commodity-prices

What Is the Bull Market in Burlap Telling Us?

What Is the Bull Market in Burlap Telling Us?

Filed under: International Markets , India , Indices , Commodities We have hundreds of indexes tracking everything that wiggles or moves. We are constantly searching for direction. Where is the market headed? Where is the economy going? Are we still in a recession? Will we see more growth next year? And on and on we go. Well, here’s a unique index — two indexes in fact — that track unusual products. The Commodity Research Bureau’s raw industrials spot index, which includes print cloth, rosin and wool tops, soared to an all-time high last week, as reported in the Wall Street Journal . The Journal of Commerce/Economic Cycle Research Institute industrial price index, which tracks industrial metals, cotton, hides and tallow, hit a 2010 high last Friday — just shy of its 2008 peak. Continue reading What Is the Bull Market in Burlap Telling Us? What Is the Bull Market in Burlap Telling Us? originally appeared on BloggingStocks on Wed, 17 Nov 2010 10:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Commodity Prices Soar

Commodity Prices Soar

Filed under: Major Movement , International Markets , Economic Data , Commodities , Oil , Agriculture , Federal Reserve , ETF There are two primary forces at work in world economies. At this time they are driving commodities prices higher. One is the continuing need and demand by emerging nations for raw materials, a trend that is not about to subside. The second is the extra pile of money that the U.S. Federal Reserve is printing that is finding its way into the commodity markets, a driving force for higher prices. Let’s take oil as an example. The International Energy Agency said that that China’s needs could drive oil to $110 per barrel by 2015, a 27% premium to the current price, as reported in the Wall Street Journal . On Tuesday, the U.S. Department of Agriculture (USDA) cut harvest estimates for soybeans and corn. Continue reading Commodity Prices Soar Commodity Prices Soar originally appeared on BloggingStocks on Wed, 10 Nov 2010 12:40:00 EST. Please see our terms for use of feeds . Read | Read | Permalink | Email this | Comments

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Gold Powers to a Record $1,383 per Ounce

Gold Powers to a Record $1,383 per Ounce

Filed under: Commodities , Oil , Agriculture , Federal Reserve The gold market exploded Thursday with the December contract up $45.50 to $1,383.10 per ounce, as reported in the Wall Street Journal . As usual, there are lots of reasons for the spectacular rise. The two main ones are currency worries and inflation. Let’s take the currency issue first. The December U.S. dollar contract is hovering just above the 75 level. That level held and the dollar then rose to 89.11. Now it has come back down to the 75 level. A breach of 75 would signal a further move down. Continue reading Gold Powers to a Record $1,383 per Ounce Gold Powers to a Record $1,383 per Ounce originally appeared on BloggingStocks on Fri, 05 Nov 2010 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Barrick (NYSE:ABX), Ivanhoe (NYSE:IVN), Eldorado (NYSE:EGO), Agnico (NYSE:AEM) Rise with Surging Gold Prices

The jobs report in the U.S. showing further terrible results have gold prices today jumping and gold miners rising with them. Barrick Gold (NYSE:ABX), Ivanhoe Mines (NYSE:IVN), Eldorado Gold and (NYSE:EGO) and Agnico-Eagle Mines (NYSE:AEM) are all in positive territory in anticipation of the inevitable inflationary move by the Federal Reserve, which will pump more money into the American

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They Are Printing Too Much Money

They Are Printing Too Much Money

There is too much money being printed. No rocket science is needed to reach that conclusion. The markets are giving us a clear message. For example, gold is trading at a record high, while silver has reached a 30-year high. Those new high prices are happening for a reason. The precious metals are sensitive to changes in inflation, both actual as well as future expectations. Rising precious metal prices tell us that there is a lot of inflation in the pipeline, but they are not alone in giving us this message. More generally, look at the trend in commodity prices over the past few months in the following chart of the CRB Continuing Commodity Index, which is based on the price of 19 different commodities. On June 4th the CRB Index closed at 450.24. Here we are just 3-1/2 months later, and the CRB Index closed Friday at 530.24, up 17.7%. That is a HUGE jump in prices in such a short period of time. To put this price rise into perspective, it is a 61.8% annual rate of “appreciation” — though we should call it by what it really is, namely, “price inflation.” Commodity prices are not rising because of good economic activity, which remains in the doldrums with high unemployment throughout most of the world. Commodity prices are rising because too much money is being printed. But the Federal Reserve reports that M1, a narrow measure of the total quantity of dollars in circulation, rose only by a 9.1% annualized rate in the three months from May 2010 to August 2010, and M2 rose by even less. So why are commodity prices rising by an even faster rate than money growth? There are two reasons. 1) Because too much money has been printed for years, not just over the past three months, which can be illustrated by comparing M3 to the total US population. In 2000 there were $26,977 in circulation, as measured by M3, for every man, woman and child in the United States. That amount has ballooned to $46,538, a 7.1% annual rate of growth, which is more than 7-times the 0.9% annual rate of population growth during this period. 2) Demand for money is usually ignored, but it is an important part of the equation. Unfortunately, demand cannot be measured, so we again need to rely on observations of market prices to determine the prevailing trend in the demand for dollars at any moment. So, for example, …

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Alexco Resource (AMEX:AXU), Mines Management (AMEX:MGN) Rise as Metals Price Move Up

Metals miners enjoyed a great day today, as a number of precious metals rose on an increased positive outlook by investors, even though many pointers are out there showing there’s a lot of risk. Even today’s confirmation China is continuing to cool off their economy was pretty much shrugged off by investors, so you know emotion is ruling the market at this time. After all, if investors aren’t

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