Commodity Trade Mantra

Posts Tagged ‘Gold’

2017 Creating Conditions for Gold to have it's Best Year in a Generation

Clearly, gold had a poor end to 2016 and fell by over 10% in the last two months of the year. However, it looks set to not only reverse this fall, but to also make high gains during the course of the year. The risks facing the world economy are significant and inflation looks set to rise, both of which create the conditions for gold to have its best year in a generation.

New Silver Catalyst to Fight Smog in Cities

Scientists are creating a new silver catalyst to purify the air that can decompose toxic carbon monoxide and other harmful substances into harmless components, an advance that could help fight smog in cities like New Delhi and Beijing. In addition, the catalyst can be adapted to neutralise the gas discharges of chemical plants and the exhaust systems of automobiles.

Gold Is Cheap Insurance - No Matter What, Real Interest Rates Will Remain Negative

Either inflation or negative real rates would definitely be a plus for gold prices. If the economy really starts to show strong growth, the Fed will begin a series of rate hikes to put the brakes on inflation, but we anticipate them to be reactive. In either case, real interest rates will remain negative, or at best near zero in both scenarios. This makes a very strong case for holding gold at current prices.

Gold, Investor Optimism & Price Inflation Outlook for 2017

The effect of price inflation is not, as commonly supposed, to drive up prices. Instead, it drives down the purchasing power of expanding government-issued currency. Awareness that money is losing purchasing power only dawns on the public late in the price inflation process. Gold is therefore a far better measure of currencies’ loss of purchasing power than government inflation measures.

Risk-On Mania Infected Markets will soon be Gold Silver Friendly

The Trump election has ignited a market mania, to everyone’s surprise. In fact, we think that risks are rising, not falling, but that’s not what the markets think as of now. Actually, in economic terms, nothing real has changed for the better & the relief probably won’t last long. And then we will see what the world really looks like. Guess it will be very gold silver friendly.

Choking Inflation is last thing the Fed wants now - Good for Gold

The Fed will not raise rates for the fun of it. The Fed wants to keep inflation under control, but what the organization really wants is negative real rates. That’s where inflation is higher than nominal rates. It does the Fed no good to raise rates unless inflation is going up even faster. Yet that’s exactly when gold does its job of preserving wealth.

US Dollar & Elections to Kick-up a Massive Storm in the Gold Market

Gold has already unwound from its overbought conditions. We had very crowded positions at the recent high – it’s looking like it’s ticking up again on the back of Friday’s uncertainty and now I suspect that will continue technically until the 1,500 mark. The current bull market in gold stocks will likely run for a few more years & the average gold stock could head many times higher.

Gold Bull Market Intact Regardless of Short Term Price Gyrations

Gold remains the asset Wall Street loves to hate. Currently the fundamental drivers of gold are mixed, which makes a sideways move the most likely prospect, barring new developments. We remain convinced that the monetary experiments of recent years will end quite badly, and that the long term case for gold remains intact regardless of short term price gyrations.

Has Gold Deviated from Long-Term Upward Trajectory or Again a Bout of Paper Manipulation?

Much of the recent selling has come from large-scale speculators operating in futures markets. Meanwhile, physical demand from retail investors, most importantly, hedge funds & other large-scale institutional investors has remained firm. When Chinese investors return, their buying alone should be enough to stabilize & re-launch gold on its long-term upward trajectory.

Gold Investment - The Cornerstone of a Well-Constructed Portfolio

John Embry highlights the pressures that have brought fiat currency to the brink, U.S. debt liabilities to staggering heights, and gold back to the institutional investor’s crosshairs. A must for anyone seeking to fully understand the state of the global economy and its implications for gold and silver, and why gold remains a cornerstone of a well-constructed portfolio today.

Asset Bubbles Created by Central Banks Setup a Perfect Storm for Gold

Unless central banks are willing to initiate ultimate protocols, the inevitable result will be a bursting of all these asset bubbles and an explosion for gold that will make its $1940 high in 2011 look like pocket change. Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven.

Why The US Consumer Will Cause The Next Crisis

The market is materially mispricing the strength of the US consumer whose weakness will lead the US economy into a recession in Q117. The divergence is a result of the top 40% of earners who have accrued 84% of all new income and only 34% of new debt since 2013. This strength has driven headline sales figures and accounted for nearly all deleveraging since the financial crisis.

Gold Prices Soften While Fed Officials Hard-Sell Rate Hike Hopes

Gold prices corrected gently lower after testing trend line resistance set from early July. Near-term support is at 1333.62, the 23.6% Fibonacci retracement. Fed officials may rekindle volatility via bits of guidance before the pre-FOMC meeting blackout period. Hawkish overtones may boost rate hike speculation, boosting the US Dollar and weighing on gold prices.

Gold Wins in 3 out of 4 Scenarios - None Bode Well for the Economy

If you think of gold, the only way gold loses is if normal business and private sector cycles come back. If that is the case, gold goes back 100 dollars per ounce. The other outcomes, deflation, stagflation, hyperinflation are good for gold. So gold wins in three out of four scenarios, but none of the three are particularly appealing. Here is why.

A Gold Standard & Debt Jubilee for an Honest Money Monetary System

A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. It handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate. Only alternative to Debt Slavery: Debt Jubilee – the complete renunciation of all debts. We absolutely require a gold standard but cannot till we don’t have a debt jubilee.

Emerging Markets and Gold - Right Concoction for a Balanced Portfolio

We can look at emerging markets with strong domestic spending such as India, the Philippines, other parts of Southeast Asia & Latin America where their growth patterns are independent of what’s going on in China. And in this period where we’ve had massive government intervention in the fiat money markets, we have our ultimate portfolio insurance in gold.

Gold and Silver Bulls Stepping Back to Again Storm Ahead in a Shocking Move

Both gold and silver are in the process of making an eventual move that will shock and awe. Some of the biggest, most influential money manipulators in the world are shovelling fiat currency confetti into big positions in gold and silver. These guys are not buying gold for just a double or triple. They’re buying it because they know that the global fiat paper currency experiment is coming to an end.

Can The Price Of Gold Break Above This Key Level?

The post-2011 Down trendline looks to be the line to focus on at the moment in determining the direction of the price of gold & should serve as stiff resistance for the time being, absent a Simone Biles-like vault over the line. The good news is that the GLD has already twice tested the trendline, in early July and early August. These tests should have served to weaken the trendline somewhat.

Most Asset Classes at All-Time Highs. Gold Yet 50% Below - Get It Now

The US dollar is at a multi-decade high, and both US stocks and bonds are at all-time highs. It’s generally not the greatest investment strategy in the world to buy assets at their all-time highs. Unlike stocks and bonds, gold is NOWHERE NEAR its all-time high, at least in US dollar terms. In fact gold can still appreciate nearly 50% before it breaks its previous price record. So?

Why Own Bonds or Fiat With Negative Yield When You Can Buy Gold?

Either way (hike or no hike), there is no place for the gold bull to hide. It took gold approximately 7 months to advance $250 and overcome major resistance at $1,300/oz from a bottom of $1,050. A reasonable target could be $1,550/oz ($1,300 + $250) by March 2017 – 7 months from now. Silver could follow a similar pattern with a near-term target of $26/oz.

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