How Do the Chinese View the Gold Market?

Posted on by The INO.com Team

Have you ever wondered what the typical Chinese gold investor thinks about our Western ideas of gold? We read month after month about demand hitting record after record in their country – how do they view our buying habits?

Since 2007, China's demand for gold has risen 27% per year. Its share of global demand doubled in the same time frame, from 10% to 21%. And this occurred while prices were rising.

Americans are buying precious metals, no doubt. You'll see in a news item below that gold and silver ETF holdings just hit record levels. The US Mint believes that 2012 volumes will surpass those of 2011.

But let's put the differences into perspective. This chart shows how much gold various countries are buying relative to their respective GDPs. Continue reading "How Do the Chinese View the Gold Market?" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We’ve asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Precious Metal Futures--- The precious metals had a wild trading session this Friday afternoon in New York and an extremely volatile week with prices fluctuating on news about the fiscal cliff coming out basically hourly for the last couple of days sending prices sharply lower with silver this afternoon in the December contract trading at 33.36 down around $1.16 after making new highs in yesterday’s session and for the 3rd straight day having a $1 dollar move up or down still trading above its 20 and 100 day moving averages and in my opinion I think you will see extreme volatility going into the last days of December due to the fact of the nonsense that is going on in Washington DC while gold futures are down $19 this afternoon in the December contract trading at 1, 709 still stuck in a trading range unable to breakout from this recent trading range with the contract highs in gold at 1,801 which was hit in February and in my opinion I still think the precious metals are headed higher despite today’s activity. Continue reading "Weekly Futures Recap With Mike Seery" →

Paul van Eeden on Why Gold is Overvalued

Posted on by admin

The Gold Report: Paul, your speech at the Hard Assets Conference in San Francisco was titled "Rational Expectations." You spoke about monitoring the real rate of monetary inflation based on the total money supply.

You take into account everything in your indicator that acts as money, creating a money aggregate that links the value of gold and the dollar. You conclude that quantitative easing (QE) is not resulting in hyperinflation and is not acting as a driver for the continuing rise in the gold price. What then is pushing gold to $1,700/ounce (oz)?

Paul van Eeden: Expectations and fear. It's very hard to know what gold is worth in dollars if you don't also know what the dollar is doing. When we analyze the gold price in U.S. dollars, we're analyzing two things simultaneouslygold and dollars. You cannot do one without the other. The problem with analyzing the dollar is that the market doesn't have a good measure by which to recognize the effects of quantitative easing.

Since approximately the 1950s, economists have used monetary aggregates called M1, M2 and M3 (no longer being published) to describe the U.S. money supply. But M1, M2 and M3 are fatally flawed as monetary aggregates for very simple reasons. M1 only counts cash and demand deposits such as checking accounts. M1 assumes that any money that you have, say, in a savings account isn't money. Well, that's a bit absurd.

TGR: What comprises M2? Continue reading "Paul van Eeden on Why Gold is Overvalued" →

3 ETFs that are in strong upward trends

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 30th of November.

THREE COUNTRY ETFs THAT ROCK!

I thought it was interesting to look at some country ETFs today and see what our Trade Triangle technology has to say about them.

The first country ETF that stands out and surprised us was the ETF for Mexico (symbol EWW). This ETF has been doing very well lately, and with a Chart Analysis Score of +100 this market is likely to continue higher.

Next is Spain, can you believe that? With all of the talk of problems in Europe, this ETF for Spain (symbol EWP) is doing very well with a +100 Score.

The ETF for Taiwan is also on our list (symbol EWT) and has also been trending well with a +100 Score. Continue reading "3 ETFs that are in strong upward trends" →

Another Stroll Though Time w/ the HUI-Gold Ratio

Posted on by The INO.com Team

This is just a friendly reminder about how bloody important it is for the HUI-Gold Ratio (HGR) leading indicator (to the precious metals sector) to maintain its higher lows status.

Yesterday the goons apparently attacked ‘paper gold’ (according to sources who stand on guard for this stuff) after the HGR had become weak.  A pleasant thing happened however, as the HGR did not buy the take down in nominal gold.  2 Hour chart above. Continue reading "Another Stroll Though Time w/ the HUI-Gold Ratio" →