Energy & Commodities

Weldon: Commodities Ready to Lift-Off

Posted by Greg Weldon interviewed by Jim Puplava

on Thursday, 1 August 2013 12:22

The CRB Index Monthly Chart

Screen Shot 2013-08-01 at 5.32.16 AM

Greg does not believe we have seen the end of the Commodity Supercycle, but merely a large correction, which he believes is finished.

Greg also mentions that the “hot money” has exited the commodity sector and moved on. Since Bernanke’s latest pronouncements, both the dollar and Chinese Yuan have fallen, which is bullish for commodities. Greg believes Fed policy has pushed money out of safer assets like bonds and into riskier assets. He sees the bond market as the real battleground looking ahead.

Ed Note: you can listen to Greg talk briefly (about a minute) to his interviewer Jim Pupluva HERE, but to listen to the full interview with  Greg you would have to subscribe for either a $15 monthly subscription or an annual $120 subscription HERE 

Sector Update: Shopping 36 Metals & Mining Companies At 52-Week Low

Posted by Sally Jones via Guru Focus

on Thursday, 1 August 2013 2:43

With all the lows in companies mining for gold, silver, copper, platinum and palladium, it could be time to go shopping in the metals and mining sector. Back in April, the metals and mining sector showed 118 companies at a 52-week low. This week there are only 36 out of 173 companies at a 52-week low, with a low ratio of 0.21. Here’s a look at a few highlights from mining companies around the world.

81.2% off high

Mexico and Argentina: Golden Minerals Co. (AUMN)

The GuruFocus 52-week low screener reveals that Golden Minerals Co. (AUMN) is at a 52-week low of $1.36 (high was $7.22). According to the GuruFocus Value Screen for 52-week lows, AUMN is 81.2% off high.

Golden Minerals Co. is an emerging precious metals producer engaged in the operation and further development of its recently acquired Velardeña mines in Mexico, and in the advancement of silver exploration property in Argentina.

Trading histories show that Jim Simons was the last guru to sell out at the end of first quarter 2013. 

Historical pricing: 

1375296838948

….read much more HERE

West Texas Intermediate crude fell to the lowest level in almost four weeks before a government report that may show slowing U.S. economic growth.

Futures trimmed a monthly advance that would be the biggest since August. U.S. gross domestic product probably expanded at a 1 percent annualized rate in the second quarter, compared with 1.8 percent in the previous three months, according to a Bloomberg survey before data are released tomorrow. Confidence among U.S. consumers declined more than forecast in July. WTI’s discount to Brent widened to a three-week high.

Crude also slid as the dollar strengthened against its rivals, reducing oil’s investment appeal. The Bloomberg U.S. Dollar Index, which measures the greenback against 10 leading currencies, gained as much as 0.4 percent.

Implied volatility for at-the-money WTI options expiring in September was 22.3 percent, compared with 21.2 percent yesterday, data compiled by Bloomberg showed.

Electronic trading volume on the Nymex was 493,593 contracts as of 2:40 p.m. It totaled 428,816 contracts yesterday, 35 percent below the three-month average. Open interest was 1.84 million contracts.

….read more HERE

MOSCOW (Reuters) – Russia’s Uralkali has dismantled the world’s largest potash cartel in a move that it expects to slash prices by 25 percent, heralding a reshaped industry and pummelling shares of companies that produce the key fertiliser ingredient.

CLICK HERE to read complete article

NPK – Verde Potash down 22%

PRK – Potash Ridge down 21%

AAA – Allen Potash down 20%