Gold gouged, gasoline slides

Anonymous
Apr 12, 2013

Here is this week’s edition of Futures File, our weekly commodities wrap-up:
 
Gold gouged

On Friday, gold collapsed to the lowest level since 2011, pressured lower by expectations that Cyprus may be forced into selling a portion of its gold holdings. Although Cyprus received emergency bailout funds in recent weeks, the government is expected to take additional losses from bad loans that it made to commercial banks. The island nation is expected to sell more than $500 million worth of its gold holdings to help pay for the losses, which spawned a sell-off in the global gold market.
 
Record highs in US stock markets and expectations for decreased stimulus from the Federal Reserve in coming months also served to deflate gold bulls’ expectations. During Friday’s sell-off, investors fled gold to put their money into bonds and cash. By Friday, gold had dropped as low as $1,480 per ounce, down more than $95 (-6.0%) during the week.
 
Gold investors have been particularly disappointed in recent months as “bullish” factors such as increased talk of bailouts in Europe and geopolitical concerns regarding Syria and North Korea did not cause gold to rise.
 
Gasoline slide continues

Gasoline futures continued their decline this week, dropping to a three-month low. Prices fell as reports from the Department of Energy showed rising supplies and falling demand. Domestic gasoline inventories rose this week, as did crude oil supplies, which are currently at the highest level since 1990.
 
The US is awash in crude oil primarily due to sharp increases in domestic crude production, especially from states like North Dakota. At the same time, the DOE is indicating decreased US gasoline demand, showing a 2.4% drop over the last four week. These bearish factors combined to drop gasoline futures by another nine cents per gallon this week, falling 3.1%.
 
Conversely, gasoline’s more buoyant cousin, natural gas has been climbing in recent weeks, reaching $4.20 on Friday, the highest price since 2011. Although US stockpiles are still high by historical measure, they have been slowly dropping as cold spring weather has kept demand for the heating fuel high. Since mid-February, prices have risen a staggering 96 cents, a gain of 29.4% in less than two months.

Comments

4shizzle

Contango... wherever you are

How much money would people have lost if they bought gold at the time you were advising to buy it ?

"Got gold?"

Fromthe419

I haven't seen him post in a while. I hope he is ok. In his defense, you only lose money on gold when you sell it. I'm sure you know this but most people that buy gold are in it for the long haul as a hedge against inflation.

4shizzle

"...you only lose money on gold when you sell it."--Whaaaat ?!!!

Fromthe419

Gold like stock is an investment. Today it is down tomorrow it can be up. Like stocks a gain or loss is only realized when you sell it. I personally believe those that have gold will over time see gains and not losses.

4shizzle

http://screen.yahoo.com/gold-tum... : consult a real expert.

Kottage Kat

He is alive and well
just said he is busy

kURTje

Lay not your treasures on earth where vermin, moth thieves, etc. destroy. "I ain't a Christian." Or as a loser said..."Greed is good." Just enjoy life & live it proper.

mikel

To all of you Romney tax bashers...your boy Obama just released his tax documents and had an effective tax rate of 18.4 percent! Where's the outrage?

Following Obama is like sheep being led to slaughter!

Contango

In order to be a SUCCESSFUL investor, ya gotta take a long-term perspective:

"...the S&P is at about not even up 1% from the peak in October 2007. Over the same period of time, even after today’s correction gold is up 100%.

The S&P 500 (.INX) is up 2% over the March 2000 high. Gold is up 442%."

http://www.valuewalk.com/2013/04...

Also, don't put all your eggs in one basket - DIVERSIFICATION, DIVERSIFICATION, DIVERSIFICATION and yes, DIVERSIFICATION.

Later.

The Big Dog's back

Gee, how'd I know kat and winnie are in cahoots.

4shizzle

I had a hunch this article would make him crawl out of the woodwork.

Kottage Kat

Contamgo
Ah, they know so little
glad to see you back
If they read the NR, would know it is not I
I am not equal to your financial expertise
Or computer savy (sp).
Kat

4shizzle

Crap

kURTje

Yeah cat..use the Good Book when it works for you. Since you are struggling in your manufactured home please educate us. Life has taught many how to be wise as serpents, harmless as......well maybe a half mad pit-bull. Evaluation is key; not $$only. geez

Kottage Kat

Kurtje
That made no sense

God bless
Kat

kURTje

You know darn well it did. Like many Americans when hit when the truth you evade. Sad. Thought you knew scripture. Need me to "splain it?"

Kottage Kat

Nah
Be happy in your world
Like begets like
Andthey know u there
Have a wonderful day

Kat

4shizzle

Bigots? Or as in : Contango begets Kottage Kat?

Kottage Kat

I do not always agree with comments
I will respect your right to do so.

Kat