Gartman sounds the alarm: Noting the Hunt silver problem back in ’79, Dr. Verlager wrote: Dennis, There are clearly big problems in the dated crude contracts (Dec 11 to Dec 2016). One or more firms that sold the oil is trying to get out. They have a problem, though. The parties that are long do [...]
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Exxon Production
Great chart and analysis from Sudden Debt: There have been millions of pages written about Peak Oil, both pro and con, and I don’t claim to be an expert. But I do want to add just one fact based on common sense. Exxon is the world’s largest non-state oil company and the largest publicly traded [...]
Modern Malthus
BusinessWeek speculates about the consequences of higher commodity prices: Governments are also getting nervous. They’re taking various measures to restrain price increases and secure supplies. For instance, according to the Asian Development Bank’s latest outlook, import duties on food and cereals are being temporarily cut in some countries and in others exports are being taxed [...]
Wheat Market Insanity
From the Daily Reckoning: …Before long, the pit was a frenzy. All of a sudden, I heard traders yelling, “21 bid, 22 bid, 23 bid,” meaning that the traders were trying to buy wheat at $20 per bushel. In order for a transaction to take place, another trader must be willing to sell at whatever [...]
Monster Mining Merger – “…a country onto itself”
WSJ article on the merger of BHP and Rio Tinto: If you want to understand how the great flows of people and material will shape our future, it’s essential to understand BHP Billiton‘s $132 billion unsolicited offer for Rio Tinto. The Anglo-Australian mining companies are the world’s first- and third-largest by market capitalization, which combined [...]
Buy Palladium – Sell GM
Electricity supply problems in South Africa are exacerbating supply problems for this precious white metal. Great news for those long Palladium, but awful news for GM and the other auto manufactures: The platinum and palladium mines are shuttering in, fearful of sending miners miles under-ground and at the mercy of “load shed” power supplies. This [...]
Dollar New Lows, Oil and Gold New Highs
WSJ on the USD, its weak against everything: The dollar’s problems didn’t stop with the euro. The greenback also reached a fresh 33-year low against Canada’s currency, a 23-year low against the Australian dollar and dipped to its weakest point in three months against the U.K. pound. The US is doing everything it can to [...]
How Shipping Costs Push Up Commodity ETF Prices
Article from Yahoo.com: A shortage in cargo ship space could push up commodity exchange traded funds. The world’s fleets of cargo ships are aging, and demand for commodities is surging. That means the cost of shipping will go up, pushing up prices and crimping supply. … Commodity prices tend to rise with the index because [...]
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