Oct
12
Written by:
Steve Patterson
10/12/2009 6:48 PM
Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
On Monday energy prices rallied on the weaker US Dollar and some help from lower temperatures in the states, and the gold, silver, coal and metal mining rally continued. The weak dollar has led investors to pour money into commodities that are traded in the US Dollar including oil and natural gas over the past couple of months. 2009 has been a good year for commodities with Continuous Commodity Index (GCC) moving from $21.49 to a recent 3 month high of $24.54.
Gold and Silver
In the gold space the Spiders Gold Shares (GLD) is the safest and least volatile way to speculate in the trend continuing higher in commodity prices and gold in particular. The Exchange Traded Fund reach a new 52-week high of $103.64 just days ago. Some are warning of a bubble in commodities which is true but as long as the dollar continues to weaken, the chance of a major change in direction is unlikely. The signs of economic improvement in America and in other major economies around the world boast well for commodities as supply will increase as countries begin to build new infrastructure again.
Coal & Metal Mining
Coal and Metal Mining is seeing similar interest from investors but taking a look at individual shares within the industry does not present a decent investment. BHP Billiton Ltd (BHP) is the largest company in the area which has some decent growth 54.5% earnings with –10.6% revenue for the year but is in the midst of a fairly tough quarter so could have topped out at a recent three month high. This is fairly representative of many of the stocks in the industry.
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8 comment(s) so far...
Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
All over the world people are still wary of investing in currencies and real estate. So they go for metals.
By Steve on
10/14/2009 6:15 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
When people do not find some safe fields for investment and seeing that currencies are undergoing through dramatic up and downs that make it quite difficult to come to any conclusion.
Same is the condition with the real estate yet it is slightly improved now but still it will take time to build up confidence in trading once again.
So, the trader are turning their interests towards metal and gold off course the first interest and safer entity to invest.
By Forex on
11/13/2009 1:17 AM
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Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
I Think that is a really a great thought on us dollar.I follow the value of US dollar everyday and it is increasing non-stop nowadays.I want know why and how do you predict US dollar value in short term against other currencies like Euro.
By best wireless headphones on
11/28/2009 3:28 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
Check out VHGI Gold www.vhgigold.com
By John G. on
12/11/2009 8:27 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
Thanks for the link.
By Steve on
12/11/2009 9:36 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
Dollar seems to be weaker and weaker every year. And that is not a part of latest economical crisis. This situation can be observed for many years and the situation will soon become critical. Dollar soon can become so weak that all imported goods will become really expensive.
By Pen Tablet on
12/17/2009 5:00 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
It's largely a part of monetary policy that could reverse once the economy improves.
By Steve on
12/17/2009 11:28 AM
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Re: Gold, Silver, Coal and Metal Mining Rallies on Weak US Dollar
Euro is strong and in Europe gold is most popular to invest.
By Chronic on
12/22/2009 4:47 PM
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