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MiningMX: DRD Gold to retire Roodepoort Rocket
By Jennifer Hughes
Financial Times
Thursday, November 17, 2005
http://news.ft.com/cms/s/f974790e-5790-11da-b7ea-
00000e25118c,ft_acl=,s01=2.html
NEW YORK -- The use of privately-traded derivatives reached a record
in the first half of this year with the notional amount of
outstanding trades worth $270,000 billion, the Bank for
International Settlements said on Thursday.
Dealing in credit derivatives jumped particularly sharply but there
was also strong growth in equity and commodity instruments.
The notional amount represents the value of the underlying assets on
which the derivatives are based. Based on market value, which
reflects the actual cost of replacing the contracts, the market grew
by 16 percent to $11,000 billion.
While many derivatives such as futures are traded on exchanges where
activity levels are closely monitored, the more nebulous over-the-
counter or OTC world of instruments that are traded directly between
counterparties has proved trickier to measure.
The semi-annual report from the BIS reported a striking 60 per cent
jump in the amount of credit default swaps (CDS) outstanding to
$10,200bn. The instruments are a form of insurance against a
company's default.
The market for them barely existed five years ago but has exploded
in the last couple of years as banks and investors such as hedge
funds have used the instruments to lay off their risk to particular
credit events.
In many cases, the CDS for a particular company is far more actively
traded than that company's various bonds. Much of the growth has
come from investors using the instruments to give them exposure to
the market performance of a company's debt without the hassle of
analysing and then tracking down the different bonds.
On Thursday the BIS also reported strong growth of 17 percent each
in the notional value of outstanding equity and commodity contracts
to $5,100 billion and $1,700 billion respectively.
Overall, however, the pace of growth in OTC derivatives slowed to 7
percent in the first half of this year from a rate of 14 percent in
the second half of 2004.
Interest rate derivatives remained by far the dominant category of
the market, accounting for more than three quarters of the total by
notional amount and almost two thirds when based on gross market
value. Notional growth however slowed to 7 percent from 16 percent
in 2004 as the use of exchange-traded interest rate derivatives
picked up sharply. Exchange-traded contracts tend to be more short-
term in their tenor than OTC instruments more sensitive to
fluctuations in expectations for short-term interest rates.
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http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
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http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
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WHO HAVE SUPPORTED GATA
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BY OUR MEMBERS
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Michael Kosares, Proprietor
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Lee Certified Coins
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Lone Star Silver Exchange
1702 S. Highway 121
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314-965-9797
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http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
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Pat Gorman, Proprietor
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Metalguys@aol.com
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
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http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
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FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
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