Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Tuesday, February 10, 2009
Financial Times Lexx Favours Platinum Over Gold, Is the FT Right? / Commodities / Gold & Silver 2009
Profit taking saw gold fall yesterday but continuing very robust demand for physical bullion and gold ETF’s for safe haven purposes means that this is likely another period of consolidation.
There is a dawning realization that we are in the early stages of a severe global recession and possibly even a global Depression. In this uncertain climate for the global financial system and the global economy itself, risk aversion is set to remain elevated and thus demand for physical gold bullion will also remain elevated. As it will for silver but less so for the purely industrial precious metals of platinum and palladium.
Read full article... Read full article...
Monday, February 09, 2009
Industrial Commodities Drive Broader Stock Market Trends / Commodities / Investing 2009
As we think about possible economic recovery, it may be a good idea to watch the prices of certain materials inputs to industry. Perhaps they will perk up before other parts of the economy farther downstream from raw materials.
Here are weekly, 3-year charts for several basic inputs to industry used to make things and move materials and things around.
Read full article... Read full article...
Monday, February 09, 2009
Gold Price Market Manipulation Crime Scene Investigation / Commodities / Gold & Silver 2009
Last week on Thursday February 5th, 2009, The President's Working Group On Financial Markets held their first official soiree with former New York Federal Reserve Bank President, Timothy Geithner, installed as President Obama's pick as Treasury Secretary.
In the spirit of “Change has come to America” and transparency, cameras were invited in for the ‘proverbial photo-op' in what was no doubt an attempt to demystify this shadowy organization. You can see this press conference for yourself beginning at the 3:20 minute mark of this video excerpt .
Read full article... Read full article...
Monday, February 09, 2009
Natural Gas UNG ETF in Completed Bottoming Formation / Commodities / Natural Gas
The daily chart of the U.S. Natural Gas Fund ETF (NYSE: UNG) argues strongly that the price structure has completed a rounded 2-3 week bottoming formation that should propel prices towards a confrontation with the 6-month resistance line(s) at 21.20-22.00 in the upcoming hours/days. The UNG needs to hurdle and sustain above 22.40 to trigger more meaningful buy signals that will indicate that an intermediate-term low has been established.Read full article... Read full article...
Monday, February 09, 2009
Precious Metals Regaining Monetary Status / Commodities / Gold & Silver 2009
Loose in the head. As opposed to Hank Paulson, that's what traders now think of Geithner since he angered China before even getting in the door. They think he's loose in the head. So, delayed as the reaction was since he uttered the words Thursday, the trade bought gold, sold bonds, and who knows, maybe even reversed the dollar ($) despite the fact stocks look set to plunge. In this respect, Geithner's fumble, which is the only way to read that considering China is the US's biggest creditor, is the kind of thing that can cause trend changes, where we will find out soon if this is the case with respect to gold and the $.Read full article... Read full article...
Monday, February 09, 2009
Gold Plunges Below $900 Despite Central Banks Money Printing / Commodities / Gold & Silver 2009
THE PRICE OF WHOLESALE gold bullion fell sharply at the New York opening on Monday, dropping 1.8% to a four-session low of $895 an ounce as the US Dollar also slipped on the currency market.World stock markets ticked down despite a fresh wave of central-bank and government aid, but crude oil crept back above $40 a barrel.
Read full article... Read full article...
Monday, February 09, 2009
Catastrophic Fall in 2009 Global Food Production / Commodities / Food Crisis
After reading about the droughts in two major agricultural countries, China and Argentina, I decided to research the extent other food producing nations were also experiencing droughts. This project ended up taking a lot longer than I thought. 2009 looks to be a humanitarian disaster around much of the worldTo understand the depth of the food Catastrophe that faces the world this year, consider the graphic below depicting countries by USD value of their agricultural output, as of 2006.
Read full article... Read full article...
Monday, February 09, 2009
Platinum and Commodities Bubble, Deflationary Crash / Commodities / Platinum
Over the weekend I received a note from a reader asking me to evaluate the market for Platinum. I hope she doesn't mind if I just quote the better part of her note to me: good morning, Lucas. A theme that I'd like you to look at - if it interests you - are platinum futures. The platinum/gold ratio is interesting. I read that the reason platinum sold off so badly was that outfits like GM had to liquidate their usual 6 month supply stockpiles. I've been noticing that some of the producers in the PGM sector have been 'coming alive'; and showing some pretty good relative strength, even in relation to gold miners. Anyway, looking at this etf, PGM, also showing signs of life...as you know, PGM holds futures; I would be inclined to buy it; but don't know how to evaluate the contango issue; so don't know whether a buy here would be a losing play because of the 'roll premium' drag, as it has been, and will continue to be (i believe; but wtf do I know?) with USO, which I would not buy.Read full article... Read full article...
Monday, February 09, 2009
Silver Surges But Remains Undervalued Compared to Gold / Commodities / Gold & Silver 2009
Gold fell some 1.5% last week as investors took profits with gold having been up some 10% in the previous three 3 weeks. But the short and medium term prospects look sound in the light of strong fundamentals and some important indicators – silver was up by another 4.2% last week and the gold mining indices were also higher (XAU +4.6% and HUI +2.3%). The mining indices are often a leading indicator and silver usually underperforms gold in the early stages of rallies and outperforms in the latter. Silver’s recent strength (up by some 15% since the start of the year) may be a prelude to higher gold prices in the coming weeks.Read full article... Read full article...
