Big institutional players in the New York futures market slashed their bullish betting on Gold in the week to June 10th. Data from the CFTC – the US regulator – shows a net reduction of 11% in the long gold positions held by what it calls “large speculators”. And this “reduction in the gross longs maybe a further sign that gold is losing its attraction,” reckon analysts at the Swiss banking and wealth management giant…
June 19th, 2008 | Adrian Ash | 0 comments | ContinuedPrecious Metals
Commentary on precious metals (we really love gold) by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Saudi Arabia Pours Oil Investment into Australia
Saudi Arabia runs its oil operations like a family Italian restaurant. In theory, everyone owns a bit of the business. There aren’t private interests like Santos (ASX:STO) or Woodside (ASX:WPL). Aramco is Arabia’s oil producer. The profits from oil then go to the government. Of course the last link in the chain, where the government transfers money to its people, is usually missing.
May 28th, 2008 | Al Robinson | 1 comment | Continued
How to Trade Gold Shares
Gold shares are unique. Most indexes have followed pretty much the same pattern. Not gold. We thought today we’d have a look at something out of the norm, to see if there are some gains brewing. Gold shares have traded in a large channel since last September. It’s taking both the good and the bad at this stage. On one hand, there are the rising prices of bullion.
May 27th, 2008 | Gabriel Andre | 0 comments | Continued
The Fourth Biggest Iron Player in Australia
Here’s some foresight. Investors who jumped on the iron ore train are getting their dividends. Yesterday Murchison Metals (ASX:MMX) gave iron cousin Midwest (ASX:MIS) an all-share merger offer worth . The market loved it. Midwest leapt 12.3%. Murchison flew 8.3%. Everybody won, except Sinosteel. The Chinese giant was closing the net around its prey, Midwest. The nerve of another prey to go and outdo it.
May 27th, 2008 | Al Robinson | 0 comments | Continued
Platinum Ready for New Bull Leg
How do you describe an investment that explodes for a 50% gain in 40 days? Boom! A more accurate word would be “platinum”.Since its initial burst, platinum eased off the accelerator and dropped back down to the stratosphere. It remains on a bullish trend, however. After the correction, buyers took advantage, and got back into a good fundamental trade.
May 26th, 2008 | Gabriel Andre | 0 comments | Continued
Gold Fever is About to Hit
Our Trade of the Decade – buy gold, sell stocks – has done pretty well…though not as well as expected. Gold has almost quadrupled. U.S. stocks went down…then came up. Now, they’re back to about where they were 10 years ago.
May 21st, 2008 | Bill Bonner | 5 comments | Continued
The Price of Gold Has Not Retreated Permamently
We’ve said for years that there is a very tight correlation between rising oil prices and rising gold prices. While oil prices may moderate at some point - because, again, no market goes straight up or down - the trend is clearly for sustained high prices. This is additional support for the price of gold in our view. So…given gold’s correction, you might go right ahead and sell your gold. I’m hanging on to mine. And if I’m hanging on to my gold, I’m hanging on to my gold stocks.
May 14th, 2008 | David Galland | 0 comments | Continued
Lull in Gold Price Shouldn’t Deter Bullion Buyers
A little less than 12 months ago, the world’s biggest financial players suddenly found they could not turn some $1.3 trillion of their assets into cash. These assets - bonds backed by US home-buyers with low (or no) incomes - had become utterly illiquid. No one would buy or lend against them, not at any price. And an asset you can’t sell or borrow against is worth precisely nothing. The resulting mayhem? It would have sounded frivolous two years ago.
May 13th, 2008 | Adrian Ash | 1 comment | Continued
We are Confident the Bull Market in Gold is Not Over
Gold rose $3 yesterday…climbing back towards $900. Many gold investors are worried that the end of the Fed’s rate cuts also means the end of gold’s bull market - at least for the near term.
May 8th, 2008 | Bill Bonner | 1 comment | Continued
A Gold Standard, Without Gold
If you understand supply and demand, you can peg a currency to gold even if there are no gold reserves at all. My own idiosyncratic system is the gold standard that involves no gold at all. There are no gold coins, and no government gold reserves. Gold bullion is freely traded on the open market, just as it is today. In my system, the currency manager (governments today) would adjust the supply of currency on a daily basis to maintain its value at the gold peg.
May 7th, 2008 | Nathan Lewis | 5 comments | Continued