Commodity Trade Mantra

All posts under ‘Gold Trading’

Gold’s Price Movement is not a Gold Story. It’s a Dollar Story

If gold went from $1,900 an ounce to $1,100, to me, that’s a 50% increase in the value of a dollar. If gold goes from $1,100 to $1,500, I would think of that as a devaluation of the dollar. What that tells me is the story is really about the dollar. So what’s happening to gold is not unique to just gold. It’s something that is affecting all of the other commodities & currencies.

U.S. Gold Production Finally Hit Hard Due To Low Price

The lower price of gold has finally taken its toll on U.S. gold production. Domestic gold mine supply fell considerably in May compared to the same period last year. This is a significant amount as the United States is the fourth largest gold producer in the world. If current trends continue, U.S. gold production will fall below 200 mt in 2015.

Gold and Silver: Arbitrage Opportunities for You to Pounce On

The most promising arbitrage situations—trades that exploit price differences between similar financial instruments—come about as a result of takeover bids, while others happen when a company’s shares trade significantly below its cash on hand. Here are some company stories with management teams that Jayant Bhandari thinks are close to perfect.

Despite Gold & Silver Being Just A 'Pet Rock', Premium On Physical Bullion Is Exploding

One important aspect of the physical market that is often overlooked is the premium it commands over spot price. Right before the Global Financial Crisis in 2008, the spot Silver price fell as low as USD 9 per oz., whereas the price of a 1 oz. Silver Eagle was around USD 17 on the wholesale market and even higher on the retail market! That’s a price premium of 188%!

Why a Fed Rate Hike Could Be a Blessing for Gold Prices

I think the timing of a rate hike has been overhanging the gold market for well over a year. Relieving that issue could actually prompt a short covering rally. It would be kind of a sell-the-news event where the shorts figure that the trade is over and this is a good time to begin covering, more and more head for the door, and we have the rally underway.

You Should Be Dollar-Cost Averaging Your Gold Purchases

Dollar-cost averaging is a “set it and forget it strategy.” You’re simply committing to pay the average cost for gold per ounce over time. That way, you don’t need to worry about timing the market. All you have to do is make gold purchases of a set dollar amount regularly, no matter the price. This saves you from worrying about whether you’re getting a good price.

81 Gold Quotes Every Precious Metals Investor Should Know

Gold is the everyman’s way to save. A barbarous relic that went up drastically in dollar terms between 2000 and 2011. It holds its value over the long term. As such, it’s a hedge against the ever-falling value of the dollar. As an homage to the yellow metal, we present you with 81 quotes worth their weight in gold. We hope you enjoy them…

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.

Gold Glimmers as Global Market Fear Grips Investors

When a currency loses value and falls out of favor, gold has tended to benefit as investors seek real assets. Gold prices have then been able to soar, just as we saw in the months following the financial crisis, eventually reaching an all-time high of $1,921 per ounce in September 2011. Gold is again glimmering with safe haven appeal & the Fear Trade, it seems, is in full force.

Why Care IF Gold And Silver Are Bottoming, Or Not?

The bottom line for both gold and silver is that the elites may not have finished their game plan, and if true, gold and silver prices can continue to languish at these lower levels in the months to come. Only the Globalists know the full plan. Anyone who wants to be left to the vagaries of guessing is toying with financial suicide in the total loss of “value” in any form of paper assets.

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%.

Warnings From Exponential Markets vs Gold

For the past 15 – 40 years, debt and most markets have moved upward in exponential trends. Expect debt to increase, politicians and central banks to spend and “print” more. Can we borrow our way out of debt and into prosperity? Typical government and central bank actions indicate the usual answer is yes. A more realistic understanding, which is coming, will boost gold prices.

10 Things Every Economist Should Know About The Gold Standard

If there’s one monetary history topic that tends to get handled especially sloppily by monetary economists, this is it. Sure, the gold standard was hardly perfect & gold bugs themselves sometimes make silly claims about their favorite former monetary standard. But these things don’t excuse the errors many economists commit in their eagerness to find fault with that “barbarous relic.”

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?

Did China Kick-Start A New Bull Market In Gold?

There is reasonable chance that China kicked off the bull market in gold. China ‘de-pegged’ in a way its currency from the dollar. The second biggest economy in the world, which is on its way to become the biggest economy worldwide, did say ‘goodbye’ to the dollar reserve currency. Because of that, it is now, more than ever relying on its ‘real’ monetary reserve – GOLD.

The Facts About Gold and Gold Speculations

Excessive debt is deflationary. Central banks can’t tolerate deflation so inflation is their game. They will print more & more. Global debt (official), not counting unfunded liabilities, exceeds $200 Trillion. It will increase but probably will not be paid. More debt means more currency in circulation, currencies are devalued, and gold becomes more expensive.

China: QE, Printing of Cheap Money, Currency Devaluation and Gold

To the extent that it weakens its own currency, China exports deflation to the U.S. and can help the dollar’s strength. Lower inflation and a stronger dollar reduce the incentive or rationale for any imminent Fed rate hike. So yes, you can almost say this is China’s silent protest against the widely anticipated September hike.

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