Tag: Guest Bloggers

Gold as a Weapon in the Currency War: Chris Mancini

Posted on by admin

The Gold Report: You recently wrote, "Gold mining companies are no different from any other company in that company managements must determine the most effective way to return capital to shareholders."

In an environment where there haven't been corresponding increases in equity prices to the price of gold, how does a management group effectively grow per-share value for shareholders?

Chris Mancini: If you're too big and don't think that you can grow on a per-share basis, the answer is to return some of the cash to shareholders through a dividend. If a company doesn't have high-quality, high-return-on-capital, low-risk projects to deploy that cash flow into, then a portion should be returned to shareholders as a dividend.

TGR: We haven't seen a whole lot of that. Continue reading "Gold as a Weapon in the Currency War: Chris Mancini" →

A Look at Sentiment & NFTRH 220 Wrap Up

Posted on by The INO.com Team

Sentiment (Data courtesy of Sentimentrader.com)

Well what do you know?  Most US stock sectors are becoming unhealthy from a sentiment perspective (above), as the commercial hedgers have gone quite bearish (below).  Continue reading "A Look at Sentiment & NFTRH 220 Wrap Up" →

Commodity Chart of The Week

Posted on by The INO.com Team

Each week longleaftrading.com will be providing us with a commodity chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Often times it is easy to get carried away with looking at what is front of us to forget what is around us.  Let’s begin this today acknowledging the price action of late in the corn market has been lackluster at best.  After such a robust market move this summer, where we saw record corn prices at $8.41/bushel’ the market has been consolidating that move since.  The threat of the extreme dryness ended as we moved into harvest in the late fall and that sent a huge percentage of long specs to the sidelines.

We now sit at $6.85/bushel and most of the news flow remains negative.  Commercials are not anxious buyers of corn and the demand numbers of late have been week.  Calendar spreads (March/May) do not provide elevators an incentive to sit on their stocks looking for a time to sell in the future.  This has pushed a lot of grain forward to the cash market, suppressing the price.

Weekly export sales have also been very slow.  Last week came in at 49,100.  Because the market needs to see sales at 464,000 tonnes to reach the USDA forecast, this leaves the market in need of a lot of foreign buying to get back on track to meet that forecast. Continue reading "Commodity Chart of The Week" →

Mark Lackey Homes in on Golden Mining Opportunities in West Africa

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The Gold Report: When you last spoke with The Gold Report this past March, gold had just dropped from its first peak of the year, from $1,781/ounce (oz) at the end of February to $1,660/oz in a matter of three weeks. Now it's looking for support at $1,700/oz. The trading range you predicted for 2012 looks good in retrospect. What are you projecting from here?

Mark Lackey: I'm looking at a range from $1,680/oz to $1,850/oz, and moving up over the year so that by December I am expecting to see the gold price at $1,850/oz.

TGR: But you don't see a big breakout past $2,000/oz that some people are predicting?

ML: It's possible, but for the gold price to go much higher than $1,850/oz there needs to be a good reason, such as a big decline in the value of the U.S. dollar or major gold buying by central banks. While I expect the dollar will weaken somewhat in 2013, I don't expect a huge decline. Over the next few years we'll get above $2,000/oz, but probably not in 2013.

TGR: What do you see as the market drivers for gold at this time? Continue reading "Mark Lackey Homes in on Golden Mining Opportunities in West Africa" →

Gold Chart of the Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (January 7th through January 11th)

Welcome everyone to trading in 2013, where not much has changed from last year. While we are only a few days into the New Year, traders are already expecting the same type of market activity to continue for at least the next two months. Why two months? Because only a portion of the much anticipated “Fiscal Cliff” negotiations were completed at the end of 2012, so the saga will continue.

Politicians in the US knew for over ten years that they were expected to make a monumental decision by the end of the year in 2012 regarding taxes and spending, and in the eleventh hour a final decision was made to raise taxes and “kick the can” on spending for another two months. The idea was to come up with something fair and balanced, but it wound up being a  one-sided victory for one party. Despite the delay on fifty percent of the decision, it was enough to avoid a broad based panic sell.

All markets, including Gold will have to not only price in everyday news, they will also have the upcoming taxes vs. spending debate to consider. Overall, it is nothing new. Continue reading "Gold Chart of the Week" →