Commodities

Checklist For Market Tops

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By Bob Hoye – Re-Blogged From http://www.Silver-Phoenix500.com

Signs Of The Times

“Celine Dion Drops the Price on Her Jupiter Island Estate by $27 million”

– L.A. Times, May 28.

“Hard Times Hit Billionaire’s Row with Luxury Condo Foreclosure”

– New York Post, May 30.

“Pending Home Sales Crash Most In 3 Years”

– Zero Hedge, May 31.

“Debt Pile-Up in US Car Market Sparks Subprime Fear”

– Financial Times, May 30.

“Per Capita Taxes Have More Than Doubled Since JFK”

– CNS News, May 31.

“Rents Are Deflating in the Hottest Cities”

– Business Insider, June 4.

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Crude Oil Verifies Breakdown

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By Nadia Simmons – Re-Blogged From http://www.Silver-Phoenix500.com

On Friday, the black gold gained 1.15% and climbed to the previously-broken lower border of the trend channel. Is this a verification of the earlier breakdown or something more?

Crude Oil’s Technical Picture

Let’s take a closer look at the charts and find out (charts courtesy of http://stockcharts.com).

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Silver Short-Squeeze Potential

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By Adam Hamilton – Re-Blogged From  http://www.Silver-Phoenix500.com

Silver has suffered a lackluster year so far, really lagging gold’s upleg.  Sentiment is still reeling following silver’s crushing selloff from mid-April to mid-May.  But that plunge was largely driven by extreme silver-futures selling by speculators, including a blistering spike in short selling.  The resulting excessive shorts have left silver with excellent near-term potential for a short squeeze, which would catapult it rapidly higher.

Technically, silver ultimately acts like a leveraged play on gold.  The yellow metal has long been silver’s dominant primary driver.  Investors and speculators alike flock to silver when gold is rallying, forcing this tiny market to surge dramatically.  But when gold sentiment is weak due to lackluster price action, silver demand from traders dries up.  Thus silver drifts listlessly or grinds lower, compounding bearish psychology.

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Volatility of the Copper Markets Combined with the ‘Trump’ Effect

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By Stuart Edwards – Re-Blogged From http://www.Gold-Eagle.com

Much like other commodities, traders have always devoted a certain level of attention towards copper. There are two key reasons for this observation. First, this red metal is highly indicative of industrial demand and therefore, the health of domestic economies. Secondly, political policy shifts and fiscal plans can have a knock-on effect in regards to its pricing. We have witnessed a great deal of volatility during the past few months and while the medium-term outlook remains positive, many are wondering if a support level will soon be reached. Let us take a look at the root causes of this volatility as well as what to expect in the coming months.

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The Commodity Cycle: What It Means for Precious Metals Prices

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By Stefan Gleason – Re-Blogged From https://www.moneymetals.com

The cycle for any commodity follows the same basic pattern…

When prices are low, production falls. As new supplies diminish, the market tightens and prices move higher. The higher prices incentivize producers to invest in production capacity and increase output. Eventually, the market becomes oversupplied, prices fall, and the cycle starts all over again.

Of course, this is a simplified model of what drives commodity cycles. Booms and busts can be amplified and extended by speculators, by unexpected shifts in demand, or even by interventions from central banks and governments.

Regardless of the causes, commodity markets will always be cyclical in nature. Commodities as a group can be pressured upward or downward by extrinsic forces such as monetary inflation or credit contraction.

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Is The Economy At The Cusp Of The Next Recession…Or Maybe Worse? (Part II)

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By Burt Coons (AKA the Plunger) – Re-Blogged From

http://www.Silver-Phoenix500.com

Part II takes a look at the macro economic backdrop for the trade of the year. Spoiler alert- its not a pretty picture, but don’t think doom and gloom, instead embrace crisis and opportunity! With our understanding of the history of oil we now focus on the macro backdrop for our Big Trade.

“When the tide goes out you find out who has been swimming naked”– Warren Buffet

“This time around everything gets revealed in the next recession”-Plunger

In the next recession those leaning the wrong way… the levered players, will be forced to heave out their non-productive assets at fire sale prices. Commodity producers with entrenched costs will have to increase production as lower prices beget even lower prices since insufficient cash flows can only be recovered through higher volume production.

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Depression, Stagflation, Stag-Depress-Flation

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By Gary Christenson – Re-Blogged From The Deviant Investor

The United States suffered through a deflationary depression in the 1930s. Stock prices crashed, currency in circulation declined, commodity and real estate prices fell hard and human misery prevailed.

President Roosevelt revalued gold from $20.67 to $35.00 per ounce in 1934 – a substantial devaluation of the dollar. Make-work and government spending programs were implemented. War followed the depression. ( https://en.wikipedia.org/wiki/Gold_Reserve_Act )

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