While the dollar dropped to a two-and-half month low against the euro yesterday, gold closed at a fresh two-and-a-half month high at $945.30 per ounce. Near-record oil prices, geopolitical tensions in the Middle East, and the continued weakness in the dollar have fueled gold’s latest rally.
Gold’s strength has caught me by surprise recently, as I expected it to remain in a trading range and retest the $850 level. But as strong as it looks short-term, now is not yet the time to get aggressively long. Reason: July and August are seasonally WEAK months for gold and gold shares.
Once I get the signals, my next target for gold: $1,250 an ounce.
Long-term, the fundamentals that have driven gold higher are firmly in place and keep telling me that prices must climb to an equilibrium level of $2,200 or better. Soaring demand, declining supply, surging oil prices, the declining dollar, profligate money printing, and hyperinflation all point to much higher gold prices.
Posted Thursday, July 3, 2008 by
Larry Edelson
Comments
(4)
Posted Tuesday, July 1, 2008 by
Sean Brodrick
Gold futures climb to two-and-a-half-month high
Gold has seen "increased support as a safe haven investment during these uncertain economic times," Beahm said in emailed comments. "Coming off their worst June since the 1930s, the financial markets are just too volatile right now for many investors to feel confident."
Mining, fertilizers and energy to benefit from rising inflation
Despite the S&P 500's troubles, as the saying goes, there's always a bull market somewhere. And when seeking strong sectors, the inflationary backdrop is worth considering.
IEA Slashes 2012 il Demand Forecast
The International Energy Agency cut more than 3 million barrels a day from its 2012 global demand forecast because record prices and slower economic growth will curb fuel purchases. A drop in OPEC spare capacity to a ``negligible'' 1 million barrels a day by 2013 will keep the market `tight,'' the agency said in its Medium-Term Oil Market Report today. Oil above $140 is dampening consumption of motor fuels in the 27 nations advised by the Paris-based IEA, which cut demand estimates for each year between 2009 and 2012 by about 3 percent.
XX Sean's note -- More interesting stuff HERE. Funny, oil prices are up over $2 a barrel as I write this. I guess that shows traders are more worried about Israel attacking Iran than the IEA's forecasts.
OPEC Can Do Little to Curb Rally in Oil Prices, Iran's Oil Minister Says The Organization of Petroleum Exporting Countries "can't do much'' to curb soaring crude prices because the market is responding to a falling dollar, Iranian Oil Minister Gholamhossein Nozari said.
Does Iran Have Bush Over a Barrel
If United States President George W Bush wants to boost Republican chances of holding on to the White House and keeping Democratic gains in Congress to a minimum in the November elections, he might consider taking an attack on Iran before the end of his administration "off the table".
XX Sean's note -- Don't do it Iran -- don't make GWB angry. You won't like him when he's angry. "Hulk Smash!"
Soylent Green Fuel?
The World Health Organization estimates that 38.8 million Americans are now "obese" - i.e., 30 pounds or more overweight. That factors out to 583,000 tons of body fat. Since a kilogram of human fat contains 7,200 kilocalories of energy and a barrel of oil generates 1,410,579 kilocalories, Americans are hauling around (at minimum) the fat-equivalent of 2.92 million barrels of oil on their bodies.
...
If the concept of "flab gas" leaves you flabbergasted, prepare for a shock. Miami's Jackson Memorial Hospital reportedly has signed a deal to supply Norwegian entrepreneur Lauri Venoy with 3,000 gallons-per-week of liposuction leftovers harvested by its clinics. This bio-fat could produce 2,600 gallons of biodiesel, sufficient to fuel a Hummer for a year.
Soybeans Rise to Record as Floods Reduce U.S. Acreage, May Curb Crop Yield
Soybeans rose to $16 a bushel for the first time ever on speculation that the worst Midwest flooding in 15 years will limit gains in U.S. production and inventories. U.S. farmers may harvest 96.8 percent of the acres planted, down from an earlier forecast of 98.1 percent, the U.S. Department of Agriculture said yesterday in a report. The flood- damaged fields may curb the production increases the government forecast after farmers planted 17 percent more acres this year. Some fields may need to be replanted.
