19 December 2014

Big Anomalies - Crude, Gold, Platinum, Silver, Stock prices

We have recently seen a big drop in crude prices and there are talks of 30/40 dollars of crude prices.

Did the US govt engineer the move to hurt Russia? Most people think so and she might have sold reserves in the spot market to push down futures.

Silver has been below the $19/20 level a long way and that level is considered the threshold for a weak economy and sure it is now for Japan and Europe, but stocks keep on rising.

Look at crude prices vs gold, gold has been unusually strong, if there is no inflation, who would buy gold, but the $1200 level seems to hold.

So which is right, gold holds at this level and crude going up soon or crude holds  at current level and gold declines?

Another strange factor is platinum [$1193 current price], it has always been more expensive than gold [$1198], why is it now in the same ballpark with gold or even lower in terms of prices.

Many conventional relationships are challenged at the same time, is it because of serious manipulation that past relationships will eventually resurface or this is a new norm for all these metals, commodities and stock prices!

Dow has also been in extra volatility, falling 300 points and rising 300/400 points, is this getting close to the peak as volatility happens at low and high points, rarely in the middle.

Time will tell, but meantime we must caution ourselves to take less risk and patiently wait for more signals to confirm the truth.

With so many anomalies happening, the chance of a 2015 recession or stock pull back becomes not so remote except in the event of a large QE by EU.

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