Oil and Gold and Banks, Oh My!
Source: http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold/0/0/oil-and-gold-and-banks-oh-myPosted on Thursday, August 7th, 2008 | In Energy Markets, Gold Markets, Market Commentary
I’m still on the road.
Here are a few things catching my eye.
I see that oil is up near $120 again
this morning. Apparently, the markets are worried about Iran now. There’s nothing new about Iran that we
didn’t know on Monday, so what’s changed?
I think the market is oversold; maybe some of that is working its way in
to the broad trader consciousness. The
fact that the European Central Bank disappoints the chin-nodders of CNBC by stubbornly
refusing to cut rates – which boosts the euro and hurts the US dollar – may
also be supporting crude prices as well.
But the fact that an important Turkish
pipeline can blow up and oil DOESN’T jump $10 a barrel shows, I think, that
the overall mood in the oil markets remains short-term bearish.
Now, there is other news I think the market should be
worried about, as I
pointed out yesterday. Add to that, Nigeria’s oil
output seems to be sliding down the slippery slope, putting in the good
company of countries like Mexico,
Venezuela and Russia.
Meanwhile, there is other news in the precious metals
arena. Gold
production in South Africa is falling off a cliff, down 12.3% year over
year. Remember when South Africa
used to be the world’s #1 producer of gold?
Not anymore. Also interestingly,
Mineweb.com says
a wave of gold mine consolidation and takeovers has begun. Put the pieces of the puzzle together my
friends, and it points to higher prices.
Gold is strengthening this morning, but market watchers are
saying it’s due to more credit
write downs at big banks. Do more
credit writedowns really surprise anybody?
Seriously? Well, then, I think
they better hold on to their hats for the storm that’s coming their way.
Meanwhile, a
crisis in municipal bond markets is rearing its ugly head. Yeah, I think metals are starting to look
pretty good.
Last 5 posts by Sean Brodrick
- The Golden Phoenix - February 25th, 2009
- Blessing in Disguise - February 4th, 2009
- What I'm Reading Today - January 7th, 2009
- Gold and Oil Short-Term Trends - January 7th, 2009
- Is Gold Poised for a Pullback? - January 6th, 2009
 About Sean Brodrick (http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold)
Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research’s small-caps specialist, especially in natural resources, and is the editor of the company’s Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets. Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world’s leading publisher of offshore asset protection strategies and global investment opportunities. Recognized for his expertise on natural resources and Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box, Fox Business, CNN, The Glenn Beck Show, Your World with Neil Cavuto and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada’s premiere financial websites, HoweStreet.com. His report, “70 Days to Empty,” has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by The Daily Reckoning as “the most important report you’re likely to read this year,” while his knowledge of uranium has helped investors earn solid gains on the commodity. Mr. Brodrick holds a B.A. degree from the University of Maine. |
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