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$5,000 Gold = $100-$350 Silver, Ratio Explanation and Investor Says Buy Silver, Rice & Tractor

Posted on Oct 15, 2010 in Economic News

Kevin Hayden

TruthisTreason.net

$5,000 Gold Equates to $100 – $350 Silver – Here’s Why

By: Lorimer Wilson

108 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached. In fact, the majority (75) think a price of $5,000 or more -even as high as $15,000 – is actually more likely.  As such, just imagine what is in store for silver given its historical price relationship with gold.

See also: Whistleblower Exposes JP Morgan’s Silver Manipulation Scheme

See also: Feds Launch Probe into JP Morgan Trades in Silver Pit


Let’s look at the gold : silver ratio from several different perspectives:
– Over the past 125 years the mean gold:silver ratio (i.e. 50% above and 50% below) has been 66.9 ounces of silver to 1 ounce of gold.
– In the last 25 years (since 1985) the mean gold:silver ratio has increased to 45.69:1
– The present gold:silver ratio has been range-bound between 60:1 and 70:1 (58.8:1 as of October 6/10).
– Interestingly, during the build-up to the parabolic blow-off in 1979/80 silver outpaced gold going up 732.5% vs....

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Gold and the Currency Markets

Posted on Sep 29, 2010 in Economic News

Source: Global Research

It is interesting to watch Wall Street defy reality. This is a scene we’ve observed since the early 1960s, the effect of debt on the economy and the nation and in turn on its currency. The result of the profligacy over all those years is the biggest bull market in history in gold and silver. As we write gold is toying with $1,300 and silver with $21.50. Each day a new high is reached in spite of a pending options expiration and the perpetual market rigging and manipulation by the US government.

Hayden’s Note:

I highly recommend you read this entire article.  This isn’t your typical “Buy gold!”-type article.  Instead, it accurately describes the bigger picture (especially towards the last 1/3 of the post) and that is something you need to understand now, not later.

One of the things that astound us is that few professionals have seen this coming over the past 10-1/2 years, and even those that do believe do not think this is an earth-shaking event. What we are about to experience is an event that only occurs every 300 to 500 years....

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Hyperinflation, Part II: What It Will Look Like

Posted on Aug 31, 2010 in Economic News, Featured Articles

Source: Zero Hedge

by Gonzalo Lira

I usually don’t do follow-up pieces to any of my posts. But my recent longish piece, describing how hyperinflation might happen in the United States, clearly struck a nerve.

It was a long, boring, snowy piece of macro-economic policy speculation, discussing Treasury yields, Federal Reserve Board monetary reaction, and the difference between inflation and hyperinflation—but considering the traffic it generated, I might as well been discussing relative breast size in the porn industry. With pictures.

Essentially, I argued that Treasury bonds are the New and Improved Toxic Assets. I argued that, if there was a run on Treasuries, the Federal Reserve—in its anti-deflationary zeal, and its efforts to prop up bond market prices—would over-react, and set off a run on commodities. This, I argued, would trigger hyperinflation.
 
The disproportionate attention my post garnered is indicative of people’s current fears. As I’ve said before, people aren’t blind or stupid, even if they often act that way. People are worried—they’re worried about the current state of affairs: Massive quantitative easing, toxic assets replaced by the full faith and credit of the U.S....

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Russia Halts Wheat Exports – Update

Posted on Aug 04, 2010 in Emergency Preparedness & Survival, Health, Food News, & Big Pharma

Source: Kansas City Star

Drought and raging wildfires have destroyed one-fifth of the wheat crop in Russia and sent wheat prices soaring around the world.

The fear that Russia, a major wheat producer, will have to cut exports by at least 30 percent is good news for U.S. farmers, who now are getting more money to go along with a bumper crop this year.

Update – 08.05.2010

Russia halts all wheat exports

Source: Reuters

Chicago wheat markets jumped 8 percent to near two-year highs on Thursday, twice triggering trading curbs to restore order before easing back after Russia said it would temporarily halt grain exports.

Russia’s worst drought on record has devastated crops in parts of the country and sent international grain prices soaring as markets placed bets that without shipments from one of the world’s leading exporters, global supplies would be restricted.

Wheat has risen seven of the past eight days at the Chicago Board of Trade and buying by funds and traders spilled across the grain markets. Corn and soybeans were 2 and 0.5 percent higher, respectively.

Prime Minister Vladimir Putin signed an order banning grain and flour exports from August 15 to December 31, with a spokesman saying this would apply to contracts that had been already signed....

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Food Costs Rise to 26 Year Record

Posted on Apr 22, 2010 in Health, Food News, & Big Pharma

Source: Associated Press

Wholesale prices rose more than expected last month as food prices surged by the most in 26 years.

