Showing posts with label legacy group. Show all posts
Showing posts with label legacy group. Show all posts

Precious Metals Rally on Bad Financial News

Precious metals have been bullish this week as Gold ($938.250, Platinum ($1,063.50), and Silver($13.52) gained better positions in line with more negative news coming from the financial industry. Silver and Platinum soared to record levels in a single day trading as Gold remained stable in the $900 position. "This is one of the best performance yet of these commodities after it hit lowest points third quarter last year." one trader said.

The once-mighty UBS today confirmed investors' worst fears by declaring an £11.3bn loss for 2008 and announcing it would axe around a further 2,000 jobs at its shrunken investment bank.

The bank made Swiss corporate history by losing a record 19.7bn Swiss francs after running up a further net loss of Sfr8.1bn in the final quarter of last year, including Sfr3.7bn in exposures to toxic assets. It has scrapped the dividend.

Confirming it had cut bonuses by 85%, UBS said it planned to reduce staff at the investment bank to 15,000 by the end of this year, after shedding more than 1,700 in the last three months of 2008

Local coin dealers meanwhile are feeling the pressure from the rising demand of bullion coins as more buyers prefer to make reservations to assure they are getting the coins at lower prices. "Business is better right now but we are still short of supply because everyone is holding on with their coins." one dealer commented.

"They are anticipating that the rally will continue in the coming days---and that will assure them of selling their coins for better prices."

"Mostly in demand right now are crown size coins or coins mainly between the half-ounce and ounce level especially those minted before the 1940's or those still with 75% to 90% silver because its cheaper than a gram of gold which is affordable for everybody" he added.

Meanwhile, a legislation is being proposed right as countermeasure from the abusive tactics and usurious policies of credit card companies.

A Senate Bill seeks to put a ceiling on the interest rates and surcharges being levied by credit card companies, as well as prohibiting the practice of including hidden charges in the billing process.

Senate Bill 1438 puts a cap of 1 percent per month or 12 percent per annum on the interest rates that can be charged by credit card companies. It also seeks to put a ceiling of 1 percent on the surcharges and penalties imposed by these companies.

Currently, the lowest interest rate among credit card companies is at 2.5 percent while the highest is at 3.5 percent.

"The state has to come in to regulate the interest rates charged by these companies so that a healthier economic environment will prevail for the benefit of the consuming public and credit card companies," said Senator Francis G. Escudero, who chairs the Senate committee on banks, financial institutions and currencies.

The senator is also looking into the reinstatement of the Anti-Usury Law, which was suspended by the Central Bank in 1982. As a result, it lifted restrictions, allowing parties to agree on interest rates.

Despite the law’s suspension, it still didn’t give credit card companies the license to charge prohibitive interest rates.

"We, at one time or another have heard a lot of horror stories involving credit cards, particularly the billing process and the abuses in the manner of collection. It is high time that we take a hard look at the issue and pass legislation that aims to protect the interest of the public," Escudero said

He also cited the prevalence of five-six, a lending practice in many urban and rural poor communities which results in the debtor getting deeper into debt.

"Banks, which are essentially established and formal institutions, are being watched. But not informal ones, such as 5-6, which has zero track record," Escudero said. - GMANews.TV
The investigation to the bankrupt pre-need firm Legacy Plans belonging to the Legacy Group led to an admission from the Security and Exchange Commission that there are still other similar firms experiencing shortage of capital, however the agency has not revealed the names of these firms to avoid the escalating tension between the plan holders and the company owners.

Platinum comeback to $1000 level, gold & silver remain steady

Platinum made a comeback after posting extensive gain since it slowed down mid-year 2008. The industrial metal made a $44 rise in a single day trading outperforming other commodities. Meanwhile, gold remained steady in the $900 after dipping the $800 level last week, silver gained its foothold on the $13 territory after one of its best performance last week.

Bullion coins in the local market remain scarce as more and more people seek silver and gold in exchange of insurance and other paper investments on fear of becoming the latest victim of fraud and pyramid scams as investigation to Legacy Group get into deeper level.

Latest information revealed that owners of the bankrupt company were able to dupe their investors on promise that their investments would double in a short period of time. Owners were said to have paid the first level investors with the promise which had enticed others to believe the investment scheme is working.

Celso Delos Angeles, the company owner made accusations that his company failed due to faulty regulations and red tape in the Central Bank which the bank officers have disregarded as a desperate move by Delos Angeles to sway the flow of the investigation.

The local banking sector is also preparing for drastic measures as gossip about bank mergers circulate in the market. Early this year, East West Bank made one of its biggest deal by acquiring Philam Savings Bank, a local subsidiary once under the international insurance giant AIG. PNB and Allied Bank of business magnate Lucio Tan, is also on talks of a possible merger in the near future as the damage of the global financial crisis deepens in the local economy.

Local mining sector is still making some "ups and downs" headlines as several bad and good news hit the industry this week.

Apex Mining said about 32,000 kilograms of ore with visible gold were discovered during the first week of exploration at a new vein in its mining project at Davao del Norte.

The company said information from this activity will form the basis of further exploration drilling and feasibility studies in its project in Maco town.

The listed company told regulators that it entered into a contract with a cooperative composed of villagers and local government units to explore the new vein system called Sagaysagay, which was discovered by locals last year.

"On the cooperative's first week of operation it gathered 800 bags at 40 kilograms per bag of ore," Apex said.

Sagaysagay contains ores with visible "free-gold" which is expected to result in higher gold recovery.

Apex said there had earlier been an influx of small-scale mining activities at the Sagaysagay vein system without consent from the company.

Apex said it decided to stop the illegal mining activities without antagonizing the locals by entering into a service contract with the local cooperative with members from the indigenous peoples and 15 barangays in Maco.