Gold has seen "increased support as a safe haven investment during these uncertain economic times," Beahm said in emailed comments. "Coming off their worst June since the 1930s, the financial markets are just too volatile right now for many investors to feel confident."
Mining, fertilizers and energy to benefit from rising inflation
Despite the S&P 500's troubles, as the saying goes, there's always a bull market somewhere. And when seeking strong sectors, the inflationary backdrop is worth considering.
IEA Slashes 2012 il Demand Forecast
The International Energy Agency cut more than 3 million barrels a day from its 2012 global demand forecast because record prices and slower economic growth will curb fuel purchases. A drop in OPEC spare capacity to a ``negligible'' 1 million barrels a day by 2013 will keep the market `tight,'' the agency said in its Medium-Term Oil Market Report today. Oil above $140 is dampening consumption of motor fuels in the 27 nations advised by the Paris-based IEA, which cut demand estimates for each year between 2009 and 2012 by about 3 percent.
XX Sean's note -- More interesting stuff HERE. Funny, oil prices are up over $2 a barrel as I write this. I guess that shows traders are more worried about Israel attacking Iran than the IEA's forecasts.
OPEC Can Do Little to Curb Rally in Oil Prices, Iran's Oil Minister Says The Organization of Petroleum Exporting Countries "can't do much'' to curb soaring crude prices because the market is responding to a falling dollar, Iranian Oil Minister Gholamhossein Nozari said.
Does Iran Have Bush Over a Barrel
If United States President George W Bush wants to boost Republican chances of holding on to the White House and keeping Democratic gains in Congress to a minimum in the November elections, he might consider taking an attack on Iran before the end of his administration "off the table".
XX Sean's note -- Don't do it Iran -- don't make GWB angry. You won't like him when he's angry. "Hulk Smash!"
Soylent Green Fuel?
The World Health Organization estimates that 38.8 million Americans are now "obese" - i.e., 30 pounds or more overweight. That factors out to 583,000 tons of body fat. Since a kilogram of human fat contains 7,200 kilocalories of energy and a barrel of oil generates 1,410,579 kilocalories, Americans are hauling around (at minimum) the fat-equivalent of 2.92 million barrels of oil on their bodies.
...
If the concept of "flab gas" leaves you flabbergasted, prepare for a shock. Miami's Jackson Memorial Hospital reportedly has signed a deal to supply Norwegian entrepreneur Lauri Venoy with 3,000 gallons-per-week of liposuction leftovers harvested by its clinics. This bio-fat could produce 2,600 gallons of biodiesel, sufficient to fuel a Hummer for a year.
Soybeans Rise to Record as Floods Reduce U.S. Acreage, May Curb Crop Yield
Soybeans rose to $16 a bushel for the first time ever on speculation that the worst Midwest flooding in 15 years will limit gains in U.S. production and inventories. U.S. farmers may harvest 96.8 percent of the acres planted, down from an earlier forecast of 98.1 percent, the U.S. Department of Agriculture said yesterday in a report. The flood- damaged fields may curb the production increases the government forecast after farmers planted 17 percent more acres this year. Some fields may need to be replanted.
Posted Tuesday, June 17, 2008 by
Sean Brodrick
Chart of the Freakin' Day ...
Source: The Oil Drum Europe
Mexico is the world's No. 6 oil producer and a key U.S. crude supplier but Pemex's oil output has declined this year due to waning yields at the aging Cantarell oil field and technical problems at wells in recent weeks.
The sheer hypocrisy of this debate on oil
Meanwhile the US Senate has threatened to launch a prosecution of OPEC for its alleged fixing of the world oil market, to the detriment of the American consumer. The American legislature's hypocrisy in this matter takes a different form to ours: the politicians who are now howling with rage about the shortage of oil supply are in essence the same people who have long blocked the oil industry from developing vast deposits both in the Arctic National Wildlife Refuge and off their own coastline - about 80 per cent of the US continental shelf is out of bounds, on environmental grounds.
