Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Wednesday, April 22, 2015
How to Profit from the Drop in the Oil Price / Commodities / Crude Oil
Over the past three quarters, the world has watched oil prices plummet from over $100 to its current price of $51/barrel of the grade West Texas Intermediate (WTI). Due to oil’s vital role in the global economy, this massive decline naturally raises questions as to the reasons behind the decline and the perdurability of these lower oil prices. Today we will give you a more in-depth analysis of what is going on in the oil market and offer potential investment implications resulting from these developments.
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Tuesday, April 21, 2015
Before Gold Bugs Blaze Their Trumpets…Gold is Due for a Significant Bounce / Commodities / Gold and Silver 2015
Gold bugs are still waiting on the great hyperinflation that will cause the U.S. dollar to fold over and send gold soaring to the heavens to the tune of $5,000.
That might have looked remotely possible in 2011 when gold almost hit the $2,000 mark… but not now.
Tuesday, April 21, 2015
Currency Wars Back As Russia Buys Gold - One Million Ounces in March Alone / Commodities / Gold and Silver 2015
- Russia buys one million ounces and increases gold reserves by another 2.6% in March
- Russia sees gold as important monetary and strategic asset in stealth currency wars
- Large purchase by Russia who normally buy some 300,000 ounces
- Russian gold reserves, at nearly 40 million ounces, are now fifth largest in the world
Monday, April 20, 2015
Gold & Silver Alert: Silver Stocks’ Signal / Commodities / Gold and Silver Stocks 2015
Briefly: In our opinion, a speculative short position (half) in gold, silver and mining stocks is justified from the risk/reward point of view.
The situation in the precious metals market is quite specific at this time. We have gold moving higher on low volume and moving lower on increased volume (which is bearish), but during the last few weeks miners have outperformed gold which seems to indicate strength. One of the signals that help to decide what the outlook really is comes from silver stocks.
Before we move to silver miners, let's take a look at gold and silver (charts courtesy of http://stockcharts.com).
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Monday, April 20, 2015
Now is the Time to Buy Resource Stocks, Especially Gold Equities / Commodities / Gold and Silver Stocks 2015
Kal Kotecha, founder and editor of Junior Gold Report, says now is the time to be buying resource stocks, especially gold equities. He says the TSX Venture Exchange is the most decimated market in the world and the index will rebound to well beyond 1,000 in the next 12 to 24 months. In this interview with The Gold Report, he lists several gold and oil equities, some with near-term production narratives, others with longer-term potential.
The Gold Report: The Junior Gold Report follows both gold and oil equities. Please briefly outline your outlook for both commodities.
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Monday, April 20, 2015
Crude Oil Price Bull Market Hope / Commodities / Crude Oil
I believe that energy analysts are absolutely delusional to think Crude production will slow significantly, especially with Oil back near the $60 mark. During the recent, lengthy bull market, tens of billions of Dollars were invested in Crude infrastructure, so there is too much at stake to simply shut down operations and walk away. Investors and participants in any industry that has experienced a 15 year bull market won't change their beliefs overnight - it takes time for sentiment to shift. Most are far too emotionally and financially vested in the industry, so it's unreasonable to think that a 9 month decline is going to drive an immediate adjustment to the imbalance in supply and demand.
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Sunday, April 19, 2015
Sugar Commodity Price Bear Rally / Commodities / Commodities Trading
Sugar finally looks to have kicked off its bear rally so let’s quickly revise the situation using the daily and weekly charts.
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Sunday, April 19, 2015
Comex Bucket Shop and Gold Run on China Shanghai Exchange / Commodities / Gold and Silver 2015
The Comex is a rounding error compared to the global physical market for precious metals.
Shanghai saw 34 tonnes of gold withdrawn last week.
There are less than 18 tonnes of registered (for sale at these prices) gold in all the Comex warehouses, and very little of it sees even a changing of hands, much less withdrawn.
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Saturday, April 18, 2015
I’m Counting on Chaos in the Energy Sector and You Should, Too / Commodities / Energy Resources
Keith Fitz-Gerald writes: CNBC’s Kate Kelly asked me last January if I was worried about smaller players in the energy sector “just plain going out of business.”
I replied that not only was I not afraid of the weaker players being swept away, I was counting on it.
As you might imagine, that raised more than a few eyebrows, considering oil had fallen by 51% from last summer’s highs to only $52/barrel at the time, and investors couldn’t hit the sell button fast enough.
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Saturday, April 18, 2015
Which Way Will Gold and Silver Break? / Commodities / Gold and Silver 2015
Precious Metals continue to be a conundrum. While Gold has trended lower it has failed to break below $1100 as so many expect. It is very strong against foreign currencies and did not break to a new low even as the US$ index rallied from 87 to 100. On the other hand, Gold has failed to sustain any bullish momentum. The gold stocks are even more oversold and have formed some higher lows since last November. Yet, they have failed to sustain any bullish developments and are far from reaching a higher high. Only time will tell which way the sector will break and how its bear market will conclude.
