Commodities bubble continues to burst

Discussion in 'Stock Market' started by Chris, May 6, 2011.

  1. Chris
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    Chris Gold Member

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    NEW YORK (CNNMoney) -- Commodities continued to sell off on Friday, with oil and silver sliding to their lowest levels since mid-March, as the dollar remained strong. Investors also remained on edge ahead of the government's closely-watched jobs report.

    Oil slipped 3% early Friday to $96.85 a barrel. On Thursday, crude sank nearly 9% -- the biggest one-day percentage drop in two years.

    Oil, silver prices continue to decline ahead of jobs report - May. 6, 2011
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Oil's well that ends well.
     
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  3. PLYMCO_PILGRIM
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    PLYMCO_PILGRIM Gold Member

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    Nice.

    If silver drops another 15% and we decide to raise our debt ceiling i'll be dumping another 15% of my cash savings into a few kilos of silver.
     
  4. KissMy
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    KissMy Free Breast Exam

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    The commodities correction ended when the jobs numbers came out this morning. I would buy before the QEII deadline in June. There is no way the Fed will stop printing money on that date. Commodities will rally when Bernanke announces that they will continue.
     
  5. uscitizen
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    uscitizen Senior Member

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    I expect you are correct. But think about why this is so?
    Not a necessarially a good thing for the long term.
     
  6. Toro
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    Toro Diamond Member

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    Silver has been crazy but I don't know if the bubble has burst for commodities, or if it is even a bubble.

    Generally, bubbles pop when monetary conditions are tight. Conditions are still very loose. The end of QE2 may cause a selloff, but the end doesn't mean it's tight. It just means the easing has ended, two very different things. The tech and housing bubbles didn't end when the funds rate was at 3.5% and 1%. They ended after rates had tightened to 6.5% and 5.25%. We are far far from the top of the monetary cycle.

    But maybe it's different this time, I don't know.

    Remember that the worst stock market decline in 1987 happened in the middle of the greatest bull market in stocks in history.
     
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  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Commodities dive...
    :confused:
    Commodities Rout Drives Oil Below $100
    MAY 5, 2011, A surging dollar and a collapse in oil prices roiled commodity markets, as fears grow that high costs for energy and raw materials are undermining the global economic recovery.
     
  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    Rev. Pat onna PTL Club says gold prices gonna keep goin' up...
    :confused:
    Commodity prices climb amid economic turbulence
    Sun, May 29, 2011 - Commodity prices advanced during a volatile trading week in which investors weighed up the impact of weak US economic growth and an escalating European debt crisis on demand for raw materials.
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    There's a bit of a difference between profit taking and a bubble collapse.

    BTW, Chrissy, how're housing starts and prices for existing unit doin', you bloody dipschitt?
     
  10. wimpy77
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    wimpy77 Member

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    Most of it has to do with economic climate. Look for things to become very wacky over the next month with the debt situations.
     

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