Posted on 08/10/2015 11:11:40 AM PDT by blam
Akin Oyedele
August 10, 2015
The pain is far from over for commodity prices.
Gold, crude oil, copper, and aluminum have all had ugly plunges this year, especially in July.
And as far as analysts at Macquarie see it, it's only going to get worse.
In a note to clients on Monday, the firm writes that the plunge in prices is not just a story of oversupply in commodities but also an undersupply of the dollar.
And so as dollars become more scarce, the dollar gets more expensive, meaning that on a gross basis, fewer dollars buy more commodities, making it hard for the commodities market to clear excess supply.
(snip)
(Excerpt) Read more at businessinsider.com ...
Prices can fall to one cent and there will still be idiots complaining about “the price of milk.”
With enormous numbers of people out of work, you have fewer people making things, fewer people buying things, so less demand for commodities. Usually lowering the price kicks up the demand, but not if no one is working.
Dang! Glad I got my silver order in early this morning!
Then on top of that if the Fed is stupid enough to start raising rates look out.
WTF? The Fed has been printing new dollars at the rate of $80B/yr. Two years ago it was $800B/yr.
So the question should be, with all that new money being created out of thin air, why would gold be dropping.
Increased money supply should encourage inflation (and don't ever think the Fed is NOT trying to promote inflation).
How the gold price is deflated is unreasonable, unless physical gold (a limited supply) is not part of the equation, or is accounted for in mysterious ways (rehypothecation) or "paper gold" available in commodity ETF's.
That's about all i know about gold prices. It's clearly a racket.
This is what preceded the 2008 collapse of the economy.
Copper, what what I have read, is always a leading indicator in the commodities markets as to where the economy is going.
I don’t think they’ll raise rates considering how precarious the economy is hanging on the edge of the cliff.
I don’t believe money is printed anymore. The feds just change electronic 0s to 1s and walla you have another billion or so dollars floating around in the banking system.
The only minting and printing is to replace expired currencie.
I call it "printing", the Feds call it "quanitative easing".
YUP.
DEFINITION of 'Doctor Copper' Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown.
Yeah kinda like a bean fart
I agree with you that I don’t see how they can but one of the Fed governors announced last week that they were on the verge of doing it. I think it would be disasterous.
Report: Public Demand For Precious Metals Skyrockets: “The Whole Supply Chain Could Be Cleaned Out”
Dont forget gasoline also crept up and exceeded $4/gal a few months before the crash. People often forget that.
I think conventional wisdom in economics has been blown up and no longer works as it used to. CAT is way off - used to mean very bad things. BDI used to be a good indicator - now it makes no sense and don’t get me going on the various M and U numbers that don’t reflect anything real but are taken at face value.
Thx. Been awhile since I looked at precious metal prices.
Won’t be long until gold is back to three digits.
Yup. Very true.
So....any new reliable indicators?
None I am willing to trust and I search everyday. Don’t forget what is going on in China. That may be the biggest tell yet.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.