Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Tuesday, January 12, 2016
Silver, Silliness, Gold, and Risk / Commodities / Gold and Silver 2016
The movie “The Big Short” features Michael Burry. His statement from Zerohedge:
“It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk pricing mechanism is broken.”
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Tuesday, January 12, 2016
Sales Surge After U.S. Mint Quadruples Silver Eagles Allocation / Commodities / Gold and Silver 2016
American Eagle silver coin sales jumped on Monday after the U.S. Mint said it set the first weekly allocation of 2016 at 4 million ounces, roughly four times the amount rationed in the last five months of 2015, after a surge in demand.
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Tuesday, January 12, 2016
Betrayed By The Gold Silver Ratio ? Gold Bug heresy? / Commodities / Gold and Silver 2016
“ET TU BRUTE ?” “Cuo Bono ?”
“It's a long time from now to never....” Says 'John Snow' in Game of Thrones. In my opinion, probably as far as from here / now to “It must go back to....” uttered so much in the worship of the Gold Silver Ratio (GSR). And yet it doesn't, at least not until you suffer your stops being run and a loss of capital, or worse. Your Capital was just betrayed at the hands of The GSR.
Tuesday, January 12, 2016
Here is How You Fix the Oil Market / Commodities / Crude Oil
Monday, January 11, 2016
Crude Oil Price Closed Week under 2009 Low! / Commodities / Crude Oil
Trading position (short-term; our opinion): Short positions (with a stop-loss order at $39.12) are justified from the risk/reward perspective.
On Friday, crude oil lost 1.14% as concerns over a global supply glut, the situation in China and the Middle East continued to weigh on investors sentiment. Thanks to these circumstances, light crude closed the week under the 2009 low. Does it mean that we’ll see a test of the barrier of $30 in the coming weeks?
Monday, January 11, 2016
The “Hanging in There” Game for Oil Producers / Commodities / Oil Companies
9.2 Million Barrels
The latest EIA report shows the US Production rate steady and holding at the 9.2 million barrels per day. And although there have been some anecdotal reports out of Canada at the start of the year on this recent down leg in oil prices, that this has triggered them to shut down production, that at these prices it makes no sense to continue operations; the rest of the beleaguered producers in the oil space are continuing to operate and hold on throwing more bad money after bad money.
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Monday, January 11, 2016
Must See Presentation: “Wealth” of “Positive Catalysts” for Gold / Commodities / Gold and Silver 2016
Grant Williams gave another must see presentation at the Mines and Money Conference in London last month, laying out why he believes the gold price is languishing despite a wealth of what would ordinarily be “positive catalysts.”
Williams’ presentation is titled “Gold: The Unsurance Policy — Love It or Loathe It.” It is 28 minutes long and can be viewed here:
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Monday, January 11, 2016
What’s Up with the HUI and Gold ? / Commodities / Gold and Silver 2016
“UP” it was, but the intermediate term chart is certainly not that impressive, given the pandemonium that has been taking place since the start of the New Year.
The index does seem to have carved out a bottom just above the 100 level but it must take out initial resistance near 140 and then again above the 50 period moving average to give chartists some reason to turn more solidly bullish. As things stand now, all it looks like the index has done is to bounce off a bottom and trek higher towards to the upper bounds of a sideways trading pattern. For a bullish breakout to occur, 150 will have to be cleared.
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Sunday, January 10, 2016
The Dot Plot, Treasuries and the Gold Stocks TSX.V / Commodities / Gold and Silver Stocks 2016
The Federal Reserve has finally raised their target for the Fed Funds rate. In a unanimous vote members decided to raise rates by 25 basis points to 0.25 - 0.50 per cent. It was the first hike since June 2006 when then Fed head Ben ‘helicopter’ Bernanke increased the benchmark rate from 5 to 5.25 percent.
How far and how fast will the Fed's rate-hike cycle go? Maybe Federal Reserve members themselves can tell us that…
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Saturday, January 09, 2016
Gold And Silver – Why More Important Than When. Going Lower Before Moving Higher / Commodities / Gold and Silver 2016
When the globalist’s central bankers are in control, primarily the US/UK, they are proving their ability to supersede the natural forces of supply and demand with impunity. When they have the ability to “print” unlimited amounts of fake fiat, no other country can stand in the way, not even China.
On the other hand, neither China nor Russia wants to oppose the globalist forces of evil, for both of those nations see what is unfolding on the world’s stage is the kabuki theater death dance of the US and the inexorable fading away of the fiat Federal Reserve Note.
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Saturday, January 09, 2016
Gold to Equities Ratios Have Bottomed / Commodities / Gold and Silver 2016
It has been a strong start to 2016 in precious metals, today notwithstanding. Gold was able to break above daily resistance at $1080 to $1090 while miners climbed higher until Friday's reversal. Rather than focus on the nominal gains I want to turn our attention to Gold's performance against other markets and asset classes. It is starting to turn in Gold's favor and that is imperative if the precious metals bear market is to end in 2016.
