We like gold here at The Old Hat Factory. We keep a little jar of gold flakes on our desk. Mainly, we like it because it keeps pace with inflation. It’s a good long-term way to not lose money. Isn’t that the aim of investing? Maintaining wealth? Keeping your nest-egg from becoming a poverty omelette? Well, gold has meant ‘wealth’ for ages. Before the economic revolution in the 18th Century, the two ideas were inseparable.
September 5th, 2008 | Al Robinson | 0 comments | ContinuedArchive for Al Robinson
Born & bred in the very heart of the Victorian gold fields, Allan Robinson was born with gold in his blood. A specialist in Australian mining & resource stocks, Al pens the Australian resource investing publication Diggers & Drillers. He is also a contributing editor to the Australian small cap newsletter The Australian Small Cap Investigator. Al graduated from The Univeristy of Melbourne with a specialisation in finance.
Reserve Bank’s First Interest Rate Cut in Seven Years
If you witnessed complete strangers linking arms and breaking into song in the street this morning, it was either a long-lost chorus line or a collection of relieved homeowners. Yesterday the Reserve Bank cut base interest rates for the first time in seven years. If you’re an average Australian, you’re now $44 better off each month. Or $528 each year…
September 3rd, 2008 | Al Robinson | 1 comment | Continued
Energy Prices Are Going Higher
With a crook laptop and an hour to go before we fly to Baltimore via San Francisco, your editor has plugged a few coins into an Internet kiosk at the airport to see what in the world is going on…
September 1st, 2008 | Al Robinson | 0 comments | Continued
China’s Economy Could Experience a Post-Olympics slump
Your Most Honourable Chief Reckoner Dan Denning mentioned the possibility of a post-Olympics slump in China’s economy recently. Something similar to Sydney. A slow-down in the economy as all the tourists and competitors head home, taking their spending money with them. Best of luck to any athletes travelling Qantas. The swimmers should be fine.
August 26th, 2008 | Al Robinson | 1 comment | Continued
National Australia Bank Hasn’t Hit Bottom Yet
National Australia Bank (ASX: NAB) CEO John Stewart set aside a provision of $820 million for credit risk on Friday July 25, 2008. This indicates there may be more subprime losses to come. Stewart commented, “This is the bottom for us for housing in the U.S. because we are now cleared out.” That’s quite a statement. Especially seeing as Stewart considers the US to be less than half-way through this crisis. Total losses equal US$450 million.
July 28th, 2008 | Al Robinson | 3 comments | Continued
Crude Oil vs The All Ordinaries… Who Will Win?
The All Ordinaries has fallen in much the same way as crude oil has risen. But since oil corrected, the bounce in shares hasn’t taken off yet. There are a couple of reasons that might be the case. The oil price might not be the cause of share price movements. Or a bounce in shares might be ahead. We think it’s somewhere in between. Crude oil certainly isn’t the only cause of the downward slope in the All Ordinaries this year. Worries about inflation and earnings are right up there.
July 24th, 2008 | Al Robinson | 0 comments | Continued
June Producer Price Index Indicates Slower Inflation in Australia
The June Quarterly Producer Price Index is in. Producer inflation was lower than expected. That doesn’t mean prices have fallen, but that they grew at a slower rate. So here’s three cheers for making stuff. Officially, producer prices rose 1.0% in the June quarter. Hmmm. Here’s 3.03 cheers for making stuff. But it’s still a good result for the manufacturing sector. Commsec, for example, was predicting growth of 2.0%.
July 22nd, 2008 | Al Robinson | 2 comments | Continued
Gas Giants Invest AU$16.7b in Coal-Seam Gas
Five energy companies made year-highs on your Money Morning sidebar today. We realised with a start that they’re all coal companies. Yep. They all have a little coal property to call their own. The new Australian dream, perhaps. Not just coal though…coal seam gas. Black rock is the new black. Rock on. We emailed our full wrap-up of the sector to our beloved Diggers and Drillers fraternity a couple of days ago. But the big-wig of the sector is Santos (ASX:STO).
May 30th, 2008 | Al Robinson | 0 comments | Continued
Coal Delays at Dalrymple Lead to a Longer Boom
There’s nothing better than baring your icy feet to the warm jet of a fan-powered heater. So we were delighted when our boss walked in this morning with a spare fan-powered heater. She asked if anyone had cold feet. Our hand shot up. Our legs shot out. Our shoes flew off. Fate took its course. Apart from our new found foot-warmth, something else is giving us a warm glow today. The coal boom isn’t over yet. You haven’t missed it.
May 29th, 2008 | Al Robinson | 0 comments | Continued
Saudi Arabia Pours Oil Investment into Australia
Saudi Arabia runs its oil operations like a family Italian restaurant. In theory, everyone owns a bit of the business. There aren’t private interests like Santos (ASX:STO) or Woodside (ASX:WPL). Aramco is Arabia’s oil producer. The profits from oil then go to the government. Of course the last link in the chain, where the government transfers money to its people, is usually missing.
May 28th, 2008 | Al Robinson | 1 comment | Continued