Precious Metals & Markets Wrap-up: Week Ending October 7 2016

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GoldInvestments
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Precious Metals & Markets Wrap-up: Week Ending October 7 2016

Postby GoldInvestments » 12 October 2016

A sizeable down week after gold broke its support under $1300. Silver of course followed in greater magnitude. This should be short lived as our call for flash in pan market action recently. The large caps have remained steady after the shocks. Oil had a strong week as we off loaded some of our profits at very close to the week's high. We also traded well in the $Aussie where we also picked up profits at near it's weekly high. We aren't participating in the US large cap indexes for now.

gold_bars.jpg


The still sizeable commercial short positions in gold are now given the opportunity for those heavily short to close some of those positions. Silver is massively short via the commercials, and many would be scaling back those positions to prevent their fear of short squeezes. Oil should be in its structural oversupply for some time now unless the $US resumes its cyclical downward leg. We have ample longs in oil in case the $US scenario continue. A weak $US is also important for stocks to remain buoyant.

One interesting observation has been shared in the financial exhochamber last week. There has been some work done on the effect on a Fed rate hike on markets. This suggests a 15% downward valuation on large cap US stocks in such event. There would be some drive to keep rates unchanged if that metric is to be taken seriously. A 65% December hike has been predicted. More of a Fed credibility move versus data repentance as they state repeatedly. If the fed chooses to not to raise in December, watch for gold and oil to shoot up in price. The catalyst these 2 often need for the next leg up in their value.

by Steve Andelkovic
Funds Manager
Gold and Energy Investments
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MetalsZone
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Re: Precious Metals & Markets Wrap-up: Week Ending October 7 2016

Postby MetalsZone » 16 January 2017

Freedom can be messy, but it's always the correct path and correct way to treat others. The Golden Rule is about freedom.

I'm currently a freshman that's taking microeconomics in effort to becoming a business major. My question is, how are households providing wages and rent, when they're the ones paying it. Isn't the firms providing the wages and rent via income in exchange for the labor provided by households? Sorry Still trying to understand all of this thoroughly.


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