Crude Oil Drops for Third Day on Concern Economic Slowdown May Curb Demand Crude oil fell for a third day on signs that slower economic growth in the U.S. and Europe will curb fuel consumption.
Nymex Oil Futures Price Averaged Over 200 Days Exceeds $100 for First Time Oil prices averaged over 200 days surpassed $100 a barrel for the first time on the New York Mercantile Exchange, an indication of the durability of a rally threatening global economic growth.
More News You Can Use
Stocks in US Show Negative Return on Inflation Gain
Surging commodity prices have eroded earnings and spurred the Federal Reserve to consider raising borrowing costs just as equities are trading at their most expensive in four years. Standard & Poor's 500 Index shares yield 0.22 percentage point more in profits than the interest on 10-year Treasury notes, the smallest advantage since 2004, data compiled by Bloomberg show. The last time corporate earnings returned less versus bonds, the index posted its first quarterly decline in more than a year.
The 39 percent advance in oil, 61 percent jump in corn and 41 percent climb in rice pushed the UBS Bloomberg Constant Maturity Commodity Index to a record this year. That's squeezing profits as raw-material costs outpace consumer prices by the largest margin since the 1970s. Companies in the S&P 500 will earn 7.7 percent less in the second quarter than a year ago, according to analysts' estimates compiled by Bloomberg.
Dollar Falls as Housing Decline Raises Bets Fed Will Delay Rate Increases The dollar fell against the euro after a government report showed housing starts dropped in May to a 17-year low, raising speculation the Federal Reserve will delay increasing borrowing costs this year.
Corn Advances Near to Record in Chicago as U.S. Crop Conditions May Worsen Corn traded close to a record on speculation the U.S. crop will suffer further damage from floods in the Midwest, potentially reducing production in the world's biggest producer and exporter.
US Wholesale Inflation Increased More than Forecast
Producers paid 7.2 percent more for goods from May 2007, compared with a 6.5 percent gain in the 12 months ended in April. Excluding food and energy, the increase was 3 percent from a year earlier, the same as in the prior month.
More on the rise in producer prices HERE.
China's Factory, Property Investment Climbs 25.6%
Urban fixed-asset investment rose to 4.03 trillion yuan ($585 billion) in the first five months from a year earlier, the statistics bureau said, after gaining 25.7 percent in the four months through April.
Source: The Oil Drum Europe
Mexico is the world's No. 6 oil producer and a key U.S. crude supplier but Pemex's oil output has declined this year due to waning yields at the aging Cantarell oil field and technical problems at wells in recent weeks.
The sheer hypocrisy of this debate on oil
Meanwhile the US Senate has threatened to launch a prosecution of OPEC for its alleged fixing of the world oil market, to the detriment of the American consumer. The American legislature's hypocrisy in this matter takes a different form to ours: the politicians who are now howling with rage about the shortage of oil supply are in essence the same people who have long blocked the oil industry from developing vast deposits both in the Arctic National Wildlife Refuge and off their own coastline - about 80 per cent of the US continental shelf is out of bounds, on environmental grounds.
Crude Oil Drops for Third Day on Concern Economic Slowdown May Curb Demand Crude oil fell for a third day on signs that slower economic growth in the U.S. and Europe will curb fuel consumption.
Nymex Oil Futures Price Averaged Over 200 Days Exceeds $100 for First Time Oil prices averaged over 200 days surpassed $100 a barrel for the first time on the New York Mercantile Exchange, an indication of the durability of a rally threatening global economic growth.
More News You Can Use
Stocks in US Show Negative Return on Inflation Gain
Surging commodity prices have eroded earnings and spurred the Federal Reserve to consider raising borrowing costs just as equities are trading at their most expensive in four years. Standard & Poor's 500 Index shares yield 0.22 percentage point more in profits than the interest on 10-year Treasury notes, the smallest advantage since 2004, data compiled by Bloomberg show. The last time corporate earnings returned less versus bonds, the index posted its first quarterly decline in more than a year.
