Gold King Again

Gold passes $1,000 an ounce for the first time, and it is widely expected to shoot even higher in the near future.

By roatha007 with references to the Economist articles

The recent gold's rise, in one sense, is part of a surge in commodity prices that has seen oil break above $100 a barrel, and wheat reach a record high on supply shortages and rising demand from the world's meat-eating middle classes. It may sound circular, but inflationary fears are one of the reasons gold prices are rising.

The trend has been seen as vindication by those who believe that gold is the only real store of value and that paper money is doomed to decline to its intrinsic worth, zero. Indeed, one of the main reasons why gold is priced in four digits is related to the problems of the dollar. The greenback dropped below 100 yen on Thursday, its lowest level since 1995.

Gold acted as a safe haven in the sense that it did tend to rise when stock markets fell sharply, but this characteristic lasted for only 15 days. So if you were worried about a sudden collapse in the stock market, buying gold could have acted as an insurance policy, but only if you were quick on your feet.

The unprecedented hike enables gold holders make a good fortune. Gold has proved to be a best alternative investment when dollar depreciates; it tends to appreciate when the US or the world economy is in trouble. It is perceived to be a useful anti-inflation and declining-dollar hedge. The very-long-term record of gold has been pretty good relative to most currencies. High demand in emerging economies and speculation also play a vital role.

In Cambodia coupled with the global trend, the surge may due to oversupply of dollar through the influx of foreign capital, tourist dollar and under-the-pillow money, mainly the corrupt one. Those, esp low-income people, making a fortune from selling land flock to buy gold whether for ornament or as deposit, as they think it is safer than keeping dollar at home: The mentality in many cash-based poor economies, where people do not prefer using banks. The soaring demand for gold in Cambodia during price hike is somehow unusual(?). Though, the trend may not last long when there is no windfall from real estate boom any more (if there is no external shock). Here are other related articles:

Gold is a useful hedge—but only for a fortnight
thttp://www.economist.com/finance/displaystory.cfm?story_id=8984177
Gold is enjoying a speculative surge
http://www.economist.com/finance/displaystory.cfm?story_id=10809383
Links to gold websites:
World Gold Council http://www.gold.org/
Kitco http://www.kitco.com/charts/livegold.html
Seekingalpha http://seekingalpha.com/sector/gold-precious

Thailand warns Cambodia over Preah Vihear status

By roatha007

Thai defense ministry has warned Cambodia of possible arms conflicts if it seeks for world heritage status over Preah Vihear unilaterally. The act is a blunt threat and clearly shows that the arrogant country still attempts to control the temple nearly half a century after their defeat at the International Court. The case is an embarrassment for over-proud Thailand.

Why on earth should Cambodia needs approval from Thailand for its temple status. They have been encroaching the area almost up to the temple ladder. Ironically, they are afraid that their territory may be annexed by Cambodia if the status is approved (sic). Their border concern is just an excuse to disrupt the bidding process. Preah Vihear's status has nothing to do with Thailand. UNESCO designation has nothing to do with a country's boundary. Demarcation and marginal issues could be solved latter. Behind the scene, Thai gov't just want to flex their muscle to show that they are nationalist to compensate their shameful defeat. If the iconic, mountain-top temple is voted a world heritage site, their identity ( territory and culture) will be in question because the temple is too closed to their border. The entrance faces Thailand and is accessible only from its side. Some related temples are on Thai soil. Previously, it has voiced concern about the historical and topographical aspects of the temple: It shifted the attention to border issue instead to gain more legitimacy.

What else they want to prove or deceive the world while researchers around the globe know Thailand was originally a part of Khmer empire. It will also be a shame if the Cambodian government can't build a road to the temple from our side. It seems that we are so inferior that our historic monument doesn't deserve the status.

PS: The link to the original article on Bangkokpost's website is not available now. Maybe they deleted it to avoid serious troubles. Here is the facts from the Nation I have just found, which is a blow for the military.

http://nationmultimedia.com/2008/01/26/opinion/opinion_30063499.php

Angkor Documentary

This is the best documentary about Angkor I have ever seen but some information needs to be corrected such as the uses of Baray. Cambodian scholars must play more important roles in glorifying our heritages rather than letting those foreigners claim whatever they wish. Enjoy

Cambodia's Cowboy Capitalism

By roatha007

While Cambodia has enjoyed rapid economic growth recently, the growth foundation and mechanism are very unhealthy. Cowboy capitalists and corrupt politicians have transformed Cambodia into a Wild West. It grows at the expense of the poor,national identity and environment. Foreign companies and racket businessmen control almost everything. The rent-seeking gov't is so inactive and incapable. Some apparent consequences are huge income gap and environmental destruction. Without good governance and the rule of law, Cambodia will be in great danger in long run. The loss will be irreversible.