I'm short gold, I'm short gold, oh...

January 6, 2017 11:44 AM
End of the week metals report

Pete's Corner

There’s one thing almost all gold traders and analysts agree on, now is a great time to own bullion. Those surveyed by Bloomberg were the most positive they’ve been on the metal’s price outlook since the end of 2015, with 14 saying they’ re bullish on the metal, two bearish, and one neutral. Worries over political developments in Europe, and in the U.S. following Donald Trump’s election, as well as expectations of stronger demand ahead of the Lunar New Year were cited as factors.

(OK, yes, I did participate and yes, I was bullish)

There seems to be a very different attitude growing in China. The theme I'm getting is value not volume. The Chinese are coming to understand that producing less will keep the price flat and it will not drift lower. These flat prices mean that if they cost cut on the "backside of production" they will be profitable. What this means, with production energy cost having halved, in the last few years is they can continue to enjoy modest profits while producing less.

Police ignored as Chinese treasure hunters dig up 500kg of Qing dynasty coins

Hundreds of Chinese treasure hunters – including pensioners and children – ignored outnumbered police as they dug up more than 500kg of ancient coins during an unauthorized mass dig near a river, mainland media reported.

Service Industries in U.S. Expand at Faster Pace Than Forecast/Patricia Laya:  America’s service providers expanded more than forecast last month, spurred by an upturn in orders that coincided with stepped-up demand at the nation’s factories. The Institute for Supply Management said Thursday that its non-manufacturing index held at 57.2 in December, the highest level since October 2015. The median forecast in a Bloomberg survey called for 56.8. Readings above 50 signal growth in the industries that make up nearly 90 percent of the economy.

Chaz Miller/South China Post:  In California several hundred recycling centers closed. These closures were caused by weak markets and by the workings of California’s unique container deposit law. Even if markets strengthen, fixing that law should be a top priority for California lawmakers in 2017.

Trivia Answer (Read all the way through):  While aluminum is the most common metal found in the Earth's crust, the most common metal found on Earth is iron, mostly because it makes up such a large part of the Earth's core. Steel is an important alloy (combination of metals) that is created from a mixture of metals, mostly iron. There are many different types of steel including stainless steel, galvanized steel and carbon steel. Steel is commonly used to make a number of products including knives, machines, train rails, cars, motors and wires.


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About the Author

Peter Thomas is a senior vice president at the Zaner Precious Metal Division. As a licensed floor broker he was a filling broker in the silver pit back in the days when silver ran to $55 an ounce. He currently manages a global cash desk which handles Refiners, Recyclers, Mining Operations and Coin & Bullion companies.