This page has been archived and commenting is disabled.
Commodities update
Commodities responded well to EMU bailout package with the most important ones being up significantly [copper, platinum, palladium] or trading slightly downwards [gold, silver]. Undoubtedly the rise in the industrial metals can be contributed to the markets belief that the monetary infusion of such a size must translate into industrial consumption of said metals. Traditional stores of wealth [gold] and binary metals [silver] traded slightly downwards as some of the liquidity was taken out of those markets due to the over-the-market rise in equities. The gold graph clearly shows us that, beside dollar denominated USTs, the next safe resort on the times of market volatility, uncertainty and tribulation is gold itself. The next graph clearly shows that the tide in the markets is shifting and gold is becoming more of a safe heaven among mainstream and traditional market participants in the times of capital market uncertainty. The infusion of capital in gold in the past week has been above the average and we here on ZH welcome more such moves in the future when surely once again will the scenario of the past 7 days be more often repeated than not.
Here is the short graphic overview of the most recent moves in the most significant commodities:
Concerning the energy markets oil did not managed to gain back its loss and it is trading 10% lower from its May peak. Looking into metal-energy correlation this does not seem logical or even correlated so we can only suggest that either oil is well bellow its real price [in relation with industrial metals] or industrial metals markets has gotten over enthusiastic in its belief in the EMU bailout package and bid the price to unsustainable level. Nat-Gas follows similar oil pattern being almost 10% down from its may high.
Trade accordingly [or my advice, do not trade at all and enjoy the insanity from the sidelines munching on popcorn and drowning in beer].
*charts provided by finviz.com
»
- advertisements -
Cheeky, I am glad to see you back and contributing again. I had missed you. Hugs, Sparky.
Cheeky, hope all is well with you, enjoy some surreal music to go along with these surreal days we're living in.
http://www.youtube.com/watch?v=qLAKE0X-k3M
What about tungsten?
the latest goldbug could be a bad omen (a very bad omen) for Gold Bulls
Donald Luskin
http://www.smartmoney.com/investing/stocks/stocks-slide-its-about-time/?...
(those who are familiar with Luskin's track record will understand)
Not familiar with him or his track record, but chances are he went long GLD and will still prove you right in the end. Get the nomenclature correct - "goldbugs" can show you their gold... if they feel like it.
What about the two most precious metals of all, lead, and brass?
sprott's new PHYS gold fund is at a %31 premium.
"Undoubtedly the rise in the industrial metals can be contributed to the markets belief that the monetary infusion of such a size must translate into industrial consumption of said metals"
This is sarc, right?
Nothing to do with hyperinflation....
Gold down on 'risk on' trade.
(Ignore me, I am drowning myself in beer; the best hedge.)
The only reason gold went down is because London et al manipulated it, and NY had to hold it down. Check out the roll at its support @14:00 onwards, $1203. That is a natural move. The rest of the day was complete manipulation.
http://www.kitco.com/charts/livegold.html
Nice charts.
Wonder where Robo is. Did not see a post Friday either.
Is there a chart for shrimp prices (the non-oily kind) ?
What about 'em prices for Hopium? Would love to go on the short side of that one.
I agree though, until the fundamentals and "market reality" start dancing together, enjoying the show from the sidelines might be the best thing to do.