Why should gold bugs keep an eye on crude? Because gold’s near-term future will be affected by the continuing slump in oil.
It shows again the interconnectedness of the market. The resources sector doesn’t operate in isolation.
Commodities are in a vicious bear market — one that will get worse before it gets better.
Wealth creation isn’t something you can rush. A bit of leverage can give you a boost. But don’t hit the accelerator too hard.
Gold does tend to gain when markets see risk and ‘run for safety’. Not this time… the commodity collapse was itself the problem, and it kept gold low.
Everyone’s talking about the future of BHP Billiton [ASX:BHP]. Yesterday it closed at $17.48 per share. That’s 44% lower than its February high of $31.07 per share.
Is it possible that the collapse of the US dollar as the leading reserve currency has already begun? The answer is ‘yes’.
US markets surged by around 2%. Is this a sign that stocks have priced in, and are comfortable with, the rate rise story?
Terrorism is on the rise. Geopolitical tensions are out of control. Things are so bad with the global economy that even the world’s worst forecaster - the IMF - can’t keep pretending everything’s alright.
There’s a reason why countries stockpile gold. When a currency becomes worthless, gold is can be a payment instead. And boosting gold supplies is one way to ensure a currency is still viable.