Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Tuesday, April 20, 2010
Why the Gold Price Doesn't Matter / Commodities / Gold and Silver 2010
Unlike mining stocks, gold is not an investment. Gold is money. It is a store of wealth. Gold's 5x growth this past decade is significant not because it's nominal price has increased, but because the prices of most other assets have increased less.
The gold price simply doesn't matter. Gold's value as measured in a fiat currency is arbitrary. Sure, adept traders can take advantage of short term price fluctuations, but bullion owners invest for the long term, and they do so to protect their wealth.
Tuesday, April 20, 2010
Gold Broken Support Becomes Resistance and the Palladium Rocket / Commodities / Gold and Silver 2010
Gold was down -24.30 for the week (-2.09%), closing at $1137.30 (continuous contract). GLD (gold trust ETF) lost about 2% as well, closing at 111.24. Just last week, gold had made a new 2010 high. In last week's report I said:
"Gold's daily chart is bullish, but it is also starting to enter overbought territory. Gold has been performing well despite a steady dollar. If the dollar were to correct, it would put a bid under gold. The chart has turned decidedly bullish if price holds the breakout.
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Monday, April 19, 2010
Goldman Sachs News Mask Silver and Gold Price Take Down / Commodities / Gold and Silver 2010
Its been said that you should never waste a bad news article, use it to cover or hide behind what you really want to do, its an opportunity. So, of all the days to release the Goldman Sachs fraud investigation news they chose Friday 17th April 2010. Ring any bells, yes that's right it was the option expiry date for the month of April.
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Monday, April 19, 2010
Resources Stocks Sector Investing, Follow the News Early / Commodities / Metals & Mining
"News flow is really, really important. If you're going to play these kinds of stocks, especially if this is a sector you're not that comfortable with, you want to get in at the start or before the start of a drill program and not at the end," says Eric Coffin, co-editor along with his brother David of the HRA (Hard Rock Analyst) publications. In this exclusive interview for The Gold Report, Eric explains the importance of sniffing out upcoming news and timing in selecting potential resource investment opportunities.
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Monday, April 19, 2010
Bank Credit and Monetary Inflation Impact on Gold / Commodities / Gold and Silver 2010
One needs only read the story of Goldman Sachs’ creation of CDOs of dubious value to sell to one client while allowing another to short them to understand why Gold has existed as an investment down through the ages. We can not think of one story of kings in times long past that accepted CDOs as payment for taxes. We now know why they usually demanded Gold, or other needed commodities.
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Monday, April 19, 2010
Gold and Silver, Precious Metals Slow Motion Lottery Ticket / Commodities / Gold and Silver 2010
Is there a precious metals mania on deck directly ahead or will another deflation scare, which could curb demand for gold and silver, bail out the bureaucracy yet again. Indeed the bureaucracy seems to have nine lives in this regard, with gold and silver still trading at half their respective inflation adjusted values running all the way back to 1980. Of course there is a different way of viewing this, where the bureaucracy’s level of desperation to maintain the party atmosphere an unbridled fiat currency monetary system will sponsor can be measured by the London OTC Metals Exchange (LBMA) running paper promises to physical ratios at 100:1, which to a conservative mind is the definition of insanity. Because you see this means the entire economy is a ‘house of cards’, which is in fact the reality of the situation, a suicide mission courtesy of an emboldened bureaucracy riding high on gold’s back all these years.
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Monday, April 19, 2010
Gold's Goldman Drop Blamed on Strong Correlations, Chinese Whispers & ETF Exposure / Commodities / Gold and Silver 2010
THE PRICE OF GOLD bounced from a new two-week low for US investors early in London on Monday, rising 0.7% from beneath $1125 an ounce as silver, energy prices and world stock markets also extended Friday's sharp losses.
Crude oil fell towards $81 per barrel, while the Euro tracked gold vs. the Dollar, and the Dollar itself hit a 4-week low vs. the Japanese Yen.
Monday, April 19, 2010
Gold and the Strong Hand Theory / Commodities / Gold and Silver 2010
Let’s say you just bought a business, a small restaurant. You open for business on Monday and after a week you have grossed $6000. You’re feeling pretty good about how things are going. The business is up and running. Dollar signs are floating in your brain.
Then a week later you get bills for your first food order, payroll & rent. Maybe you also have the misfortune to get hit with the gas and electric bills on top of that. By the time you finish writing checks your +$6000 has turned into -$3000.
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Monday, April 19, 2010
Scardy Cat Gold Bugs / Commodities / Gold and Silver 2010
Alas, poor gold bug; I knew him Horatio. He had the brains to be perfectly positioned in the great gold bull market of 1999-2020. Yet he did not make any money from his wisdom. Take, for example, the sell-off of April 16, 2010. Gold was just about to make another powerful move to the upside. But the sell-off scared him away, and he missed the move. What was it that he did wrong?
