Silver is following gold downward

Gold and silver futures got off to another rocky start to begin the trading week. Silver fell as low as $20.84 a troy ounce, the lowest since September 2010, later rebounding to close 3 per cent higher at $22.91 in New York trading.

The price of silver was the standout mover in financial markets Monday as it took a hammering for the second trading session in a row, even as stocks remained relatively solid amid hopes over the U.S. economy. Silver’s stumble also brought down the price of gold; the yellow metal hit a one-month low of $1,338.10 an ounce and extended its slump for an eighth straight day. Gold has fallen more than 7% in May.

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Guide to Commodities 2013

The recent fortunes made by investors in rare earth metals and gold are just two shining examples of what an extremely profitable investment class commodities can be. From aluminum and platinum to zinc and silver, oil and gas to cocoa and wheat, this Guide to Commodities from the Economist Intelligence Unit is a comprehensive overview of the forces at work in the world of commodities.

The price volatility of so many commodities over the past decade has underlined their economic importance and how dependent we are on them: the price of gold has soared to new peaks (before tumbling in the last few weeks) as currencies have endured a crisis of confidence, demand from China has pushed metal prices up, instability in the Middle East and North Africa has had its effect on the oil price and food prices have been increasing in parallel with worries about whether there is enough to feed the world. Read the rest of Guide to Commodities 2013 » » »

Commodities tumble on US retail sales news

Commodities tumbled to the lowest since July, led by a plunge in precious metals, as U.S. retail sales fell the most in nine months and consumer sentiment unexpectedly declined.

Gold fell into a bear market, and silver plummeted to the lowest since 2010. Crude oil slumped to a one-month low.

On the London Metal Exchange, a gauge of copper, aluminum, zinc, lead, nickel and tin fell 2.6 percent, the most in a year.

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Commodity Index Extends Slide to Lowest Since October

“We’re getting very weak data going into June and the markets don’t like it. Economies are slowing and demand will fall.”
Commodities extended their decline, falling to the lowest level in almost eight months, after U.S. employers created fewer jobs than economists estimated and Chinese manufacturing slowed.

Crude oil for July delivery fell $3.30, or 3.8 percent, to $83.23 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 7. Prices fell 17 percent in May, the biggest slide since December 2008.

Brent oil for July settlement slipped $3.44, or 3.4 percent, to $98.43 a barrel on the ICE Futures Europe exchange in London. It was the lowest close since Jan. 27, 2011. Brent is down 8.3 percent this year.

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Rare earths give China immense (and worrisome) influence (2/3): Rare earths production

To understand the stakes related to rare earths, we must address the myth of their rarity. Indeed, they are all more abundant than gold or silver in the earth’s crust, and their name actually reflects a relative rarity in minerals in which they are present (that is to say in low concentrations).

For example, lanthanides can be found in over 200 minerals, but only five of them have sufficient concentrations to be economically viable.

The U.S. Geological Survey (USGS) estimates world reserves to be around 114 million tonnes, i.e. more than 800 years of consumption if the level of current demand is maintained. These reserves are spread between China (48%), CIS (17%), the U.S. (11%), India (3%) and Australia (1.4%). The remaining 19% are divided between Canada, Greenland, Malaysia, Brazil, South Africa, Malawi, Vietnam, Thailand, Indonesia and a handful of other countries.

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Commodities Rally to Highest in More Than Six Months on Bailout for Greece

Commodities jumped to a six-month high as euro-area finance ministers reached agreement on a second debt bailout for Greece and U.S. equities rallied, boosting prospects for raw-material demand.

The Standard & Poor’s GSCI Spot Index of 24 commodities rose 1.6 percent to 699.17 at 2:56 p.m. in New York after reaching 700.79, the highest since July 27. Metals led the gains with silver up 3.7 percent and aluminum gaining 3.5 percent. The Dow Jones Industrial Average climbed above 13,000 for the first time since 2008.

via Commodities Rally to Highest in More Than Six Months on Bailout for Greece – Bloomberg.

Commodities Fall to Nine-Month Low

On the Comex in New York, copper futures for December delivery fell as much as 7.8 percent to $3.215 a pound. Prices have dropped as much as 31 percent since touching a record $4.6575 on Feb. 15. On the London Metal Exchange, nickel plunged as much as 11 percent to $16,800 a metric ton.

Commodities fell to a nine-month low as silver, copper and nickel tumbled on deepening concern that policy makers are running out of tools to avert another global recession, hurting demand for metals, fuel and food. Gold fell below $1,700 an ounce in New York.

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Commodities Erase This Year’s Gains in Selloff

Commodities erased this year’s gains after the U.S. Federal Reserve said the world’s biggest economy faces “significant downside risks,” boosting speculation raw-material demand will falter.

On the London Metal Exchange, three-month copper fell as much as 6.6 percent to $7,750 a metric ton, the lowest price since Sept. 22 last year. Prices in London have dropped 24 percent from the record $10,190 on Feb. 15, qualifying for a bear market if they close at or below $8,152.

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Commodities Rebound, as Gold Climbs to a Record in New York, Nickel Gains

Commodities rebounded as silver, copper and gasoline gained on speculation that growth in developing countries will be strong enough to boost raw materials demand. Gold advanced to a record as stocks fell.

The Standard & Poor’s GSCI Index of 24 commodities rose as much as 1.5 percent, after plunging 3.3 percent yesterday. Silver futures were up 2.9 percent at 10:46 a.m. in New York, sugar rose 3.2 percent, and gasoline gained 1.7 percent. Copper advanced for the third time this week, and gold rallied as much as 3.3 percent to $1,881.40 an ounce, the highest ever.

via Commodities Rebound, as Gold Climbs to a Record in New York, Nickel Gains – Bloomberg.

Commodities Erase 2011 Gain on Faltering Recovery

Crude-oil futures fell to the lowest level in five months on the New York Mercantile Exchange. On the Comex in New York, silver for September delivery fell as much as 6.2 percent, and copper futures dropped to a one-month low.

Commodities slumped, erasing gains for the year, on growing concern that the global economic recovery is faltering.

The Thomson Reuters/Jefferies CRB Index of 19 raw materials slumped 2.4 percent to 329.31 as of 1 p.m. in New York, led by declines in silver, energy and nickel. A settlement at that level would leave the index down 1 percent for the year.

via Commodities Erase 2011 Gain on Faltering Recovery – Bloomberg.