Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Sunday, December 07, 2008
Gold Stocks a Buy! / Commodities / Gold & Silver Stocks
As these words are being written, there are two extraordinarily worrying facts in the world's financial markets:
There has been a continuing “flight to safety” of capital – as evidenced by a collapse in the 30 year and 10 year yields shown in the charts below (courtesy decisionpoint.com and stockcharts.com respectively)
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Sunday, December 07, 2008
Gold Bullish Breakout Takes a Bearish Knock / Commodities / Gold & Silver
Okay. So maybe we're not yet in a roaring new bull market. The next level to watch would be the $700 level, if it gets that low.
GOLD LONG TERM - It's instructive to every once in a while take a look at a long term chart to see where we came from and maybe get a better idea as to where we might be going. I have two long term charts (other than P&F) that I usually show. This is my normal chart, one that I use in my weekly analysis. The other one differs in that it is more of a very long term chart and includes longer term indicators and moving averages.
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Saturday, December 06, 2008
David Morgan Silver Investing Questions and Answers / Commodities / Gold & Silver
The well-traveled and prolific David Morgan has contributed to Northwest Territorial Mint Precious Metals Monthly in the past and has achieved recognition for his insights into the silver market and investing in general. As a follower of the silver market for more than 30 years, he is the author of Get the Skinny on Silver Investing , and his Web site, www.silver-investor.com , is a leading source for serious investors.Read full article... Read full article...
Saturday, December 06, 2008
Taking Physical Delivery of Silver and Gold from COMEX / Commodities / Gold & Silver
A Memorable Delivery Experience - For those who remember, I wrote a letter asking about taking delivery from the COMEX. Well I would like to tell you about a very educational experience.Recently, we took a delivery from the COMEX. The process was a bit cumbersome but very enlightening. First, I would like to say that the process of dealing with the custodians was very professional. However, let me begin my story of amazement.
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Saturday, December 06, 2008
Gold Red Alert- Gold Price Backwardation first time in History! / Commodities / Gold & Silver
December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not deserve to be reported in the press: gold went to backwardation for the first time ever in history. The facts are as follows: on December 2nd, at the Comex in New York, December gold futures (last delivery: December 31) were quoted at 1.98% discount to spot, while February gold futures (last delivery: February 27, 2009) were quoted at 0.14% discount to spot. (All percentages annualized.) The condition got worse on December 3rd, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of backwardation persisted for at least 48 hours. I am writing this in the wee hours of December 4th, when trading of gold futures has not yet started in New York.Read full article... Read full article...
Saturday, December 06, 2008
Central Banks Gold Reserve Actions Key to Gold Price Trend / Commodities / Gold & Silver
From 1980 right through to 1999, the gold market had the possibility of enormous central bank gold sales hanging over the gold market. Central banks did nothing to remove this impression but led the market to believe that it was likely. Their purpose was to ensure gold did not challenge the paper money markets. In 1971, President Nixon had cut the link between gold and money but removed the ability of U.S. $ holders to change their dollars into gold. This left the $ and all other currencies without any backing except the promise from central banks to change paper dollars into paper dollars. This would not have worked nearly so well had the U.S. not had the power to ensure that the oil market was bound to use only U.S. dollars as payment for oil.Read full article... Read full article...
Friday, December 05, 2008
Real Interest Rates and the Gold Price / Commodities / Gold & Silver
It's been a tough year for gold investors. Instead of soaring during the great fear and uncertainty of the global financial panic as most gold investors expected, gold got caught up in the selling. Thus it is down 7.3% year-to-date. This is far-better performance than virtually everything else, especially the S&P 500's 40.7% YTD loss. Nevertheless, the lack of a flight to gold in such dire conditions remains disappointing.Read full article... Read full article...
Friday, December 05, 2008
Gold and the End of an Era in the Global Capitalist Economy / Commodities / Gold & Silver
"...'What is economics?' an economics professor asks. 'Scarcity' comes the school-children's answer..."
SO WE'RE LIVING through the end of something. Something important and ugly. Everyone seems agreed on that.
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Friday, December 05, 2008
Crude Oil Closing in on $40 / Commodities / Crude Oil
Oil is closing in on $40.00 and perhaps on the way to $37.50 amidst an increasingly acute oversold condition. The trendline created by connecting the two major rally peaks between September 2000 ($37.89) and February 2003 ($39.99) cuts across the price axis at 46.00-43.50.Read full article... Read full article...
Friday, December 05, 2008
Gold Slumps on Half a Million U.S. Job Losses / Commodities / Gold & Silver
THE SPOT PRICE OF GOLD gave back a tepid rally early in London on Friday before slumping to fresh two-week lows at $750 an ounce on news of a huge jump in US unemployment.More than half-a-million Americans lost their jobs last month, reported the Bureau of Labor Studies. Wall Street analysts had been expecting 325,000 job losses.
