Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Friday, June 03, 2011
Rare Earth Metal Stocks / Commodities / Metals & Mining
Nearly a year has passed since Molycorp hit the stock markets with its IPO. And considering this stock’s popularity today, it’s astounding that this IPO had flown under the radar for most investors. Last July MCP shares debuted below the pre-IPO targeted price range, and traded on the low side of that range for weeks before it finally caught a bid. MCP didn’t quite have the fanfare as say LinkedIn or other IPOs over the last year.
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Friday, June 03, 2011
Gold as Collateral Major Step for Gold Market / Commodities / Gold and Silver 2011
If gold were generally accepted as collateral in global monetary dealings, would we see it used as such? Strangely enough -No! In certain transactions, however, where no other collateral -whether currencies, government bonds and the like--is used, gold may be used, as a last resort. There has been a very long history of gold being sought as collateral, but only the most desperate of debtors has allowed their gold to be used as such. Government bonds are easier to produce and are limited only by market confidence. Moreover they remain in the jurisdiction of the issuer, leaving the issuer in control of them. Gold is different and can only be used once, held outside of the owner's jurisdiction. Control is therefore lost. It cannot be printed and becomes a complete commitment by the owner to honor his obligations.
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Friday, June 03, 2011
Gold Seasonal Price Trends Favor Summer 2011 Buying / Commodities / Gold and Silver 2011
Jonathan Kosares writes: It was June 2006…
Gold had enjoyed five years of gains after bottoming in 2001, reaching a 26-year high of $730 that May, but was undergoing a significant correction that would ultimately erode 28% of its value in just over a month. It was the single largest loss of value the gold market had seen since its collapse in 1980.
Friday, June 03, 2011
Gold’s Summer Doldrums Normally See Weakness but Fundamentals Could Lead to Surge / Commodities / Gold and Silver 2011
Gold is trading at $1,541.10/oz, €1,061.29/oz and £943.90/oz.
Gold and silver are lower again today in most currencies after yesterday’s falls. Gold has risen marginally in British pounds (GBP 943.9/oz) as sterling is lower (see cross currency table) with the weak services sector PMI data highlighting the weak U.K. economy and increasing risk of stagflation.
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Friday, June 03, 2011
Gold Recovers On Weak US Payroll News As Greece Agrees to Blackmail Bailout / Commodities / Gold and Silver 2011
THE WHOLESALE market price of gold bullion leaped $10 per ounce to $1539 Friday lunchtime in London – recovering the last of this week's 1.1% fall – before sliding back as the US Dollar fell on surprisingly weak US jobs data.
The US economy added 54,000 jobs in May, according to the non-farm payroll report from the US Bureau of Labor Statistics, against analysts' consensus forecast of 190,000.
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Friday, June 03, 2011
Silver Price Temporary Recovery From Fibonacci Support Level / Commodities / Gold and Silver 2011
The surge in Silver came to a halt in Apr, and subsequent pullback was sharp. Interesting Fibo levels have recently provided support but we remain on the lookout for a further bear advance.
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Friday, June 03, 2011
Will the Masses Soon Be Promoting Silver? / Commodities / Gold and Silver 2011
Once upon a time, Robert Kiyosaki, the author of Rich Dad, Poor Dad said this, "For 2011, silver is the single most attractive investment for any investor." Bob Chapman reported, "We are about 25-30% into the game. We have a long way to go." Peter Schiff predicted "200 an oz." Rick Rule, "Outlook very bullish." Gerald Celente said, "Higher and higher." Eric Sprott and David Morgan both agreed that north of $100 an ounce was likely. Richard Daughty, James Turk, and Max Keiser were the biggest bulls with forecasts that ranged from $200, up to $500 an ounce.Read full article... Read full article...
Thursday, June 02, 2011
Bearish Digestion Period for Crude Oil / Commodities / Crude Oil
My technicals keep warning me that crude oil hit a significant peak at $114.83 on May 2 and since then has embarked on a major correction that is only partially complete. In fact, all of the sideways, recovery action off of its May 6 corrective low at $94.63 represents a bearish rest-digestion period that should resolve itself to the downside in a plunge that projects to 90.00-86.00, and then to 80.00-78.00 thereafter.
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Thursday, June 02, 2011
The Fukushima Cloud's (Green, Not Silver) Lining / Commodities / Renewable Energy
The ongoing tragedy of Japan's Daichi Fukshima nuclear complex will prove to be a boon for renewable energy in Japan, and astute investors should begin carefully to follow Tokyo's new priorities.
Before the March 11 twin disasters of a massive earthquake followed by a devastating tsunami, about 30 percent of Japan's electricity was generated by nuclear power, and Tokyo had ambitious plans to raise its market share to 50 percent over the next two decades, with renewable accounting for 20 percent, Japanese Prime Minister Naoto Kan told journalists earlier last month.
