Tag: Guest Bloggers

Risk Management Remains Job 1

Posted on by The INO.com Team

I have been writing about risk management for quite a while now in the newsletter and want to be a little more explicit about it now here on the site.  We’ll use weekly charts to illustrate.

The nominal gold price has done nothing unusual, even after yesterday’s hard decline to the 35 week exponential moving average.  If it breaks through that level, then a bearish sign will be in place and the next stop would likely be the noted support zone in the low 1600′s. Continue reading "Risk Management Remains Job 1" →

Rick Mills: Low-Cost Producers Trump Larger Mines in Costly Market

Posted on by admin

The Gold Report: Rick, is this a good time to be buying gold?

Rick Mills: There are three key reasons to have exposure to gold bullion. The traditional reason is to protect against inflation. We're printing money. More quantitative easing has taken place and inflation looks to be coming down the pike. I buy groceries. I pay for gas. I can see inflation. I firmly believe it's going to get higher over the coming months and years. Buying gold as a protection against inflation is realistic.

The second reason investors have traditionally bought gold is as a safe-haven investment. There's a lot going on in the worldfrom secession talk in the U.S. to turmoil in Israel, Iran, Syria, the South China Sea region and Turkey.

One of the things that most investors don't know about gold is that adding a gold allocation to your portfolio, especially over the last decade or so, has provided substantial enhancements to the portfolio's return.

Gold helps minimize the downside deviations in an overall portfolio. In 2002, the SP 500 was down 23%. Emerging market equities were down 6%. International equities were down 16%. Yet gold was up 25%.

TGR: That was early in the bull run in gold. Continue reading "Rick Mills: Low-Cost Producers Trump Larger Mines in Costly Market" →

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 (December 3rd through December 7th)

Welcome everyone to the month of December and to trading the February Gold Futures. The futures First Notice Date was last week on Friday and we will move our attention to the February Futures chart.

Last week ahead of the roll date, Tuesday provided a small slip in the price while Wednesday brought a sharp drop that took me by surprise. On the open of the pit traded session,  Warren Buffet made a comment in an interview to CNBC regarding his take on the Fiscal Cliff negotiations that drove Gold prices to trendline support in a hurry. Buffet suggested the Fiscal Cliff agreement would likely be made but said he did not feel that Washington would have the ability to get the job done by the end of the year. This remark was made one day after Senator Reid told reporters that he was not confident in the Republicans and Democrats at all. He thought that no progress had been made yet and traders responded by taking gains from the prior Fridays rally.

So while we are now trading past the December Futures contract, not much has changed. One day the markets are happy and taking the stairs up while the next day the markets are disappointed and taking the elevator down. Even though we started this week’s trade with a continuation of a weaker US Dollar (normally a bullish indicator for Gold) we are seeing little interest in Gold. Continue reading "Gold Chart of the Week" →

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" →