Gold Prices hits a record $1900 today. Where is Tanzania?


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Mdondoaji

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Mdondoaji

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GOLD prices topped $US1900 a troy ounce today as worries about slowing growth and European debt whetted appetite for the metal's perceived safe haven. Gold for December delivery rallied $US25.90 to $US1902.80 an ounce in electronic trading on Globex. The contract had risen as high as $US1908.40 an ounce, according to data from FactSet.
Gold futures rose rapidly to touch a record $US1912.29/oz on August 23 before falling more than $US200 in the next 48 hours after US exchange operator CME Group hiked trading margins on gold futures.

Demand for bullion gained as US stock-index futures and European equities fell.

An election defeat for German Chancellor Angela Merkel's party prompted worries about whether support for helping Europe's debt-ridden would decline.

Earlier in London, spot gold was hovering about the key $US1900 a troy ounce mark, and was expected to soon rise back toward record territory, as deepening concerns over global growth prompt investors to abandon risk assets in favor of perceived safe havens, like bullion and core government bonds.

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The London afternoon spot gold fix was $US1895/oz.Friday's poor US payrolls report has been key in boosting investor allocation to gold, as it reignited speculation of additional easing measures that could further undermine the US dollar, said Morgan Stanley analyst Hussein Allidina. The report showed the world's largest economy failed to add jobs for the first time in almost a year.

Europe, however, is likely to be a key focus for the financial markets this week, as policymakers start the process of ratifying changes to the euro-zone's bailout fund -- the European Financial Stability Facility. The German constitutional court will also rule on the legality of the rescue package for Greece.

"Comments from officials in the weeks ahead are bound to play a key role in market sentiment, and the German court ruling on Wednesday will assist market nervousness," said UBS analyst Edel Tully.

"Investors will likely have a lot more conviction this week than the last, when directional client flow was largely absent," she added.

Further adding to market jitters is a closely watched survey of business activity, which showed euro-zone economic growth slowed to a two-year low in August.

Markit Economics' Purchasing Managers' Index for the region -- a gauge of manufacturing and services activity -- fell to 50.7 in August from 51.1 in July, meaning the euro-zone economy posted only marginal growth last month. A reading above the neutral 50 threshold indicates an expansion in business activity.

Ms Tully said European economic woes are again reclaiming the spotlight in world markets.

"Should negative headlines once again flood the wires, the fear trade, seen through demand for small bars and coins, is likely to accelerate," she said.

Liquidity may prove an issue, though, and result in some choppy trading conditions in the latest session, as US markets were closed for the Labour Day holiday.

Nevertheless market participants say a break to new record highs is only a matter of time given the current turbulence across world financial markets. Gold is widely viewed as an alternative store of value and safe haven amid times of economic uncertainty.

"Perceived safe-haven assets, like gold, should continue to benefit from uncertainty on both sides of the Atlantic, in our view," Mr Allidina said.

The only real negative in the market in the latest session, market participants say, is an announcement by the Shanghai Gold Exchange that it will raise margins as well as upper and lower trading limits for gold and silver contracts, effective on Friday.

The margin for gold will be raised to 13 per cent from 12 per cent, while the margin for silver will be raised to 16 per cent from 15 per cent.

The margins and limits will, though, be restored to current levels, if they aren't breached, when traders return to the markets after the Mid-Autumn Festival long weekend, the exchange said.

Source: Wall Street Journal.

My view: Where is Tanzania? We are the third gold producer in Africa and we are not benefiting from this rare opportunity of volatility in commodity market.
 
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niweze

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niweze

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Let's go by facts only. We know kikwete and his gov want to dispute the following.

Tanzania is one of the world's poorest economies in terms of per capita income, however, Tanzania average 7% GDP growth per year between 2000 and 2008 on strong gold production and tourism. The economy depends heavily on agriculture, which accounts for more than 40% of GDP, provides 85% of exports, and employs about 80% of the work force. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries. Recent banking reforms have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. In 2008, Tanzania received the world's largest Millennium Challenge Compact grant, worth $698 million. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-10 was a respectable 6% per year due to high gold prices and increased production.
https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html
Tanzania won't impose tax on current mine cos
DAR ES SALAAM (Reuters) - Tanzania will not impose a proposed super profit tax on existing mining companies, but will negotiate with the companies to have them pay the new tax, the east African country's mining minister said on Sunday.William Ngeleja, Tanzania's energy and minerals minister, said if implemented, the government would negotiate with existing companies how they will pay the tax, but that it will automatically apply to all new entrants into its mining sector.
Tanzania, one of Africa's top gold producers, is considering a "super profit" tax on earnings from minerals as one of the ways to fund its five-year development plan.
AngloGold Ashanti and African Barrick Gold (ABG) had said last week that existing arrangements should shield their operations from any moves to impose higher taxes, but Ngeleja's comments cast some uncertainty over the situation.
"We will not impose the proposed super profit tax on existing mining companies. If implemented, we will have to negotiate it with the companies because they already have agreements in place with the government," he told Reuters.
"We are studying the proposals ... it is something we are considering. If they become law, it will be an automatic requirement for new entrants in the mining industry to pay the super profit tax," he said.
"We will involve all stakeholders in Tanzania's mining sector in negotiations before the proposal turns into law."
AngloGold said it did not see any impact on its Geita mine in Tanzania, which produced 94,000 ounces of gold in the March quarter of 2011, while African Barrick Gold also said mineral development agreements in place guaranteed a stable tax regime.
The move follows similar steps in other producer countries that have sought to increase fiscal revenue from the mining industry and to take advantage of rising prices.
Australia was among the first to consider a hefty resource tax, but it had to climb down from initial proposals for a headline tax of 40 percent after pre-election talks with mining giants including BHP Billiton and Rio Tinto.
Tanzania won't impose tax on current mine cos | Reuters
Tanzanian Royalty Exploration Corporation (TSX: TNX) is a junior miner with gold exploration projects in the Lake Victoria Goldfields of Tanzania. The company is developing the projects independently and in association with third parties. James Sinclair, the company's President & CEO issued a statement on the company's website refuting the reports on the proposed super tax as erroneous. Mr. Sinclair wrote, "Rumours of a supertax on minerals production in Tanzania are totally without merit and based upon a recommendation by a Uganda-based non-governmental organization that is not connected to the Tanzanian government in any way. It is the company's understanding thatno such supertax has been proposed in the latest budget tabled by the Tanzanian government."
Let gov dispute why Tanzanians don't have electricity, health services, education and so forth.....
 
Kichuguu

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Kichuguu

Kichuguu

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Tanzania is waiting for MWEKEZAJI
 
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ngwendu

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ngwendu

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nchi pekee duniani yenye wajinga kila kona kuanzia viongozi mpaka wanaoongozwa. labda sifa ya ziada kwa viongozi ni ufisadi na wanaoongozwa ni mambumbumbu.
 
MANI

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MANI

MANI

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nchi pekee duniani yenye wajinga kila kona kuanzia viongozi mpaka wanaoongozwa. labda sifa ya ziada kwa viongozi ni ufisadi na wanaoongozwa ni mambumbumbu.
Ngwendu siku si nyingi mambumbu wataamka !
 

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