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Why don't they give a graph of the commodity prices over the past ten years? Surely commodities like gold are bullish in bear markets? Here gold is a leader at

by tinco 11y ago

Why don't they give a graph of the commodity prices over the past ten years? Surely commodities like gold are bullish in bear markets? Here gold is a leader at -40% What am I missing? (Not an economist)

pyre 11y ago
> Surely commodities like gold are bullish in bear markets? Maybe everyone is pouring their money into Bitcoin to ride out the downturn? /s
- walshemj 11y ago
  Well some contrarian investors are buying back into commodities as they have been over sold. I even brought British Gas as a play on the Takeover by Shell a net 8% yield is tasty. I did very well (300%) buying commercial property in the last down turn.
goldbug71 11y ago
You're missing the fact that Citigroup has cornered the gold market and so the prices you see are what Citigroup wants you to see: http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-metals-derivative-exposure-just-soar-1260 http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-... How do they do it? They buy and hold $2 Trillion in paper gold on each side, long and short.
daveloyall 11y ago
Is this what you are looking for? https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1438891200000&chddm=899691&chls=IntervalBasedLine&q=NYSEARCA:DJP&ntsp=0&ei=obrDVcH8FY6S2AaksYmYCQ https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&... edit: now correct graph.
pjlegato 11y ago
The US Fed has been signaling that they are planning to raise interest rates late this year or early next year. Not only does owning gold not pay any interest, it actually incurs ongoing cost for secure storage and insurance. Its main investment use is as a sort of insurance policy against the large-scale collapse of fiat financial systems. Market participants evidently view the possibility of a financial collapse as remote enough that they are trading out of gold and into fiat currency, so they can receive interest rather than pay storage costs.

by tinco 11y ago

pyre 11y ago

> Surely commodities like gold are bullish in bear markets? Maybe everyone is pouring their money into Bitcoin to ride out the downturn? /s

walshemj 11y ago
Well some contrarian investors are buying back into commodities as they have been over sold. I even brought British Gas as a play on the Takeover by Shell a net 8% yield is tasty. I did very well (300%) buying commercial property in the last down turn.

goldbug71 11y ago

You're missing the fact that Citigroup has cornered the gold market and so the prices you see are what Citigroup wants you to see: http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-metals-derivative-exposure-just-soar-1260 http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-... How do they do it? They buy and hold $2 Trillion in paper gold on each side, long and short.

daveloyall 11y ago

Is this what you are looking for? https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1438891200000&chddm=899691&chls=IntervalBasedLine&q=NYSEARCA:DJP&ntsp=0&ei=obrDVcH8FY6S2AaksYmYCQ https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&... edit: now correct graph.

pjlegato 11y ago

The US Fed has been signaling that they are planning to raise interest rates late this year or early next year. Not only does owning gold not pay any interest, it actually incurs ongoing cost for secure storage and insurance. Its main investment use is as a sort of insurance policy against the large-scale collapse of fiat financial systems. Market participants evidently view the possibility of a financial collapse as remote enough that they are trading out of gold and into fiat currency, so they can receive interest rather than pay storage costs.