Commodity Trade Mantra

Posts Tagged ‘Gold’

Fed Minutes on Inflation, Debt Limit, Balance Sheet & the Effect on Gold

If the Fed minutes indicate that more Fed policymakers see the weak inflation as long-lasting, it could reduce the chances of an anticipated hike, thus the USD would drop. On the other hand, the corrective move in the US Dollar would gather pace if the policymakers blame low inflation on transitory factors. The Fed minutes due today would shed light on the future movements in gold.

What are You going to put Greater Faith in Now - Stocks or Gold?

The world currently seems to believe more in companies and all the enterprise that comes with them than it does in gold. Have we reached a turning point here, with the S&P 500 at two times the price of an ounce of gold? That’s a question we all need to think about. What are you going to put greater faith in from current levels given the current state of the world – stocks or gold?

Dollar nowhere near Bottoming out, Gold nowhere near Topping out

Despite two rate hikes & impending balance sheet reduction, the 10-year yield has moved 15% lower since early March while USD has been weakening, both contrary to many forecasts. While USD has been falling, Gold has rallied over $200 since December 2015 to its current mark at 1,276.70. Now there are many potential catalysts to move make the 20%+ seen in Gold look small.

When Gold And Silver Prices begin to Reflect Reality, Prices will no longer be in Control

Debt around the world is in the trillions & has never been higher in history. Financial Armageddon is waiting in the wings. At some point, it will be unable to be controlled & financial disaster will prevail around the world. At that point, the price of gold will no longer be in control, and it will become subservient to the value of both gold and silver. But, when will prices begin to reflect reality?

Alarming Rise in Global Debt Levels to wake up Gold from Slumber

The medium- to long-term investment case for gold, I believe, looks even brighter. Many unsettling risks loom on the horizon—not least of which is a record amount of global debt—that could potentially spell trouble for the investor who hasn’t adequately prepared with some allocation in a “safe haven. Paying down this debt will not be easy. Another crisis could be in the works.

Gold or Bitcoin - What's more likely to be Valuable a Hundred Years from now?

If you were to ask me which I think is more likely to be around a hundred years from now, it’s gold… every time. Nothing has usurped it for millennia as a globally-accepted medium of exchange or store of value, and I don’t think bitcoin will do so either. Gold can’t be altered. Bitcoin runs on a protocol that can be changed. Gold has stood the test of time of thousands of years. Bitcoin is just beginning.

China & Russia Energy Business Transactions in Gold Threaten the Petrodollar

The breakaway from the reign of the USD monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese RMB Yuan for Gold. China is the world’s Top importer of Crude Oil and Russia is the world’s Top exporter, the 2 are taking steps to convert payments into Gold. This action fundamentally threatens the Petrodollar.

Why & How to Hedge Growing Risks by Diversifying with Gold Investment

Equity has been going up. It’s been ingrained now that you’ve got to buy the dips & again. And there’s going to be a lot of crying happening in those markets if and when those markets show an extended period of volatility. The beauty about precious metals, gold in particular, is that the longtime correlation to equities is near zero. And as such, it’s a diversifier.

Stock Market Meltdown - Real Test for Gold & Cryptocurrencies

The real test for gold and the cryptocurrencies is going to come when the stock market enters bear-market territory. Gold provided a solid safe-haven during earlier financial crisis & will likely do so again. Bitcoin and Ethereum have the potential to do so, but they are unproven and carry additional risks. It all comes down to your risk tolerance. Do you want to shoot for the moon or want stability?

Nothing is More out of Favor than Gold Right Now

Gold is an inflation hedge, I guess people forgot. It’ll respond. Sometimes it just takes a while to get the ball rolling. Best of all, I love all the commentary about how higher rates are bearish. Personally, I love markets that are out of favor. You can’t get any more out favor than gold right now. I have no problem waiting. I’ll be selling when all the chest-pounding, back-slapping gold bears will be buying.

