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Commodities Archive

  • China’s economic growth engine will drive raw materials demand in the long term, according to Glencore Director John Mack, who said the commodities firm remains focused on trading.

    Glencore’s John Mack Says China Is Still Bullish for Commodities

    China’s economic growth engine will drive raw materials demand in the long term, according to Glencore Director John Mack, who said the commodities firm remains focused on trading.

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  • By all rights, 2016 should be a good year for the U.S. stock market. The Federal Reserve's recent rate hike signals confidence in the economy and presidential election years typically reward investors. Most experts are predicting a seventh year for the current bull market.

    Wall Street in 2016: What could possibly go wrong?

    By all rights, 2016 should be a good year for the U.S. stock market. The Federal Reserve's recent rate hike signals confidence in the economy and presidential election years typically reward investors. Most experts are predicting a seventh year for the current bull market.

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  • But, more recently, as stock markets celebrate a soaring oil price (off decade lows), wholesale gasoline prices have soared 10% in a little over 48 hours... If lower gas prices was "unequivocally good" for the consumer, what are higher gas prices?

    Don’t Look Now But Gasoline Is Up 10% In 3 Days

    But, more recently, as stock markets celebrate a soaring oil price (off decade lows), wholesale gasoline prices have soared 10% in a little over 48 hours... If lower gas prices was "unequivocally good" for the consumer, what are higher gas prices?

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  • A definite Christmas theme today with most markets meandering into the festive season. Japan was closed for annual holiday (Emperor’s Birthday) and many markets were on half-day (Hong Kong, Singapore, Philippines and Australia). The PBOC set mid-point for the Yuan at 6.4731 but saw the market push it to 6.478 (don’t forget the range can be within 2% of set).

    Market Talk December 23rd, 2015

    A definite Christmas theme today with most markets meandering into the festive season. Japan was closed for annual holiday (Emperor’s Birthday) and many markets were on half-day (Hong Kong, Singapore, Philippines and Australia). The PBOC set mid-point for the Yuan at 6.4731 but saw the market push it to 6.478 (don’t forget the range can be within 2% of set).

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  • Most dealers continue to blame oil for the set-back with declines today of around another 1% in both WTI and Brent (last seen $34.60 and $36.80). Gold recouped some of yesterdays losses gaining $15 and was last seen at $1065. As typical, people sell gold when stocks rally and buy it when they decline. This relationship will also flip in 2016.

    Market Talk December 18th, 2015

    Most dealers continue to blame oil for the set-back with declines today of around another 1% in both WTI and Brent (last seen $34.60 and $36.80). Gold recouped some of yesterdays losses gaining $15 and was last seen at $1065. As typical, people sell gold when stocks rally and buy it when they decline. This relationship will also flip in 2016.

    Continue Reading...

  • US politicians have approved a measure to lift the 40-year ban on crude oil exports. The move is part of a $1.1 trillion (£738bn) spending bill approved by the Senate on Friday that will fund the US government until 2016.

    US spending bill lifts 40-year ban on crude oil exports

    US politicians have approved a measure to lift the 40-year ban on crude oil exports. The move is part of a $1.1 trillion (£738bn) spending bill approved by the Senate on Friday that will fund the US government until 2016.

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  • Gold produces zero income and costs money to store while the yields on wealth funds currently produce way too little to compensate for the deficits. This crisis, in turn, could cause several nations to liquidate portions of their funds to sell off gold to raise cash.

    Commodity-Based Countries to Liquidate Wealth Funds & Gold

    Gold produces zero income and costs money to store while the yields on wealth funds currently produce way too little to compensate for the deficits. This crisis, in turn, could cause several nations to liquidate portions of their funds to sell off gold to raise cash.

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  • Your perspective is too narrowly focused and solely dollar based. Because the commodities are declining in dollar terms with the dollar rising, in local currencies outside the USA the cost of production declines, and thus in local currency many commodity producers will make even more. Hence, they increase production. It all depends upon the base currency of a producer. Your reasoning applies to dollar-based producers.

    Commodities Depend on the Currency

    Your perspective is too narrowly focused and solely dollar based. Because the commodities are declining in dollar terms with the dollar rising, in local currencies outside the USA the cost of production declines, and thus in local currency many commodity producers will make even more. Hence, they increase production. It all depends upon the base currency of a producer. Your reasoning applies to dollar-based producers.

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  • The wealth of a nation is not its gold, land, or natural resources, for it still takes labor to bring any commodity to market. The wealth of a nation is its people. Look at Germany. Its productive capacity was the highest in Europe and it rightly rose to the top. In Africa and places in South America, the people are not educated as a whole or productive from an international trade perspective, and consequently those countries have been unable to rise to the top at any point in their history.

    Money vs. Fiat

    The wealth of a nation is not its gold, land, or natural resources, for it still takes labor to bring any commodity to market. The wealth of a nation is its people. Look at Germany. Its productive capacity was the highest in Europe and it rightly rose to the top. In Africa and places in South America, the people are not educated as a whole or productive from an international trade perspective, and consequently those countries have been unable to rise to the top at any point in their history.

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  • To understand what is really Behind the Curtain regarding the Middle East, ISIS, Turkey, and the USA strategic attempt to reduce Russia’s control over energy to Europe, we must start back in 2009 when Qatar proposed a pipeline plan to Assad to send its natural gas to Europe via Saudi Arabia, Syria and Jordan. Assad refused it and this has been the entire pretend reason why the Obama Administration wanted to invade Syria. The reason for the refusal was to protect the interests of Assad’s long-time ally, Russia, which is Europe’s biggest natural gas supplier based upon all the data.

    World War III & a Pipeline

    To understand what is really Behind the Curtain regarding the Middle East, ISIS, Turkey, and the USA strategic attempt to reduce Russia’s control over energy to Europe, we must start back in 2009 when Qatar proposed a pipeline plan to Assad to send its natural gas to Europe via Saudi Arabia, Syria and Jordan. Assad refused it and this has been the entire pretend reason why the Obama Administration wanted to invade Syria. The reason for the refusal was to protect the interests of Assad’s long-time ally, Russia, which is Europe’s biggest natural gas supplier based upon all the data.

    Continue Reading...