Tag Archives: Precious metal

Earnings reports

Nikkei rose 3,13% today. What a jump! This jump is based on good news for Bank of Japan (BOJ). The BOJ kept monetary policy steady and maintained its upbeat assessment on the economy. It also decided to extend three special loan facilities.

It is mixed in Europe and it seems like the U.S markets will open up today. Gold is trading down -0,34% at $1314,50. Silver is down -0,03%, trading at $21,41. Copper is up +0,32%, trading at 327,50.

Earnings reports to follow today: Coca cola (KO) is reporting for the quarter ending December 31, 2013. Consensus earnings per share is $0,46. This is a 2,22% increase compared to the earnings for the same quarter last year.

Norwegian Cruise Line Holdings Ltd (NCLH) is reporting for the quarter ending December 31, 2013. The companies consensus earnings per share forecast is $0,17. This is a 1600% increase compared to the same period last year. Price to earnings for NCLH is 26,90, while the industry ratio is 22,10, which means NCLH have a higher earnings growth than their competitors.

I look forward to the earnings report from Tesla (TSLA) tomorrow. The report will be for the fiscal Quarter ending December 2013. Consensus Eearnings per share forecast for the quarter is $0,04. EPS for the same periode last year was $-0,78. A great jump!

tesla

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Filed under Commodities, Stock market, Stocks

Gold is up

CEO Jamie Sokalsky in Barrick Gold (ABX) expects the reserves and productions will fall after the biggest annual price decline in gold since 1981. They will recalculate its reserves at a gold price of $1,100 an ounce and that is down from $1,500 an ounce a year ago. That is resulting in a decrease in its reserve base.

Gold production will be lower this year because of assets sales, while they are focusing on more profitable mines. They have closed its Pierina mine in Peru and in addition they have reduced the output from the Cortez gold mine in the U.S.A. They also expect the Aldivar copper mine in Chile to produce less in 2014.

Sokalsky expects a write down on its Pascua-Lama project and they are looking for other asset-value reductions. Barrick Gold is the biggest whale among the gold stocks, but along with the declining gold price we have seen, Barrick`s Market Cap has plummeted 50%.

Barrick`s management has been effective and not wasted their time during the declining gold prices. They have used the time wisely, sold assets, reduced the debt, conserved cash, implemented accounting impairments, and still cutting costs. They are moving in the right direction with a lower cost structure.

This story is not unique, as it is the same story for Newmont (NEM), and Goldcorp (GG). As the gold prices has plummeted we have been witnessed to a massive write-down. Barrick Gold is down -43,3% (1 YR), but are up 9,5% so far in 2014. Is the bottom behind us?

Newmont is down -43,8% (1 YR), but are up 9,3% in 2014. Goldcorp is down only -35,5% (1 YR), up 11% this year. The Junior Gold miners ETF (GDXJ) is up 19,5% this year (-53,8% 1 YR), while Market Vectors Gold Miners (GDX) is up 12,3% (-46,8% 1 YR).

Endeavour Silver Corp (EXK) has skyrocket this year, trading at $24,50. Up 24% in 2014. Silver Standard Resources Inc (SSRI) is up 20,1% so far this year. Silvercrest Miners (SVLC) is up 19%, Santacruz Silver Mining Ltd (SZSMF) is down 1,1%, while Taho Resources Inc (TAHO) is up 6,2% in 2014. Silver seems to be a better investment so far.

No major reports today.

gold_price_wobbles_as_liquidation_intensifies

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication

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Filed under Commodities

Factores that moves the gold price

Gold has always been revered as a symbol of wealth and prosperity. Gold reminds us of the Egyptian Pharaohs and the voyage of Columbus to the New World. Gold has also been used as currency and as a way to prop up the fiat money.

The U.S put the dollar on the gold and silver standard in 1792, and that is one of the most important moves to gold and silver-backed currency.

President Richard Nixon removed the gold standard in 1971 (179 years later). As you can understand; it had a huge impact of the gold-price around the globe. In 1980, the gold price went from $35 an ounce to a record high of $850 an ounce. That is above $2000 an ounce adjusted for inflation. On March 19, 2008, gold price hit a high of $1,022,40.

You can buy gold on these Gold Exchanges:

The futures contract for gold is traded at the

New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division via open outcry.

It is also traded electronically through the Chicago Board of Trade (eCBOT),

India’s National Commodity and Derivatives Exchange (NCDEX),

Dubai Gold and Commodities Exchange (DGCX),

Multi Commodity Exchange (MCX) and

Tokyo Commodity Exchange (TOCOM).

