Posts Tagged gold
Gold ticks lower on lack of safe-haven buying
Posted by Oksana Grebenjuk in Banks on Март 28th, 2011
Gold futures dipped below $1,420 an ounce Monday as investors shied away from the metal, lacking a fresh reason on the geopolitical front to turn their attention to gold.
Gold for April delivery (GCJ11 1,421, -5.70, -0.40%) declined $11,
or 0.8%, to $1,415.20 an ounce on the Comex division of the New York Mercantile Exchange. A close around these levels would be the lowest in a little more than a week.
Gains for the dollar, albeit modest, have “given the bear camp the initial edge this morning,” analysts at MS Futures said in a note to clients Monday. A “lack of significant fresh developments from current geopolitical issues has resulted in some anxiety draining out of markets like gold,” they added.
Hawkish comments from a U.S. Federal Reserve official over the weekend also appeared to influence gold negatively, the analysts said.
On Saturday in France, nonvoting member St. Louis Federal Reserve Bank President James Bullard said policy makers should review the quantitative-easing plan as the U.S. economy may not need all the stimulus.
As the geopolitical tensions around the globe are not going away any time soon, however, they continue “to suggest a rise in the price of gold, which should therefore resume its uptrend soon,” analysts at Commerzbank said in a note to clients. Read the rest of this entry »
Gold posts best weekly performance
Posted by Oksana Grebenjuk in Banks on Февраль 24th, 2011
Gold futures on the COMEX Division of the New York Mercantile Exchange further hiked on Friday, registering the strongest weekly rally so far this year, underpinned by continued unrest in the Middle East.
The most active gold contract for February delivery rose 3.5 dollars per ounce, or 0.25 percent, to settle at 1,388.6 dollars.
Market traders noted that gold prices finished the week higher as investors resorted to gold as safe-haven investment in the wake of growing turmoil in such Mideast countries as Bahrain and Libya.
At least five people have been killed since demonstration against Bahrain’s ruling family began on Feb. 14. Demonstrators in Libya also demanded the government’s overthrow. Besides, it is reported that Egypt has agreed to allow the passage of Iranian naval ships through the Suez Canal.
Buoyed up by concerns over inflation and political situation in the Middle East, gold prices have enjoyed a nonstop hike of 2.1 percent this week, the biggest weekly rise since the beginning of this year. Read the rest of this entry »
How to Invest in Commodities, Carefully
Posted by Oksana Grebenjuk in Investing on Декабрь 22nd, 2010
All through the year, commodity prices have been rising: Copper has soared 24.5% since 2010 began, while gold is up 23%. Wheat, corn and oil also have continued to climb. Unsurprisingly, that growth has attracted many investors. Is this a good time for small investors, too, to put some money in commodities?
Adrian Day, a financial adviser who has just published a book about commodities called Investing in Resources, cautions small investors that commodities are incredibly volatile. «Trying to play commodities in the short term is a recipe for disaster,» he says. Commodity prices have already climbed so high in the last couple of months that he has become a «little bit cautious,» he adds.
But Day remains bullish about using long-term commodities investments to diversify portfolios, even for the little guy. After all, some good fundamentals are behind the commodities’ growth, including the continuing strength of the Chinese economy — which has created huge demand for many commodities — and signs that the U.S. starting to improve. «With many metals, they’re unable to increase production, and the price is just continuing to go up» as demand increases, Day says.
First Steps
How can small investors best tap into this trend? There are myriad ways to invest in commodities, of course, such as via futures and options offered by CME Group. But those types of commodities futures and options require sophisticated knowledge and can be very risky for a novice investor, Day warns. Read the rest of this entry »
What The Fed Does not Want You To Know
Posted by Oksana Grebenjuk in Budget on Ноябрь 17th, 2010
Yesterday gold and silver staged a sharp reversal day after first making new highs for the year intra-day. There were a couple of reasons for the sharp pullback. The first was the stronger U.S. Dollar Index and the second was the sudden increase in margin requirements for silver. While we are not sure why the margin requirements increased for silver so suddenly we do know why the U.S. Dollar Index traded higher.
The U.S. Dollar Index caught a bid yesterday due to the fact that Ireland and Portugal bunds spreads are the widest they have ever been. In other words these two countries are in serious trouble. Other European Union countries remain in trouble and could soon face defaults as well.
In March, April, May, and June of this year gold and the U.S. Dollar Index actually rallied higher together. So please understand that gold does not just trade inverse to the U.S. Dollar Index. Gold and silver are now being viewed by the investor community as the only true form of currency.
While many say gold is in a bubble this simply does not hold any merit. A bubble occurs when everyone owns something such as a tech stock in 1999 or a house in 2005. Ask your next door neighbor if they own any gold outside of their jewelry and the answer is likely to be ‘no’. If gold was not so important the government would not want to tax it as a collectible at the highest rate allowed. Read the rest of this entry »
Beyond Gold: 6 Overlooked Alternative Investments
Posted by Oksana Grebenjuk in Favourites, Investing on Октябрь 18th, 2010
There are those who will tell you that gold still has room to roam: that you ain’t seen nothing yet. That even though an ounce right now tops $1,300, you should hock your kids to buy some.
At least, that’s the advice of Dan Oliver and Dan Mahony, who think gold could peak at over $10,000. The two Dans follow the gold market.
