Posts filed under “Commodities”
An old friend swung by the office today to chat. She is a rather well known in certain circles, a savvy investor who has done very well with miners and precious metals.
We discuss the economy, inflation, markets, oil. Near the end of her visit, she proceeds to tell me that the paper money I have is worthless, and that Gold is the only currency of any value.
“May I see your purse?” I ask.
She hands it to me.
“And your wallet is in the purse?”
She pulls out the wallet.
I open it up, remove all her cash — about $1000 in 20s and 50s — and then toss it right in the waste paper basket.
“That’s worthless, right?”
She immediately sees my point, smirks, and to prove her point, gets up to leave — without the cash. As she heads out the door, she says, “I need cab fare.” and fishes a $20 out of the garbage.
Thanks to the weak US$, rising commodity prices and growing wage inflation in China, April import prices rose 2.2% m/o/m and are now up 11.1% y/o/y vs expectations of 1.8% and 10.4% respectively. It’s not just food and energy too as ex that prices were up .5% m/o/m led by a 5% rise in the…Read More
A technical break in oil and silver, increased margin requirements by the CME, and a fast exit by speculators have combined to whack the commodities complex by more than $100 billion in a week. The value of the 24 commodities tracked by S&P GSCI index fell almost $90 billion dollars. Add to that the precious…Read More
Fed voting member Kocherlakota in a speech is covering all his bases in terms of his thoughts on where future policy will go if it were up to him. IF core inflation reaches his estimate of 1.5%, he will vote for interest rate hikes. IF core inflation “were to fall over the course of ’11…Read More
Chart of the Day: Dr. Copper broke through its support at 4.10 and is below 4.00 for the first time since early December. Lots of flakes in this chart as head and shoulder patterns are ubiquitous. Copper is a very crowded trade and some big players have bet the ranch. Unless we get an intraday…Read More
Tons of talk and pixels being spilled over the imminent inflation threat. It bears an eerie resemblance to what we heard from the likes of Jerry Bowyer and Art Laffer two years ago. I’d fade it now, exactly as I suggested back then (here and here, the latter piece co-authored with Bonddad): Exhibit A —…Read More
A friend on an institutional desk writes tonight: Crude oil got crushed today with the May ’11 WTI contract trading below $109 per barrel as the stock market closed – and this after it traded above $113 for several hours Sunday evening. The IMF came out and slashed its 2011 GDP projections for the U.S….Read More