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Friday, January 08, 2016
Natural Gas Prices Signaling Oil Bottom for Investors / Commodities / Natural Gas
Everyone is trying to figure when the oil markets will bottom. Well lost in all the crazy action in markets globally is the nice resurgence off the bottom for natural gas prices. Natural Gas prices have essentially gone from $1.68 per MMBtu to $2.40 per MMBtu rather rapidly in the midst of a mild winter so far. The reason is that all those rig reductions are starting to affect the production of the commodity, less natural gas is coming to market relative to expectations.
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Friday, January 08, 2016
That`s the Bottom in the Crude Oil Price, Clear Out Weak Hands in the Market / Commodities / Crude Oil
On Wednesday the oil market sold off to $33.77 on large product`s builds, China`s devaluation of its currency, and a substantial selloff in equities. Sure Oil can go a dollar below this low, but for all intents and purposes this is the bottom in the oil selloff that was predicted for the start of the year. This move down was as predictable a move as there is in financial markets, and we called this down move to start the year with a piece we issued in December.
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Friday, January 08, 2016
Gold Price Higher In Most Currencies in 2015 – Up 4% This Week / Commodities / Gold and Silver 2016
- Gold acts as safe haven in 2015 … for those who need safe haven
- Gold gains in CAD, AUD, NZD, ZAR, RUB & most emerging market currencies
- Gold essentially flat in EUR (-0.3%) as ECB QE supports gold
- Gold lower in USD, GBP, CNY, INR, JPY, CHF
- Of 18 major currencies, gold was higher in 11 currencies and lower in 7
- Hallmarks of market bottoming and bodes well for 2016
- Gold over 4% higher in USD, EUR and GBP so far in January
Thursday, January 07, 2016
Why are Gold Stocks Outperforming? / Commodities / Gold and Silver Stocks 2016
Even a cursory review of U.S. stock market indices over the past year shows sharp differences in the character of the first half of last year and the latter half. A clear discontinuity occurred in the path of that market. That a Part A and a Part B existed cannot be ignored. The fantasies and dreams of Part A were dashed in Part B. For whatever the reason, the character of markets changed.
Table that follows shows end of July 2015 values for a number of market indices and investments, the recent value for the same, and the percentage change for that period. One question comes to mind after reviewing this table. Why are the Gold stocks outperforming?
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Thursday, January 07, 2016
Perth Mint Silver Coins Sales Surge 56%, Gold Sales Drop 16% In 2015 / Commodities / Gold and Silver 2016
Perth Mint’s sales of silver coins surged 56%, while gold sales fell 16% in 2015, as silver stackers continued to accumulate silver coins and bars and the new silver nugget or kangaroo bullion coin (1 oz and 5 oz) saw very high levels of demand.
The Perth Mint’s gold sales rose in December from the prior month, but annual sales slid by nearly a fifth in 2015. Gold sales in December rose to 40,096 ounces from 31,664 ounces in November, the mint said on its website on Wednesday as reported by Reuters.
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Thursday, January 07, 2016
Crude Oil Price Breakdown! / Commodities / Crude Oil
Trading position (short-term; our opinion): Short positions (with a stop-loss order at $39.12 and an initial downside target at $33.66) are justified from the risk/reward perspective.
On Tuesday, crude oil lost 2.47% as a stronger greenback pushed the price lower. As a result, light crude extended losses and broke below important support line. What impact could it have on future moves?
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Thursday, January 07, 2016
Crude Oil Price Tanks but Oil Tankers are Filling Up and Raking it In / Commodities / Crude Oil
"A man, when he wishes, is the master of his fate." ~ Jose Ferrer
While oil continues to drop, there is one sector connected to the oil market that is doing rather well. It is the oil tanker sector, and while oil is trading at 11-year lows, many stocks in this sector are already posting double digits gains over the past 12 months. This sector looks appealing both from the Contrarian and Mass psychology perspective for the following reasons.
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Wednesday, January 06, 2016
Gold Price Up On Mid East, Asia Risk – January Best Monthly Performance / Commodities / Gold and Silver 2016
- Gold up 2.5% in January on stock falls, Korea nuclear test, Middle East tensions
- Gold up an average of 4.4% in January over past decade
- January positive month for gold and silver
Gold prices hit a four-week high today over $1,088 per ounce, extending gains for the third day and leading to a 2.5% gain year to date. Deepening concerns over the indebted Chinese economy saw falls in stock markets again and tensions rose in Asia and the Middle East.
Wednesday, January 06, 2016
Gold Market, Two Charts / Commodities / Gold and Silver 2016
As you build a model of the trend you want to find in a Sector or stock that has a trend you can find. Better yet if you can catch it while it changes trend from down to up.
Compare the left chart, GIMBO with the RIGHT hand chart, DIMBO. If we are constructing a model of a chart of a stock or sector we want to buy into, which one typifies the best situation that can be there for us : Bottoming, ready to move up, LEFT HAND SIDE, or CRESTING or ROLLING OVER with no decisive trend outlined.