The dollar (UUP +1%) is soaring across the board (not just against the yen, where it's now spiked through ¥100 to ¥100.56). The greenback is threatening parity vs. the aussie (FXA -1.1%) for the first time since last summer, and the euro (FXE -1.1%), swissie (FXF -1.4%), loonie (FXC -0.5%), and pound (FXB -0.6%) are seeing sizable declines as well. Commodities? Red. Gold (GLD -1.1%), Silver (SLV -1.2%), Oil (USO -0.6%), Copper (JJC -0.8%). [View news story]
The bearded one better gas up the printing presses then....
In a show of hands, 29 Cypriot lawmakers vote for the controversial EU bailout, 27 vote against. The deal is thus approved. (CyprusMail, AP) [View news story]
The 29 law makers of doom whistle past the graveyard....
Nice breakdown of the COT. Very interesting how positions have changed over different trader categories. I concurr with the long term picture and am heavily positioned accordingly already.
"China produces about 400 tonnes of gold annually, and imports an additional 500 to 600 tonnes of gold every year". Imports have risen dramatically in the last two years. Therefore China(with or without the Central Bank) is buying up a significant portion of the global supply. Forget about the future's market and pretty graph patterns for a second, it's what's happening in the real world that matters ultimately. I don't see gold heading lower from here with such demand in the physical market.
Australia's Perth Mint - which refines nearly all of that nation's gold bullion - has its factory working weekends to keep up with demand. "We haven't seen levels like this since (2008)," says sales chief Ron Currie. "We're being inundated with people buying products," he continues, noting U.S. orders are particularly heavy. GLD -0.25%. [View news story]
Gold ETF's loss is the physical markets' gain.....
Thanks for your thought provoking article. I take exception with your data point from the lofty World Gold Council about China though. I was of the impression that China has not declared a change in total gold reserves since Q2 2009 when they declared a massive increase in their holdings. There's a slight difference to what you appear to be inferring. China is the largest gold producer in the world and yet apparently a not insignificant net importer of the yellow metal. Who's taking delivery of all that gold? China is never secretive about it's official reporting, now is it.....? I can hear the shrieks of the "Gold bugs", you're a brave man, Carlos.....
It looks like Microsoft (MSFT) will be raising close to $2.7B in its latest debt-financing effort: the WSJ now reports Microsoft sold $1.95B in U.S. debt, as it shops a €550M ($715M) offering with a 20-year maturity in Europe. For the U.S. offering, Microsoft obtained a rate of just 1.01% on 5-year debt, a mere 70 bps spread over comparable Treasurys for 10-year bonds, and a 90 bps spread for 30-year bonds. The paper previously reported Microsoft was looking to raise $500M+ in the U.S to go with its European offering. [View news story]
If MSFT can't make more than 1.01% pa on that debt then they're doooomed!
Short Selling A Pair Of Leveraged ETFs: A Goldmine Or A Bad Idea? [View article]
Thank you for your reply. I agree for this simple strategy to work it would require quite a degree of market timing(luck!) and be short term in nature so perhaps not what you'd recommend. It seems TNA and TZA are more than liquid enough for this to work otherwise.
Caterpillar (CAT +0.5%) reports global sales of its construction and mining equipment fell 11% in the three months through March, ahead of its Q1 report Monday. March sales in North America, CAT's largest geographic market, fell 11%; sales tumbled 24% in Asia. Sales turned negative during the December three-month period for the first time in 30 months and have remained lower ever since. [View news story]
Not Just Gold: Small-Caps Reminiscent Of Summer Crash Of 2011 [View article]
Fair point but major banks in the world don't use Macy's as collateral. Macy's is a stock and gold(while being a speculative vehicle a lot of the time) is a tangible asset. When a true deflationary pulse comes to the markets Gold becomes very volatile leading to large sell-offs. This could mean there are liquidity issues in the credit markets that can lead to a similar event. Remember what happened to gold in 2008?
5 Trade Ideas That Can Make 500% In An Up Market [View article]
Hi Phil - thanks for sharing all these ideas for free. I'm not a huge fan of ABX though it has taken a beating lately. What about GG or AUY for a major instead? I also like the gold/silver royalty plays as a safer way to get in on the miners - FNV, RGLD, SLW and even SAND. cheers!
Goldman's short call on gold looks prescient, as comex gold sinks $63.50 to settle at $1,501.40/oz. for its lowest close since July 2011. Traders and analysts see no obvious trigger for the selloff, which seems to reflect the malaise that has gripped the market. Silver slips $1.37 to $26.33/oz. Miners are huge losers: HMY -7.5%, ABX -7.3%, AEM -6.9%, AUY -6.2%, SLW -5.6%, NEM -5.2%, EGO -4.9%, GFI -4.8%, GG -4.5%. [View news story]
Sitting on my hands for a bit longer... (something I should have done since 2011 - oh well!)
