Commodity Trade Mantra

Posts Tagged ‘Currency’

There will be a Panic Into Gold after the Panic Out of Paper Currencies

I think there’s going be a panic into gold and out of paper currencies. So this small up-move that we’ve gotten here since the beginning of the year, that’s just a harbinger. I think this time around, we’re looking at $2,000, $3,000 an ounce. I think it’s going be incredible. The question is why? Here’s the reason for a bullish outlook on gold, & how silver could hit $100 /oz.

The US Dollar is a Crowded Trade – Why this Matters for Gold

Gold remains not only an important portfolio diversification tool, but also an asset class ripe for a rebound. While gold prices have certainly declined as the USD rises, it might be small comfort to see that gold loses less value than other currencies, it also appears to recover more quickly. Gold behaves like a currency, but one that is not easily manipulated by central bank policy.

GOLD: The most consistent form of Money in World History

Empires rise and fall. Governments and central bankers come and go. Paper currencies lose their dominance. But gold lasts. And if you hold a long-term view, and believe that the path to prosperity is not paved in debt and money printing it makes sense to consider holding at least a small portion of your savings in the metal.

Gold, the SDR and BRICS

There are difficulties when it comes to including gold in the SDR basket as none of its paper constituents are convertible into gold. It also cannot last long as major central banks insist on printing money as an economic cure-all. But China’s position with respect to gold & her own currency could be a different matter.

Government Control of Currency A Good Reason To Hold Physical Gold and Silver

Governments want total control of your money & if they need your money they won’t hesitate to steal it from your account. Average savers can no longer rely on the state to protect their deposits. This is a good reason for depositors to allocate some of their funds to physical gold and silver stored outside of the banking system.

Silver and Gold Will Thrive Beyond Exponential Growth of Debt

Do you trust real silver and gold, or unbacked paper assets? When the reset comes, and it may be years away, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical silver and gold?

Is the US Dollar Rally Nearing Its End?

Past dollar rallies of this type have mostly seen a dollar appreciation of around 20% & lasted from under a year, meaning the current rally is already extended. Also, disappointing U.S. economic data is mounting and being largely ignored. Valuations suggest that the U.S. dollar may now be the world’s most overvalued currency.

What the Federal Reserve and the Fear Trade Do for Gold

Investors buy gold out of fear of war or concern over changes in government policy. One of the strongest drivers of the Fear Trade in gold is real interest rates. Whenever a country has negative-to-low real rates of return, which means the inflationary rate (CPI) is greater than the current interest rate, gold tends to rise in that country’s currency.

European Debt Crisis

A revolt against previously-agreed austerity packages by any of these other states would have untold ramifications not only for the future of the Eurozone, but the euro itself. In the wake of this episode, the status of the euro as money is likely to be increasingly questioned, not just in the foreign exchanges, but by its users as well.

Silver and Gold Truth Versus Fiat Money Lies

What do loss of confidence, loss of faith in financial systems & pervasive lies have to do with gold and silver? They far more truthful money that central banks can’t print or create from thin air. The truths we have been told about fiat money are lies. Don’t believe the lies that unbacked debt based paper currencies will survive (they never do).

Forget The News. Charts Suggest Silver Price $12 - 14, Gold $1,000 - 1,100

How has all of the news events pertaining to gold and silver impacted the price levels? How many more stories can one read, how many more charts/graphs can one view & expect gold and silver to rally as a result? Forget the news. The trend is down irrespective of all news. Be patient & observe how the character of the market unfolds.

Is The Claimed Gold Really There? – Part II

When gold becomes “important” again, really and truly having it WILL matter. “Trust us” will no longer be good enough, proof will be required. Gold demand will explode either out of financial fear of the actions in paper markets or …it will explode because the revelation is uncovered the “gold really isn’t there”. BOOM…

Is Market Sentiment Shifting to Gold?

When you look at the world economy, there’s no shortage of worries. Most market strategists do not view gold as a currency but only as a commodity. The rule: dollar up, gold down. But on viewing gold as a currency compared to many other currencies, including euro, ruble, yen & rupee, it has been a good place to be in over the last year.

Gold Was Up 73% Last Year!

The price of gold rose against ALL currencies in 2014 — except the US dollar. Yes, gold was up in the euro, Japanese yen, Swiss franc, Canadian dollar, British pound, Australian dollar, New Zealand dollar, Chinese renminbi, Indian rupee, Swedish krona, Brazilian real, Israeli shekel, and South Korean won.

Gold Price & The US Dollar Trend Forecast For 2015

My forecast conclusion is for the Gold price to trend lower into August 2015, targeting a low of $1050 before Gold finally makes a low for the year that propels the Gold price to above $1300, probably spiking to approx $1350 during Nov. Clear investing strategy for 2015 will be for one of accumulating into Gold during first half weakness.

Marc Faber on Gold, Oil, Currency, Stocks & Economy

What is overvalued and undervalued is a subjective judgment, and I tend to agree that gold shares are down 80% & they are cheap, compared to the physical price of gold & to Facebook or Google & these Netflix type of stocks. There is value in gold mining shares, and I think they could easily rebound from this level by 30 to 40%.

Why Russia Will Halt the Ruble’s Slide and Keep Pumping Oil

Fall of the ruble has accompanied a precipitous decline in oil prices. Russia, a resource-based economy, is hurt by oil weakness. But oil is traded nearly everywhere in US dollars, which are presently enjoying considerable strength. Russia can sell their oil in dollars but pay their expenses in devalued rubles & make capital improvements.

Opposing Forces At Play In Gold, Silver (Precious Metals Complex)

Good news for gold bulls is the bottom of the trading range has been tested a thrice so far & the price action looks encouraging for gold. But silver & the miners have broken through major supports. Its fair to say there is a mixed picture in the precious metals complex. Here are the possible triggers that may reverse the gold downtrend.

Same Currency War, New Battle Phase

What is a currency war? They happen when there’s not enough growth in the world to go around for all the debt obligations. In other words, when growth is too low relative to debt burdens. They do this basically by cutting interest rates or intervening in markets. It is as an effort to cheapen the currency, get inflation & to display growth.

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