Those Crazy Commodities

Precious metals have been on a tear since the start of August.  Gold gets the most attention when metals rally, but surprisingly, it has gone up less than both Platinum and Silver since the parabolic rally began.  As shown below, Gold has rallied 44.17% since the start of August, while Silver has rallied 47.63% and Platinum has rallied a whopping 66.52%.  Next time you're at the jewelry store, remember that Gold is actually a bargain comparatively!

click to enlarge

Looking at breakfast beverages, consumers are better off sticking with orange juice versus coffee at the moment.  As shown below, orange juice has failed to rally with all the other commodities and is currently trading at the bottom of its trading range.  Coffee, on the other hand, has soared and is currently trading more than 2 standard deviations above its 50-day moving average.

Comments

[Chuck]

It's good to know that as the dollar drops, I'll still be able to get my OJ for Breakfast.
Coffee... maybe I can cut back on that, or stop going to SBUX, and pick it up at 7-11 instead.

2008 Feb 27 02:31 PM

[sbenard]

Soooo... what's the point?

There doesn't seem to be one to this article.

2008 Feb 28 01:53 AM

[goldragon]

What these two bears wanted to say is Gold, Platinum and Silver or Oil are overbought. However, because every time they said overbought, Gold, Platinum and Silver, or Oil just go up and continue their rally. Thus nobody believes their prediction anymore. This is why this time they just say Gold, Platinum and Silver are in rally, they did not say overbought.

2008 Mar 02 08:22 AM