Monday, February 09, 2009
Crude Oil Trading Range Tightens / Commodities / Crude Oil
Contrary to early 2008, oil and the stock market are now marching in lock-step. As the stock market's trading range tightened, oil's has done likewise. Is crude setting up to take-off? As one may already know, explosive moves in either direction usually occur after a tight consolidation. However, in which direction it may go is difficult to say at this time.Read full article... Read full article...
Monday, February 09, 2009
Fresh Water Investing: California Drought Reveals the “New Oil” / Commodities / Water Sector
David Fessler writes: A few weeks ago, during a particularly bad cold snap, we had a pipe freeze underneath our 200-year-old farmhouse, causing us to go without water for a few days. I eventually managed to unfreeze the pipe, but there was no question it was disruptive for a busy household of four.Read full article... Read full article...
Sunday, February 08, 2009
Gold in Bullish Trend Channel at Key Resistance Levels / Commodities / Gold & Silver 2009
The price of gold is hitting its head up against the ceiling set by the top activity from the Sept/Oct highs. Is it time for some downside action?
GOLD : LONG TERM - Due to some time constraints this week's commentary will be short and to the point. Just the facts.
Read full article... Read full article...
Sunday, February 08, 2009
COPPER- Upside Breakout Imminent, Implications for Commodities... / Commodities / Metals & Mining
Although copper may seem like a sideshow it is actually very important, for it is a barometer of changes in the world economy. In retrospect it is easy to see on its long-term chart below that its refusal to break higher for several years from what turned out to be a major top area was a warning that all was not well with the world economy. The breakdown from the lower support line of the top area led to a crash back to the first major support level where it has stabilized. It remains wildly oversold, as shown by the huge gap between the 50 and 200-day moving averages.Read full article... Read full article...
Friday, February 06, 2009
Brian Tang: Bullish on Finite Natural Resources Investing / Commodities / Resources Investing
Since 2003, Fundamental Research Corp. (FRC) has been focusing on companies not widely followed by brokerage firms, bringing investors and undervalued small and micro cap companies together. In this exclusive interview with The Gold Report, FRC founder Brian Tang and his crew forecast the primary driver of base metal prices in 2009, the future of gold and copper and the infinite upside of investing in finite resources.Read full article... Read full article...
Friday, February 06, 2009
Gold.....Ready to Rumble! Part Two, Buying Gold / Commodities / Gold & Silver 2009
We Are Running Out of Gold - Production at existing mines is grinding down at the same time investor demand is climbing. A quick scan of last year's individual country production numbers shows declines right across the board except in China whose citizen's snap up all they can. China, for the second year in a row is now the world's top gold producing country, easily passing perennial top producer South Africa.Read full article... Read full article...
Friday, February 06, 2009
Gold GLD ETF Bullish Higher Highs / Commodities / Gold & Silver 2009
The behavior of gold and the SPDR Gold Shares (NYSE: GLD) recently has been fascinating. Let's notice that the GLD has continued to carve out a series of higher lows off of the 1/15 pivot low at 78.73. It has been doing this DESPITE a stronger dollar and an overbought condition.Read full article... Read full article...
Friday, February 06, 2009
Silver/Gold Ratio Bullish Reversion to the Mean / Commodities / Gold & Silver 2009
While wreaking its unbelievable destruction, last quarter's financial-market panic certainly showed no favoritism. Launching from ground zero in the financial stocks, shockwaves of selling blasted out through the entire market landscape. Everything speculators once loved was left in ruins, including silver.Read full article... Read full article...
Friday, February 06, 2009
Gold and Silver Insurance Against Financial Crisis / Commodities / Gold & Silver 2009
Just read leading U.S. newspapers and one see that Banker has become an unpleasant word as banks take in taxpayers money and give nothing out. Then you have the endless blame game ["we didn't force people to borrow money" - yes, you did through enticing, pushy adverts and a rising property market incited greed, which you peddled!] as Everybody loves to blame someone else as the global banking system continues to teeter on collapse as central bankers raise the amounts needed to save them and keep them going. So why do and did the banks need saving? The banking system in the last 50 years has gone from a source of loans in a cash society to the very financial artery of the economies of the developed world.Read full article... Read full article...
Friday, February 06, 2009
Return of Inflation, Commodities and Resource Stocks Itching to Takeoff / Commodities / Resources Investing
Government, Know Thyself - “Why Can't 'Common Sense' Be Applied to Bailouts?”
We welcome President Obama's “basic common sense” announcement of a $500k salary cap for top executives at companies receiving substantial bailout funds. It's a bit of welcome good news.
Read full article... Read full article...
Friday, February 06, 2009
Gold Firm as US Jobless Rate Jumps / Commodities / Gold & Silver 2009
THE SPOT PRICE of wholesale gold held inside a tight $7 range Friday morning as the United States reported its worst monthly job losses since 1974 and Japanese auto-giant Toyota posted its first annual loss since 1950.For the week, Spot Gold in Dollars neared the London close 1.2% below last week's finish, while crude oil slipped back to $40 per barrel.
Read full article... Read full article...