Baltic Dry Index Collapses 39% In 9 Trading Days

GoldCore's picture

Today’s AM fix was USD 1,238.00, EUR 908.56 and GBP 753.91 per ounce.
Yesterday’s AM fix was USD 1,248.75, EUR 913.10 and GBP 760.97 per ounce.

Gold fell $11.40 or 0.91% yesterday, closing at $1,243.20/oz. Silver slipped $0.26 or 1.27% closing at $20.19/oz. Platinum rose to a two-month high of $1,446.75 yesterday on concern that industrial unrest at the world’s three biggest platinum producers will weigh on output in South Africa, the biggest producing country.

Gold retreated for a second session today. A rally in stock markets prompted by stronger than expected U.S. retail sales data may have led to profit taking.


Platinum in U.S. Dollars - (Monthly - 2004 to Today)
China has granted licenses to import gold to two non Chinese banks for the first time, according to Reuters. The move to take advantage of the largest gold consumers is gathering pace. China's gold imports more than doubled last year to over 1,000 tonnes - ousting India as the biggest buyer - as demand soared to unprecedented levels.


The Baltic Dry Index,  a measure of commodity-shipping rates, has collapsed 39% in just the nine trading days of 2014. It has fallen from 2277 at the end of December 2013 to 1370 today. This key indicator of global economic health is a warning signal for the global economy in 2014.

Marc Faber told Bloomberg TV in an interview that, "I prefer physical gold and silver, platinum to bitcoin. How do you value a bitcoin? I can value gold to some extent and compare say gold to the quantity of money that is floating around the world, to the wealth increase, and to the monetary base increase, to the credit increase, and so forth and so on, and to the production costs. So I have an idea of where gold should be.”

A diversified precious metals portfolio with allocations to gold, silver, platinum and palladium remains prudent.

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disabledvet's picture

This is all about West Africa production. That oil comes on line and shipping rates...and the price of oil...will collapse. Don't even get me stated on the giga-factory.

gcjblack's picture

Baltic Dry Index is correlated to crude oil prices due to the fuel costs being the largest part of charter fares.

At a $BDI:$WTIC price ratio of 14.78 today, the median has been re-established, and should stabilize $BDI until crude prices move again.


Quinvarius's picture

I don't know man.  I am sure there is some correlation.  But that index is hosed beyond belief with oil prices up 10x since 2000.  I think there is more going on than that.  Maybe that, plus the overbuild of ships, plus the global depression.

butchee's picture

BDI indicates pretty much nada these days.....too many ships built before the crash.

BigRedRider's picture

Ships will be the best asset after the crash.  How else are the U.S. troops expected to conquer the world to create the World States of America.  Besides, I understand that the Brits got hold of all the German submarines, so we got that going for us.

Gordon Freeman's picture

Ol' Goldcore better remember that a "collapsing" global economy would send PM prices back to the stone age...Doh!

Quinvarius's picture

Or, more likely, the exact opposite would happen again, like every other time. 

Winston of Oceania's picture

The only thing that counts is how much weight you have my friend. You see when PM's hit that "low" you speak of there will be no fiat to be had, cash will be king but not many of the bottom feeders will have much. So your price might be low but it will still go a long long way. BTW I gave you neither a TU or a TD.

papaswamp's picture

HARPEX is also showing the same trend.

somecallmetimmah's picture

The Baltics.  Pffft.  What have they done for you, lately?

max2205's picture

Could be a lot of cheap cruise ships

TalkToLind's picture

I think you're onto something, Max.  But instead of cruise ships, Section 8 Housing...on the freighters...funded by Uncle Sugar!  And each cabin gets a 70 inch LED telescreen and a Google thermostat.

q99x2's picture

Good. In several weeks we won't have to hear about it any more.