Wealth Creation Through Natural Resources
During August gold rallied nearly $100/oz before pulling back late in the month and retracing roughly 50% of the rally. Gold now finds itself in an interesting situation oscillating in the $1130s/$1140s as global equity markets experience a bout of … Continued
This is an insightful graph of the 90th percentile gold production cash cost curve dating back to 1990: A few takeaways from this graphic: Cash costs nearly quintupled during the bull market years 2002-2012 – this was mainly due to … Continued
“At a market bottom, falling prices eventually force out large numbers of traders, resulting in volatility and increased volume.” ~ Cory Mitchell (Investopedia) This quote on market bottoms perfectly sums up the gold miners (GDX) during the last couple of years: … Continued
This was a bad week for stocks, a very bad week. Over the next 48 hours other sources of market info/analysis will surely parse through this week’s market decline from 14 million different angles and tell you that we are … Continued
8 days ago I sent out a tweet calling for $1150 gold within a couple of weeks based upon strong seasonal tailwinds and the likelihood that we would get some significant short covering after futures speculators had become over zealous … Continued
“Dumb money” futures traders (small speculators) piled on bearish bets in gold futures during the week ending August 4th: Small specs increased their net bearish position in gold futures by more than 50% in a single week! The net notional short … Continued
Nothing scientific here, just letting my thoughts flow. Gold has been battered since its May peak at $1232/oz, falling more than 10% and hardly exhibiting any signs of life while doing so. Futures speculators have piled into short positions at … Continued
Gold is at an interesting crossroads. Sentiment couldn’t be much worse and the technical picture is putrid. However, we are entering what has historically been by far the most bullish 5 week stretch of the year historically: The clear bullish … Continued
Via Bespoke: The chart is pretty self explanatory, but nonetheless stunning. It hasn’t been this bad for commodities since the post-dotcom crash recession, and in many ways it’s much worse than it was in 2002. A few takeaways from … Continued
The latest CFTC Commitments of Traders Data shows that as of Tuesday’s close (7/28/2015) dumb money gold futures speculators (small specs) held the largest net notional short position in history: The small speculators net short position totals 9,199 contracts … Continued