Commodity Trade Mantra

Posts Tagged ‘China and India’

China And India Rewrite The Rules Of The Oil And Gas Game

Asian oil markets are in a tremendous period of flux. Both China and India are using the drop in oil prices and the existing oil gut to their advantage. New partnerships are being formed and steps are being taken, which undermine the erstwhile major players. Each crisis brings about a change, and the current one is shifting the power from the suppliers to the consumers.

Gold In 2016: "The Economic Power Is Shifting"

In the near-term, paper gold is extremely oversold, reflecting the expression of western establishment sentiment in the paper markets. Compared with the situation at the time of the Lehman crisis, gold is significantly cheaper today, which is wholly at odds with the continuing systemic risk to fiat currencies from under-capitalised banks, unprepared for the prospect of markets normalising.

The Screaming Fundamentals For Owning Gold

Gold is one of the few investments that every investor should have in their portfolio. We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world’s fiat currencies. If this experiment fails, gold will provide one of the best forms of wealth insurance. Insurance only works if you buy it before you need to rely on it.

Decline of the US Dollar – The Consequences

We cannot blame China and India, or Russia if they wish to protect themselves from western systemic risk by shifting their trade settlements away from the dollar. It is becoming clear to Asian leaders at least that the dollar’s reserve status is an anachronism of the past & cannot last, a simple deduction that raises important questions not addressed for over a century.

We're Nowhere Near Peak Coal Use in China and India

China and India collectively consume about 60% of all coal produced in the world. Consumption is expected to continue expanding as their populations balloon and the energy-thirsty middle class expands. Unlike China, India has no present interest in reigning in its use of coal & it’s possible that if China’s coal consumption declines, India will be there to fill the hole.

10 Remarkable Gold And Silver Trends Into 2015

Our belief is that it will take some time until the prices of gold and silver will move back in line with these fundamental trends. Until then, gold or silver owners can rest assured that the gold and silver market is not as bad as some would like to make you believe. Here are 10 remarkable gold and silver trends going into 2015.

Paper Gold and Its Effect on the Gold Price

Huge orders for paper gold can move the price by $20 in a second. These orders often exceed the CME stated limit of 6,000 contracts. Big banks can drive down gold prices by delivering relatively small amounts of gold. These banks are the market. $360 billion of paper gold is traded per month, but only $279 million of physical gold is delivered.

David Morgan's Secret to Being Grateful, Even at $17 Silver

People need to keep in mind that prices go up & down in all markets. Second, know that fundamentals of owning gold & silver have not changed. Third, remember why they bought it in the first place. And lastly, ensure that they are diversified properly, meaning they need to own the right amount of physical metal for their age & objectives.

Oil Prices on a Decline - Is this Good News, or Bad?

Growth in oil consumption has mostly been outside of the US, EU & Japan, in the recent past. China & other emerging market countries kept demand for oil high, fueled by debt growth. This debt growth now seems to be stalling. Commodities such as oil & food are necessities. Why would less be needed? The issue, is affordability.

What if China, Russia Succeed in Going off the Dollar?

The Shanghai Cooperation Organization is an agreement between China & Russia, with an objective to settle international trades between them without using the dollar. If they succeed, the whole Asian continent, at some point in the future, will be off the dollar. I don’t think people fully appreciate what that means for the dollar.

Will India see a Resurgence of the Love Trade for Gold?

How much of an effect could the pent-up demand from India have on the gold price if the Modi government eliminates the current disincentives? I have a suspicion that gold can easily jump 30% over the next 12 months, and if we have that rise, then the gold stocks could rally 60% from here.

The Role of China in the Global Gold Market

The gold market in general is very opaque and the Chinese one, in particular, is even more. China has not made public its gold reserves since they announced a doubling of their reserves in April 2009. China will choose the time that is the most appropriate and to have the biggest possible impact for their geopolitical aspirations.

Why The Chinese Must Buy Gold To Survive

Property in China is transforming from a wealth creator to a wealth destroyer.A rising percentage of China’s $26 trillion in bank assets are going bad. While property loses its luster, Gold is a natural, logical candidate, unlike land – a mobile & liquid asset. As Chinese QE proceeds, the desire to own gold will increase.

Gold Demand Rises 54% in Q2 Led By China and India

The World Gold Council Gold Demand Trends Q2 report highlights how recent falls in gold prices generated significant increase in Gold demand, most notably from consumers in China and India – by far the biggest markets for gold

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