Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Friday, March 04, 2016
This Is the Only Way to Buy Gold Without the Government Tracking You / Commodities / Gold and Silver 2016
By Justin SpittlerIn place of our regular daily market commentary, we’re going to warn you about an extremely dangerous trend in government surveillance.
E.B. Tucker, editor of The Casey Report, has found a unique way to protect yourself…but the window of opportunity is closing fast.
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Friday, March 04, 2016
Massive Gold Investment Buying / Commodities / Gold and Silver 2016
Gold’s powerful surge in 2016 has been driven by utterly massive investment buying. This is a marked sea change from recent years, where investors relentlessly pulled capital out of gold. But with that dire sentiment reversing, they are rushing back in with a vengeance. Major investment capital inflows into gold are an exceedingly-bullish omen, as they are what transform a mere gold rally into a new bull market.
With gold enthusiasm growing, it’s easy to forget how radically different things looked just a few months ago. Back in mid-December the day after the Fed hiked rates for the first time in 9.5 years, gold dropped to a miserable 6.1-year secular low of $1051. The popular level of antipathy towards this asset class by investing professionals was mind-boggling. They universally believed it was doomed to keep spiraling lower.
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Friday, March 04, 2016
Silver Price Buy Signal – 2016 / Commodities / Gold and Silver 2016
The gold to silver ratio has been used for years to indicate buy and sell zones in both gold and silver. Why?
- At BOTTOMS in both gold and silver, based on 40 years of history, silver prices have fallen farther and faster than gold. Hence the gold/silver ratio reaches a relative high.
- At tops in both gold and silver the ratio is often low since silver rises more rapidly than gold. As Jim Sinclair says, “silver is gold on steroids.”
Friday, March 04, 2016
Gold Special Update… / Commodities / Gold and Silver 2016
Last week I showed you a daily line chart for GLD which I called a coiling triangle as the price action was getting more compressed as it traded toward the apex. This daily line chart shows the breakout and backtest. Most technicians are aware of the triangle consolidation pattern but its implications may not be understood by most.
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Friday, March 04, 2016
Gold Has Surged 24% In Sterling Year To Date on Brexit and Sterling Concerns / Commodities / Gold and Silver 2016
Gold has surged another 4% this week to bring year to date gains to 20% in dollar terms, 19% in euro terms and 24% in sterling terms. We were interviewed by PickingAlpha.com yesterday afternoon and looked at what is currently driving gold prices higher in all currencies.
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Friday, March 04, 2016
Gold Trading Hardest Strategy to Let Your Winners Run / Commodities / Gold and Silver 2016
One of the hardest things to do in this business is to let your winners run. For whatever reason we are programmed to expect reversals. It’s why so many people try to trade against the trend. I’ve seen it in full display over the last 5 weeks as trader after trader has tried to pick the top of the run in metals. Many even trying to short the sector.
I made that mistake many times myself in my early career. Folks a sustained trend doesn’t come around all that often, when you get one you have to ride it for all it’s worth. That’s how the big money is made. And I’ll say this again. Never, never, never short a baby bull. They are unpredictable and extremely aggressive. They almost always go much further than anyone expects. Why? Because everyone has become conditioned for failure by the bear market that preceded it. This is the fuel for a much more sustained move than most people anticipate. Invariably there is a steady stream of top pickers all the way up. They either sell way too early, or they try to short the rally over and over as a revenge trade for missing the move.
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Friday, March 04, 2016
Behold the New Gold Bandwagon. . . / Commodities / Gold and Silver Stocks 2016
Precious metals expert Michael Ballanger says we are actually back in a bona fide, brand-spanking-new, bull market in gold and the gold miners.
As I was busy last evening returning a myriad of emails regarding the near-term outlook for gold and silver, I was suddenly hit with the realization that we really are actually BACK in a bona fide, brand-spanking-new, bull market in gold and the gold miners.
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Thursday, March 03, 2016
What Is Copper Telling Us? / Commodities / Copper
I am going to keep this piece, short and sweet as I believe the charts below will speak volumes about where we are in these markets and more importantly, where we are heading.The world seems to be on the verge of a meltdown but, if so, why are some of the commodities telling a different story?
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Thursday, March 03, 2016
GLD ETF Continues To Add Gold / Commodities / Gold and Silver 2016
The continued build in the number of reported gold holdings in the large gold ETF, GLD, is nothing short of phenomenal. This week alone, another 22 tons of gold have been added to the ETF bringing the total in storage to 788.6 tons.
Here is a chart showing the sharp increase in holdings.
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Thursday, March 03, 2016
Donald Trump – Bad For US Dollar, Good For Gold? / Commodities / Gold and Silver 2016
Donald Trump’s emergence as the Republican frontrunner and possible future U.S. President is causing some gold and investment analysts to suggest diversifying into gold according to the Wall Street Journal.
