Commodity Trade Mantra

Posts Tagged ‘Supply and Demand’

IEA Sees “Light At The End Of The Tunnel” For Oil Markets

The IEA found a variety of reasons to think that the oil markets are turning a corner, including: supply outages in Iraq, Nigeria, and the UAE; the declines in non-OPEC supply; tepid but steady demand; recent weaknesses in the U.S. dollar; and the potential that OPEC takes stronger action to boost prices, although any meaningful steps to reduce supply remain unlikely.

The Gold Silver Ratio at 80 - Higher than it has been since 2008

Silver just got cheaper when measured in gold terms. The dollar and silver are both going down now—in gold terms. We think that what’s happening is that the price of silver metal is selling down, and every time the carry rises to a threshold, arbitrageurs are buying spot to sell futures and pocket that spread.

Bizarre Gold and Silver Movements Occurring Behind-the-Scenes

The drop in COMEX inventories of gold and silver may contribute to supply problems in the bullion markets. Registered gold inventories had recovered very modestly from record low levels in December. However, last week stockpiles dropped an alarming 73% in a single day. A lot is riding on the demand side of the equation when it comes to metals’ price performance this year.

Problem, Reaction, Solution Does Not Apply To Gold And Silver

Why has not gold and silver responded to the reality of overwhelming demand for physical gold from China, India, Russia by the tons, and unparalleled public participation by the ounces? When a decision has been made to control a market, the reality of the natural laws of Supply and Demand are thrown out the window and are of no consequence, to the consternation of most.

Why "Supply & Demand" Doesn't Work For Oil Prices

The costs of producing oil continue to rise, as a result of diminishing returns, so this fall in oil prices is clearly a problem. Low oil prices make future production unprofitable; it also leads to an increasing number of debt defaults. It is also inevitable that the price of oil must stop rising at some point because of the adverse impact on spendable income of consumers.

A $14 Handle on Silver Prices... Again

The fundamental silver price fell about a dime this week, putting the market price under the fundamental. While that’s a better place to be, if one is a silver bettor, we wouldn’t bet either way on silver right now. The action depends on whether momentum continues to carry the price lower, or whether there’s a sharp rebound as speculators jump to the other side.

The Silver Market Disconnect Continues - Must See Silver Charts

The current surge of physical silver investment demand, whether it be from India (silver bar) or North American (Official coin), continues to put stress on the silver market. This stress is forcing a disconnect in normal supply-demand forces that will likely get worse if the world experiences more financial turmoil or stock market panics in the future.

A Reality Check of the Gold and Silver Market

If you want realistic answers as to why gold and silver have not rallied to reflect the huge demand for their limited supply, look no further than the ongoing events unfolding around the world as diversions to keep the elite’s theft-of-the-world’s-wealth-by-fiat under control. That is reality in a nut shell.

Is The Oil Price Crash A Result Of Excess Supply Or Plunging Demand?

One of the most vocal discussions in the past year has been whether the collapse, subsequent rebound, and recent relapse in the oil price due to surging supply as Saudi Arabia pumps out month after month of record production to bankrupt as many shale companies before its reserves are depleted, or tumbling demand as a result of a global economic slowdown.

The Minimum Price for Gold, Part 1

In the case of gold and silver, massive reinvestment (of profits) is required to find new bodies of ore to mine, to replace those which have been depleted through previous operations. Any long-term price for these metals which is below the full cost of production (plus necessary profit) is not sustainable, and thus below the “minimum price”.

CEO Of Rosneft Compares Oil Market Manipulation To Gold Price Rigging

The CEO of an oil major just used gold rigging as an example of the same commodity manipulation that gold longs have been complaining about for years if not decades. Financial markets (prone to manipulation) tend to produce economic bubbles & those bubbles tend to burst. Remember the dotcom bust & subprime mortgage crisis?

World Platinum Investment Council: “We will help Investors"

What will the World Platinum Investment Council – launched by a group of six platinum producers in South Africa, do? It is an entity focused on helping investors. The purpose of WPIC is two-fold, to provide much better market data on platinum & in due course, develop the global market & help facilitate new routes for platinum investment.

We’re in an Era of Central Bank Worship

On the subject of bond markets, “does it not seem incongruous to chase low-yielding fixed-income securities denominated in a currency that the central bank is vowing to inflate?” Why do you think that investors go into bonds despite the Fed’s intention to devalue them over time?

The Illusion that Lower Oil Prices Are Positive

The Oil Head-Fake: The essence of the Oil Head-Fake Dynamic is the inevitable drop in oil prices resulting from a sharp decline in oil demand (i.e. global recession) will trigger disruption of the global oil supply chain that will eventually push oil prices higher than most currently think possible.

Are Capital Inflows Propping Up U.S. Markets?

Nobody really believes the official narrative that the “recovery” is powering the remarkable strength of U.S. stocks, bonds & real estate. While capital inflows into U.S. stocks are difficult to monitor, put various factors together & it seems likely that significant capital inflows are helping prop up asset valuations in the U.S.

Silver Prices Up 10.3% YTD - Outperformance To Continue

Silver is highly undervalued currently versus gold with the gold silver ratio at 62:1, while long term historical average is 15:1. We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.

We believe that a more transparent & reliable fixing could lead to higher gold prices as we suspect that prices are artificially low at this time and do not reflect the delicate supply demand balance in the physical gold market. Nor do they capture the degree of systemic & geopolitical risk in the world today.

COMEX – Why it’s Corrupt

Replacing the law of supply and demand as the price determinant, the COMEX has substituted a private club run by a few large traders who, in turn, dictate prices to metal producers, consumers & investors. Ironically, it is data from the CME and published by the CFTC that prove price manipulation on the COMEX.

Silver Remains in a Tug of War Between Supply and Demand

Silver is not benefiting even though it has so much industrial use as people still call it a precious metal. Until the financial system blows up again, the tug of war between supply and demand in the silver market is likely to restrain silver prices for the immediate future.

Power Of Elites More Important Than China’s Gold

There is a power struggle going on between West v East, and until it plays itself out, the West has a vested interest in suppressing the price of gold and silver in order to preserve the worthless fiat “dollar” as the elite’s chosen world reserve currency. That is the power of the elites!

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