FYI - Speculative positions are colored in Yellow. Since the election, Speculators dominant net positions have been long which is consistent with the view - buy the election and sell the inauguration. However, it has been declining over time. In contrast, Hedgers net position has been short. Give the rise in gold price, they have been on the wrong side. Note that hedgers are commercial traders - they do to minimise price risk rather than to make money through trading. Looking at the gold futures quotes, the market is 'passively' predicting that gold price will continuously appreciate.
In market lore, copper is dubbed the metal with a Phd in economics due its reputed ability to portend the coming of recessions and expansions. Besides watching the dollar, 10 year, $SOX copper is the one commodity I keep a close eye on.
That is a good resource. She knows her job well......and she is easy on the eyes too. Too summarize the video... Gold is used in jewelry Gold will never see $300 again, but 10,000 is possible. 50 percent of silver has industrial uses. Silver is not rare 17X more silver available than gold 50, 60 , 70 ratio of gold price to silver Statistically the 1Q is the best Q for gold prices…………….. Copper prices based on consumption: supply and demand Copper is an indicator of the economy………….. Platinum is used in caltalytic converters…….also jewelry and coins investment supply constrained- hardest to mine. Only a few countries mine it. Russia, Zimbabwe South Africa are the largest producers. Unstable, it’s rarity drives its price.
I learned everything I needed to know about copper from Johnny Carson. When copper is copped in a caper, of course it will go up in price!
John Authers @johnauthers 9h9 hours ago Looks like reflation is back on. Copper at its highest in about 20 months.
It's a source of security. Shares in a gold mining company might be worth 1k one day and worthless he next if the mine collapses, the govt seizes the mine or there is an embargo against the nation. But if you own the gold, and it is stored in your closet; it might not be pay interest but it will still be worth 1k. People keep gold and silver bullion/coins for personal security. Families in Europe and India used to keep 'a little gold' on hand in the event of a crisis ( memories of WW1, Hyperinflation, WW2). It's a good idea to keep some on hand. If you want to buy silver, consider buying Silver Morgan Dollars or Peace Dollars. You might even make some money on their numismatic value as well as the silver.
I get that for precious stones and metals. I just never saw the need to execute a contract for pork bellies and take delivery of the meat.