The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts’ forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.

Still, there was little sign of budding inflation in the report, which measures price changes before they reach the consumer. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts’ expectations.

Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida’s tomato and other vegetable crops at the beginning of this year.

Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.

In the past year, wholesale prices are up 6 percent, with much of that increase driven by higher oil prices. But excluding food and energy costs, they have risen only 0.9 percent....

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Commodity Futures News March 26th, 2010 Thumbnail

Commodity Futures News March 26th, 2010

Posted on Mar 26, 2010 in Economic News

Source: DailyFutures

 

Orange juice prices had a nice rally since last summer, but it appears to be over – at least for a while. Today, May orange juice closed below its 100-day average and at its lowest level in nine weeks – a sign of weakness (Mar. 26, 2010).

(Note: Futures trading involves risk and the comments in this article may not be appropriate for your financial situation).

U.S. Economy

The U.S. Commerce Department said that real GDP was up 1.4% in the fourth quarter and up slightly from a year ago. For all of 2009, real GDP was down 2.4%. The June 2011 eurodollars ended up .045 at 98.405.

The University of Michigan’s index of consumer sentiment stayed at 73.6 in March, a little better than expected.

Grains and Cotton

Yesterday’s 6 to 10 day forecast from the National Weather Service is expecting above average temperatures over most of the Midwest with normal to above-average precipitation. May corn was up 1.75 cents at $3.567.

Livestock – Hogs Should Be Higher On Monday

After the close, the USDA said that there were 63.988 million head of hogs and pigs in the U.S....

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Commodity Futures News March 25th, 2010

Posted on Mar 25, 2010 in Economic News

Source: Daily Futures U.S. Economy The U.S. Labor Department said that jobless claims were down 14,000 last week to 442,000, less than expected. The U.S. Treasury sold $32 billion of 7-year T-notes at a median yield of 3.29% with a disappointing bid-to-cover ratio of 2.61. The June U.S. T-bonds closed down 26/32nds at 115.01/32nd, the lowest close in four weeks. Pimco's Bill Gross told Bloomberg Radio today that "bonds have seen their best days" (see article). He expects higher inflation to result from excessive government borrowing. Grains and Cotton - New Low Wheat The USDA said that, as of last week, 2009-2010 exports of: Corn improved from up 6% to up 7% from a year ago. Soybeans remained up 34% from a year ago. Wheat remained down 21% from a year ago. Cott

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Commodity Futures News Feb 01, 2010

Posted on Feb 01, 2010 in Economic News

Sorry about the lack of Commodity News lately!  I've been slacking off! Source: DailyFutures U.S. Economy The U.S. Commerce Department said that personal incomes were up .3% in December while consumer spending was up .2%. For all of 2009, personal incomes were down 1.4%, the biggest decline since 1938. The Institute of Supply Management's manufacturing index increased from 54.9 to 58.4, much stronger than expected. The March 2011 eurodollars were down .03 at 98.60. The U.S. Census Bureau said that construction spending was at an annual rate of $902.5 billion, down 1.2% from November's pace. For all of 2009, construction spending totaled $939.1 billion, down 12.4% on the year. Even so, March lumber closed up its $10 daily limit at $258.50, the highest in eight weeks. Grains and C

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Commodity Futures News Jan 14, 2010

Posted on Jan 14, 2010 in Economic News

Source: DailyFutures U.S. Economy The U.S. Labor Department said that jobless claims were up 11,000 last week to 444,000, more than expected. The March 2001 eurodollars closed up .065 at 98.475. The U.S. Commerce Department said that retail sales were down .3% in December, weaker than expected. They also said that inventories were up .4% in November, more than expected. The U.S. Treasury sold $13 billion of 30-year T-bonds at a median yield of 4.61% with a bid-to-cover ratio of 2.68. The March U.S. T-bonds closed up 27/32nds at 116.25/32nds. Grains and Cotton The USDA said that, as of last week, 2009-2010 exports of: Corn remained up 5% from a year ago. Soybeans increased from up 38% to up 42% from a year ago. Wheat slipped from down 28% to down 29% from a year a

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Commodity Futures News Jan 12, 2010

Posted on Jan 12, 2010 in Economic News

Source: DailyFutures U.S. Economy - China Tightens Reserve Requirements China surprised the markets today, announcing that they are raising the reserve requirements for their banks by .5% starting January 18th. It is seen as a move to restrain the economy. The March U.S. T-bonds jumped up 1.20/32nds to 116.26/32nds. Most commodities were lower on the day. The U.S. Census Bureau said that exports were up .9% to $138.2 billion in November while imports were up 2.6% to $174.6 billion. The result was net imports of $36.4 billion, more than expected. The U.S. Treasury sold $40 billion of 3-year T-notes at a median yield of 1.45% with a bid-to-cover ratio of 2.98. Grains and Cotton - USDA Reports The USDA's 2009-2010 U.S. ending stocks estimate of: Corn was increased from 1.