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Thursday, June 02, 2011
Comex Silver Bullion Default on Sharp 38% Drop in Inventories / Commodities / Gold and Silver 2011
Spot gold and silver prices rose slightly again this morning after hitting a one-month high yesterday as equity markets internationally came under selling pressure. The Moody's downgrade of Greece and worryingly poor US economic data again pushed investors to seek the safe haven of bullion. Gold reached new record nominal highs in sterling yesterday (£945.62/oz) as the pound fell on concerns about the UK economy.
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Thursday, June 02, 2011
Gold Price Rises as Stock Markets Fall / Commodities / Gold and Silver 2011
THE U.S. DOLLAR gold price rose to $1544 per ounce Thursday morning – up 5.5% from May's low – while stock markets, commodities and US Treasuries all fell after worse-than-expected US economic news and a further ratings downgrade for Greece.
"We are still of the opinion that the current advance will fizzle out ahead of its all-time high at $1577.60 in the days to come," says Axel Rudolph, Commerzbank's senior technical analyst, adding that the seasonal nature of gold price movements means the odds favor a retracement.
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Thursday, June 02, 2011
Chinese Demand For Metals Expands / Commodities / Gold and Silver 2011
China’s demand for resources is constantly increasing and Chinese companies have been bidding and acquiring overseas companies over the last few years. China has been importing all its oil from 1993 and last year, Chinese oil companies spent over $30 billion on deals overseas. In the metals and minerals sectors, China became a net importer only recently and last year spent about $4.5 billion on mining deals overseas. As if to make up for lost time, Chinese companies are in a rush to acquire metal and mineral resources overseas.
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Thursday, June 02, 2011
Silver a Strategic Metal? / Commodities / Gold and Silver 2011
The global demand for silver has exceeded annual production since 1990. In fact, demand has grown by close to 26% since 1995. The demand for silver originates from both industrial and investment sources and that gives the metal a high potential for growth.
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Thursday, June 02, 2011
Is the Yukon Gold Rush Over-Hyped? / Commodities / Gold and Silver 2011
Yukon explorers are just getting started, says Jim Mustard, vice president of investment banking, mining, at Vancouver-based PI Financial. In this exclusive interview with The Gold Report, he shares several of the Yukon companies he believes have the potential to produce significant returns for investors.
The Gold Report: A feature titled "Gold Mania in the Yukon" was published recently in The New York Times Magazine. Is this a sign that the recent Yukon gold rush is over-hyped? Read full article... Read full article...
Thursday, June 02, 2011
Silver Selloff Investor Lessons to Learn / Commodities / Gold and Silver 2011
Silver’s correction from nearly-$50 to $34 was wild; it was the kind of market movement that hardly allowed investors to digest what was coming as it happened. A month after wild market activity, investors who have taken the time to uncover what happened in the market may have realized three key elements of the selloff.
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Thursday, June 02, 2011
Currency Market Volatility Should Support Gold and Silver / Commodities / Gold and Silver 2011
Global debt issues combined with weakening US economic data has reignited the quest to protect capital. Investors are seeking the ultimate safe havens in the US dollar (UUP), long term treasuries (TLT), gold (GLD), and silver (AGQ) in order to protect their wealth from the onslaught of currency instability and US economic weakness.
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Wednesday, June 01, 2011
Bear Raids Fail to Dent Gold Flight to Safety on Breaking Market Confidence / Commodities / Gold and Silver 2011
More bear raids today but they failed to detract from the flight to safety into gold as the precious metal significantly diverged from stocks, at least for today. Silver, being more correlated with industrial activity, felt the slump in stocks a bit harder.
Although the stock market decline is steep, and tied to bad economic results which were ignored during the month end paint job, it does have the smell of a wash and rinse within the trend channel, on manageably light volumes. This magic lantern show and churning is how the big trading desks make their money and their nearly perfect trading records. An intraday chart of the SP futures are below.
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Wednesday, June 01, 2011
Silver Eagle Coin Sales Best Since 1986 / Commodities / Gold and Silver 2011
Gold and silver are lower today despite equities being mixed and Eurozone debt markets exhibiting signs of stress again with Portuguese and Greek bonds being sold with yields rising again despite the latest “bail out” speculation.
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Wednesday, June 01, 2011
Gold Rally Dented by the Return of Risk Appetite / Commodities / Gold and Silver 2011
THE SPOT MARKET price of gold bullion dropped overnight, before beginning Wednesday morning London time by trading in a tight range around $1532 per ounce – up 1.3% from the start of last week – while stocks and commodities were flat.
The Euro held steady above $1.44 following reports that a new bailout for Greece could be agreed by the end of the week.
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Wednesday, June 01, 2011
Gold and Silver Shares Retest of 2010 Breakout Almost Complete / Commodities / Gold & Silver Stocks
At the start of the year we wrote about what we could expect from the gold stocks and juniors over the first half of the year. All of these markets experienced significant multi-year breakouts in late 2010. This year called for a retest of those breakouts before the next advance would begin. We believed that these markets would spend much of 2011 retesting the breakouts and that markets would later be in position for an unabated advance into 2012 and beyond. We wanted to provide an update on.
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