Goldman's short call on gold looks prescient, as comex gold sinks $63.50 to settle at $1,501.40/oz. for its lowest close since July 2011. Traders and analysts see no obvious trigger for the selloff, which seems to reflect the malaise that has gripped the market. Silver slips $1.37 to $26.33/oz. Miners are huge losers: HMY -7.5%, ABX -7.3%, AEM -6.9%, AUY -6.2%, SLW -5.6%, NEM -5.2%, EGO -4.9%, GFI -4.8%, GG -4.5%. [View news story]
The dollar (UUP +1%) is soaring across the board (not just against the yen, where it's now spiked through ¥100 to ¥100.56). The greenback is threatening parity vs. the aussie (FXA -1.1%) for the first time since last summer, and the euro (FXE -1.1%), swissie (FXF -1.4%), loonie (FXC -0.5%), and pound (FXB -0.6%) are seeing sizable declines as well. Commodities? Red. Gold (GLD -1.1%), Silver (SLV -1.2%), Oil (USO -0.6%), Copper (JJC -0.8%). [View news story]
In a show of hands, 29 Cypriot lawmakers vote for the controversial EU bailout, 27 vote against. The deal is thus approved. (CyprusMail, AP) [View news story]
The Gold COT Report - An Update [View article]
Gold's Double Whammy Is In Play [View article]
Imports have risen dramatically in the last two years. Therefore China(with or without the Central Bank) is buying up a significant portion of the global supply. Forget about the future's market and pretty graph patterns for a second, it's what's happening in the real world that matters ultimately. I don't see gold heading lower from here with such demand in the physical market.
Australia's Perth Mint - which refines nearly all of that nation's gold bullion - has its factory working weekends to keep up with demand. "We haven't seen levels like this since (2008)," says sales chief Ron Currie. "We're being inundated with people buying products," he continues, noting U.S. orders are particularly heavy. GLD -0.25%. [View news story]
Gold's Double Whammy Is In Play [View article]
I can hear the shrieks of the "Gold bugs", you're a brave man, Carlos.....
It looks like Microsoft (MSFT) will be raising close to $2.7B in its latest debt-financing effort: the WSJ now reports Microsoft sold $1.95B in U.S. debt, as it shops a €550M ($715M) offering with a 20-year maturity in Europe. For the U.S. offering, Microsoft obtained a rate of just 1.01% on 5-year debt, a mere 70 bps spread over comparable Treasurys for 10-year bonds, and a 90 bps spread for 30-year bonds. The paper previously reported Microsoft was looking to raise $500M+ in the U.S to go with its European offering. [View news story]
Short Selling A Pair Of Leveraged ETFs: A Goldmine Or A Bad Idea? [View article]
Caterpillar (CAT +0.5%) reports global sales of its construction and mining equipment fell 11% in the three months through March, ahead of its Q1 report Monday. March sales in North America, CAT's largest geographic market, fell 11%; sales tumbled 24% in Asia. Sales turned negative during the December three-month period for the first time in 30 months and have remained lower ever since. [View news story]
Short Selling A Pair Of Leveraged ETFs: A Goldmine Or A Bad Idea? [View article]
Not Just Gold: Small-Caps Reminiscent Of Summer Crash Of 2011 [View article]
5 Trade Ideas That Can Make 500% In An Up Market [View article]
5 Trade Ideas That Can Make 500% In An Up Market [View article]
cheers!
Goldman's short call on gold looks prescient, as comex gold sinks $63.50 to settle at $1,501.40/oz. for its lowest close since July 2011. Traders and analysts see no obvious trigger for the selloff, which seems to reflect the malaise that has gripped the market. Silver slips $1.37 to $26.33/oz. Miners are huge losers: HMY -7.5%, ABX -7.3%, AEM -6.9%, AUY -6.2%, SLW -5.6%, NEM -5.2%, EGO -4.9%, GFI -4.8%, GG -4.5%. [View news story]
Goldman's short call on gold looks prescient, as comex gold sinks $63.50 to settle at $1,501.40/oz. for its lowest close since July 2011. Traders and analysts see no obvious trigger for the selloff, which seems to reflect the malaise that has gripped the market. Silver slips $1.37 to $26.33/oz. Miners are huge losers: HMY -7.5%, ABX -7.3%, AEM -6.9%, AUY -6.2%, SLW -5.6%, NEM -5.2%, EGO -4.9%, GFI -4.8%, GG -4.5%. [View news story]