The 39 percent advance in oil, 61 percent jump in corn and 41 percent climb in rice pushed the UBS Bloomberg Constant Maturity Commodity Index to a record this year. That's squeezing profits as raw-material costs outpace consumer prices by the largest margin since the 1970s. Companies in the S&P 500 will earn 7.7 percent less in the second quarter than a year ago, according to analysts' estimates compiled by Bloomberg.
Dollar Falls as Housing Decline Raises Bets Fed Will Delay Rate Increases The dollar fell against the euro after a government report showed housing starts dropped in May to a 17-year low, raising speculation the Federal Reserve will delay increasing borrowing costs this year.
Corn Advances Near to Record in Chicago as U.S. Crop Conditions May Worsen Corn traded close to a record on speculation the U.S. crop will suffer further damage from floods in the Midwest, potentially reducing production in the world's biggest producer and exporter.
US Wholesale Inflation Increased More than Forecast
Producers paid 7.2 percent more for goods from May 2007, compared with a 6.5 percent gain in the 12 months ended in April. Excluding food and energy, the increase was 3 percent from a year earlier, the same as in the prior month.
More on the rise in producer prices HERE.
China's Factory, Property Investment Climbs 25.6%
Urban fixed-asset investment rose to 4.03 trillion yuan ($585 billion) in the first five months from a year earlier, the statistics bureau said, after gaining 25.7 percent in the four months through April.
Posted Monday, June 16, 2008 by
Larry Edelson
The Labor Department reported on Friday that the US Consumer Price Index (CPI) rose 0.6% in May -- the most since November and reversing a three month downward trend -- as the high price of oil sent the price of goods higher.
While I expected the number to come in on the high side, it grossly underestimates the real inflation rate. What’s more, the “core” inflation rate, which strips out energy and food prices, was reported to have edged up only a modest 0.2%. Give me a break! That’s not a bad number if you don’t eat and drive!
As I’ve told you before, the government’s CPI number is rigged, using all kinds of manipulations and shenanigans to keep the number absurdly low. Anyone with half a brain can see that the “official” data doesn’t jibe with what consumers are experiencing as prices for everything under the sun climb higher.
And with the declining dollar and the Fed’s easy money policy, which I don’t expect to change anytime soon, much more inflation is ahead.
My estimate: The real inflation rate is running around 8%-10% and will jump even higher to about 15%, even 20% or more!
Posted Monday, June 9, 2008 by
Sean Brodrick
All CNBC can talk about this morning is Lehman Brothers. How many people does that effect? Meanwhile, oil is not pulling back much from its biggest one-day surge EVER on Friday. Don’t you think that deserves more headline time? The average price of a gallon of gasoline in the United States hit $4 for the first time ever Sunday. I think that affects a heck of a lot more people than Lehman Brothers.
More on gasoline prices HERE.
Gold Rises in London as Dollar, Near-Record Oil Heighten Inflation Concern Gold rose for a second consecutive trading session in London as the dollar declined and oil traded close to a record, bolstering demand for the metal as a hedge against a weaker U.S. currency and faster inflation.Corn Climbs to Record on U.S. Midwest Flooding; Soybeans, Wheat, Rice Gain Corn jumped to a record as rain in the U.S. Midwest flooded fields, delaying planting and threatening to reduce crops. Soybeans, wheat and rice also gained as soaring oil costs and the dollar's drop boosted demand for an inflation hedge.
Posted Wednesday, June 4, 2008 by
Sean Brodrick
"For a Fistful of Silver" was my original name for today's MoneyandMarkets.com column.
My editors replaced that with "Finding Attractive Mexican Miners,"
which sounded to me more like a Craiglist personal ad than a financial
piece.
We were able to compromise on "Once Upon a Time in Mexico." I can live with that.
Once Upon A Time in Mexico
by Sean Brodrick
Wednesday, June 04, 2008 7:30 AM
In the mid-1500s, legend has it that Spanish explorers were traveling through the Guanajuato region of Mexico when they camped for the night by the side of a river. They piled stones in a ... [More...]
Other News You Can Use ...
