Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Tuesday, February 23, 2010
Silver Price Long-term Trend Analysis / Commodities / Gold and Silver 2010
Throughout this bull market, Silver has formed the same corrective pattern over and over again. Currently, Silver is repeating the same pattern but on a much larger scale. Note that Silver’s decline in 2008 and ensuing recovery are a larger fractal of preceding corrections. See the chart below.
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Tuesday, February 23, 2010
Gold Slips as Euro and UK Pound Slide Against U.S. Dollar / Commodities / Gold and Silver 2010
THE PRICE OF GOLD dipped to $1111 an ounce for the second time in two days in London on Tuesday, slipping together with European stock markets as the US Dollar jumped on the forex market.
Government bonds rose and US crude oil eased back to $79 per barrel, while trading-room gossip said the Swiss National Bank was actively selling its currency for Euros to cap a 14-month high in the
Tuesday, February 23, 2010
Silver Price Trend Analysis / Commodities / Gold and Silver 2010
Late in 2009 a lot of folks began asking us about buying silver instead of gold. At the time, we stated exactly how we felt, in that, why would you try to buy something that is not in the same league as gold? The two markets are completely different and are driven by a different set of emotions and fundamentals.
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Tuesday, February 23, 2010
Strong U.S. Dollar Points to Lethargic Gold Price Trend / Commodities / Gold and Silver 2010
The calendar date is now sufficiently far enough in the future from the injection of massive amounts of liquidity by the world's central banks in 2008 that if inflation was to be a consequence of that action, it would be readily evident. However, as we look around the world, inflation exists only in isolated cases. Certainly in the U.S., inflation is non existent. At the same time, rather than collapsing into oblivion, the U.S. dollar has been in a rally.
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Monday, February 22, 2010
Gold Bugs, Curing the Addiction and Acquiring some Patience / Commodities / Gold and Silver 2010
Gold Bugs have a die-hard sense of expectation that is akin to waiting for the Toronto Maple Leafs to win the Stanley Cup (NHL championship). It just bloody never seems to happen, and though you start the season with some sense of hope, you realize partway through that there’s no friggin’ way it’s going to happen this time.
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Monday, February 22, 2010
March is a Good Month for Energy Prices and Stocks / Commodities / Energy Resources
We are entering a time of year that in recent decades has been good for energy prices and energy equities.
Combine that with new estimates that domestic and global energy demand will rise in 2010, and we have the makings of a promising period for investors.
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Monday, February 22, 2010
Economic Recovery and the Price of Gold / Commodities / Gold and Silver 2010
What a difference a month makes! It was only a month ago a leading financial publication came out with the story, "U.S. economy still hemorrhaging jobs despite stimulus." The press was all over the employment data and concluded that the stimulus had utterly failed. They were of course making the classic mistake of treating the employment numbers as coincident indicators, when in fact employment is the ultimate lagging indicator.Read full article... Read full article...
Monday, February 22, 2010
Gold Resists Strong U.S. Dollar / Commodities / Gold and Silver 2010
THE PRICE OF GOLD in the wholesale bullion market slipped from an early 1-month high Monday morning, trading 2.1% above last week's start as strong gains in Japanese and Chinese stocks failed to carry over onto European bourses.
US crude oil contracts hit $80.00 per barrel, and the Euro gave back half-a-cent of Friday's 2¢ surge.
Monday, February 22, 2010
Two Recent Events Offer Insights Into China’s Future Gold Plays… / Commodities / Gold and Silver 2010
We’re watching China with one eye on the gold price.
Two recent events offer insights into China’s future gold plays… China has stopped buying US Treasuries and started to dump them. And China has started accumulating gold positions.
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Monday, February 22, 2010
Gold Gearing Up for a Big Move / Commodities / Gold and Silver 2010
There has been a sense in the gold market through the month of February that gold is going down, a sense of negativity and discouragement. Gold bugs are giving up and pulling out. The U.S. dollar index hit 81 on Friday. The Fed is tightening. “What more,” say the bears, “is there to say?”
Is this true? Is gold going down? Let us look at the chart.
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Sunday, February 21, 2010
What's Next for the U.S. Dollar and Gold? / Commodities / Gold and Silver 2010
Last week was strong with stocks and commodities moving up sharply. As nice as it was to see a rally, I still have my doubts whether this move has legs behind it. As prices moved higher throughout the week we saw volume become thinner and thinner.
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Sunday, February 21, 2010
Gold and Euro, A New Tango For 2010 / Commodities / Gold and Silver 2010
The U.S. dollar rose, commodity prices dropped and stocks fell last Friday after the Federal Reserve unexpectedly lifted an emergency lending rate for the first time since the financial crisis.
