Investment/Trends

Diamonds, Advertising, DeBeers and Sex

"Starting in 1935 in Indiana, U.S. states started altering their laws to abolish the action for breach of promise. Women responded, by Brinig's account, by requiring a down payment from their fiancees in the form of an expensive ring—which forfeited if the fiancee terminated the engagement. Think of it as a performance bond. Brinig looked at data on diamond imports and concluded that the demand for diamonds started to rise about 1935, four years before the Ayer marketing campaign that is usually given credit for creating the demand for engagement rings. The evidence also suggested that the custom began declining once premarital sex became widely accepted." Continue reading →

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Moody’s considers downgrading top US banks

"Moody's has warned that it could cut the credit ratings of the six biggest US banks, saying the federal government may be less likely to bail them out if they got into trouble in the future. Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo could be downgraded, the rating agency said on Thursday. The review by the second-largest rating agency in terms of market share follows a similar statement from rival Standard & Poor's in June, and comes as governments are reshaping the regulation of banking and trying to prevent a repeat of the bailouts of the credit crisis era. Lower credit ratings could raise the cost of capital for bank holding companies." Continue reading →

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Gold’s rebound: Why it’s believable this time

"Kelly Teoh, market strategist at IG Markets who believes the upside in gold has legs, said investors are moving into the precious metal because Asian currencies are under tremendous pressure. 'If you look at all the various asset classes, the U.S. equities are at all-time highs, Asian ex-Japan equities are lagging, commodities is the only asset class that's underperformed so I see value in that,' she added. Barclays' chief technical strategist Dhiren Sarin says gold has either already formed, or is in the process, of establishing a 'very strong base.'" Continue reading →

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Swap your gold shares for coins, ETF firm offers

"Exchange traded funds have mushroomed in recent years as a highly popular way for private investors to own gold. Real holdings of gold, stored in bank vaults, are represented by shares which trade daily on the London Stock Exchange. This makes it possible for investors to buy and sell cheaply – and in relatively small quantities. Investors can choose to receive Britannias or Sovereigns, at a cost of 4.5pc per transaction. Britannias are made from one troy ounce and minted from 22 carat gold, while Sovereigns weigh just under a quarter a troy ounce. There is no tax to pay on the switch, ETFS says." Continue reading →

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Argentina Just Lost Huge To A Bunch Of Hedge Fund Creditors

"For years the country has been trying to avoid paying a bunch of 'vulture' hedge fund managers that refused to take a 70% haircut on Argentine bonds like every other investor. This has resulted in some wacky news items — Paul Singer getting the government of Ghana to impound an Argentine naval ship last October, President Cristina Fernandez de Kirchner flying commercial to see the Pope so her jet isn't taken — you get the idea. Now it's (almost) come to a head. A New York Judge fully rejected Argentina's appeal of a decision made last year — a decision that would've had it pay Singer and company in full." Continue reading →

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Brazilian Central Bank Launches Intervention Program To Stop The Bleeding

"The new intervention program announced by the BCB Thursday sees the central bank offering $500 million of dollar swaps in the currency derivatives market on a daily basis for the rest of 2013, and $1 billion of FX spot lines on Fridays. Essentially, the BCB is taking a big short position in the U.S. dollar. The BCB is conducting the majority of the real-bolstering intervention in the derivatives market as opposed to the spot market because under the latter scenario, the central bank has to burn through the U.S. dollar component of its foreign reserves in order to prop up the currency, whereas with swaps, foreign reserves don't come into play." Continue reading →

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125 shopping days left: Retailers start Xmas deals

"Even before the school bells are ringing for many families, retailers are sounding sleigh bells. Yes, that's right. With 120-plus shopping days left, stores are already talking up their holiday offers. You might not be feeling the time pressure yet, but retailers are. Success in the fourth quarter is often key to annual performance, and in tough economic times the competition for customer dollars is fierce, said Dave Cheatham, managing principal of Velocity Retail Group. 'Retailers are determined not to be left on the sidelines,' he said. 'They're reinventing the rules on how to do holiday shopping.'" Continue reading →

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Tradehill Bitcoin Accounts Moving to Internet Archive Credit Union

"Tradehill Inc., an exchange for virtual currencies such as Bitcoin, is moving customer accounts to a U.S. credit union, a shift designed to make it easier for clients to complete transactions. Holdings with Tradehill will be transitioned to federally-insured accounts at the Internet Archive Federal Credit Union, according to an e-mail to clients obtained by Bloomberg News. Tradehill is moving accounts to the credit union to win more business from investors and financial institutions that trade in Bitcoins, according to a person with knowledge of the matter, who asked not to be identified because the plans aren’t public." Continue reading →

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The Chart of the Century

"In the late 1970s, when did we see the critical tipping point that marked the beginning of the surge? It was after three things happened: First, we witnessed two periods of real interest rates below zero (same as recent years) … Second, we experienced an initial collapse in bond markets that began to drive yields higher (same as now) … Third, we saw a cross-over into the black, as interest rates rose above the inflation rate (same as just happened earlier this year). And THAT’s when interest rates went through the roof, carrying the U.S. Treasury-bond yield to 13% and the Treasury-bill rate to 17%." Continue reading →

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Alydian targets big ticket miners with Terahash hosting

"In a little under a week, serious miners will be able to host Terahashes of ASIC mining power from Alydian – but only in large quantities. The Californian company is preparing to host ASIC mining equipment for its customers, using yearly contracts. Its launch day pricing was $65,000 per Terahash, and mining hosting contracts are only available in 5 and 10 Th/sec blocks. So, if you’re thinking of running a miner in your basement, you are not its target market. Alydian will be going after institutional-level investors that want to move large amounts of money into bitcoins. The question is, how is it getting the capacity so early, and what will it mean for everyone else?" Continue reading →

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