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Commodity Futures News Jan 11, 2010

Posted on Jan 11, 2010 in Economic News

Source: DailyFutures U.S. Economy The U.S. Treasury sold $10 billion of 10-year TIPS today at a yield of 1.30% with a bid to cover ratio of 2.65. The March U.S. T-bonds were down 9/32nds at 115.06/32nds. Grains and Cotton The USDA said that last week's export inspections of: Corn totaled 20.6 million bushels, down 6% from a year ago. Soybeans totaled 41.0 million bushels, up 52% from a year ago. Wheat totaled 11.0 million bushels, down 46% from a year ago. March soybeans closed down 11.5 cents at $10.105. Tomorrow morning, the USDA is scheduled to release its estimate of winter wheat seedings along with its monthly supply and demand estimates. March wheat closed up 4 cents at $5.725, its highest close in five weeks. March cotton closed up 1.80 cents at 74.24,

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Commodity Futures News Jan 07, 2010

Posted on Jan 07, 2010 in Economic News

Source: DailyFutures U.S. Economy The U.S. Labor Department said that jobless claims were up 1,000 last week to 434,000. The U.S. Labor Department will release its unemployment report tomorrow. The International Council of Shopping Centers said that same-store sales at 32 retailers were up 2.8% in December. Grains and Cotton The USDA said that, as of last week, U.S. 2009-2010 exports of: Corn improved from up 3% to up 5% from a year ago. Soybeans remained up 38% from a year ago. Wheat remained down 28% from a year ago. Cotton remained down 37% from a year ago. March cotton closed down .66 at 72.89, the lowest close in six weeks. March soybeans fell 33 cents to $10.26 with concerns that China's move to raise its interest rate slightly signaled a change that

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Commodity Futures News Jan 05, 2010

Posted on Jan 05, 2010 in Economic News

Source: DailyFutures U.S. Economy The U.S. Commerce Department said that factory orders were up 1.1% in November, better than expected. The March 2011 eurodollars closed up .10 at 98.28. The National Association of Realtors said that pending home sales were down 16% in November, but still up 15.5% from a year ago. March lumber fell $2.40 to $228.10. The March U.S. T-bonds closed up 30/32nds at 116.01/32nds. Grains and Cotton Part of yesterday's big gain in wheat prices was due to concerns that the winter wheat crops in Nebraska and Kansas may suffer damage from being exposed to below-zero temperatures. Today, March wheat was down 4.75 cents to $5.53. According to Bloomberg news, the soybean harvest in Brazil has begun and expectations are high for a record crop (see artic

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Commodity Futures News Dec 14, 2009

Posted on Dec 14, 2009 in Economic News

Source: DailyFutures U.S. Economy White House advisor Lawrence Summers said that he expects the economy to start adding new jobs in the spring of 2010. Is that too optimistic? The March 2011 eurodollars were down .055 at 98.355 ahead of tomorrow's final Federal Reserve meeting of 2009. Citigroup has reached an agreement to repay the U.S. government $20 billion of the $45 billion that it borrowed last year from TARP. The government also holds $25 billion of Citigroup stock that it is expected to sell in the next twelve months. Standard and Poor's announced that MBIA, Ciena Corp., Dynegy, KB Home, and Convergys Corp. will all be dropped from the S&P 500 index on December 18th. In their place, will be added Mead Johnson, Ross Stores, VISA, Cliffs Natural Resources, and SAIC I

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Commodity Futures News Dec 11, 2009

Posted on Dec 11, 2009 in Economic News

Source: DailyFutures U.S. Economy The U.S. Commerce Department said that retail sales were up 1.3% in November, much better than expected, and up 1.9% from a year ago. Sales in October were revised down, from a 1.4% gain to a 1.1% gain. The March 2011 eurodollars were down .055 at 98.41.   The University of Michigan's consumer sentiment index increased from 67.4 to 73.4 in early December, stronger than expected. Grains and Cotton The flow of soybeans to China continues: The USDA said today that China bought another 232,000 tons of U.S. soybeans. January soybeans closed up 8 cents at $10.35. Livestock The U.S. Meat Export Federation said that beef exports were down 4% in October from a year ago. February cattle closed up 1.10 at 83.20 while extremely cold tempera

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