Commodity Trade Mantra

Posts Tagged ‘Stock Market’

When the Bond-fire has finally run its course, Gold and Silver will Emerge Victorious

Today’s rising interest rates & trillion-dollar losses in global bond markets are prelude to what is to come,- Rising inflation with higher interest rates ending in the bursting of global government bond bubble & long awaited breakout in gold. The battle between capital & free markets is almost over; & when the bondfire has finally run its course, gold and silver will be victors.

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.

With a Trump Win, Gold Prices Could Soar Sharply to $1750 or even $2000

Citigroup has advised investors to sell stocks & bonds – And buy gold – BEFORE the election, if Donald Trump starts rising in the polls. Their reasoning is that if Donald Trump begins to lead in the polls, gold prices could move up sharply before the election, since markets tend to price-in any expected outcome. ABN Amro Sees $1,850 Gold Prices Following a Trump Win.

If the Fed does What it Wants to, the Result will be the Opposite of What it Wants

The US economy is slowing perceptively. What should the Fed be doing? They might want to cut interest rates. Problem. Another tool in the arsenal – cheapen the US dollar. Again there is a problem. Whether that works & what is a good idea are separate issues. Certainly a rate hike would take the stock market down 20%. It’s going to be just the opposite of what the Fed wants.

The Unique Factor that could Drive Gold & the Stock Market to New Highs

It’s not often we see a strong correlation between gold and the stock market, as the historical data tends to suggest indifference, but the recipe is there for both to soar to new heights. An increase in the spot price of gold will have an immediately positive impact on the margins of both Royal Gold and Silver Wheaton, and as such could push the valuations of both companies substantially higher.

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.

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.

Giant Financial Bubbles created by Central Banks are Fracturing

Nearly everywhere on the planet the giant financial bubbles created by the central banks during the last two decades are fracturing. The latest examples are the crashing bank stocks in Italy & elsewhere in Europe & the sudden trading suspensions by three UK commercial property funds. It’s beginning to feel like August 2007 all over again. Of course, central banks have nothing to do with it at all!

Will Gold Prices Crash With The Dow And Again Soar On Inflation?

Are we headed for a crash in the stock market? Yes, and a more severe one than in 2008. As the crash unfolds, gold will be sold even though holders may be confident about gold, as the goal will be to cover immediate losses. Inflation will then ramp up dramatically as governments increase money supply, eventually causing collapses in currencies. Currency collapse will again push up gold prices.

Is Silver The Next One For Chinese Momentum Investors?

Individual investors tend to be most active when markets are rising, and have dominated past rallies in Chinese futures. Open interest in silver on the Shanghai Futures Exchange has been steadily increasing this year (ballooned from less than 200,000 contracts in 2012 to over 600,000 since April 2016), with open interest now roughly equal and equivalent in size to that of COMEX.

Will Fed Kill The Dollar To Save Markets - Or Sacrifice Markets To Save Dollar?

A strong dollar makes exported US military hardware too expensive for foreign purchases & a weak dollar can cause a lack of confidence in the dollar & can cause inflation because the US relies heavily on imports. If an interest rate hike causes the equity markets to crash, demand for US Treasuries will spike, thus furthering the Fed’s objectives of keeping demand high for US Treasury bonds.

Falling Chinese Demand Could Intensify The Crude Oil War

For exporters of commodities & industrial materials, the shrinking of the world’s largest source of demand is bad news. Nowhere is this more evident than in the Chinese energy sector, as crude oil accounts for 6% of total imports. China’s economic slowdown, combined with a global push towards renewable energy, could threaten the already fragile levels of its crude oil demand.

Billionaire Investor Blasts Fed, Says Sell Stocks, Buy Gold

The bottom line, in Druckenmiller’s view: The bull market in stocks has exhausted itself, after eight years of radical monetary experiment. As he said, now is the time to buy gold & you can do so while maintaining your privacy. You just need to understand the rules. Some regard it as a metal. We regard it as currency & it remains our largest currency allocation.

Gold And Silver – A Clarion Alarm Call For All Paper Assets

Gold or silver does not ever change. What changes is the [falsely]perceived [worthless]”value” of fiat paper currencies. Those who [unwisely]choose to own paper assets of any kind, especially in the stock market and digital currency held in banks, are being given a clarion alarm call by gold and silver that your time has reached its expiration date.

Is The Rally Beginning, Or Is That It For Gold Prices?

Following the sharp fall back in gold prices to near US$1,200 an ounce, Bloomberg’s headline said ‘Gold coming back down to earth’. Gee, sounds scary. Is that it for gold then? Is the bear market about to resume? My personal view: As long as the price doesn’t fall back below US$1,160, gold looks good for another move higher, which would put an end to the bear market.

Got Gold And Ready For The Next Bear Market?

Given the run-up in equity prices in recent years, we wouldn’t be surprised if the looming bear market, if it indeed becomes one, will last at least as long as historic bear markets. Are we already in a bear market in stocks? In this context, we study past bear markets to see whether gold may serve as a valuable diversifier for what’s ahead. Got gold?

Has the Market Finally Hit Bottom? Here’s the Answer…

Trying to call tops or bottoms isn’t a viable trading strategy. We’re never going to be able to time major turning points down to the tick. That’s OK. We’ll leave these big market calls to attention-seekers and big banks trying to make splashy headlines. When it comes to buying a broken market, you don’t want to be the first sucker in line.

Is the Stock Market Now "Too Big to Fail"?

The stock market is now integral to the economy as a measure of sentiment & evidence that all is well with the economy. If the stock market is now too big to fail, the Federal Reserve will have to prop it up whatever the cost. Ultimately, this may require indirect purchases of stocks–an action that other central banks are already pursuing directly or indirectly via proxies.

The Fed Is Bluffing... Interest Rates Won't Rise in 2015

The minutes of the most recent Fed meeting showed Yellen and team still won’t pull the trigger on interest rates hike until certain unspecified conditions are met. Well, guess what… Conditions will never be met. Commodities are plumbing record lows – most notably oil and “Dr. Copper,” widely seen to signal a deteriorating economy worldwide. That’s why Ms. Yellen is reluctant to raise rates.

Why it Feels Like Something Isn’t Quite Right with the Stock Market

US stocks are still in a bull market. Large parts of the stock market are down significantly since June. Last Friday, Bloomberg reported that “roughly half the biggest stocks are mired in corrections, down 10 percent or more from their one-year high.” The S&P 500 is now up 210% from its 2009 low, and is up 2.1% this year. How can the stock market be up when so many stocks are down?

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