Commodity Trade Mantra

Posts Tagged ‘Global GDP’

Never Been a Better Time to be Bullish in Silver and Gold

There are more than enough reasons to suggest that the sell-off in silver and gold is overblown and that the recent dip in precious metal prices could actually be an interesting entry point. A death cross for silver and gold mining ETFs is not a death knell. With uncertainty all around, the fall in precious metals and silver and gold mining ETFs means it’s a great time to be bullish.

A More Robust Understanding of the Price of Gold & Gold Valuation

A combination of a top-down and bottom-up approach is required to develop a more robust understanding and valuation of gold. Certain inputs put together, this recommended framework allows investors to use current variables and easily available economic forecasts to form a consistent, self-contained and intuitive view on the price of gold.

Are You Prepared for the Hyperinflation Shock? Get on the Gold Wagon Now!

The problem is that no one is prepared for the coming shock. All of this printing will result in global hyperinflation of at least similar proportions to the Weimar republic or Zimbabwe. The final decline of the currencies will be reflected in the gold and silver prices. Gold at $1,330 and silver at $19 is a bargain, but with hyperinflation, we could add quite a few zeros to their prices.

Why is the Whole Pie Shrinking? Well - It's Recession Time

We are picking up signals from a source even more powerful than central banks. This source is the specter of global recession. One of the other signals is the shrinkage in world trade. You can have a reduced trade deficit but still find that exports and imports are both shrinking. It means the global trading economy is shrinking: a sure sign of recession.

The US Dollar Has Just Been Shanghaied By The G-20

The main meeting of the G-20 finance ministers and central bank governors was conducted with much publicity. A secret side meeting of a core group consisting of the US, Europe, Japan, China & IMF in Shanghai on Feb. 26, resulted in the biggest dollar take-down operation since the Plaza Accord of 1985 & will go down in history as a major turning point in the international monetary system.

Year-to-Date Gold Holds the Glory – How Long Can It Shine?

Gold prices are resilient & seem set for an interesting year as central banks exhaust their firepower. Gold ETF inflows have surged to the highest since 2009. Perhaps we may see some of the money flows rotate to the other precious metals as year to date, gold has had all the glory. With inflation yet at all time lows, uncertainty to the bullish outlook has increased & downside risks have crept up.

For Commodities Forecast: Follow This Sneaky Indicator

The purchasing managers’ index (PMI) forecasts future manufacturing conditions and activity by assessing forward-looking factors. When a PMI “cross-above” occurs—that is, when the monthly reading crosses above the three-month moving average—it has historically signalled a possible uptrend in crude oil, copper and other commodities.

The End of the Bubble Finance Era

During the expansion phase of central bank enabled bubble finance, optimism reigns and bulls and speculators insist that “this time is different.” Yet the laws of sound finance and market economics never change. It often just takes an extended time for all the excesses to work their way through the system and finally reach the blow-off stage.

Currency Wars Become Much Nastier During Recession Times

All central banks have printed trillions of dollars in their respective currencies under various QE programs. They are at the point where they simply cannot print trillions more without risking the collapse of confidence in their currencies. How will central banks stop the recession when they’ve used up their dry powder fighting the currency wars?

After a Collapse in Commodity Prices, What Next?

It is true that commodity prices may remain under pressure for a long time to come. But for companies in the resources space from E&P firms to miners, commodity prices don’t matter – margins do. If costs of extraction come down and commodity prices do as well, a company can still earn a substantial profit.

Central Banks Behind Slowdown in Global Trade

Over the past decade, all central banks went into overdrive with currency devaluations. This has done more harm than good. A currency war between developing nations is likely to be more damaging than thought, leading to a reduction in global trade & possibly economic growth, rather than just reapportioning a fixed level of trade between winners & losers.

Some Kind of Financial Calamity Is Inevitable: Jim Rickards

I see disaster & when it comes to the financial systems in particular, we’re set up for an even worse catastrophe than we have in 2008.The Fed and the FDIC guaranteed the entire money market industry & put out the fire but they used up all their capacity. So now what if there’s a liquidity crisis now?

14 Reasons the Dollar is Doomed, but the Devout Believe its Invincible

Cultism surrounding the US economy & the US dollar is mind boggling & by cultism I mean a blind faith in fiat currency mechanism that goes beyond all logic. Despite the childish boasting’s of the dollar devout, there is an extraordinarily possibility that its life will be snuffed out in the near term.

The China Bubble is Bursting: James Rickards

Amid weaker U.S. growth and volatility in capital markets, China stands out as a beacon in the minds of many investors. China growth story is one that investors take for granted, but are in for a rude awakening when they realize how much of the story is false & how quickly it may come unraveled.

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