Commodity Trade Mantra

Posts Tagged ‘Stock Market’

Gold Prices have Beaten the Stock Market so far this Century

The price of gold has outperformed the S&P 500 Index so far this century, returning 86 percent more than the market if we index both asset classes at 100 on December 31, 1999. Over the past 17 years, the S&P 500 has undergone two major contractions, both of them resulting in a loss of around 40 percent. Gold, meanwhile, has held its value well, boosting its appeal as a portfolio diversifier.

Is Apparent Strength in Stock Market Masking Deeper problems below the Surface?

Mounting pessimism comes at a time when US equities are looking healthy, at least on the surface. This apparent strength of the stock market may just be masking deeper problems brewing under the surface. The fact that we had many volatility cycles since 1983, and are now at all-time lows in volatility, indicates that we may be very close to the turning point.

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.

Commodities Firms Gain Most as FTSE 100 Keeps Going Strong

It is clear that commodities prices have had a really big impact on the stock market in this period, and that this has been far greater than even the impact of the general election. With the pound not doing anything especially interesting at the time (it rose slightly against the dollar but was down against the euro), oil prices have certainly been one of the most important drivers on the market.

The Logical And Fast Approaching Major Catalyst For Gold

History shows that bear markets in stocks have sprung major bull markets in Gold and gold stocks. The conditions for such are in place once again and only the timing is uncertain. It is quite logical from both a historical & fundamental perspective. Gold and gold stocks may be struggling now & it could continue, but they are perfectly setup for a massive move higher once the stock market peaks.

Warnings of a Stock Market Bubble from Major Investors

Many money & hedge fund managers are privately telling investors: Stocks have risen to unsustainable levels & a stock market crash may well be imminent. Geopolitical tensions continue to rise with the ongoing conflict in the Middle East threatening to explode & the US & North Korea are seemingly determined to maintain a collision course. In short – there are a lot of pins to pop a bubble.

The Fake Paper Markets & the Real Gold and Silver

Just like the artificial paper markets in New York and London that are used to keep the price of gold and silver from rising, the western stock markets are prevented from falling by a web synthetic derivative securities and fraudulent financial reporting applications. Never before in history have stock market valuations been more disconnected from the underlying fundamental economic reality.

Yellen Succeeds in bringing Asset Price Inflation - Result of this Success to be Feared

Yellen, like notorious previous Fed chiefs including Strong, Martin & Greenspan, can now claim success in having prolonged & strengthened an asset price inflation which otherwise may well have been about to enter its severe end phase. If history is any guide, the result of that success is to be feared. Asset price inflation goes through a mid-late phase where speculative temperatures move sharply.

Trump’s Stock Market Report Card Says - Buy Gold

Judging by the huge post-election rally we’ve witnessed, it’s no surprise the Trump administration is patting itself on the back. But if early morning market action is any indication, the streak ends today. It’s safe to say investors are feeling giddy as the stock market blasts into uncharted territory. As the stock rally loses steam to finish the trading week, gold looks stronger than ever.

Gold Price Movements Indicate Levels of Fear & Uncertainty in Global Markets

At the top of the list of what the stock market hates is uncertainty, while gold typically rises when there is fear and uncertainty in stock markets. The price of gold (see above chart) has been rising & its volume spiking. Our advice would be to keep an eye on the gold market to measure just how much fear and uncertainty there is in global markets about our new President.

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.

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