South African Gold Output falls 15.6% in Q1
United Will Shrink Fleet by 70 Planes, Eliminate 1,100 Jobs, Scuttle Ted UAL Corp.'s United Airlines, the world's second-largest carrier, will ground 70 additional planes, cut as many as 1,100 more jobs and shut its low-fare Ted unit to help counter record fuel costs.
Commodities to Be `Much, Much Weaker' as Dollar Strengthens, Gartman Says Commodities will become ``much, much weaker'' after Federal Reserve Chairman Ben Bernanke signaled support for the U.S. dollar, Dennis Gartman, economist and editor of the Gartman Letter, told clients.
XX Sean's note -- Gartman's view can sway the markets, so he's usually right for about three days. Then again, with Bernanke coming out and supporting the dollar with strong words yesterday, I do expect the US dollar to bounce anyway. Much bigger worries are that 1) Asian governments are limiting oil, gasoline and diesel subsidies and 2) the US government may restrict commodity markets ...
1) India and Malaysia raise price of subsidized fuel With no end in sight to high world oil prices, India and Malaysia on Wednesday became the latest Asian countries to risk the wrath of voters by raising the price of subsidized fuel, a highly unpopular measure that could further weaken the governments of both countries made fragile by recent electoral setbacks.
We were able to compromise on "Once Upon a Time in Mexico." I can live with that.
Once Upon A Time in Mexico
by Sean Brodrick
Wednesday, June 04, 2008 7:30 AM
In the mid-1500s, legend has it that Spanish explorers were traveling through the Guanajuato region of Mexico when they camped for the night by the side of a river. They piled stones in a ... [More...]
Other News You Can Use ...
South African Gold Output falls 15.6% in Q1
South Africa's Chamber of Mines said on Tuesday the country's gold production fell 15.6 percent to 52,228 kg in the first quarter of 2008 compared to the fourth quarter of 2007, owing to a power shortage. On a year-on-year basis, the rate of decline in gold production was 16.8 percent in the first quarter of 2008.
Oil Inventory Numbers Come Out TodayToday's inventory report will be delayed by 5 minutes. It will be released at 10:35 AM Eastern time until further notice. At any rate, the the consensus analysts' estimates are ...
Crude Oil, UP 2.7 million barrels.
Gasoline, UP .9 million barrels.
Distillates, UP 1.6 million barrels.
United Will Shrink Fleet by 70 Planes, Eliminate 1,100 Jobs, Scuttle Ted UAL Corp.'s United Airlines, the world's second-largest carrier, will ground 70 additional planes, cut as many as 1,100 more jobs and shut its low-fare Ted unit to help counter record fuel costs.
Commodities to Be `Much, Much Weaker' as Dollar Strengthens, Gartman Says Commodities will become ``much, much weaker'' after Federal Reserve Chairman Ben Bernanke signaled support for the U.S. dollar, Dennis Gartman, economist and editor of the Gartman Letter, told clients.
XX Sean's note -- Gartman's view can sway the markets, so he's usually right for about three days. Then again, with Bernanke coming out and supporting the dollar with strong words yesterday, I do expect the US dollar to bounce anyway. Much bigger worries are that 1) Asian governments are limiting oil, gasoline and diesel subsidies and 2) the US government may restrict commodity markets ...
1) India and Malaysia raise price of subsidized fuel With no end in sight to high world oil prices, India and Malaysia on Wednesday became the latest Asian countries to risk the wrath of voters by raising the price of subsidized fuel, a highly unpopular measure that could further weaken the governments of both countries made fragile by recent electoral setbacks.
The moves follow similar price increases in Indonesia, Pakistan and Sri Lanka and are a recognition by governments that they can no longer shelter their populations from the spike in energy prices.
2) Corn Falls on Dollar's Rally, U.S. Government Investigation; Wheat Gains Corn futures declined for a second day in Chicago on speculation the dollar's recovery and a government investigation of U.S. futures trading may reduce investment demand. Soybeans were little changed and wheat rose.
Posted Tuesday, June 3, 2008 by
Sean Brodrick
Here's what I'm reading this morning. You might find these stories and blogs interesting, too.
Economics as science? No chance.
