters via Yahoo! News
LONDON (Reuters) - The euro zone is inching closer to breaking its long-held taboo against a Greek default, but can still escape financial market mayhem and a body blow to the euro. It all comes down to whether the default is controlled or chaotic. Officials have been talking to private bondholders for nearly seven months to get them to share the burden of a second international bailout of...
http://jlne.ws/wLeRFR

ECB Said to Oppose Losses on Its Greek Debt
Bloomberg
The European Central Bank remains firmly opposed to any restructuring of its Greek bond holdings as the debt was acquired for monetary policy purposes, according to two people familiar with the Governing Council's stance.
http://jlne.ws/wZydb5

Greece Private-Sector Creditors Meet in Paris
By GRÁINNE MCCARTHY - WSJ
Greece's private-sector creditors are meeting in Paris Wednesday in a bid to "determine the next course ahead" in talks to help ease the ailing country's debt burden, according to a person familiar with the matter.
http://jlne.ws/y7a17y

Banks prepare for hefty take-up of 3-year ECB cash
By Marius Zaharia - Reuters
Shifts in demand at European Central Bank cash tenders this week are pointing towards a large take-up of three-year loans by euro zone banks in February, strengthening the case for lower short-term interest rates in the near term.
http://jlne.ws/xYmNlK

World Bank Will Boost Lending To CEE Countries Affected By Euro Zone Crisis
Nasdaq
World Bank Will Boost Lending To CEE Countries Affected By Euro Zone Crisis
http://jlne.ws/zdEO0N

Denmark's AAA to Survive Record Private Debt, Fitch, S&P Say
BusinessWeek
Denmark, home to the world's biggest household debt burden, won't lose its top credit rating any time soon as stable public finances and a current account surplus offset the risks, Fitch Ratings and Standard & Poor's said.
http://jlne.ws/wf88aG

Miscellaneous News

Illinois AG sues S&P over ratings fraud
By William Spain - MarketWatch
Illinois Attorney General Lisa Madigan on Wednesday sued Standard & Poor's for what she alleges is its "fraudulent role" in giving high ratings to the mortgage-backed investments that ultimately contributed to the financial crash.
http://jlne.ws/yLlDdH

Physicals & Company News

Heard on the Street: Small Miners Must Dig Deep in Australia
By CYNTHIA KOONS - WSJ
For Australia's smaller miners, how much they extract from the earth this year depends on how much they can extract from their banks. Unfortunately, sources of funding are getting tighter.
http://jlne.ws/ySvlcz

Polish Treasury, KGHM CEO Appear Divided Over How to Spend Cash
By Marynia Kruk - WSJ
The rift between Poland’s new Treasury minister and the chief executive of Polish copper-mining company KGHM Polska Miedz SA, in which the ministry holds a controlling stake, appeared to widen Tuesday.
http://jlne.ws/xZjK2Z

Tata Steel Plan Could Hit 200 European Jobs
By ALEX MACDONALD - WSJ
In light of weak European demand for its tube products, India-based Tata Steel Ltd. proposed Wednesday a recovery plan for its tubes business that may result in 200 job losses at four sites in the U.K. and the Netherlands.
http://jlne.ws/zpAksw

Greed and Fear Exert Their Pull on Mining Stocks
By Andrea Hotter - WSJ
Investors are starting to adopt a more positive attitude towards mining stocks, ending a period in which miners saw their valuations slide, the chief executive of Rio Tinto PLC said Wednesday.
http://jlne.ws/zImItB

Alcoa Expanding Aluminum Lithium Capabilities to Meet Growing Aerospace Demand for Its Industry-Leading Alloys
Business Wire via Yahoo! Finance
Alcoa today announced it is expanding its aluminum lithium capacity and capabilities at three locations around the world to meet growing demand in the aerospace market for its newest alloys.
http://jlne.ws/xCNMGA

January 24, 2012 - Want A Read On EM Gold?; Inflation Nudging Chinese To Buy More Gold; Speculators Buying Metals Futures, Options Again

2012-01-24T15:36:00.001-06:00

Yesterday's top stories were "Gold Tells Tale Of Aussie Banks" by Geoffrey Rogow from The Wall Street Journal, followed by "London Metal Exchange begins trading of nonferrous metals swaps" from Platts News, and "London Metal Exchange May Add More Industrial Metal Swaps" by Agnieszka Troszkiewicz from Bloomberg.

Quote of the Day:

"Since U.S. dollar foreign exchange holdings are already at record levels in many countries, we believe these nations will seek to increase gold reserves, in a bid to diversify their USD-laden reserves... While we do not expect official sector activity to move the market near term, we regard central bank purchases as a bulwark of the long-run gold rally."

