Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Monday, December 15, 2008
What Next After Crude Oil's Intraday Plunge? / Commodities / Crude Oil
The US Oil Trust ETF (NYSE: USO) has plunged over 6% from its early morning rally peak, which is not a surprise from a volatility perspective, but it is a surprise to me IF I thought that a more bullish pattern was under development. In other words, the plunge in the USO has taken back too much of its prior rally to be considered the start of a new bull move.Read full article... Read full article...
Monday, December 15, 2008
Gold Facing Comex Delivery Squeeze as Traders Fear Counterparty Risks / Commodities / Gold & Silver
Gold rallied sharply last week and was up nearly 9% despite continuing uncertainty and a very mixed performance in stock markets. The US dollar index fell some 4% on the week and it looks increasingly likely that the dollar may have topped out and may soon resume its bear market. For the year, gold is now up by more than 4% in dollar terms and by much larger amounts in euros (+11.7%) and pounds (+40.4%).Read full article... Read full article...
Monday, December 15, 2008
Gold Surges as Governments Start Running Out of Ideas / Commodities / Gold & Silver
THE SPOT PRICE OF GOLD BULLION came within $1 of a new two-month high early Monday in London, holding onto last week's 9% jump and recording its best Morning Gold Fix since Oct. 16th for US investors.Crude oil and the Tokyo Nikkei index both jumped more than 5%, but European stock markets gave back their opening gains by lunchtime.
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Monday, December 15, 2008
Gold Stocks Absurdly Undervalued! / Commodities / Gold & Silver Stocks
AN EXAMPLE OF AN ABSURDLY UNDERVALUED JUNIOR MINING STOCK WITH ASSETS IN-SITU WORTH 8 BILLION DOLLARSRead full article... Read full article...
Monday, December 15, 2008
Gold and the $8.3 Trillion & Journey to OZ! / Commodities / Gold & Silver
Well, it has finally happened. USA Today has raised the cost of their daily paper to one dollar. Knew the day was coming. The mining industry continues to suffer along with the rest of the stock market. Definitely a contrarian market now. The availability of credit is now zero and blessed be those companies who have previously stock piled huge wads of cash. They will have the best chance of surviving this market.Read full article... Read full article...
Sunday, December 14, 2008
Gold Backwardation That Shook The World / Commodities / Gold & Silver
On Friday, December 12, backwardation on gold was still in force at an annualized discount rate hovering around 2% in the December contract, and 0.3% in February contract. Many readers have asked me how it is that so many other observers fail to see the backwardation. The discrepancy is due to differences in methodology. Most analysts calculate the basis as the difference between February and December futures prices which gives them a positive reading. They use the December futures price as proxy for the spot price. This is clearly wrong. The December futures price is not the same as the spot price, even though we are in December.Read full article... Read full article...
Sunday, December 14, 2008
Gold Rallies as Precious Metals Stocks Soar / Commodities / Gold & Silver
A nice weekly move by the metals but boy did the stocks move. Most gold Indices were making gains in the 20% area while the Merv's Spec-Gold Index gained 32.1%. We should not expect gains like this to come along very often but enjoy them when they do.Read full article... Read full article...
Saturday, December 13, 2008
Junior Mining Stocks: Canada’s Subprime Market Crash / Commodities / Gold & Silver Stocks
Prior to the recent market meltdown, the market for junior mining companies had already been experiencing a severe correction since its peak in early 2007. Despite rising and historically high metal prices, money began leaving the market, in earnest, in the summer of 2007. By late last year, the correction had become a full-fledged bear market. Then the credit markets collapsed in September 2008. This caused another leg down which also included the major mining companies and the underlying commodities.Read full article... Read full article...
Friday, December 12, 2008
Playing U.S. Dollar Weakness and Silver Strength / Commodities / Gold & Silver
The seven-week sideways coil pattern in the daily chart of the Euro/$ resolved itself to the upside earlier this week. The ability of the Euro/$ to hold Thursday's gains amidst acute overnight weakness in equities is a very powerful sign of relative strength, and likely that the Euro has further to climb against the USD -- at least to the 1.3600-1.3700 area next. This action should be supportive for gold and silver as well.Read full article... Read full article...
Friday, December 12, 2008
Investments Diversification Remains Key to Weathering the Economic Storm / Commodities / Gold & Silver
With the economic slowdown and the consequent fall in jewellery sales, jewellers have recently begun touting the merits of jewellery and diamonds as being “investments”. Gold, silver, platinum or palladium rings, bracelets, necklaces and diamonds or other gemstones should not be sold as an investment and it is irresponsible to sell them as such.Read full article... Read full article...
