Tag: commodities

One Belt, One Road, One Direction for Precious Metals

One Belt, One Road, One Direction for Precious Metals

All great events hang by a hair. The man of ability takes advantage of everything and neglects nothing that can give him a chance of success; whilst the less able man sometimes loses everything by neglecting a single one of those chances. ~Napoleon Bonaparte China’s launch several years ago of the One Belt, One Road Initiative is set to become the biggest commercial linking-system constructing project in world history. In the book David Morgan and I co-authored, Second Chance: How to Make and Keep Big Money from the Coming Gold and Silver Shock-Wave, we discuss the “New Silk Road” this way: …the plan, described as an “economic partnership map with […]

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Commodity Cycle Upturn to Lift Precious Metals Prices

Commodity Cycle Upturn to Lift Precious Metals Prices

Safe-haven demand for physical precious metals came in soft through the first half of the year as a rising stock market reinforced investor optimism toward the economy. U.S. stocks are expensive by just about every valuation measure you can think of – price/earnings, price/sales, dividend yield, total market capitalization as a percentage of GDP, etc. Even Fed chair Janet Yellen remarked recently that equity valuations appeared “rich.” The inverse of the extreme overvaluation in equities is the extreme relative cheapness of hard assets. Commodity indexes entered the summer at generational lows in real terms. The perception has been that the world is awash in plentiful, cheap oil. Just a few […]

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Hell Freezes Over: CFTC Finds Trader Guilty of Metals Price Rigging

Hell Freezes Over: CFTC Finds Trader Guilty of Metals Price Rigging

It must have been painfully awkward for the Commodity Futures Trading Commission (CFTC). Last year, Deutsche Bank settled a civil suit involving blatant market rigging and turned over reams of information, including chat logs and voice recordings. The trove contained plenty of damning evidence which had gone overlooked by the CFTC. CFTC investigators supposedly spent 5 years searching for illegal market manipulation, but somehow, managed to find nothing. The cheating became hard to ignore after Deutsche Bank turned over voice recordings and 350,000 pages of documents which revealed bank trading desks being run like the back office of a crooked casino. Here is one of the chat log gems between […]

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The Commodity Cycle: What It Means for Precious Metals Prices

The Commodity Cycle: What It Means for Precious Metals Prices

The cycle for any commodity follows the same basic pattern… When prices are low, production falls. As new supplies diminish, the market tightens and prices move higher. The higher prices incentivize producers to invest in production capacity and increase output. Eventually, the market becomes oversupplied, prices fall, and the cycle starts all over again. Of course, this is a simplified model of what drives commodity cycles. Booms and busts can be amplified and extended by speculators, by unexpected shifts in demand, or even by interventions from central banks and governments. Regardless of the causes, commodity markets will always be cyclical in nature. Commodities as a group can be pressured upward […]

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Silver and Warnings from Exponential Markets

Silver and Warnings from Exponential Markets

Silver prices are currently low compared to global debt, CEO bonuses, government spending, official US national debt, the S&P 500 Index, silver prices in 2011, money in circulation, gold prices, military spending, pension underfunding, and the prices of college tuition and health care. Silver prices will increase substantially in the next five years.

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Gold To Profit From The Coming Dollar Correction

| March 12, 2015 | Category: Money & Currency
Gold To Profit From The Coming Dollar Correction

The key take-away is that the dollar can certainly go higher from here, but the rally is close to cool down. Also, no matter how impressive the recent rally has been, its strength has been historic, so it should not be realistic to expect a similar strength going forward. These factors make us think that the pressure on commodities, including the precious metals complex, is about to fade.

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Gold And Silver Price Hugely Diverting From Commodities

Gold And Silver Price Hugely Diverting From Commodities

The good news for the precious metals bulls is that the metals are not following commodities as of late. The chart shows the extremely strong positive correlation between the metals vs a commodities index. That correlation is clearly broken since mid June of this year.

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Investing In Resource Markets In 2013

This article presents the outlook for investing in resource markets in 2013. We consider Sprott Global Resource Investments the most respected company in resource investing. That’s why we bring the view of Rick Rule and Mishka Vom Dorp in this article. Rick Rule believes that junior markets overall will go (much) lower. He expects that 80% of the 4.000 junior exploration companies are non-viable. They will attempt to reach their intrinsic value, which is zero. Occasionally, however, we will witness pretty dramatic escalations. In addition, Rick Rules expects all sorts of amalgamations in the coming 24 to 36 months.

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Dow Jones / UBS Commodities Index Change to Benefit the Precious Metals

Every year, the various commodity indices, that are used by hedge funds and index funds to benchmark against, have a reweighting of the various commodity inputs that are used to comprise each particular index. During this reweighting process, the percentage of some commodities are increased while the percentage of others are decreased. As a result, those funds benchmarking against the index, are forced to recalibrate their particular portfolios, selling some commodity positions while buying some new commodity positions in order to come into alignment with the new weightings. Dow Jones/UBS recently announced that the precious metal component of their index will be increased by 2% from this year’s levels for […]

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The Fed and the ECB determine to Destroy the Middle Class

| September 13, 2012 | Articles: Gold Silver Prices
The Fed and the ECB determine to Destroy the Middle Class

While Wall Street cheers the actions by the Fed to further enlarge its already bloated Balance Sheet, those of us who live on Main Street should get accustomed to further increases in our food and energy costs. What I find rather perverse, is the statement by the FOMC that “longer term inflation expectations remain stable”. Yeah, maybe on the salaries and wages front but sure as hell not on the raw materials front. Take a look at where hedge fund money is now flowing – right back into the hard or tangible assets category again. Get used to higher gasoline and heating oil prices and brace yourself for the food […]

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Are Commodities coming Back in Vogue?

| September 10, 2012 | Articles: Gold Silver Prices
Are Commodities coming Back in Vogue?

The following chart of the Continuous Commodity Index ( CCI ) shows a sector that apparently is catching the attention of the hedge fund community once again as risk trades come back into favor courtesy of what seems to be another wave of money printing/bond buying about to launch. Notice that the price rally from the late spring low down near 503 first cleared the 25% Fibonacci Retracement level off the drop from the 2011 peak near 692. Instead of falling back through that level and making another fresh leg lower, the market bounced right off that same 25% retracement level and then spiked higher taking out the 38.2% retracement […]

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Inflation Reemerging: Food Prices Gapping Higher, Precious Metals May Follow

Inflation Reemerging: Food Prices Gapping Higher, Precious Metals May Follow

An old melody advises us to look for the silver lining whenever dark clouds appear in the blue.  There is economic and political upheaval all over the world.  So we direct our attention to an area where silver is shining.  Poor man’s gold may come into prominence shortly and provide our subscribers with possible profits.  See the video below why supply may be disrupted over the next several years and why we may be facing hyper inflation. The price of food is beginning to soar and this may be showing early signs of a global inflation.  Could silver and gold follow food prices higher an as Central Banks worldwide fight […]

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US Dollar Looks Strong

US Dollar Looks Strong

The rally in the US Dollar continues not out of any particular set of strong fundamentals in the US but rather out of a general aversion to the Euro and by consequence, to the European currencies. While the Fed seems to be basically standing pat for the immediate moment, the Bank of England has announced another round of its bond buying program while the ECB has lowered rates. Given that backdrop and the lingering fears and uncertainty over the bailout mechanism put in place by the European finance ministers and political leaders, traders continue to bid up the Dollar. This buying is a reflection of the unease among traders over current […]

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