~ James Steel, HSBC analyst from "Gold loses grip on six-week highs as euro falls"

Observations - Statistics - Commentary

Interview: Want A Read On Emerging Market Gold? Follow the Japanese—Frank Holmes
By Daniela Cambone - Kitco News
China and other emerging markets still have a love for gold but investors should “follow the Japanese” to get a good read on the buying and selling from those markets, according to an executive whose company invests extensively in precious metals.
http://jlne.ws/xCycKS

Interview: Inflation May Be Nudging Chinese To Buying More Gold—Gordon Chang
By Daniela Cambone - Kitco News
Surging Chinese gold imports reflect increased wealth but it also may be the result of consumer fears that inflation is higher than the government admits, according to an author who contends there are dark days ahead for the country.
http://jlne.ws/xrtmbm

Speculators Start Buying Metals Futures, Options Again - CFTC
By Debbie Carlson - Kitco News
A price rebound for metals across the board encouraged speculators to start to rebuild bullish positions in both precious and base metals futures and options, according to U.S. government data released Friday.
http://jlne.ws/Aw1wQb

JLN Metals Scorecard	1/23/2012

NYSE LIFFE US Total Volume	106,658

100 oz. Gold Futures Volumes
NYSE LIFFE US	80
CME/NYMEX (Globex + PNT)	154,670
CME/NYMEX Open Auction	3,034
NYSE LIFFE market share	0.05%
NYSE LIFFE US Electronic market share	0.05%

100 oz. Gold Futures Open Interest
CME/NYMEX	436,642
NYSE LIFFE US	1683
NYSE LIFFE US market share	0.38%

Mini Gold Volume
NYSE LIFFE US	4,684
CME E-micro Gold (10 Troy oz)	1,199
CME/NYMEX miNY	319
NYSE Liffe market share (Contracts)	75.52%
NYSE Liffe market share (Notional)	84.77%

5,000 oz. Silver Futures Volume
NYSE LIFFE US	2
CME/NYMEX	44,108
NYSE LIFFE US market share	0.00%

Mini Silver Volume
NYSE LIFFE US	3,354
CME/NYMEX miNY	144
CME/NYMEX E-mini	0
NYSE LIFFE US market share	95.88%

Additional Metal Futures Volume statistics
EUREX Gold Futures (100 troy ounces)	5
TOCOM Gold Futures* (1 kg / 32.15 ounces)	35,902
TOCOM Mini Gold Futures* (100 grams / 3.215 ounces)	10,013
TOCOM Silver Futures* (10 kg / 321.51 ounces)	479
MCX India* (1 kg / 32.15 ounces)	33,663
Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg)	1,249
*Today's date

METAL ETFS	METAL ETFS
ProShares Ultra Silver	433,239
Powershares DB Base Metals Fund	106,744
Market Vectors Gold Miners GG	2,563,418
MARKET VECTORS JUNIOR	827,033
ProShares UltraShort Gold	65,452
ETFS Precious Metals Baskets Trust	600
iShares COMEX Gold Trust	192,508
iShares Silver Trust (ETF) historical prices	3,820,789
ETFS PHSYICAL PALLADIUM SHARES	9,527
ETFS PHYSICAL PLATINUM SHARES	18,121
ETFS GOLD TRUST	12,931
ETFS SILVER TRUST	60,474
Market Vectors Steel	13,581
ProShares Ultra Gold	42,034
ProShares UltraShort Silver	722,431
SPDR Gold Trust	2,313,710

Lead Stories

Hope for Gold, Silver Springs Eternal at Sprott
By Steve Eder - WSJ
Eric Sprott would just assume forget 2011. The Toronto-based investor saw his hedge funds lose 22% amid misfiring on big bets on gold and silver.
http://jlne.ws/wrJA67

Interview: Inflation May Be Nudging Chinese To Buying More Gold—Gordon Chang
By Daniela Cambone - Kitco News
Surging Chinese gold imports reflect increased wealth but it also may be the result of consumer fears that inflation is higher than the government admits, according to an author who contends there are dark days ahead for the country.
http://jlne.ws/xrtmbm

LME to hold meeting over fee hike backlash
Reuters
The London Metal Exchange will hold a meeting in two weeks to discuss a recent board decision to raise trading fees that sparked a backlash from some members at the time it was announced.
http://jlne.ws/y2D8W6

Protesters In Chicago Leave CME Group Chairman A Golden Toilet
Business Insider
Protesters in Chicago marched on the headquarters of the CME Group this morning in an attempt to give the chairman his very own throne -- a golden toilet, the Chicago Tribune reported.
http://jlne.ws/we2Qyp

No Policy Changes Expected From FOMC; Market To Focus On Communications Policy
By Allen Sykora - Kitco News
Market participants will scrutinize a new Federal Open Market Committee reporting format Wednesday for any new signs on how long it could be before voting members undertake any monetary-policy changes.
http://jlne.ws/wgr4rX

IMF bearish on prices of raw materials
By Emiko Terazono and Javier Blas - Financial Times
The International Monetary Fund has warned of “downside” price risks for non-oil commodities as global demand growth slows and supply conditions improve.
http://jlne.ws/zfgekG

