Could somebody please tell the commodity price party to keep the noise down-the U.S. economy is trying to sleep. The Reuters/Jefferies CRB Future Price Index for Commodities came within a heartbeat of establishing another record high this week, led by $116 oil. While it’s tempting, to dismiss the persistent commodity surge as speculative, the inconvenient counter-point to that theory is that many non-exchange traded prices are ramping up even more quickly (e.g..iron, potash). Is it possible that while the bulk of the financial world was busy navel-gazing at the “worst crisis since the depression”, it may have overlooked a potentially bigger and more lasting problem hurtling down the mountain i.e. raging global inflation pressures?
Many have been calling for a softening U.S. economy to undercut strong commodity prices. It’s increasingly looking like those tables have been turned-persistently strong commodities are threatening to further undercut a struggling US economy. That is, the ongoing strength in food and oil prices themselves will act as an added drag on U.S. growth, by sapping consumer spending power. The challenge for the global economy would be if commodity prices kept rising even if the US$ begins to find firm footing.
What to do Before You Sell Coin Collection Collecting coins is a great way for you to be able to make the most out of a hobby which is about as old as coins themselves. There are a few different stages most people go through when they have...
It Was Only A Matter of Time: Oil Hits All Time High Oil prices are just ridiculous! Oil futures jumped to a new record close of $90.46 a barrel Thursday on news that OPEC production increases aren't coming as fast as expected and that the cartel won't announce new output quotas when...
When Buy & Hold Works and When It Doesn't This post was written by Tony. Simply put, buy and hold is an investment strategy that is favored by many investors. In case you don't know what buy and hold is, here is an excerpt of its definition from one of my blog posts....
Weekend Personal Finance Review Here are some articles that I liked from around the personal finance blogosphere. Binary Dollar gives some basics of Home Equity Line of Credits (HELOCs) and Taxes. I have a HELOC and I didn't know half of these things. Ben...
Remarkably in this environment , core inflation has remained quite muted. Nevertheless the Bank of Canada , resumed its expected tightening moves in the last years. Overnight rates may be hiked more than once in the next coming months.
Labour markets are tight and tight to the point that labor shortages may become evident in many sectors – especially in the booming Alberta and British Columbia economies. Wage inflation may well follow suit with surging energy and petroleum commodity prices and pricing.
Economic data continues to be strong. This is largely reflective of the recent trend and trend lines in energy as well as metal and raw material commodity prices. This has narrowed investment income deficits , which when coupled with continual strong trade surpluses especially in regards to oil – bode for a very strong underpinning of the Canadian dollar currency and currencies. In addition bond yields will continue to be strong despite the continued rise in short term interest rates. Long term interest rates will continue to be quite muted and demand for long term duration fixed income products by pensions and coming pensioners will remain more than strong in the financial and financial markets. Even the mildly inverted yield curve ( tow year bonds yields exceed 10 year bond yields by around 6 basis points) an outlook of solid growth and solid profits , low domestic inflation, rising incomes and strong trade balances appear to be in the offing.
Why High Gas Prices Don't Matter A lot of poeple have been complaining about the price of gas at the pump. In fact, Congress has enacted an anti-gouging law that provides upto 10 years in jail and upto $150 million in penalties.But my contention is that...
Will Your Standard of Living Bubble Burst? This article is for consumers who may be living in a bubble of an inflated standard of living. The economic data indicates that there are many of you out there. To find out if that could be you, please read...
Attributes Of A Good Dividend Stock Dividend paying stocks are the bread and butter of every income investor living off their portfolio income (or aspiring to, anyway). As far as passive income strategies go, dividend-paying stocks sit at the top of the heap. After an initial research effort,...
Introduction to Mortgages pt 3 of 5 This is part three in a five part series on what you need to know about mortgages before you buy a home. The housing market is an interesting beast, because it comes and goes, rises and falls, allows some people...
It can be said that there are “Seven Reasons why gold should surge”. Indeed there are many more valid reasons for major increases in the price of precious gold metals versus currencies.
Economics , simply supply and demand are the ultimate drivers of long term price trends. Economics all comes down in the end to “Supply and Demand”. If a worldwide surplus of a given commodity exists prices fall. If supply exceeds demand in the marketplace- you can be sure that prices will fall. If a shortage or a deficit exists , then you can be sure that prices will rise. The level at which the price trades today is not relevant. If it is in a bullish situation where the global demand growth exceeds its global supply growth , then the price will and must rise. Gold as a commodity is in such a situation of demand. Worldwide demand for gold far exceeds its demand.
Have Gold Prices Peaked? In case you were asleep, last week saw gold break all records and almost closed at $900/Oz. I still think its a good time to buy for long term investors. Lets see what other investment advisers think. According to Merill...
Buying Cheap Gold Coins Gold and silver are global commodities with spot prices being the same all over the world (assuming you live in an open society). The only differences are the premiums that dealers charge buyers. One of the surprising things has been...
3 Ways to Determine Gold Coin Prices There are many different kinds of coins you can collect. You can collect the standard coins which are distributed throughout society. You can also collect all of the commemorative coins which are designated to pay respects to the different states,...
Oil and Gold End 2010 on New Highs Oil and gold prices are ending 2010 on new near-term breakout highs. After a post-crash slump that kept oil around $60-$68, oil broke out to the $80-85 range for much of 2010, but in December oil's made new breakouts yet...
Related Websites