Thursday, 8 September 2011

Japan Finance Minister says Japan Ready for "Bold Action" on Currency; Barrick Gold Yield Correction

Following the move by the Swiss National Bank to devalue its currency, Japan's Finance Minister Will Tell G-7 Japan Ready to Take �Bold� Action on Currency
Japanese Finance Minister Jun Azumi said he will tell his Group of Seven counterparts that his country remains prepared to take �bold� action in currency markets when necessary. He spoke to reporters today in Marseille, France.
Competitive Currency Debasement Hits Next Level

The announcement by Azumi suggests currency wars are about to hit the next level.

Perhaps he was likely emboldened by Swiss central bank actions as noted in Switzerland to "Buy Foreign Currency in Unlimited Quantities", Sets Euro Peg 1.20; Extreme Mid-Day Currency Volatility; Gold is Safe Haven, Not Francs

$HUI Revisited

Earlier today in Gold, U.S. Dollar Higher; $HUI New All-Time High, Still Cheap to Price of Gold I inadvertently listed an incorrect yield of .49% for Barrick Gold.

Here is the correct comparison. The original post modified).

The $HUI is at a new all-time high but miners are cheap compared to the price of gold and also cheap relative to earnings of major miners such as Barrick Gold (ABX)



Barrick pays a dividend of 49 cents .90%.

For comparison purposes 3-year U.S. treasuries yield .33% and 5-year treasuries .87%.

Barrick could easily double its dividend and if it did so, Barrick would yield close to the 10-Year treasuries, currently 1.98%.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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