the market sofar: currencies, gold, oil

  1. 22,691 Posts.
    USD 83.43 (+0.13); Euro 1.3038 (-0.0037)

    Gold 425.8 (-0.6), 0il 48.90 (+0.12).

    GDP data tonight.

    China is rapidly making large contracts with various countries concerning resources. Their progress is more advanced than I thought and the US is gradually being locked out.

    We have discussed this before but the latest excellent article from Mike Hartman illustrates this very well (thanks DUB):

    "Yesterday the New York Times ran an article, Venezuela Tensions Worry Oil Executives. “Venezuela may be increasing tension in energy markets with decisions that are confounding international oil companies, but the government there says it is merely seeking more income and new markets for its oil…

    Concern is also rising over the possibility that Venezuela may eventually divert shipments from the United States, which now receives more than half of Venezuela’s total production.

    The Venezuelans say they still consider the United States their principal market, adding that only new production would be moved to China.” This is already having an impact on the U.S. in that ConocoPhillip’s plan to develop a new oil field in Venezuela was suspended about two weeks ago while Venezuela continues negotiations with China".


    We need to realize that this battle for resources must affect the USD at some stage. This and the resulting friction adds a new Dimension to GOLD IMHO.

    Others are:
    2. IRAQ/Saudi (Supply of oil), the Iranian strategy.
    3. Terrorism.
    4. US Deficits and the USD
    5. The coming NY ETF
    6. Greater overall Demand
    7. Lessening of Supply (SA to supply less gold).
    8. The need to have some precious metals as Insurance.

    Just to name some

    Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.

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