Indonesia`s tin market beyond price control
Mineweb
A look at the world's top exporter of tin, Indonesia, in the wake of its self-imposed tin ingot export ban last year - an attempt to boost declining benchmark prices and profits.
http://jlne.ws/ztHo0b

Industrial metals prices rise on weaker dollar
Associated Press via Yahoo! Finance
Industrial metal prices rose Monday as a weaker dollar makes the raw materials more expensive.The U.S. dollar fell versus the euro Monday. That makes metals like copper and platinum more expensive because...
http://jlne.ws/yMWSq7

Gold traders welcome Chinese new year celebrations
Mineweb
The week-long celebrations in China to usher in the year of the dragon is set to boost demand for gold and traders say 2012 looks set to be another good year for the metal.
http://jlne.ws/ArMIpC

Gold loses grip on six-week highs as euro falls
By Amanda Cooper - Reuters
Gold eased on Tuesday after the euro fell following the breakdown of talks over the restructuring of Greece's debt, but the bullion price was still in sight of six-week highs and set for its strongest monthly gain since August.
http://jlne.ws/xmVrWU

Futures & ETF News

Gold back in favor, although the motives are complex (GLD)
Nasdaq
The shiny metal once again has been on a steady climb higher in face of improving U.S. economic data and the Federal Reserve's pledge to keep borrowing costs exceptionally low through
http://jlne.ws/xLX8vb

Investments

Sprott sees gloomy year ahead, but not for gold
By Svea Herbst-Bayliss - Reuters
Hedge fund manager Eric Sprott has just one word of advice for private investors in 2012: gold. The Toronto-based money manager, whose $9 billion Sprott Asset Management has made a mint for investors due to large and successful bets on metals, told an investor conference on Tuesday that everyone should make room for the shiny metal in their portfolios.
http://jlne.ws/zeWEOu

Silver prices forecast to rise sharply this year, but not to hit new highs - LBMA
Mineweb
The annual LBMA precious metals forecasts from a number of professional analysts are looking at a very volatile year for silver with a very big range between projected high and low.
http://jlne.ws/wlmFBe

Production News

Automotive Steel Gets Lighter, Pliable
By JOHN W. MILLER - WSJ
To understand what the steel industry is up against in dominating the car market, consider seven cubes displayed by German auto-parts giant ZF Friedrichshafen AG at the Detroit auto show, which ended Sunday. Each cube represented a prominent material now used to make car parts, a $1 billion market and one that steelmakers have prevailed in since the Model T.
http://jlne.ws/zToxIQ

Reports, Macroeconomics & Inflation

IMF Cuts Global Growth Estimates
By IAN TALLEY - WSJ
The global economy is slowing this year, the International Monetary Fund said Tuesday, cutting its forecasts for growth and warning of a deeper downturn if Europe doesn't take stronger action to stem its debt crisis.
http://jlne.ws/A6b6lj

The euro crisis returns: Salve Italia
The Economist
Sadly, the lull proved but brief. The first two weeks of the year were surprisingly calm for the storm-tossed euro zone. But a gale is blowing again. First a series of downgrades from Standard & Poor’s, a leading debt-rating agency, coincided with a stand-off in the “voluntary” restructuring talks between Greece and its private bondholders. Now there are signs of a continent-wide recession. The euro crisis is back.
http://jlne.ws/y1MTL9

IIF’s Dallara ‘Hopeful’ of Finding Common Ground on Greece
By Elisa Martinuzzi and Liam Vaughan - Bloomberg
Charles Dallara, managing director of the Institute of International Finance, said he’s hopeful of finding “common ground” on a Greek debt swap as European finance ministers pushed for greater concessions from the country’s private creditors.
http://jlne.ws/zfV3un

ECB under pressure to take a hit
By Ralph Atkins - Financial Times
These are uncomfortable days for owners of Greece’s government bonds. For the European Central Bank, the country’s largest bond holder, they are especially so.
http://jlne.ws/ztOqLu

Investors nervously await Fed rates forecasts
By Michael Mackenzie and Robin Harding - Financial Times
Federal Reserve policymakers are set to publish their first forecasts of future interest rates on Wednesday, but investors are nervous that such clarity may put pressure on the bond market and send yields higher.
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Physicals & Company News

Australian shares gain with miners rising
Market Watch
Australian shares gain, with resource-linked firms boosted by an overnight advance in many commodity prices.
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Pan American Silver to Buy Minefinders for $1.49 Billion
BusinessWeek
Pan American Silver Corp., a miner of the metal in Latin America, agreed to buy Minefinders Corp. for about C$1.5 billion ($1.49 billion) in cash and stock to expand production and add reserves in Mexico.
http://jlne.ws/wG9E6n

Australia's WPG re-enters iron ore sector with Giffen Well JV
Platts News
Australia's WPG Resources has re-entered the iron ore market in South Australia after withdrawing from the sector in October 2011 when it sold its iron ore assets to OneSteel, the company said in a statement on Tuesday.
http://jlne.ws/A6mePz