Tag: Gold

Will December bring a Santa Rally or a Fiscal Fall?

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 3rd of December.

MARKETS WITH STRONG TRENDS: MARKETS WITH MIXED TRENDS:
COPPER (Dec): Higher for the week.
CLOSED LAST FRIDAY AT $3.6230		 S&P 500: Higher for the week.
CLOSED LAST FRIDAY AT $1,416.18
SILVER (Spot): Higher for the week.
CLOSED LAST FRIDAY AT $33.36		 CRUDE OIL (Jan): Higher for the week.
CLOSED LAST FRIDAY AT $88.94
EURO (Spot): Higher for the week.
CLOSED LAST FRIDAY AT 1.2985		 GOLD (Spot): Higher for the week.
CLOSED LAST FRIDAY AT $1,714.19


CRUDE OIL PUSHES TO ITS BEST LEVELS IN 5 WEEKS

Continued hedge fund buying over the last two weeks pushed crude oil to its best levels in over five weeks before profit taking kicked in. Crude oil appears to be making a strong base capable of carrying today's black gold up to the $93.00 to $94.00 level. A solid close over the $90 a barrel level, basis the January contract, should be viewed as very positive for this market. Continue reading "Will December bring a Santa Rally or a Fiscal Fall?" →

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?" →

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" →