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Wednesday, March 02, 2016
Gold and the US Monetary Base Signals the Greatest Depression / Commodities / Gold and Silver 2016
Gold is currently trading in excess of $1200 an ounce. This is well above the 1980 all-time high. However, this is an incomplete representation of what gold is trading at relative to US dollars. When you look at the gold price relative to US currency in existence, then it is at its lowest value it has ever been. This is an example of how paper assets are completely out of tune with tangible (real assets).
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Tuesday, March 01, 2016
Is the Gold Price Manipulated? Part IV / Commodities / Gold and Silver 2016
We have examined the major theories of manipulation in the gold market, so let’s deal with other interesting problems: high-frequency trading, declining inventories in Comex, London bias and gold leasing.
First, some people accuse big banks of suppressing gold prices by not only using ‘naked’ shorts, but also engaging in high-frequency trading (HFT). The HTF is a type of algorithmic trading characterized by the large number of orders at very fast speed (they operate in milli – or microseconds). Many investors believe that bankers using HFT create massive volumes of artificial traffic, or place and quickly cancel orders in order to create waterfall declines in the price of gold.
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Tuesday, March 01, 2016
Gold's Rise: Head Fake or is it the Real Deal? / Commodities / Gold and Silver 2016
The downtrend that has dominated this sector for the last 3 years has been broken by golds sudden and almost vertical rise from its recent lows.
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Tuesday, March 01, 2016
Why Oil Booms And Busts Happen / Commodities / Crude Oil
What if I told you that there was a period in history where oil demand declined by 5 million barrels per day and non-OPEC supply increased by 5 million barrels per day, yet oil price rallied more than 50 percent? Would you believe me? If your answer is yes, then you guessed right. This was the period from 1979 to 1985; it was a period during which global oil demand declined from over 61 million barrels to 56 million barrels and non-OPEC supply increased from 32 million barrels to 37 million barrels. Yet prices rallied from $17 a barrel in 1979 to $26 a barrel in 1985, while reaching as high as $35 in 1981.
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Tuesday, March 01, 2016
Graphite: What iPhones, NASCAR and Tesla Have in Common / Commodities / Graphene
Focus Graphite CEO and Director Gary Economo says the tipping point is coming for natural flake mining developers—even during a depressed commodities cycle. This optimistic view is based on the urgent necessity of manufacturers today to source those critical materials and technologies needed to meet globally mandated CleanTech targets in advance of a 2020 deadline. Focus, says Economo, is on strategic trajectory to capitalize on global change with his company's Lac Knife, Quebec, high-purity graphite deposit.
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Tuesday, March 01, 2016
Gold Charts That Will Confuse Bulls And Bears / Commodities / Gold and Silver 2016
In this article, we feature 4 gold related charts. Two of them are bullish and two are bearish.
The first bullish chart is the gold price with its trend channel since it peaked in 2011. So far, the breakout out of the trend channel is strongly bullish. What gold bulls would like to see now is a successful test of 1200 USD (resistance line). With gold trading only 20 USD above that price point, it will not take long to see the results of that test.
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Tuesday, March 01, 2016
Deutsche Bank Abandons Gold Sub $1000 Call, Says Expensive Insurance / Commodities / Gold and Silver 2016
Deutsche Bank Says has thrown in the towel on its call that gold would fall below $1000 Call. Now DB says buy gold for insurance. Here are a few snips of a Deutsche Bank market research report on gold that came my way via email. The title of the report is "It's Expensive, but You Need Some Insurance".
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Monday, February 29, 2016
Gold in Zero-bound / Commodities / Gold and Silver 2016
“When you have zero money for so long, the marginal benefits you get through consumption greatly diminish – but there’s one thing that doesn’t diminish, which is unintended consequences.” – Stanley Druckenmiller
Something happened on the way to negative interest rates. Something unexpected. Gold and silver demand went through the roof. The first two months of business at USAGOLD were reminiscent of the 2009 run to gold. In London, where people have the additional concern of a potential exit from the European Union, investors were lining up around the block to purchase precious metals, and reports were circulating that “Some London banks are placing unusually large orders for physical gold.” For the first two months of the year, the U.S. Mint reported gold coin sales running double what they were for the same period in 2015.
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Monday, February 29, 2016
Crowded Gold / Commodities / Gold and Silver 2016
Even though Gold did not continue higher this week, sentiment still seems to be dangerously elevated. Talk of $2,000 Gold and a new bull market has become common, and Gold seems ripe for a fall, at least in the short term. Don’t misinterpret my point – I see the evidence that a new bull market trend is developing, but that’s in the intermediate term. Shorter term, the current rally is approaching its limits.
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Monday, February 29, 2016
Gold's Message / Commodities / Gold and Silver 2016
Steen Jakobsen, Saxo Bank CIO and chief economist, emailed a chart of gold last week with his comments on what the chart means. I meant to comment on his comments at the time, but will do so now.
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