Gold Rises in New York, London as Weaker Dollar Boosts Demand

By Nicholas Larkin

June 2 (Bloomberg) -- Gold rose in New York and London as a decline by the dollar increased the metal’s appeal as an alternative investment. Silver also advanced.

The U.S. Dollar Index, a gauge of the currency’s value versus six counterparts, fell as much as 0.8 percent to the lowest since Dec. 18. Gold, which typically gains when the dollar weakens, touched a 14-week peak before closing yesterday and silver reached its highest in almost 10 months.

Investors continue “to track moves in the dollar, the key factor driving gold,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a note. “As optimism grows that the worst of the economic downturn is over,” the correlation between gold and the dollar has returned, he said.

Gold futures for August delivery rose $1.90, or 0.2 percent, to $981.90 an ounce on the New York Mercantile Exchange’s Comex division at 8:43 a.m. local time. The contract earlier fell as much as 1 percent. Bullion for immediate delivery in London gained $5.16, or 0.5 percent, to $980.43.

The metal slipped to $973.50 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $981.75 at yesterday’s afternoon fixing. Gold briefly traded above $1,000 in the U.K. capital on Feb. 20, the first time the metal had breached that price since March 2008, when it climbed to a record $1,032.70.

“The week is likely to be dominated by further developments on the currency market, with the rally possibly slowing down if the dollar holds above 79-78.5” as tracked by the index, Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a note. The index fell as low as 78.524 today.

Gold Trust

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose to a record 1,134.03 metric tons yesterday, the company’s Web site showed. That’s the first gain since May 22.

“One day of decent flows is not enough to change our minds on the near-term outlook for gold,” John Reade, UBS AG’s head metals strategist in London, said in a report. “We are seeing no strong physical gold investment, and we hold our one-month forecast for gold at $950 an ounce.”
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buy Gold stock up in food and ammunition what's coming smells rotten

The International Forecaster, Bob Chapman, warns about the coming collapse and that Gold is to Stand Against Big Hyperinflation that seems unavoidable at this point , especially with the FED's printing presses turning at full speed .

"What we are about to tell you may be the most important information that we have imparted in almost 50 years. something very bad is looming – we don’t know the exact configuration yet, but we think the key is the collapse of the dollar, which will send gold and silver to considerably higher prices. These events could unfold over the next 2 to 4 months. There could be devaluation and default of the US dollar and American debt. You must have at least a 6-month supply of freeze dried and dehydrated foods, a water filer for brackish water, and assault weapons with plenty of ammo and clips. You should put as much of your wealth as you can in gold and silver coins and shares. You should not own any stocks in the stock market except gold and silver shares…"

Mr. Chapman has been warning of the coming collapse since as early as 2000, he always recommended buying precious metals as hedges against hyperinflation.he foresaw the Real Estate market collapse . He is now issuing dire warnings of an imminent collapse of the US Dollar, US Treasury bonds and global stock markets.
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Debt Negotiators May Give Little Relief to Consumers

By Jamie McGee

May 29 (Bloomberg) -- Ulish Hopkins, a former bus- dispatcher from Chicago, turned to a debt-settlement company last year after piling up about $30,000 in credit-card bills. Seven months later, he owed close to $40,000.

Hopkins says the company told him it could reduce his bills by about 50 percent through negotiations with lenders. He was told to stop paying creditors and to put monthly payments in an escrow account, which the firm used to cover its fees. Instead of reducing his bills, interest and late fees raised his indebtedness and damaged his credit score.

“They never told me that the money I was paying wasn’t going to my debt, it was going to them,” said Hopkins, 59, who quit work in January 2008 after a brain tumor led to surgery. He now receives $1,539 a month in disability checks. “You are better on your own.”

Credit-card delinquencies are at record highs, according to Fitch Ratings, and the U.S. unemployment rate of 8.9 percent is the highest since 1983. As more consumers fall behind on bills, settlement companies often end up adding to the debt burden rather than offering a cost-saving solution, said Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling in Silver Spring, Maryland.

“There has been significant growth in the debt-settlement industry based on the economic decline,” Cunningham said. “People are financially distressed and when that happens, the unscrupulous among us seem to come out in droves.”

Sued for Fraud

Wesley Young, legislative director of the Association of Settlement Companies, a Madison, Wisconsin-based lobbying group, said there are probably more than 500,000 customers of as many as 1,000 debt-settlement companies. The association, which includes about 30 percent of the industry, requires members to disclose payment plans and credit-score risks upfront, he said.

New York Attorney General Andrew Cuomo has begun a national investigation of settlement companies, and has sued two for fraud and false advertising. Illinois Attorney General Lisa Madigan has also filed two lawsuits against debt-settlement companies, alleging they “engage in deceptive marketing practices” and “do little or nothing to improve consumers’ financial standings.” Texas Attorney General Greg Abbott sued a debt settlement company in March, saying it engaged in “deceptive and misleading acts,” according to court documents.
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