"We are seeing history in the making. And what's happening in the Middle East is coinciding with some of the mega trends underlying our investment position," note long-standing resource experts Mary Anne and Pamela Aden.

The editors of The Aden Forecast explain, "Here, we review five trends -- related to inflation, interest rates, the U.S. dollar, bonds, and metals -- that should last for many years.

Continue reading Five Mega Trends for the Next Five Years

Five Mega Trends for the Next Five Years originally appeared on BloggingStocks on Thu, 31 Mar 2011 15:30:00 EST. Please see our terms for use of feeds.

The Financial Times has seen a U.S. diplomatic cable from WikiLeaks that states that Iran has bought significant amounts of gold. The word is that Tehran holds 300 tons of gold, up from 169 tons in 1996.

Gold, oil and the U.S. dollar: The oil-rich Middle East sells oil throughout the world. Oil is priced in dollars. The U.S. dollar is the reserve currency for oil. That means that Mideast countries are loaded with U.S. dollars.

Continue reading WikiLeaks Cable Cites Iran's Gold Buying

WikiLeaks Cable Cites Iran's Gold Buying originally appeared on BloggingStocks on Mon, 21 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

• WTI crude was up $3.67 per barrel to $101.67. Brent crude rose $2.10 per barrel to $110.62.
• In the grain market, June wheat futures rose 48-2 cents per bushel to $7.10 per bushel.
• Corn futures were up the 30 cent limit to $6.46 per bushel.

Continue reading Crisis in Japan Creates More Demand for Commodities

Crisis in Japan Creates More Demand for Commodities originally appeared on BloggingStocks on Thu, 17 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

The markets were full of contradictions last week. Take for example the turmoil in the Middle East. In past crises, investors flocked to the U.S. dollar. But not this time. The U.S. dollar futures contract fell to 76.41 last week.

Another contradiction: the U.S. jobs report was the best in two years, with 192,000 new jobs added. The stock market should have rallied strongly. Instead the Dow fell 88 points. The crises in Libya and elsewhere overshadowed the favorable jobs picture.

Continue reading Euro Trades Above $1.40 on Expectation of Higher Rates

Euro Trades Above $1.40 on Expectation of Higher Rates originally appeared on BloggingStocks on Mon, 07 Mar 2011 07:00:00 EST. Please see our terms for use of feeds.

For the past four weeks gold has been in to doldrums, hanging around the $1,330 range. Some hedge funds sold out their positions. Analysts were on the tape saying that gold has lost its luster and is ready for a fall.

Now, today, you look at the gold price and it's up. $15.80 at $1,364 per ounce. And you are wondering what's going on. You look at today's news and you read that China has just raised interest rates. So as a trader you decide to sell the gold short because gold does not like higher interest rates. Wrong! The market turned around like a vengeance. By noon it was up $13.00. It wasn't logical, but it happened anyway. The shorts quickly covered their positions.

Continue reading Gold Moves Sharply Higher on Inflation Worries and a Weaker Dollar

Gold Moves Sharply Higher on Inflation Worries and a Weaker Dollar originally appeared on BloggingStocks on Tue, 08 Feb 2011 16:30:00 EST. Please see our terms for use of feeds.

Economist Gary Shilling has agreed to share with BloggingStocks his 18 investment strategies for 2011, beginning with Gary Shilling's Investment Strategies for 2011. But he will only be revealing them a little at a time, over the next few weeks, so check back often!

My investment strategies for 2011 are driven by my forecasts for the economies and financial markets here and abroad. In my view, the overarching reality that will dominate 2011 and, indeed, the next decade or so is financial deleveraging, as spelled out in my new book, The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation, which was published in November 2010 by John Wiley & Sons.

Continue reading More Investment Strategies for 2011

More Investment Strategies for 2011 originally appeared on BloggingStocks on Tue, 25 Jan 2011 13:00:00 EST. Please see our terms for use of feeds.

Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc.

Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49.

Continue reading Dollar Hits Low Against the Swiss Franc

Dollar Hits Low Against the Swiss Franc originally appeared on BloggingStocks on Tue, 28 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

Federal Reserve Chairman Ben Bernanke will appear on 60 Minutes this Sunday to defend his controversial stimulus package, dubbed QE2, of buying $600 billion of Treasury securities.

In the CBS interview, Bernanke explains his intentions with QE2 and defends the notion that this stimulus will not lead to inflation. He also told CBS that he is not ruling out the purchase of more securities.

Continue reading Bernanke on 60 Minutes: We Could Have QE3

Bernanke on 60 Minutes: We Could Have QE3 originally appeared on BloggingStocks on Sat, 04 Dec 2010 12:40:00 EST. Please see our terms for use of feeds.

Gold prices have marched to a new high of $1,422.45 per troy ounce in London. This marks the fourth day of the gold rally.

The Wall Street Journal (subscription required) cited that the prime mover was continued worry over European sovereign debt defaults.Traders and investors are riding the bull higher and higher. To help the gold along, the U.S. dollar is weaker, sparking a rally in key commodities like oil and grains. Cotton is also up again.

Continue reading Gold Climbs to Yet Another Record High

Gold Climbs to Yet Another Record High originally appeared on BloggingStocks on Tue, 09 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

In an interview with CNBC, Warren Mosler, principal broker dealer with AVM, lays out his argument for the euro's rise to $1.50.

His main argument is that Europe is creating austerity measures that are curbing inflation and thus strengthening the euro. Notwithstanding the fact that the European Central Bank (ECB) is buying bonds from weaker members like Greece, Ireland, Spain and Portugal, these moves will not create inflation. No longer can speculators attack a single country like Greece and in doing so take down the entire eurozone.

Continue reading Will the Euro Rally to $1.50?

Will the Euro Rally to $1.50? originally appeared on BloggingStocks on Thu, 07 Oct 2010 12:40:00 EST. Please see our terms for use of feeds.

William Dudley, President of the Federal Reserve Bank of New York said today that further Fed easing is needed if the economy does not improve. That was the trigger for gold and oil, which moved higher. Gold set a new record with the spot price at $1,317.10 in London. The December futures contract is trading at $1,317.10, up $8.20, Reuters reported.

The remark about the possibility of the Fed easing also triggered a sharp drop in the U.S. dollar. December futures are trading at 78.51, down 0.428. In a knee-jerk reaction, November oil spiked to $81.24 per barrel, up $1.27.

Continue reading Gold Sets Another Record High

Gold Sets Another Record High originally appeared on BloggingStocks on Fri, 01 Oct 2010 10:30:00 EST. Please see our terms for use of feeds.

Spot gold in London hit $1,299.65. The December gold futures contract traded at $1,301.30, setting new record highs, as reported in Reuters.

Gold resumed its rally mode when the U.S. Federal Reserve indicated that it will provide more stimulus to the U.S. economy. That triggered commodities to move higher in anticipation of more inflation.

Continue reading Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks

Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks originally appeared on BloggingStocks on Fri, 24 Sep 2010 11:20:00 EST. Please see our terms for use of feeds.

Continue reading Gold Reaches Record Highs: A Good Time to Buy Gold Mining Stocks?

Gold Reaches Record Highs: A Good Time to Buy Gold Mining Stocks? originally appeared on BloggingStocks on Wed, 22 Sep 2010 15:00:00 EST. Please see our terms for use of feeds.

The price of oil has topped $80 per barrel. Crude for September delivery rose to $80.43, up $1.48. Brent crude rose $1.61 to $78.79. U.S. natural gas shot up over $5 per million British thermal unit (BTU). Oil futures climbed 4.4% in July.

Traders and investors are speculating that China will reverse its policy aimed at slowing growth. Growth in China is at its lowest level in a year. HSBC Holdings and Markit Economics reported that China's purchasing managers index fell to 48.4, from 50.4 in June. The purchasing managers index stood at 51.2 in July.

Continue reading Oil Tops $80 per Barrel on Chinese Growth Outlook

Oil Tops $80 per Barrel on Chinese Growth Outlook originally appeared on BloggingStocks on Mon, 02 Aug 2010 12:40:00 EST. Please see our terms for use of feeds.

In 1971, President Nixon took the U.S. off the gold standard. On that day, world finance changed forever. What that meant is the Fed no longer backed the U.S. currency with gold. Now the currency was free to trade on a relative basis against other world currencies. Eventually, a U.S. dollar index contract was established on the NYMEX. The index is traded against a basket of currencies.

Now, 40 years later, the dollar is still dominant. Our economy went along merrily until we began racking up huge deficits. The deficits have become so great that we face a loss of confidence from investors in our ability to worm our way out of this mess. This year the Fed had to issue between $1.5 to $2 trillion dollars of notes and bonds. Investors are receiving only 4% on the 10-year note, whereas in the past the average yield was 7% to 9%.

Continue reading How Long Can the U.S. Dollar Maintain Its Dominance?

How Long Can the U.S. Dollar Maintain Its Dominance? originally appeared on BloggingStocks on Mon, 01 Mar 2010 16:40:00 EST. Please see our terms for use of feeds.

Monetary neurotics, led by the polite, appealing and economically brain-damaged Ron Paul, believe the U.S. dollar is dead because of our growing debt and the Fed running the printing presses, which must lead to inflation, which, in turn, will kill the dollar. Recent falls in the dollar seem to confirm this, uh, shibboleth (look it up again) of the monetary right.

In actuality, though, the dollar is no weaker than it was a few years ago. And it is the only currency in the world for the foreseeable -- and I mean long-term foreseeable -- future that can serve as a reserve currency due not just to our economic and political power, but our political system.

Continue reading Lie #9: The U.S. Dollar Is Dead

Lie #9: The U.S. Dollar Is Dead originally appeared on BloggingStocks on Sun, 27 Dec 2009 14:00:00 EST. Please see our terms for use of feeds.

Why would the government want a weak dollar? To get some perspective on the dilemma facing the Fed, let's go back to the Clinton years. During the 1990s, we had a booming economy. That booming economy fostered a strong dollar policy (i.e., strong economy equals a strong dollar).

Now the tables are turned and we are in the worst recession since the 1930s. We are mired in debt and our unemployment keeps rising. The housing market, while improving somewhat, is still in shambles. Banks are short of money to lend, keeping a lid on expansion, and on and on. So then we have the reverse of the 1990s.

Continue reading The case for a weaker dollar

The case for a weaker dollar originally appeared on BloggingStocks on Sun, 04 Oct 2009 15:10:00 EST. Please see our terms for use of feeds.

Gold broke though the magic $1,000 per ounce Tuesday. The October gold contract rose to $1,008.30 per ounce before dropping below $1,000 again.

The U.S. dollar is sharply lower, with the September contract trading at 77.11 down 81 (the U.S. dollar is traded against a basket of currencies). As you might guess, when gold moves higher, the dollar falls. Traders dump paper dollars in favor of hard assets like gold.

Continue reading Gold tops $1,000 per ounce, oil rises, and the U.S. dollar falls

Gold tops $1,000 per ounce, oil rises, and the U.S. dollar falls originally appeared on BloggingStocks on Tue, 08 Sep 2009 13:40:00 EST. Please see our terms for use of feeds.

Gold usually has an inverse relationship with the dollar. When the USD goes up, gold goes down, because theoretically a stronger dollar can buy more gold. Additionally, commodities in general tend to fall on a stronger dollar because it is often correlated with lower expectations for growth.

This week we saw a major correction in equities with banks leading the way. American International Group, Inc. (NYSE: AIG) was down more than 20% on Tuesday alone. This is a fear-driven decline, and we can see evidence of that in a positive correlation between gold and the dollar.

Continue reading Gold is up as investors seek shelter from the storm

Gold is up as investors seek shelter from the storm originally appeared on BloggingStocks on Wed, 02 Sep 2009 16:40:00 EST. Please see our terms for use of feeds.

After last year's crash, commodity prices have been sloshing around without too much direction. Oil has been a noticeable standout, however, moving from $32 per barrel to $74 per barrel.

Sugar has moved from about 15 cents per pound to 22 cents per pound, based on supply and demand factors.

Commodity traders are in a quandary about prices going forward. They are looking primarily at China and the U.S. dollar, reports BusinessWeek.

Continue reading Commodity prices hinge on China and the U.S. dollar

Commodity prices hinge on China and the U.S. dollar originally appeared on BloggingStocks on Mon, 24 Aug 2009 12:40:00 EST. Please see our terms for use of feeds.