"Winter Is Coming"… Hungry For Gold

Aibek Burabayev - INO.com Contributor - Metals


Behind The Wall

I dedicated my last post to China which is diversifying foreign reserves with large Gold purchases. This time, I want to share my thoughts about a reviving empire and the northern neighbor of China.

The Eurasian Economic Union (EEU) is the largest union on Earth by territory. It is so vast that on one side of it people try to survive in Arctic frost and on the opposite side one can enjoy a mild winter full of sunny days skiing in the high Kyrgyz mountains. The union ranks fifth by GDP (PPP) and seventh by population and it’s only the beginning. The member states are (in alphabetical order): Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Continue reading ""Winter Is Coming"… Hungry For Gold"

"Enter The Dragon" Starring … Gold

Aibek Burabayev - INO.com Contributor - Metals


Recognition

Last Monday, the International Monetary Fund (IMF) endorsed the inclusion of the yuan in the fund's Special Drawing Rights (SDR) basket effective on Oct. 1, 2016. The Chinese currency has now joined the elite global currency club and will be the fifth member alongside the US dollar, the euro, the sterling and the Japanese yen.

Beijing has long hoped that the renminbi (another name for Chinese currency) would enter the privileged short list of world currencies, and it finally succeeded last week. But, first and foremost they are celebrating a political victory.

Some experts doubted that the yuan could be judged as "freely usable," which is the main criteria for inclusion to the SDR, but the reality proves that the stronger one is right despite such obvious contradictions as tight currency control and shares sale ban. Continue reading ""Enter The Dragon" Starring … Gold"

A Falling Knife Powered By "Clean" Diesel

Aibek Burabayev - INO.com Contributor - Metals


Back in July, Platinum closed just below the important round number level of $1000 I outlined in my post titled "Platinum Could Hit The Floor". In that post, I clearly pointed out that the metal is in big trouble. And that was almost two months ahead of the Volkswagen scandal that dropped the bomb on the future of the diesel car industry and its subordinate autocatalyst sphere with its large demand for Platinum.

It's ironic that a two-lettered emission gas (NO, nitrogen oxide) knocked out a two-lettered company (VW, Volkswagen), that can be written in the following equation: VW+NO=K.O. Continue reading "A Falling Knife Powered By "Clean" Diesel"

Copper Update: "Black Gold" Is Too Wild

Aibek Burabayev - INO.com Contributor - Metals


Last time I shared with you a clear signal from Crude oil to short Copper for a good dip down. Oil has dropped as foreseen from the $47.7 level. That's down a good $8 (17%) and it dragged Copper down along the way. This confirms Copper's tight relationship with Crude oil. Copper plummeted for a nice gain from a short position which has reached .35 (15% smaller than from Oil short) on Friday's low ($2.03). My original targets haven’t been met in both instruments ($ 37.7 Oil and $1.9 Copper), and that is why I would like to discuss my concerns with you.

Again we will start with the leading instrument in my regular cross-instrument analysis. Continue reading "Copper Update: "Black Gold" Is Too Wild"

Pendulum Experiment: The Weakest Metal Vs. The Strongest Future

Aibek Burabayev - INO.com Contributor - Metals


Dear readers, I hope things are good if you are short both top precious metals as per my Gold and Silver updates and you are enjoying the rising gains. As nothing unforeseen has been happening, let us do an experiment.

Do you know what a pendulum is and what the effect it has on an instrument? When something moves one way and then swings back and we push it harder forward, it will move back deeper for the distance that is equal to the distance between equilibrium and the forward point. Swings and waves are a normal part of our everyday life, and that is true for the markets as well. Continue reading "Pendulum Experiment: The Weakest Metal Vs. The Strongest Future"