VIDEO: Iceland – a 'hot' destination for Bitcoin mining |
- VIDEO: Iceland – a 'hot' destination for Bitcoin mining
- Indians importing more gold jewellery despite higher duty
- In 2014 silver forecasts, analysts don't offer much hope
- Western Australia's iron ore exports disrupted by cyclone
| VIDEO: Iceland – a 'hot' destination for Bitcoin mining Posted: 29 Dec 2013 04:11 PM PST  Bitcoin mining in Iceland | Screen capture from NYT video Iceland is becoming popular for a very different type of mining: Bitcoin mining. The Bitcoin mines of Iceland are the subject of a new Dealbook feature which looks at exactly how and why bitcoins are created out of this remote island nation. Normally, mining for bitcoins is a process that requires strong, expensive computers and a lot of energy. Cloud Hashing, according to its promotional video, allows anyone to mine for Bitcoins. Essentially, the company rents out computing power to people who want to mine, but don't want to fork out the cash for the computer. The company has set up these 'mines' in Iceland where energy is cheap, abundant and renewable. Another major obstacle in Bitcoin mining is cooling the computers – they're computing extremely complex algorithms, 24 hours per day. For Cloud Hashing that's not an issue because in Iceland it's not hard to find cold air.
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| Indians importing more gold jewellery despite higher duty Posted: 29 Dec 2013 02:40 PM PST India's wedding season is in full swing and gold traders are finding it hard to keep up. Eager to meet demand, jewellers have sparked a boost in jewellery imports, as opposed to gold bars. India has the world's largest appetite for gold and the country's wedding season is one of the biggest drivers of global demand for the precious metal. But this year, India's central bank has spoiled the party: Aside from record high import duties on the yellow metal, the Reserve Bank of India also requires importers to set aside 20% of imported gold for export purposes. The 80:20 scheme appears to have helped: According to one estimate, imports will fall 40% this year. But this hasn't done much to curb demand, and Indian traders aren't keen on turning away customers. According to the Hindu Business Line, gold jewellery imports have picked up in recent weeks. It seems that traders are choosing to import gold in this form rather than in bullion bars because jewellery is not subject to the 80:20 rule – but it does have a higher import duty. "It is easy for jewellers to import, melt and then make into jewellery according to the taste of Indian buyers. Jewellers said the high premium on bullion makes jewellery imports viable even at higher duty," The Hindu Business Line writes. Traders have also been finding more creative ways to get gold into the country. As reported by MINING.com earlier this week, traders have taken to paying the airfare of non-residents to fly to India if they'll bring gold with them. Gold smuggling is also on the rise and there have been many reported cases of gold being hidden in airplane toilets. Gold's allure may be fading among investors, but in India, gold is still king. |
| In 2014 silver forecasts, analysts don't offer much hope Posted: 29 Dec 2013 01:35 PM PST Silver's 2013 numbers tell a sad story. The precious metal's spot price has dropped more than 30% since the beginning of the year, falling from over $30 per ounce in January to about $20 at the end of December. Meanwhile, shares of iShares Silver, the largest silver ETF, have lost 35%. According to Kitco, silver has the worst-performing commodity futures market for 2014.
But as the year draws to an end, the big question is where will silver go from here. Of course, no one really knows but here's what some analysts think. Earlier in December, UBS cut its 2014 silver forecast from $25 per ounce to $20.50. CIBC's predictions are even tougher on the precious metal. The bank sees silver trading at as low as $19 per ounce, as reported by the Motley Fool. Other banks see trading within that range. Meanwhile, Bank of America Merrill Lynch offers the most hopeful forecast, predicting an average of $23.13 in 2014, as reported by Kitco News. The bulk of silver demand is in fabrication, mainly for industrial applications but also for jewelery – boosted this year by India's restrictions on gold imports. And while silver prices have been falling, mints in Canada, the US and Australia have been reporting much higher sales over the past few months. But according to research firm CPM group, even though investor demand has waned – and isn't likely to bounce back soon – the next decade could see record highs for the precious metal. |
| Western Australia's iron ore exports disrupted by cyclone Posted: 29 Dec 2013 10:36 AM PST A cyclone is headed for Australia's northwestern iron ore ports, forcing them to shut down and producers to make new arrangements for transporting their product. According to Bloomberg, ports Dampier and Hedland have already closed. Miners exporting from these ports include BHP Billiton, Fortescue Metals Group and Rio Tinto. BHP has "commenced preparations to secure port and rail infrastructure," Bloomberg reports. Tropical cyclone Christine – a category 2 storm – is expected to bring destructive winds, rainfall and storm tides. The Bureau of Meteorology has warned that the storm will likely intensify throughout Monday. Western Australia – the world's biggest iron ore exporter – is no stranger to these intense storms. The Pilbara region, which ships almost half of global iron ore supplies, experiences more cyclones than any other part of Australia. This will be port Dampier's and Hedland's second closures this year after cyclone Rusty ripped through the region in February. |
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