Posted on 12/28/2010 12:30:43 PM PST by Razzz42
Home prices are falling for one reason – lack of demand coupled with a growing supply due to the wave of foreclosure properties which are adding additional supply to the market.
The market interpreted today’s data release as evidence that the Fed’s $600 billion + QE policy would not be ending anytime soon. That brought another surge of fund related buying into the commodity sector with the result that the CCI (Continuous Commodity Index) has now kissed its former all time high made back in the summer of 2008 long goodbye. It shot above 622 and appears to be accelerating, even at the end of the year when we would normally expect to see profit taking in the sector by longs who have profited immensely in 2010.
...Sugar, after putting in a 30+ year high, has shot to yet another fresh high in today’s session. Soybeans registered a 26 month high. Ditto for corn. Copper is now trading at $4.30 a pound! Crude oil continues to hold above $90.
The bond market, after being fiddled with by the monetary authorities in the hopes of hoodwinking the public into believing that inflation pressures are subdued, promptly fell apart plunging a full point as participants are watching with great alarm the surge in the CCI.
This combination, soaring commodity prices which are certain to erode consumer disposable income, and plunging bond prices which are a prelude to higher long term interest rates, are certain to make it even more difficult for would-be home buyers to enter a real estate market already being plagued by a lack of demand. Throw in a good dose of higher gasoline prices at the pump and it becomes all too obvious what we can look forward to in the coming year...
(Excerpt) Read more at jsmineset.com ...
While the US$ is still worth something, go out and stock up on something like toilet-paper and other necessities. Won't be long now until wholesale pricing filters down to shelf pricing at your local store, in earnest.
Yep....been doing so for the last year
Yep....been doing so for the last year
And silver is still hovering near $30 when it was $4 in the mid ‘90s.
I put up another 20#s of sugar the other day, and 5#s of non-fat dry milk.
Should probably do another round soon...
Have they announced QE7 yet?
15 months ago I invested in some oil stock, a copper stock, a silver fund and a gold ETF as a hedge against the declining dollar. The account is up 50%. Nothing has changed, I continue to hold in that account. As long as QE is underway and the US policy continues the deficit in spending and imports, global commodities will go up while the dollar sinks.
What do beer futures look like?
10% unemployment and $5 gas.
I’m sure Axlegrease is looking forward to running on that platform in 2012.
Watch grain prices, they are all up including corn.
Just the fully expected outcome of the government printing money backed by air. Conservatives know this but the progs and libs and obamamites are clueless. Obama’s model for destroying the economy are based on his cousin’s, Robert Mugabe.
Try stocking ammo. The price is up about 50% from two years ago. It has intrinsic worth too.
It is not looking good for Hussein (Jimmy Carter) Obama. The fire is being stoked on the inflation front.
We could be in for a nasty spiral with the Fed printing more money to get the economy going, but the effect of that phony money is high commodity prices, falling bond prices, and sluggish house sales.
Thus far, the money managers are betting upon higher commodity and lower bond prices. Those changes began in August and increased in October/November.
Some people think that a Republican House of Representatives will make a positive improvement. I do not see that impacting the situation. Obama and the Senators and the Federal Reserve are hell bent to bankrupt the USA.
Stocking up on barley based products is much more fun.
I’d becareful of ETF and funds. Better to own miners like HL for silver and maybe NGD for gold and those that produce the actual precious metals. Or look and see what your fund is holding then just buy those miners outright. ETFs deal in paper holdings and may not have the actual metal when it comes time to prove it. Many miners to choose from that produce the real stuff.
QE is on going. If no one buys bonds the Federal Reserve does...err I mean the taxpayers (if they want them or not).
I would not discourage people from buying GLD or SLV ETF’s.
For instance, Kitco has a new 500 ounce silver bar that will cost about $15,000.
People may not have $15000 sitting around waiting to buy a 500 ounce silver bar. But they may have $5000 available to buy SLV and keep adding to that position until they have enough SLV to buy the 500 ounce silver bar.
GLD and SLV are good ways to lock in your price until you have enough to convert it to gold or silver bullion or coins.
If I were a tinfoil hat wearing conspiracy nut, I’d say that our debt is so massive the only way out is to inflate our way out. Make the dollar so worthless the Chinese debt becomes meaningless. ;-b
There is no market in beer futures. But you can go to your local homebrew shop and buy a few cans of extract, some malt sugar, and some yeast if you're worried.
With higher commodity prices, Michelle's anti-obesity campaign, ObamaCare, the FDA's recent prohibition of certain malt beverages, and MADD's mission creep transformation into an abstinance campaign, you can bet that beer prices are going up. There have already been attempts to hike the tax on the alcohol content of beer to put it on parity with distilled spirits. In Britain, beer is taxed according to alcohol content, and you know that the Dems think the US needs to become more like Europe.
There are horror stories of investors trying to get delivery of metals from ETFs, offered cash instead or waiting months probably because they don’t have the metal on hand just paper claims to the metal.
Using futures is about the best and cheapest way to acquire physical mental when taking delivery, if one can afford bulk.
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