The gold supply will not be able to meet the demand in less than 45 years. Worldwide gold production will continue to underperform against worldwide demand.

The World Gold Council estimates that the total gold mined annually is about 2,500 metric tonnes. 3,500 metric tonnes of gold is used in the jewelry, investment and commercial industry. It is difficult to determine where the last 1,000-ton gold shortfall will come from.

It is widespread commercial use of gold as a coating on electrical connectors. They use it on video cables, audio, to computers, component cables and connectors.

India is the biggest consumer og gold worldwide, with an annual consumption estimated at 700 tons a year. India`s estimated gold demand at US$30 billion by 2015.

IMF (The International Monetary Fund) and WAG (Washington Agreement on Gold, have a very strict requirements in gold sales: less than 400 tons per year. The members can`t use gold to back or replace their currency.

The gold prices has been volatile with extreme pricing and the most extreme of any commodity on the market. Gold has cyclically come into and out of favor as an investment.

The demand for gold for use as electrical conductivity will historically continue a long time to come.

The big question is whether the gold will continue as a viable inflationary hedge? It remains to be seen…….

News today: Unemployment Claims at 8:30am, 30 Year Bond Auction at 1:01pm.

gold_price_wobbles_as_liquidation_intensifies

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Filed under Commodities

Rally!

Yesterday, I was sitting in front of the TV…..eh…… in front of my computer, watching live streams with Chairman Ben Bernanke. He did not disappoint the markets. The DOW was up +1,84% and the S&P 500 was up +1,7%. What a rally!!!! Ho ho ho.

They are not going to taper now in December, but plan to start tapering in January next year. There was two good news yesterday: 1. The Fed will cut back it`s bond purchases by $10 billion, and 2. The interest rates could remain low even if unemployment drops below 6,5%. This is music in investors ears!

Gold went in the opposite direction and didn`t like the news from the Fed. Gold is now trading near the critical $1200 level. I have written about this critical level before, and this is the break even level for the mining companies.

The mining companies doesn`t earn money if the price goes below $1200. It will be very exiting to follow the gold price in the future. Watch out for this level and see if this level holds. The news yesterday was bearish for the gold, but bullish for the dollar.

A lot of investors and money makers have lost a lot of money in their gold investments since 2011 and that is because they didn`t recognize and adapt to the changing trend. We are in the same situation right now, where a lot of people don`t really know what is to come in 2014. Will we see a rally in gold?

As you can see from the gold chart, we are at a stage one basing phase. 150 and 200 moving averages is slowing down and start to go sideways. This will go on for about 6-12 months. So, now you know when to expect the gold bull market start again.

In this one phase stage, a market goes both up and down and it looks like it goes nowhere. Many people are getting frustrated and start to give up and others that is not in the market stops paying attention to the market. After a bear market, a stage one basing phase will follow and make a new way for a real bull market.

We have seen many bubbles like the internet bubble, housing bubble and the market crash in 2008. Now, it seems like a new bubble is on the way. The Fed are on the way to build a dangerous federal government debt bubble.

It can be avoided by reducing the Congress spending deficit. But in the budget deal last week, they increased the government spending. All this money printing have been a disaster for the U.S.

In Mars next year, we have seen a bull market lasting for five years. What do you think will happen to QE if the economy slows again? Goldman Sachs predict the domestic GDP growth to hit 3% next year (1,7% in 2013). I hope he has right. I look forward to 2014.

News today: Unemployment Claims at 8:30am, Existing Home Sales & Philly Fed Manufacturing Index at 10:00am.

Markets up

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Filed under Commodities, Stock market

Market update

Dow went up +1,26% on friday, while S&P 500 went up 1,12%. Nasdaq jumped 0,73% and it was a strong finish of the week for all of them. Traditionally, the first week in December is bad, but December is the best month of the year.

Is this tradition going to continue? Most of the indices is up more than 20% so far this year. That is strong. The U.S. indices are in a state of limbo right now. Dow and S&P ended flat of the week, so they are going sideways.

Stocks are increasing as better than forecast export data from China on monday. Some people are concerned about the U.S Federal Reserve`s stimulus package and they belive that the FED will start to taper earlier than forecast. Next FED meeting is December 17 – 18.

The speculation about tapering is reflected in the gold price. Gold prices have dropped about 27% this year, as investors are running from commodities to equities. A gold price of $1200 is still a sensitive level for the precious metal. Hedge fund managers are bearish on gold, and many see a new support for the gold on $1000 – $1150.

There are no major reports today.

gold_price_wobbles_as_liquidation_intensifies

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Filed under Commodities, Stock market