Wednesday, January 8, 2014

10 Smokin' Hot Links for Wednesday -- Gold, Nat Gas, China and More

Yesterday, I taped a video, which turned into a circus of hells. We did not complete all that we wanted to do yesterday, which means I have to spend more time yakking today.

The point is, those who are waiting for an issue will have to wait another day.

Here is what I'm reading this morning.

1. Arctic chill exposes weakness of U.S. natural gas system

Despite its location alongside the biggest natural gas deposit in the country, the northeast region saw record price spikes on Monday as an unprecedented surge in demand from power plants and homeowners overwhelmed pipelines.
The rise in prices forced spot-market buyers in New York and New England to pay up to 20 times more for their gas than amply supplied hubs in Texas and Louisiana.

Sean's note -- I tell you, something big is brewing in the nat-gas markets. Subscribers to my Gold & Resource Trader have banked a couple rounds of gains on various nat-gas plays; I expect we'll do more of that.

2. How an unforeseen U.S. oil boom is upending global energy markets

The U.S. oil boom has put European refineries out of business and undercut West African crude suppliers. Now domestic drillers threaten to roil Asian markets and challenge producers in the Middle East and South America. 

See also: U.S. Oil Boom Changes Trade Trends

3. Armed Groups In Libya Are Selling The Oil They Seized

Sean's note -- that's good for longer-term production in Libya, eh? NOT! It's still early in the game, but we may have to add Libya to the list of failed states, a list growing longer thanks to Western-Alliance intervention in the name of democracy.

Note -- I'm not against democracy, freedom, or human rights. But if you think that's what the uprising in Libya was really about, you're not paying attention.

Speaking of which ...

4. The Egyptian revolution has failed

 Click through only if you want to be more depressed.

5. India’s economic woes are so dire that millions may de-urbanize

India’s Crisil Research projects that 12 million people willreturn to low-productivity farm jobs by 2019 because of a lack of economic opportunities in the manufacturing sector, unless the government carries out long-debated labor market reforms and improves crucial infrastructure.

Sean's note: Remember when India was going to be the next China? Good times, good times.

6. Chinese Investment In The US Doubled In 2013

China's investment in the United States doubled to $14 billion last year

Maybe the Chinese know something that US corporations don't. Because ...

Rather than tout big new investments, raise worker wages or hire more employees, companies are more likely to set aside funds to reward shareholders. The 30 companies listed on the Dow Jones industrial average have authorized $211 billion in buybacks in 2013. 


Because we can't have a day without gold links, right?  Interestingly, the GDX went up even though gold went down yesterday.  Hmm ... Anyway:

 7. No price recovery expected for gold in 2014 as physical demand drivers trump investment

Gold prices are expected to decline in 2014, as unchanged physical demand does little to counteract a move away from institutional and hedge fund-derived investment in the yellow metal, narrowing the yearly average from $1 411/oz in 2013 to $1 225/oz in 2014, Thomson Reuters GFMS precious metals demand manager Andrew Leyland has asserted.

8. Gold & Silver; Going from Strength to Strength

 And yet the analysis at that link includes this phrase: "We continue to see lower gold prices, possible reaching as low as $ 1100 or beyond that at $ 1040. The weekly downtrend remains solid, with a rebound as an opportunity to sell further."

Good times, good times.

9. Here's a new-ish paper on gold and precious metals, with some useful charts. SSRN-id2078535(1)

Just For Fun ...

10. Jon Stewart Mocks Bill O'Reilly And David Brooks On Weed

On his show, O'Reilly has said that becoming intoxicated is "literally Russian roulette"

"Bill, what are you talking about?" Stewart responded. "In fact, I think the only difference between a bong hit and pointing a loaded gun at your own skull is that the gun can kill you instantly and must never be criminalized or restricted in any way ever."

The Daily Show

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Have a great Wednesday.

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