Commodity Trade Mantra

All posts under ‘Casey Research’

Gold Stocks Are Screaming Buy Right Now

Gold stocks offer leverage to the price of gold. A 10% jump in the price of gold can cause gold stocks to surge 20%…30%…or even 50%. GDX, which tracks large gold stocks, is already up 48% this year. And we think this rally is just getting started. Opportunities like this don’t come around often. Once gold stocks take off, we probably won’t get another chance this good for at least five years.

Here’s What Happens to Gold When Interest Rates Go Up

Investors are apt to unload gold in anticipation of tightening monetary policies. This negative pressure is sustained until the Fed announces a rate hike, which then eases the negative sentiment towards gold. This explains the subsequent rallies in gold that occurred shortly after the Fed announced the first rate hike in the last four tightening cycles.

A “Perfect Storm” Is Brewing in the Silver Market

By deciding not to raise rates, the Fed signalled that the U.S. economy still needs extremely cheap credit. Investors who bought silver likely took this as a sign that the U.S. economy isn’t healthy enough to stand on its own, without easy credit. Cheap credit makes it easier for businesses to grow, and that supports industrial demand for silver.

Classic Signs of a Bottom in Commodities Seen

Eleven commodities have fallen 20% or more. And seven commodities – oil, gasoline, coffee, oats, natural gas, lumber, and sugar – have fallen at least 30% in the last year. We’re not saying all commodity prices have bottomed. Some commodity prices could continue to go lower. But we do think it’s likely commodities as a group are close to a bottom.

Why Stocks Could Fall 50% if the Fed Makes the Wrong Move

I don’t know what the Fed’s going to do. That’s a guessing game. What’s important is that we’re in an extremely fragile situation. The world has too much debt & the Fed’s margin for error is tiny. If it takes a wrong step & stocks plummet 50%, it could cause a bigger financial crisis than in 2008. Do you trust the US government & the Fed to manage this dangerous situation?

How a Gold Investment Could Make You Millions During a Financial Crisis

Gold is the ultimate form of wealth insurance. I buy it & hope to never have to use it. It’s a vital part of my overall wealth plan. You don’t have to buy a huge amount of gold to have a good insurance policy. But the larger your gold-insurance policy, the better you would do in a financial-disaster scenario. The Right Time to Buy Insurance Is When It’s Dirt-Cheap.

The Best Way to Profit from the Coming Gold Bull Market

Owning physical gold is the best way to defend your wealth from destructive monetary policies. But if you’re looking for huge gains in gold, look at gold mining stocks. Gold miners are leveraged to gold prices. In a gold bull market, these stocks usually rise many times higher than gold itself. GDX, an ETF which owns gold mining stocks, has jumped 21% since early August while gold is up 6.2%.

Here’s What Happens When Central Banks Run Out of Ammo

Governments and central banks are arrogant to think they can solve any problem by printing and borrowing money. Their arrogance will eventually cause “the biggest banking crisis in world history.” The next downturn could further expand Fed bond holdings, but with the central banks balance sheet already exceeding $4 trillion, there are limits to how much more the Fed can buy.

Why it Feels Like Something Isn’t Quite Right with the Stock Market

US stocks are still in a bull market. Large parts of the stock market are down significantly since June. Last Friday, Bloomberg reported that “roughly half the biggest stocks are mired in corrections, down 10 percent or more from their one-year high.” The S&P 500 is now up 210% from its 2009 low, and is up 2.1% this year. How can the stock market be up when so many stocks are down?

A Major Cause of the Financial Crisis is Coming Back

One of the biggest causes of the financial crisis is back. Lenders aren’t giving people subprime loans to buy houses anymore. They’re lending to people to buy cars & to buy stuff on their credit cards. If a big financial institution takes a big risk and it pays off, it keeps the profit. If it takes a big risk and blows up the financial system, the government will bail it out…like it did in 2008.

Gold Will Soar by at Least 81% - Ross Beaty

Legendary resource investor Ross Beaty likes gold at today’s prices, down 42% from its all-time high. He says. “I like gold partly because I’m a contrarian & nobody else likes it now, always a great bottom indicator. Also because it’s a kind of refuge in the storm that’s blowing around the world financial markets today with unprecedented moves in currencies, energy prices, etc.”

The Next Silver Bull May Have Already Started

Silver is down 7.1% this year. Will this weakness persist? If silver moves off its current level of $15 and into the $20 or $30 areas, silver investors could make large gains. We expect silver to hold on throughout 2015 and perhaps even increase faster than gold, if the whole precious metals sector turns positive this year.

The Next Financial Disaster Starts Here - Junk Bonds

Investors looking for income have turned to junk bonds. Junk bonds didn’t grow much from 2002 to 2008. But when the Fed cut rates to zero in 2008, junk bond issuance began to take off & the number of junk bond issues soared 483% between 2008 and 2014. Today, some of the savviest investors are starting to place bets against junk bonds. Exit junk bonds today.

Our Take on The Horrible Day for Gold

Gold just violated a key support level after holding steady in the $1,140-$1,150 range. This is not good for gold in the short term. Note that copper, nickel, aluminium, zinc & lead… the whole list of important metals is down, not just gold. This belies the rosy picture of economic recovery driving the markets. And that makes a sharp reversal a distinct possibility.

Why Millions of People Might Have to Sell Their Gold and Silver

People buy gold and silver for protection during uncertain times. Both have held their value for thousands of years through wars, depressions & financial crises. When stock markets crash or paper money fails, gold and silver are a reliable store of wealth. So with Greece’s default rocking world markets & Chinese stocks crashing the most in 20 years, why are gold and silver struggling?

The Next Gold Bull Market Starts Before October

China believes the renminbi is “ready for reserve status.” What’s the connection to gold? If Chinese officials seek “reserve” status for the currency, they’ll want to announce their updated gold holdings beforehand. Demonstrating they hold ample gold reserves puts the currency on more solid footing.

These 3 Developments Say New Gold Mine Supply Is Peaking

Because future gold supply will reverse trend and fall for many years, there will be significant long-term consequences for investors—most of which are positive if you’re already positioned. The bottom line is this: a major shift regarding gold supply is underway and will lead to a substantial, long-term decline.

Why Aren’t These Investors Worried About The Gold Price?

The unworried gold investors are very cognizant of historical patterns. Not only do they know another bull cycle is coming, but given the extent of the selloff & monetary malfeasance of governments the world over, they fully expect to become wealthy from it. They’re positioning their portfolios now in anticipation of a major shift in wealth.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook