Commodities are a vital part of the Aussie economy. And commodity stocks are heavily represented in the Aussie market, especially at the speculative end. The Rum Rebellion looks at commodities for money making opportunities, and to also show you what commodity prices are saying about global economic growth and the health of the Chinese economy.
When China slows, commodities take a hit. That has an impact on Australia, and flows through to the stock market and interest rate considerations. So we analyse commodities from a ‘holistic’ perspective, as well as highlight the individual opportunities when they arise.
What I haven’t talked about so much is the silver price. But it’s now starting to get sucked into gold’s orbit. Overnight, the price of silver surged to a 12-month high in US dollars…
Well, you’re probably not surprised to hear that commodities in general are happy recipients of the central bank sponsored global surge in liquidity we’ve seen so far in 2019.
Physical gold is the only safe haven monetary asset that is not debt. That is, it doesn’t come with counterparty risk. When central banks decide it’s normal to create money at will to ‘monetise’ existing…
Coal is a pretty big deal. Without it, we’d be an economic basket case. Yet there is a growing and increasingly vocal group looking to undermine the coal industry. If they had their way, they…
What’s good for China is good for Australia, at least in the short term. But now the news is out, in the next few days we’ll get to see just how confident investors are in…
China’s ability to keep pumping out big bang stimulus programs is diminishing. It will likely be the last hurrah for Australia’s historic iron ore production and export boom.
BHP is trading close to long term highs. There really isn’t any China concern in this price. Given the worries about the US/China trade war and slowing global growth, such a view is extraordinary.
What happened to gold’s safe haven status? In short, it’s because of US interest rates. Gold isn’t going to be a safe haven while inflation remains low and the Fed is on a tightening path.