The dollar hit an eight-month high against a currency basket, while gold prices rose as investors bought the metal to hedge against paper currencies and debt default risks in Europe. Gold futures ended on Friday with a weekly gain of 3.1% at $1,122.10 an ounce.
Sunday, February 21, 2010
Research On the Central Fund of Canada Screams "Buy Precious Metals and Miners"! / Commodities / Gold & Silver Stocks
I was doing some research on the Central Fund of Canada (ticker: CEF), which is a form of "paper" Gold and silver with a long track record and a much better counterparty risk profile than dangerous Gold ETFs like GLD. Now, CEF generally holds about 60% Gold and 40% silver, so it is not a "pure" Gold fund. I don't recommend paper Gold to anyone before they have established a physical position in Gold as an insurance policy that can always be cashed in when needed. I am not affiliated with nor am I recommending for or against CEF - you must due your own due diligence!
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Sunday, February 21, 2010
Goldonomics, The Economics of Gold / Commodities / Gold and Silver 2010
Gold Economics is an art in itself and I think B-Schools should start introducing this as part of their courses. Of special mention should be the study of Gold price suppression and how it is essential for the survival of capital markets. I call it GOLDONOMICS: The Economics of Gold.
Attached is summary of latest demand – supply situation and concluding remarks on Gold prices forecast.
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Sunday, February 21, 2010
Gold Stuck Below $1130, Waiting to Take Off / Commodities / Gold and Silver 2010
The wedge was broken on the up side but still gold is stuck below $1130. Maybe this week it will take-off. The daily volume, however, is not encouraging.
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Sunday, February 21, 2010
I.M.F. 191.3 tonnes Gold Sale, What Does it Really Mean? / Commodities / Gold and Silver 2010
When India announced its purchase of 200 tonnes, it added a statement that it may buy more of the I.M.F. gold. This implied that it was limited by the I.M.F to 200 tonnes. But the I.M.F. never said that. Rather it said it would announce the sale of any other portion of their gold to the public. It has been several months since another sale has taken place. Now with this announcement, we are given the impression that central banks have not come forward to buy and are not buyers. Talk about 'spin'!
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Friday, February 19, 2010
Precious Metals' Fake Rally or Beginning of Another Strong Move Up? / Commodities / Gold and Silver 2010
Investing your money in a long-term position can be likened to navigating a ship to port. The compass (fundamental and technical analysis) points you in the right direction as you head out to sea. Even if your ship is sturdy (you have made the right call and are heading in the right direction) every once in a while a big, unexpected wave seems to push you off course.
And without question, since the beginning of the economic crisis, the seas have become especially turbulent.
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Friday, February 19, 2010
Commodity Investing 2010, Palladium Still Shines / Commodities / Gold and Silver 2010
Palladium had the most tumultuous decade of all the precious metals. Although it's hard to imagine today, it started the century more expensive than platinum. While gold and silver were languishing in 2000, palladium was soaring. During the technology bubble, a perceived shortage of tantalum caused producers of cell phones and other electronic gadgets to switch to palladium which was then much cheaper. As the price zoomed, Ford feared that it would not get enough of the element from Russia. The corporation bought large quantities in panic, pushing the price over US$1000.
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Friday, February 19, 2010
Trading HUI Gold Stocks Volume Spikes / Commodities / Gold and Silver 2010
After surging 11.9% higher in just 7 trading days, the flagship HUI gold-stock index is starting to recapture traders’ attention. Right as this rally launched a couple weeks ago, I pointed out this sector’s exceedingly bullish technicals. Since then, I’ve been examining secondary indicators including volume to see if they corroborate the key primary ones.
Trading volume, the number of shares changing hands in a given day, offers a valuable window into the ethereal realm of prevailing sentiment. When traders are complacent and bored, volume dwindles. Few get excited about trading lethargic stocks. But when emotions run high, volume often spikes dramatically. This is the case whether traders are suffering from excessive greed or fear. Volume surges when traders get excited, for any reason, and want to trade more.
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Friday, February 19, 2010
Hedging Non-Gold Investments With Gold / Commodities / Gold and Silver 2010
An Address CARA Bahamas Conference, Freeport, Grand Bahama
Ladies and Gentlemen: The cliché that the present credit collapse is "the greatest financial crisis since 1929" is the understatement of the century. One measure of the crises is the ratio of gross private debt to nominal GDP. This ratio captures the idea how many years of current output it would take to retire outstanding debt. In these terms, the crisis is truly unprecedented. The world plunged into the present crisis with far greater debt than the debt outstanding at the time when it plunged into the Great Depression in 1929. Add to this the qualitative change in the structure of debt. The most exotic of the Roaring Twenties era debt was brokers' margin lending on the stock purchases of clients.
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