http://www.research.gold.org/supply_demand/
Total Gold demand in Q2, 2010 rose by 36%
Investment demand rose 118% from Q2 '09 to Q2 '10.
Industrial demand rose 14%.
Tuesday, September 7, 2010
Wednesday, August 25, 2010
Cotton Bubble?
Stephen Gandel, of CNNMoney thinks Cotton is in a Minor Bubble
See the whole article here
Regarding Cotton,
Why It's Hot
Cotton prices have nearly doubled in the past year to 80¢ a pound. The world has been using more but producing less. Last year's U.S. cotton production dropped to 12.2 million bales, the smallest crop in 20 years. And rising populations are causing nations like China and India to devote more land to foodstuffs and less to cotton.
Why It's Worrisome
The two-year run has given farmers plenty of time to ramp up production, which means more cotton will soon be on the market and lower prices will follow. The USDA estimates that U.S. production will hit 18.6 million bales this year, up 50% from a year ago.
Verdict: A Minor Bubble
Analyst Sharon Johnson of First Capital Group says cotton has traded around 50¢ a pound for much of the past decade. When cotton has spiked above 80¢, it hasn't stayed there for long. "Prices are overvalued," she says.
Monday, August 23, 2010
China Gold Buying
Interesting article on seeking alpha today about gold.
Martin Hutchinson claims that China usually holds 10% of its reserves in Gold. Currently they only hold 1.5% in the yellow metal. With current reserves at $2 trillion, China might be in the market to buy $85 billion worth of gold. This equates to over 67 million ounces.
CAN THAT BE RIGHT?
http://seekingalpha.com/article/221761-three-ways-to-profit-as-china-causes-gold-prices-to-spike?source=email
Martin Hutchinson claims that China usually holds 10% of its reserves in Gold. Currently they only hold 1.5% in the yellow metal. With current reserves at $2 trillion, China might be in the market to buy $85 billion worth of gold. This equates to over 67 million ounces.
CAN THAT BE RIGHT?
http://seekingalpha.com/article/221761-three-ways-to-profit-as-china-causes-gold-prices-to-spike?source=email
Wednesday, August 18, 2010
Winner, Winner
Interesting video on yahoo on blackjack and trading.
Go to this link to see it.
Jeff Ma on Yahoo
One thing he said which struck a chord with me was "people are more impacted by a loss than by a win". Meaning, you are more negatively impacted by a LOSS of $1,000 than you are positively impacted by a WIN of $1,000. So, your wins should always be more than your losses to maintain emotional equity.
Go to this link to see it.
Jeff Ma on Yahoo
One thing he said which struck a chord with me was "people are more impacted by a loss than by a win". Meaning, you are more negatively impacted by a LOSS of $1,000 than you are positively impacted by a WIN of $1,000. So, your wins should always be more than your losses to maintain emotional equity.
Saturday, August 14, 2010
Gold and 34 Week Moving Average
A post on Seeking Alpha shows the 34 Week Exponential Moving average on Gold.
See the article here : http://seekingalpha.com/article/219808-is-gold-crash-proof-this-time?source=email
The author states that the Expo Moving Average is a good stop. Maybe? I tested via the Futures Truth Excalibur platform on a 34 week simple moving average. Only entering on a Friday Close above the 34 week simple moving average. Exiting on a move below the 34 week moving average. This method gets stopped out 50 times and shows a Total Hypothetical profit of $14,140 and Maximum Drawdown of $32,890. A better method for this TRENDING MARKET would be to place the stop 5% below the Simple Moving Average. This shows a Total Hypothetical profit of $47,140. A max drawdown of $24,300 and percent winners of 59%. Such a big stop works well on trending markets. Probably not so much on congestion markets.
All results hypothetical. Past performance not necessarily indicative of futures results. This is for informative purposes only.
See the article here : http://seekingalpha.com/article/219808-is-gold-crash-proof-this-time?source=email
The author states that the Expo Moving Average is a good stop. Maybe? I tested via the Futures Truth Excalibur platform on a 34 week simple moving average. Only entering on a Friday Close above the 34 week simple moving average. Exiting on a move below the 34 week moving average. This method gets stopped out 50 times and shows a Total Hypothetical profit of $14,140 and Maximum Drawdown of $32,890. A better method for this TRENDING MARKET would be to place the stop 5% below the Simple Moving Average. This shows a Total Hypothetical profit of $47,140. A max drawdown of $24,300 and percent winners of 59%. Such a big stop works well on trending markets. Probably not so much on congestion markets.
All results hypothetical. Past performance not necessarily indicative of futures results. This is for informative purposes only.
Friday, August 13, 2010
Gold Breakout
December Gold looks like it had a Yum-Yum breakout of an Irregular Head and Shoulders bottom. It is Irregular in that it has 2 Left Shoulders and only 1 Right. The move from the bottom (Head) up to the breakout point should provide a measure above the breakout to the price target.
Thursday, August 12, 2010
Gimme Shelter
Some people say they don't see inflation.
From Daily Reckoning at http://dailyreckoning.com/
In 1970, a year after the Rolling Stones released the greatest rock 'n' roll track of all time, you might have picked up a front-row ticket to see the British invaders for around $20. Adjusted for "official" inflation, that same ticket (or any other $20 item) would today set you back $112.35. That's a 461.8% jump in price. (Adjusted for unofficial inflation - i.e. actual prices - a front-row Stones ticket would cost something like $350). Some safekeeping!
From Daily Reckoning at http://dailyreckoning.com/
In 1970, a year after the Rolling Stones released the greatest rock 'n' roll track of all time, you might have picked up a front-row ticket to see the British invaders for around $20. Adjusted for "official" inflation, that same ticket (or any other $20 item) would today set you back $112.35. That's a 461.8% jump in price. (Adjusted for unofficial inflation - i.e. actual prices - a front-row Stones ticket would cost something like $350). Some safekeeping!
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