Economics is not a science. Physics wouldn't be a science either if esteemed members of that profession who got prestigious jobs running the country were willing to make statements that contradict all known facts.
Commodity Futures Speculation
Fundamentals are the most important part of the 5-year story, but that the falling dollar, negative real interest rates, and quite possibly fund purchases of commodity futures contracts have also made an important contribution during 2008.
The Economics of Sawdust
I was in Vermont over the weekend and talking to a dairy farmer about the rising price of milk. I was surprised when she said that higher sawdust prices was one of the causes.
xx Sean's note -- everything is interconnected, and in our modern society, even more so. I'm always wondering what shoe missing a nail is going to drop next. Speaking of which ...
More Collateral Damage from the Housing Crisis
The fallout of the housing crisis is affecting many more people than just those who purchased a home on dicey terms (or who provided the loan, or now owns the debt). In several posts we will highlight how the current crash has been cause for concern in some unexpected places.
Austrian Finance Minister Proposes European Tax on Commodity Speculation Austrian Finance Minister Wilhelm Molterer said he'll propose a Europe-wide tax on commodities speculation as people across the continent protest against higher fuel and food prices.
Oil Trades Little Changed as Asian Governments Attempt to Cool Consumption Crude oil was little changed as Malaysia scrapped fuel price controls and India said subsidies were becoming unsustainable.
Corn Falls After U.S. Crop Conditions as Expected; Wheat Futures Decline Corn futures declined in Chicago for the first time in three days as a government report on the state of the U.S. crop, the world's biggest, was within market expectations. Soybeans rose for a third day, while wheat fell.
Nifty Oil Clock
Want to see how much oil the world uses second by second? CLICK HERE.
Economics as science? No chance.
Economics is not a science. Physics wouldn't be a science either if esteemed members of that profession who got prestigious jobs running the country were willing to make statements that contradict all known facts.
Commodity Futures Speculation
Fundamentals are the most important part of the 5-year story, but that the falling dollar, negative real interest rates, and quite possibly fund purchases of commodity futures contracts have also made an important contribution during 2008.
The Economics of Sawdust
I was in Vermont over the weekend and talking to a dairy farmer about the rising price of milk. I was surprised when she said that higher sawdust prices was one of the causes.
xx Sean's note -- everything is interconnected, and in our modern society, even more so. I'm always wondering what shoe missing a nail is going to drop next. Speaking of which ...
More Collateral Damage from the Housing Crisis
The fallout of the housing crisis is affecting many more people than just those who purchased a home on dicey terms (or who provided the loan, or now owns the debt). In several posts we will highlight how the current crash has been cause for concern in some unexpected places.
Austrian Finance Minister Proposes European Tax on Commodity Speculation Austrian Finance Minister Wilhelm Molterer said he'll propose a Europe-wide tax on commodities speculation as people across the continent protest against higher fuel and food prices.
Oil Trades Little Changed as Asian Governments Attempt to Cool Consumption Crude oil was little changed as Malaysia scrapped fuel price controls and India said subsidies were becoming unsustainable.
Corn Falls After U.S. Crop Conditions as Expected; Wheat Futures Decline Corn futures declined in Chicago for the first time in three days as a government report on the state of the U.S. crop, the world's biggest, was within market expectations. Soybeans rose for a third day, while wheat fell.
Nifty Oil Clock
Want to see how much oil the world uses second by second? CLICK HERE.
Posted Tuesday, May 20, 2008 by
Sean Brodrick
Here's some news you can use ...
Who's to blame for $4 gas
There is no short answer - many things happened, and together they formed a chain of events from cheap gas to $100 tankfuls.
China Quake May Cause Loss of 60,000 Tons of Zinc Output, Antaike Reports Zinc output in China, the world's largest producer, may drop by 60,000 tons this year because of smelter damage from the May 12 earthquake, Beijing Antaike Information Development Co. said.
Gold Gains on Dollar's Slump, Inflation-Hedge Demand; Palladium Rallies Gold climbed in London, extending this month's rally, on speculation declines in the dollar and rising commodity prices will spur inflation, reviving demand for the metal as a hedge. Platinum, palladium and silver also gained.
