Gold price has dropped approx. 6% last week to around US$ 1,243 per ounce. Some analysts think that it may still drop another US$ 200 to as low as US$ 1,050 in 2017. These analysts believe that gold physical supply exceeds demand and will continue down until an equilibrium is achieved, and then upturn. Continue reading “Gold…Gold… Whereto?”
The Petrol Price Hike is Peanuts
The recent petrol price hike in Kuwait has, no doubt, been irksome, but not too painful to justify the huge public outcry that has erupted. The real pain is just around the corner, as electricity rate increases are stewing in the pot and will soon be done. The public should save their real outcry for that surprise.
The increase of electricity rates is frightening because it is likely to have a huge impact on family budgets. Especially, if we accept the assumption that the production cost of one Kilowatt of electricity is 40 Fils, which is twenty times the 2 Fils rate that households presently pay, then it would be a disaster if rates are increased to cover production costs. A family paying KD 600 per year would suddenly be billed KD 12,000! And those paying KD 1,500 would face a KD 36,000 invoice. Continue reading “The Petrol Price Hike is Peanuts”