Friday, December 12, 2008
Gold and the Credit Crash / Commodities / Gold & Silver
"... To stay ahead of inflation, don't beg for a raise. Just borrow the money instead...!"
The TROUBLE with GOLD...? If you choose to use it as money, then you can only abandon it once. Once done, it's done forever. You can't keep floating the value of cash time and again.
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Friday, December 12, 2008
U.S. Oil Funds Bullish Structure Quashed / Commodities / Crude Oil
For the upmove off of Wednesday's upside pivot reversal (34.07) into Thursday's high (39.82) to be considered bullish, I needed to see the US Oil Fund ETF (NYSE: USO) weakness hold at or above 38.00, which was the case yesterday afternoon. However, this morning's gap down open and plunge beneath 35.78 has quashed the potentially bullish pattern structure into something considerably less constructive -- and possibly has initiated a new downleg within the still dominant bear trend.Read full article... Read full article...
Friday, December 12, 2008
More on Gold Backwardation / Commodities / Gold & Silver
Over the last few weeks, there have been a lot of articles on the Internet about backwardation, i.e., when the price of commodities for delivery today is higher than the price of commodities for delivery in the future. Like nearly all the things on the Internet, most of what was written is useful, but some of it is total rubbish, and it takes time to sort through to find the gems from the rest. I offer the following in the hope that it clears up some of the confusion that has arisen about backwardation as well as to provide some insight into today's gold market.Read full article... Read full article...
Friday, December 12, 2008
Junk Silver or Junk Bonds / Commodities / Gold & Silver
Junk Silver - “Junk silver” and “junk bags” are terms that refer to $1000 in U.S. coinage— dimes, quarters, or half dollars minted 1964 or earlier; commonly known junk bags consist of 90% silver. Junk bags of silver dollars are sold separately and have always held a higher premium.Read full article... Read full article...
Friday, December 12, 2008
An Overview of Gold and the Banking System / Commodities / Gold & Silver
The $ has started to tumble and the gold price has positively turned. Meanwhile investors are not staring into the abyss quite as much. With interest rates tumbling across the globe, the world's central bankers are acting in concert, clearly in hopes that foreign exchange rates will steady. At the same time, the global economy and the nations that make it up are all stimulating their economies.Read full article... Read full article...
Friday, December 12, 2008
Gold Rises as Central Bankers Choose Inflation Solution / Commodities / Gold & Silver
THE PRICE OF WHOLESALE GOLD held inside a tight $10 range early in London on Friday, nearing the week-end almost 8% above last week's close for US investors.World stock markets sank, meantime, losing 5.5% in Tokyo and dropping 5% in Paris, after the US Senate killed a $14 billion bail-out of America's "Big Three" auto-makers.
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Friday, December 12, 2008
Silver, But No Silver Lining / Commodities / Gold & Silver
The end of our consumer society is on the horizon, which should be no surprise to anyone who took Economics 101. Do we really expect to spend our way out of this mess by buying and selling each other useless cheap stuff from China ?
As the financial collapse gathers steam, gold and silver oracles like Butler , Friedman, Morgan and Turk who have been predicting for years the launch of the price of silver to the moon will see their prophecy fulfilled, but a celebration is not in order.
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Thursday, December 11, 2008
Gold and Gold Stocks to Soar During 2009 / Commodities / Gold & Silver
Here we discuss why gold will recover in 2009, and why gold is resisting the massive deleveraging in all markets better than most anything. Even though gold and the gold stocks especially have taken a hit, we expect them to recover significantly in 09. Here is why.
Overview of credit crisis and efforts to combat it
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Thursday, December 11, 2008
Gold Soars as Governments Attempt to Reboot the Credit Bubble / Commodities / Gold & Silver
THE PRICE OF WHOLESALE INVESTMENT GOLD continued to rise in Asia and London early Thursday, breaking an 8-week high at $834 an ounce, gaining against all major currencies, and reaching new all-time highs for British investors – now suffering the worst Sterling Crisis in 32 years – above £552.Read full article... Read full article...
Thursday, December 11, 2008
Gold Rallies Sharply as Fiat Currencies Money Printing Gathers Pace / Commodities / Gold & Silver
Gold rallied sharply yesterday, for the third day in a row, on higher oil prices and a weakening dollar. Risk aversion remains the prevailing force in markets as seen in collapsing Treasury yields and shortages of physical bullion and backwardation in the gold market.Read full article... Read full article...