Sino Gold to Sell $195 Million Stock to Close Hedge; Gold Fields Ups Stake Sino Gold Mining Ltd., owner of China's second-largest gold mine, plans to sell as much as A$204 million ($196 million) in shares to existing shareholders to close its forward sales contracts for the precious metal.
Wheat Prices Climb for Third Straight Session as Global Grain Demand Gains Wheat rose for a fourth day in Chicago as a government report showed U.S. crop conditions deteriorated and on concern that dry weather will reduce planting in Australia's New South Wales state.
The Repo Man Reapeth
So many people have so many things they can no longer afford. This is an excellent time to be a repo man.
Who's to blame for $4 gas
There is no short answer - many things happened, and together they formed a chain of events from cheap gas to $100 tankfuls.
China Quake May Cause Loss of 60,000 Tons of Zinc Output, Antaike Reports Zinc output in China, the world's largest producer, may drop by 60,000 tons this year because of smelter damage from the May 12 earthquake, Beijing Antaike Information Development Co. said.
Gold Gains on Dollar's Slump, Inflation-Hedge Demand; Palladium Rallies Gold climbed in London, extending this month's rally, on speculation declines in the dollar and rising commodity prices will spur inflation, reviving demand for the metal as a hedge. Platinum, palladium and silver also gained.
Sino Gold to Sell $195 Million Stock to Close Hedge; Gold Fields Ups Stake Sino Gold Mining Ltd., owner of China's second-largest gold mine, plans to sell as much as A$204 million ($196 million) in shares to existing shareholders to close its forward sales contracts for the precious metal.
Wheat Prices Climb for Third Straight Session as Global Grain Demand Gains Wheat rose for a fourth day in Chicago as a government report showed U.S. crop conditions deteriorated and on concern that dry weather will reduce planting in Australia's New South Wales state.
The Repo Man Reapeth
So many people have so many things they can no longer afford. This is an excellent time to be a repo man.
Posted Monday, May 5, 2008 by
Jack Crooks
Markets Make a U-turn…
Is the run towards safe-haven assets over? Major threats to financial markets certainly haven’t disappeared overnight. But it appears as though risk-appetite has returned that quickly. Of course, it can also vanish just as quickly. Either way it’s still something that needs to be monitored.
And while risky plays have drifted higher, the biggest talk has been of the U.S. dollar’s rise over the last two weeks after stabilizing above all-time lows. We have to wonder whether the buck is carving out a notable bottom. We’ve wondered that same thing many times over the last year of the dollar’s bear market. And each time the dollar’s brief rally was quickly squashed.
But there’s always something new to consider. Below are three charts that make us want say “It’s different this time.”
S&P 500 – Bottom: March 17th
Gold – Top: March 17th
Dollar – Bottom: March 17th
Risky assets rising? Safe-haven plays falling? The dollar appreciating?
Perhaps the markets are a good ways ahead of the fundamentals. And perhaps we’ve already witnessed a major turning point.
Posted Monday, April 21, 2008 by
Sean Brodrick
So glad to be long oil stocks and natural gas today, with oil over $117 and natural gas climbing.
Oil Rises to Record Above $117 After OPEC Says No Need to Boost Production Crude oil rose above $117 a barrel for the first time after OPEC said it will maintain production, rejecting calls from the U.K. and Japan to boost output.
Codelco Opens One of Three Strikebound Copper Mines as Workers Defy Picket Codelco, the world's largest copper producer, reopened its El Teniente mine after night-shift employees crossed barricades of striking contract workers. Two other Chilean copper mines remained closed as the strike, which propelled copper prices to a record high, continued a fifth day.
More News You Can Use ...
Dollar Decline Decelerates With G-7 Blessing as Weakening Shows No Endgame Traders betting on intervention by the Group of Seven nations to stem the dollar's 7.7 percent decline against the euro this year may be disappointed.
Gold Erases Gain in London; Dennis Gartman `Abandoning Ship' From Outlook Gold erased gains in London after Dennis Gartman said he is ``abandoning ship'' on his outlook for higher gold prices.