Upside Turn in Stocks & Slam-down in Gold and Silver - Both may be FAKE

The recent inflection from skepticism to optimism could be the first step toward the stock market euphoria that we typically see at the end of bull markets & has been absent so far. People have been convinced that everything is wonderful right now & that stocks are going to go up forever. I don’t buy this. It wouldn’t be a total shock to me if stock markets are down 25% & gold is up 50% by October.

Copper - True Economy Indicator & a Better Inflation Hedge than Gold

When it comes to inflation, which can erode the value of portfolios that don’t keep pace with rising consumer prices, anyone who bought gold as a hedge over the past 25 years missed out on a much better deal — copper. While data show that broad commodity indexes provided the best bang for the buck during periods of rising costs in the US, Copper – “the metal with a Ph.D. in economics” stands out.

Buying Gold is the Important First Step to “Freedom Insurance”

Buying gold is perhaps the easiest step you can take towards diversifying your savings. When you buy gold, you trade in paper money for a hard asset that’s been a stable store of value for thousands of years. Gold is universally valued. Its worth doesn’t depend on any government. In other words, simply buying gold is the easiest way to lessen the political risk to your savings.

A Bearish Tilt to the Gold and Silver Market - A Great Risk-Reward Setup

Gold is about to see the 50 DMA above the 100 DMA above the 200 DMA. This golden cross setup is seemingly timed to catch people off-guard given the poor sentiment we see now, yet will trigger buy signals for technical traders & algos. And if you think the stock market won’t be allowed to drop because it’s never allowed to drop, ask yourself WHO has not been allowing it to drop for the last 8 years?

Don't Worry, Gold Prices Will Rise - These 7 Worrisome Signs Will Ensure It

Even if markets continue to rise in the interim, gold prices will rise. Since late 2015, gold has outperformed the S&P 500 by 30%. While the outlook for the US economy is more positive than it was 12 months ago, if we zoom out for a moment, the big picture ain’t so rosy. Gold has historically done well in times of uncertainty & panic & with these 7 worrisome signs, there could be plenty ahead.

The Gold Bull Market Appears to have Much More Room to Run

The gold price turnaround last year, marked the end of the cyclical bear market. The rally in the precious metals sector has probably only just begun. Based on past bull markets, it looks like we’re very much in the early days of our bull market. Also consider the current market drivers for gold and miners. Global debt levels, the erosion of the dollar are also among the serious factors at play here.

Warning Bells to Prepare for the Worst - Preserve Wealth with Gold

U.S. debt levels are higher now than they’ve ever been, according to the Federal Reserve Bank of New York. Loose monetary policy has artificially inflated stock prices despite weak economic growth. Instead of buying low and selling high, you’re buying high and crossing your fingers. Stocks appear to be overvalued right now, in turn boosting the safe-haven investment case for gold.

Excessive Bearishness Indicates, Commodities Perfectly Poised for a Major Upswing

The benchmark Bloomberg Commodity Index lost value in five of the past six years, down so far in 2017 too, touching a 13-month low in early deals on Tuesday. The commodities-to-stocks ratio at a historic low today (extreme level rarely seen over the past five decades), suggests “real” assets could once again be set to beat financial assets over the next several years.

This Signal Predicts a Major Bull Market Move in Gold Prices

Gold prices broke a nearly six year-long downward sloping trend line that goes back to its all-time high of $1921 in August of 2011. A breach of this trend line is likely significant; historically, breaking above a five year long downward sloping trend line has signaled major bull market moves in gold prices (30% or more) including 2001, 1993 and 1985.

Bull Market Incubating in the Precious Metals Sector

Should we see the usual seasonal dip in the precious metals sector during this month and possibly into July, it won’t alter the Big Picture set out here, and it should be seized upon as a buying opportunity, although what we are seeing in the US dollar now suggests that the seasonal dip in gold and silver may just not happen this year.

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