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Thursday, December 04, 2008
Euro Rockets and U.S. Dollar Pops Gold / Commodities / Gold & Silver
The upside reversal in EURUSD today has popped the streetTRACKS Gold Shares (NYSE: GLD) to an intraday high at 77.63, which if nothing else has put some distance between the price structure and key near-term support at the December low of 75.10/05. Prices have pulled back to 75.88 even though EURUSD has held its gains, which means that gold prices remain heavily influenced by the continual selling pressure across the commodity complex in general -- and in oil, in particular. Oil prices have plunged to new lows at $44.52, the lowest level since February 2005 and at the top of a support band that stretches across major highs going back to September 2000.Read full article... Read full article...
Thursday, December 04, 2008
Gold Unmoved by Historic Interest Rate Cuts in Europe / Commodities / Gold & Silver
THE SPOT PRICE OF GOLD Gold Prices held in a tight $10 range in Asia and London on Thursday, unmoved by historic interest-rate cuts across Europe that buoyed French and German equities as returns-to-cash sank.The European Central Bank (ECB) lopped 75-basis points off the cost of borrowing Euros, but held above the previous 2003 low of 2.0%, with its largest ever one-day reduction.
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Wednesday, December 03, 2008
Gold Market "Illiquid" as Zero Interest Rates Loom / Commodities / Gold & Silver
THE PRICE OF GOLD for physical delivery slipped back against the Dollar, Euro and Yen early Wednesday in London, but recovered two-thirds of this week's 3.5% drop for UK investors as the Pound tumbled again on the foreign exchanges.On the stock market, Wall Street's strong overnight finish faded in Asia and left European bourses almost 1.5% lower by lunchtime.
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Wednesday, December 03, 2008
Gold Robust Physical Demand / Commodities / Gold & Silver
Gold rose nearly 1% yesterday as the dollar gave up some of its gains in recent days. Gold has remained slightly weaker in European trading and this is likely because of continuing dollar strength, particularly against the euro.Read full article... Read full article...
Wednesday, December 03, 2008
Stock Market and Commodities Will Recover; Economic Crisis Far from Over / Commodities / Resources Investing
As SilverStrategies.com editor Sean Rakhimov tells us in this exclusive interview with The Gold Report, the economic crisis may go on for a generation but the market is a separate animal that will stir back to life sooner. He expects physical gold and silver to lead the parade, with base metals lagging 12-18 months behind, followed by share price recovery for the majors and on down the line. When picking stocks to buy now, he says investors have to decide for themselves whether a company will survive the washout; it may be tough going from here to there, but sticking with survivors should prove beneficial in the long run.Read full article... Read full article...
Wednesday, December 03, 2008
Why Investors Pay High Silver Premiums? / Commodities / Gold & Silver
I was checking out a new facility by Eric LeMaire which lists the latest eBay prices for gold and silver as well as some common numismaticals from decades past. You can see the statistics at this link . What struck me were the huge premiums that silver investors are prepared to pay for one ounce coins right up to 100 oz bars. At a glance I could see an average premium of 124% for American Silver Eagles, 164% for Kookaburras and 105% for Maples. More sane premiums can be seen on the 100 oz at 35% which is nevertheless still a hefty premium compared to how much one may pay for other asset classes.Read full article... Read full article...
Tuesday, December 02, 2008
Comex Gold Shock and Awe / Commodities / Gold & Silver
This past Friday, Nov. 28, 2008, was first notice day for delivery of the December COMEX [a division of NYMEX] gold and silver futures contracts which trade on the New York Mercantile Exchange. The chart appended below shows that on Friday, 8,600 gold futures contracts @ 100 ounces per contract [and 3,040 silver futures contracts @ 5,000 ounces per contract] were delivered. To try to give some perspective to these numbers the previous delivery month for gold futures was October, 2008 when there were 11,554 deliveries for the entire month – a “big” number by historical standards.Read full article... Read full article...
Tuesday, December 02, 2008
Gold and Stocks Bounce after Yesterdays Slide / Commodities / Gold & Silver
THE SPOT PRICE OF PHYSICAL GOLD bounced $13 per ounce from a new 7-session low early Tuesday, while world stock markets found their floor almost 15% below the start of last month.Recording an AM Gold Fix here in London of $772.50, the Gold Price stood 5% below last week's peaks vs. the Dollar and Euro as well as Sterling.
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Tuesday, December 02, 2008
Gold Crashes by 5% But Posts Strong Annual Gain in Sterling / Commodities / Gold & Silver
Gold fell sharply yesterday and gave up some of its recent gains. Gold for February delivery dropped $42.20 to end at $776.80 an ounce or 5.4% on the New York Mercantile Exchange. The sell off begin in Asia on sharply lower oil prices and continuing dollar strength but continued as European and US stock markets again fell sharply.Read full article... Read full article...
Tuesday, December 02, 2008
Citigroup Predicts Gold 2000 in 2009 / Commodities / Gold & Silver
The horror of this financial crisis continues to grow.
The debate continues over bailing out the auto industry. What do you think? If a bailout occurs it will only be the first in a never ending line of industries seeking help. The world is now quickly changing and moving with a determined force we have not witnessed in our generation or the generation before.
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