Asia May Risk `Silent Famine' as Poor Can't Afford Food, UN Agency Warns A ``silent famine'' risks emerging in some Asian countries where food prices including rice are escalating beyond the reach of the poorest people, the World Food Program warned.
And Uranium Drops a Bit More Long term prospects and short term supply-demand characteristics in the uranium market continue to clash with market watchers and researchers clinging on to a continuously bullish outlook for the commodity, only to see the spot price move into the opposite direction.
Oil Rises to Record Above $117 After OPEC Says No Need to Boost Production Crude oil rose above $117 a barrel for the first time after OPEC said it will maintain production, rejecting calls from the U.K. and Japan to boost output.
Codelco Opens One of Three Strikebound Copper Mines as Workers Defy Picket Codelco, the world's largest copper producer, reopened its El Teniente mine after night-shift employees crossed barricades of striking contract workers. Two other Chilean copper mines remained closed as the strike, which propelled copper prices to a record high, continued a fifth day.
More News You Can Use ...
Dollar Decline Decelerates With G-7 Blessing as Weakening Shows No Endgame Traders betting on intervention by the Group of Seven nations to stem the dollar's 7.7 percent decline against the euro this year may be disappointed.
Gold Erases Gain in London; Dennis Gartman `Abandoning Ship' From Outlook Gold erased gains in London after Dennis Gartman said he is ``abandoning ship'' on his outlook for higher gold prices.
Asia May Risk `Silent Famine' as Poor Can't Afford Food, UN Agency Warns A ``silent famine'' risks emerging in some Asian countries where food prices including rice are escalating beyond the reach of the poorest people, the World Food Program warned.
And Uranium Drops a Bit More Long term prospects and short term supply-demand characteristics in the uranium market continue to clash with market watchers and researchers clinging on to a continuously bullish outlook for the commodity, only to see the spot price move into the opposite direction.
Posted Friday, April 11, 2008 by
Tony Sagami
The dollar has been in a free fall against almost all currencies, including the Chinese renmimbi.
For the first time the Chinese government pegged its currency to the U.S. dollar in 2005, the exchange rate has fallen below 7.
The renmimbi has now gained more than 18% against the dollar since 2005.
The health (or lack thereof) of a country's currency is a pretty accurate barometer of the underlying economy. If that's true, the U.S. is in trouble and China is full steam ahead.
For the first time the Chinese government pegged its currency to the U.S. dollar in 2005, the exchange rate has fallen below 7.
The renmimbi has now gained more than 18% against the dollar since 2005.
The health (or lack thereof) of a country's currency is a pretty accurate barometer of the underlying economy. If that's true, the U.S. is in trouble and China is full steam ahead.
Posted Monday, March 24, 2008 by
Sean Brodrick
Recession in U.S. Sows Slow-Growth Economy, Weak Dollar, Faster Inflation
The U.S. may pay a steep price to free itself of its economic and
financial travails: bigger government, faster inflation and a poorer
country.
Oil, Gold Decline as Dollar Rallies; Wheat, Corn Rise on Lower Stockpiles Crude oil and gold extended declines as the dollar rebounded on speculation the Federal Reserve's efforts to combat a housing slump and a shortage of funds in credit markets may restore investor confidence.
Gasoline at Record High Price Never Been a Better Buy, Say Citigroup, FBR Gasoline that's going for a record $3.29 a gallon at the pump is actually cheap, the way Citigroup Inc. and Friedman Billings Ramsey & Co. look at it.
Oil, Gold Decline as Dollar Rallies; Wheat, Corn Rise on Lower Stockpiles Crude oil and gold extended declines as the dollar rebounded on speculation the Federal Reserve's efforts to combat a housing slump and a shortage of funds in credit markets may restore investor confidence.
Gasoline at Record High Price Never Been a Better Buy, Say Citigroup, FBR Gasoline that's going for a record $3.29 a gallon at the pump is actually cheap, the way Citigroup Inc. and Friedman Billings Ramsey & Co. look at it.