«Gold is hardly over-owned,» Mahony says. «All the gold in the world, at today’s prices, is only worth eight-tenths of a percent of financial assets, versus nearly 5 percent in the 1960s.
«If you adjust gold’s price for increases in the money supply — which the Fed keeps raising — gold is actually near its all-time low,» Oliver says.
Be that as it may, if you’re skeptical and feel you can’t afford to buy in now, here are other opportunities you might consider:
Shale
If you own land with oil shale on it, you’re in luck. Shale deposits cover North Dakota, much of Montana and parts of Colorado, Kansas, Nebraska and Wyoming. Read the rest of this entry »
U.S. stock futures rise ahead of Bernanke testimony
Posted by Oksana Grebenjuk in Fund Markets on Июль 21st, 2010
U.S. stock futures rose on Wednesday, buoyed by Apple’s stronger-than-expected results, as investors braced for testimony by Federal Reserve Chairman Ben Bernanke and another barrage of earnings reports.
Nasdaq 100 futures gained 11.75 points to 1,851.50 and S&P 500 futures added 4.40 points to 1,084.50. Futures on the Dow Jones Industrial Average rose 31 points to 10,210. The Dow (DJIA 10,230, +75.53, +0.74%) ended up 0.7% on Tuesday, reversing intraday triple-digit
losses.
Sentiment was buoyed after Apple (AAPL 251.89, +6.31, +2.57%) reported last night a surge in earnings due to booming demand for its iPhone and iPad devices.
Strategists at Deutsche Bank said the spotlight Wednesday will be on Bernanke’s monetary policy report to the U.S. Senate Banking Committee.
«Expectations that Bernanke may announce policy accommodation measures seemed to help risk assets recover from the softer housing-starts data and Goldman Sachs’ earnings and revenue miss,» they wrote in a note. Markets will «likely listen carefully to decipher any hints about the possibility of a U.S. double-dip [recession].»
Bernanke will start speaking at 2 p.m. Eastern time, but before that investors will get a number of earnings reports from companies, including Morgan Stanley (MS 25.22, +0.44, +1.78%) , Wells Fargo & Co. (WFC 25.91, -0.11, -0.42%) and Freeport McMoRan Copper & Gold Inc. (FCX 64.32, +3.46, +5.69%) . Read the rest of this entry »
Be Wary the Rush to Gold
Posted by Oksana Grebenjuk in Banks on Май 27th, 2010
Most of us have seen advertisements to buy gold or offering cash for gold. With the economy still unsettled and gold prices steadily rising, you may be tempted. But not all gold investments are safe.
On Tuesday, Representative Anthony D. Weiner, a Democrat from New York, attacked one company that is a gold and precious metals dealer, Goldline International Inc. He accused the company of “shady practices,” alleging that it overcharges for collector coins and provides misleading financial advice to consumers. “They’re exploiting the economy that we’re in,” he said.
Mr. Weiner also spoke of the company’s “unholy alliance” with television and radio personalities like Mike Huckabee, the former governor of Arkansas and Republican presidential candidate; and Fred Thompson, a former Senator from Tennessee and TV actor. But he particularly singled out Glenn Beck, the conservative talk show host.
“It’s debatable whether gold is a good investment,” Mr. Weiner said at a news conference in front of the Mercantile Exchange building in lower Manhattan. “There’s a confluence between a declining economy and the ignorance many consumers have about how the marketplace works.” Read the rest of this entry »
Europe’s Next Great Test
Posted by Oksana Grebenjuk in Business on Март 29th, 2010
European leaders may have bought some time by backing in principle a bailout for Greece, but even if the money is handed over, it will be no silver bullet for Greece or for the euro zone.
That’s because the euro zone’s problems are not limited to Greece and not solely related to government debt and budget deficits.
Right now, Greece’s debt burden is unsustainable. With government debt equivalent to more than the country’s annual output and the government paying close to 6.5% to borrow money, Greece’s debt burden is not just growing but accelerating dangerously.
The best a bailout can do is to buy time to reduce those interest rates to give the government time to slash its deficits and set the debt on a downward path.
Yet it is the euro zone’s second challenge that is at once more widespread and more intractable. That is the euro zone’s competitiveness challenge: structurally weak economies, in southern Europe and elsewhere, locked by a common currency to Germany’s low inflation rate and economic stringency. Read the rest of this entry »
Gold Is in a ‘Bubble’ And Will Keep Going Higher: Gartman
Posted by Oksana Grebenjuk in Banks on Ноябрь 18th, 2009
While not being comfortable with the current gold trade, Dennis Gartman, founder of The Gartman Letter, told CNBC Monday that the price of the precious metal will «continue to go up until it stops.»
«It is a gold bubble,» Gartman told CNBC. He called the trade on gold «mind boggling,» but also said he is currently long — or betting gold will go higher.
Gold hit a fresh record high above $1,130 an ounce early Monday as the dollar fell against other Western currencies.
Gold’s Friday low of $1,102 an ounce is the floor, according to Gartman. If it falls below that mark, he suggests investors should «head to the sidelines.»
The trend for the dollar is «still down» and will continue, Gartman said. It’s an «unbelievably crowded trade,» he added.
But any «correlation between a national currency and the stock market is negligible at best,» he said. Read the rest of this entry »
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