Coal Consumption Plummeting in America
Coal consumption in America is plummeting. During the recent recession the volume of coal consumption fell from a peak of 94.7 million tons in July 2008, to 83.1 million in December 2009. Then, after rebounding briefly, new regulations and low natural gas prices served to crush demand for coal. The trailing... Read the full story
Dr. Copper’s Diagnosis
The red metal is often called Dr. Copper, because it has a Ph.D. in economics. Copper seemingly knows before anyone else that the economy is headed into a recession. If that’s true, copper isn’t signaling a rosy forecast today. Take a look at our chart of the price of copper. Futures for the 1-month... Read the full story
The Great Gold Bull Market
In the last five years the price of an ounce of gold has increased 131%. Easy monetary policies and the downgrade of many sovereign debt ratings, including that of the U.S., have contributed to the high demand for the safe-haven precious metal. Since May 16, in the lead up to September’s Federal Reserve... Read the full story
High Gasoline Prices are Hurting the Economy: We Can Help
The chart below illustrates quite well how a Federal Reserve policy of easy money meant to “bring down unemployment” is hurting most those it intends to help. The black line is the average retail price of gasoline in the United States. As you can see, the price is hovering around $4.00/gallon. The... Read the full story
The Commodities Whale
In a recent IMF working paper, author Shaun K. Roache provides readers with some valuable insight on China’s role in world commodity markets. It is no secret that China is a whale in the commodities space, but Mr. Roache helps readers understand just how much of an outlier China’s commodities consumption... Read the full story
Gas Prices Threaten the Economy
Tight global oil supplies and tensions with Iran (among other factors) have pushed retail gasoline prices back above $4 per gallon. When gasoline prices surged to near $4 per gallon last year, economic growth slowed as purchases cut into consumers’ discretionary spending power. Should we expect another... Read the full story
The Quiet Bull Market in Oil
While the world’s attention has been focused on Europe, the price of oil has risen more than 33% from its October low. West Texas Intermediate Crude is now trading above $100 per barrel. Much of the rally in West Texas crude is due to technical factors as Brent crude, which is more of a global benchmark... Read the full story
Copper Signals Trouble
Copper is said to have a PhD in economics for its ability to forecast the economy. Copper is used in everything from construction to autos to electronics. What do copper prices signal about the economy today? Global economic momentum is slowing. Copper prices are rolling over. The red metal has broken... Read the full story
From Raging Bull to Angry Bear
The raging bull market in silver has turned into an angry bear. Silver is down 5% this morning and more than 30% from its high only two weeks ago. The abrupt reversal is nothing short of spectacular—to watch of course. Investors who bought physical silver, or worse yet, margined silver futures, just... Read the full story
The Raging Bull Market in Silver
Silver hit a new all-time high this morning. Silver has risen over 144% since August 31. Why are we measuring from August 31? The end of August is when the esteemed Mr. Bernanke signaled that the Federal Reserve would print another $600 billion in Federal Reserve Notes. The money-printing campaign ignited... Read the full story