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Sunday, April 18, 2010
Kitco Gold Bullion Index Comes With a Twist / Commodities / Gold and Silver 2010
Up until now we have always questioned to what extent the price of gold was due to the U.S. dollar’s weakness or to gold’s secular strength but with the introduction of the Kitco Gold Index now we know - precisely - because it measures the price of gold, not in terms of U.S. dollars (USDs), but rather in terms of the same weighted basket of currencies that determine the US Dollar Index. How ingenious!
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Sunday, April 18, 2010
Gasoline Makes Crude Oil a Buy on Any Pullback / Commodities / Crude Oil
Crude futures ended at their lowest point this month Friday, as investors fled riskier assets after regulators charged Goldman Sachs with fraud. West Texas Intermediate (WTI) crude for May delivery settled down at $83.24 a barrel on the New York Mercantile Exchange (NYMEX), the lowest settlement since March 30.
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Sunday, April 18, 2010
Silver Uptrend Hit by Goldman BombShell / Commodities / Gold and Silver 2010
Silver did make a little further progress following the last update, but the going was heavy as it battled resistance approaching its December and January highs, and the gains were incremental. With the Goldman Sachs bombshell on Friday, buyers vanished and the price plunged to initiate a probable reactive phase.
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Sunday, April 18, 2010
Gold Breakout Stalls / Commodities / Gold and Silver 2010
For a while gold looked like it was breaking out, but several of the important conditions for a successful upside breakout that were explained in the last update 2 weeks ago were not met and on Friday gold turned sharply lower. Although Friday's drop is thought to mark the start of a reactive phase, it is considered likely that it will prove short-lived as the overall picture for gold remains positive.
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Sunday, April 18, 2010
Gold, Silver and Crude Oil ETF Trend Trading Forecasts / Commodities / Gold and Silver 2010
Last week was exciting with broad market and gold forming an intraday reversal pattern after a long overbought rally, then broke down though short term key support levels. While this move lower was tough on the pocket book for those who chased the market up the past few days and/or were not moving their protective stops up, this move is good for the health of the market.
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Sunday, April 18, 2010
Gold Technical Pullback, China Demand, Euro PIIGS and Goldman Sachs Paulson Massive Positions / Commodities / Gold and Silver 2010
Gold fell the most in two months as the SEC’s action against Goldman Sachs (GS) spurred investors rushing out of riskier commodities and into perceived safer assets such as the U.S. dollar. Futures for June delivery slid 2% in one day to $1,136.90 an ounce.
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Saturday, April 17, 2010
Floating Alternative to Nabucco Natural Gas Pipeline Moving Toward Implementation / Commodities / Natural Gas
Romania, Azerbaijan, and Georgia on April 13, 2010, took a major step toward the implementation of a substitute energy distribution network to substitute for the US-backed Nabucco strategic gas pipeline complex.
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Saturday, April 17, 2010
SEC Charge Against Goldman has Volcanic Impact on Energy Markets / Commodities / Crude Oil
Oil Market SummaryOil prices plunged on Friday after the U.S. Securities and Exchange Commission charged Goldman Sachs with fraud in its marketing of certain subprime mortgage securities, amid a general sell-off in financial and commodity markets.
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Saturday, April 17, 2010
Looking for High Leverage to Gold Price / Commodities / Gold & Silver Stocks
In this exclusive interview with The Gold Report, Wellington West Analyst Paolo Lostritto explains why he thinks Burkina Faso is a part of the world gold investors should keep their eyes on. He compares Burkina Faso to the Yukon in terms of the potential for large finds. Closer to home, Paolo says South Carolina is an area where gold production could begin in the next couple of years.
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Saturday, April 17, 2010
Uranium, Part of the Energy Crisis Solution / Commodities / Uranium
President Obama has called for the development of more nuclear reactors in the coming decades. Discovery Investing pioneer Dr. Michael Berry says for that plan to work, uranium has to be part of the solution. In this exclusive interview with The Energy Report, Michael talks about the need for more uranium mining in the United States. He also explains why right now an investment in energy metals is a safer bet than investing in industrial metals.
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Saturday, April 17, 2010
World Monetary System Collapse And Gold’s Parabolic Rise / Commodities / Gold and Silver 2010
We could be very close to the end of a financial era that started about 1971. The monetary system as we know it today, which is backed by a changing (non stable dollar), appears to be in its final stages and just waiting for a fierce run to gold, silver and certain other non monetary assets, to provide the death blow.
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