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Saturday, April 18, 2015
Gold Price Next Move / Commodities / Gold and Silver 2015
Peter Vogel writes: When determining if a bull move in gold is a probability, a good indicator can be found in the relationship between the junior and senior gold miners etf's. If a bull move is occurring, the junior gold miners etf (GDXJ) should show indications that it will outperform the senior gold miners etf (GDX). This implies investors are willing to take on more risk in anticipation of greater gains by taking positions in the GDXJ verses the GDX.
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Saturday, April 18, 2015
Gold - You Have No Right to Be Scared / Commodities / Gold and Silver 2015
Guy Christopher writes: So, you're thinking about buying some gold or silver, but you're still hesitant.You've paid attention and done your homework. You understand your nation's financial health is nowhere near what your government, Wall Street, and mainstream news are saying.
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Friday, April 17, 2015
Gold Price Has “Hallmarks Of Market That Is Bottoming” / Commodities / Gold and Silver 2015
Today’s AM LBMA Gold Price was USD 1,204.55, EUR 1,113.83 and GBP 801.86 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,204.60, EUR 1,131.19 and GBP 811.40 per ounce.
Gold fell 0.29 percent or $3.50 and closed at $1,199.00 an ounce on yesterday, while silver rose 0.18 percent or $0.03 closing at $16.29 an ounce.
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Friday, April 17, 2015
Gold and Silver Price Confined to Tight Trading Range / Commodities / Gold and Silver 2015
Precious metal prices were broadly unchanged this week, confined to a tight trading range of $1210 to $1185 for gold and $16.60 to $16.00 for silver. There were several attempts by sellers to force prices to break down, but from the price action there appeared to be buyers waiting for the opportunity. The result was that yesterday gold rallied to as high as $1209 and silver to $16.50, though they closed well under these best levels when a senior Federal Open Market Committee member warned that interest rates would not remain at zero for ever. Comex volumes in gold were light though they were better in silver.
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Friday, April 17, 2015
Production Declines Hide Bigger Crude Oil Storage Issues / Commodities / Crude Oil
Cushing added another 1.3 million barrels to weekly storage and stands at 61.5 million barrels. The Gulf Coast added another 600 thousand barrels to storage and stands at 237 million barrels. By comparison Cushing had 26.8 million barrels in storage this time last year, and the Gulf Coast had 207.2 million barrels in storage a year ago.
Friday, April 17, 2015
Top Three Takeaways From Today’s OPEC Crude Oil Report… and How You Can Profit / Commodities / Crude Oil
Dr. Kent Moors writes: Today I’ve got a “below the surface” read on what is really happening inside OPEC.
Frankly, I had not planned to devote so many essays to the cartel and its policies. After all, the organization is no longer the center of the energy universe.
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Friday, April 17, 2015
What Is Really Driving Gold Price? / Commodities / Gold and Silver 2015
If anything, gold bulls are continuously looking to confirm their bullish outlook. Most precious metals websites are filled with stories, news and developments from the gold market, accompanied by the implication that they will drive the gold price up. Examples of this include gold coin sales, Shanghai gold withdrawals, central bank buying volumes, evidence of market manipulation, money printing volumes, velocity of money, etc.
The ongoing narrative is that there is a positive correlation between monetary stimulus and the price of gold. However, as you probably know by now, precious metals collapsed during the Fed’s QE to infinity program. The long-term gold chart (first chart below) shows that gold stabilized when the Fed started tapering and around the end of QE, which is very counterintuitive to say the least. That is not to say there is no correlation, but there is definitely not a direct correlation.
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Thursday, April 16, 2015
Gold Price: Year 2000 All Over Again – How Will You Play It This Time? / Commodities / Gold and Silver 2015
Recently business and financial guru Mark Cuban wrote an article about why this tech bubble is going to be worse than the tech bubble of 2000. This made me take another look at the long term charts again, but instead of looking up the NASDAQ or the tech sector I decided to check out gold mining stocks, gold price and the Dollar index.
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Thursday, April 16, 2015
More Thoughts on the Current Crude Oil Market / Commodities / Crude Oil
WTI surged to close at $56.01 a barrel on Wednesday, while Brent closed at $62.86 after the US crude oil inventories showed a 'less-than-expected increase'. The latest weekly inventory (week ending April 10) from EIA showed an increase of 1.3 million barrels, much less than the 10.9 million barrels of build from the previous week. The report also showed that total motor gasoline inventories decreased by 2.1 million barrels, while distillate stockpiles rose by 2.0 million barrels.
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Wednesday, April 15, 2015
OPEC Going Broke, Dumping U.S. Dollars. Is That Good Or Bad? / Commodities / Crude Oil
When oil prices fell out of bed last winter there was much hand-wringing over the fate of the former beneficiaries of high-priced crude. Trillions of dollars of junk bonds issued by frackers, for instance, might default, oil field services companies could fail, and layoffs in the oil patch might swamp the nascent employment recovery.
Some of this has happened, though not on the apocalyptic scale the worst-case scenarios suggested. More might be coming, but right now it’s not headline news in North America.
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