A Common Misconception About the US Dollar Index

Posted on February 22, 2017 by Eric Twitty

The Dollar Index is not a good indicator of the purchasing power of the US dollar.  You must remember that the dollar value quoted is just an index of its value relative to a basket of six currencies.  The Euro makes up the majority of this basket.  The breakdown is: Euro- 57.6% Japanese Yen- 13.6% Pound Sterling- 11.9% Canadian Dollar- 9.1% Swedish Krona- 4.2% Swiss Franc- 3.6% As you can see, the Dollar Index value is very dependent on the Euro.  With the possible breakup of the European Union, you could potentially see a major rally in the US Dollar Index without putting any bearish pressure on commodity prices.  With a breakup of the EU, you could even see a major rally in Gold and Silver, even though the Dollar would likely surge to multi-decade highs. For additional information and risk parameters please contact Eric Twitty at 972-387-0080 or erict@dallascommodity.com.

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Silver To Twenty?

Posted on June 2, 2016 by Walter Otstott

From a strictly technical POV silver looks poised for the next leg up on its renewed bull market: 1) Pivot support is in a wide band from $15.50 – 16.00. 2) The 200-day moving average is ~$15.75 (middle of the aforementioned zone). 3) Just north of the 200-day average is a ~50% Fibonacci retracement level of 2015’s lows to 2016’s erstwhile highs. For those who don’t know your Greek and want a little fundamental scuttlebutt, copper and nickel mines are being shuttered on account of weak demand from China, et al. Silver happens to be a by product of such mining activity. Silver can be very volatile (No kidding?); be sure to employ risk controls whether using futures or options. You don’t want your silver investment to tarnish! Adjusted for inflation, silver should be north of $150 per ounce. For additional information and risk parameters please contact Walter Otstott @ 972-387-0080 […]

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What’s happening in the Silver Market?

Posted on April 20, 2016 by Mitchel LaRocca

The precious metals sector of the market has been under pressure for quite some time.  There are multiple reason, including economic uncertainty, sluggish global growth along with slack investment and industrial demand.  However, the environment seems to be changing and there seems the deflationary environment that has persisted is beginning to abate and, dare we mention, a hint of “re-inflation” is at hand.  With the never-ending mix of market pundits and “headline news” it is often extremely difficult, especially in the midst of a macro-economic shift, to determine cause and effect.  However, a picture can often put things in perspective quickly.  With that in mind, look at the monthly Silver chart below — you be the judge.  Has demand returned?  Has the prospect for improved economic activity and a more “inflated” economy entered the market?  Will the moving average hold?  Do the technical indicators tell us anything? Will Silver prices recover […]

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A Return To Higher Prices?

Posted on April 19, 2016 by Mitchel LaRocca

For months, actually for years there has been a gradual erosion of commodity prices.  Just a few years ago Crude Oil was trading at $147 per barrel, Sugar at 36 cents per pound, Wheat at $13.00 per bushel,  Coffee at $3.00 per pound and Gold at $1,900 per ounce. Over the recent months most of those markets traded at one-half to two-thirds of those prices. Sugar reached a low of 10.00, Wheat dropped to 4.35 and Coffee traded down to 111.  In the case of Crude Oil it dropped by over 80 percent! Yes, deflation has been prevalent in many markets as global economies navigate through a sea of uncertainty, stagnant growth, negative interest rates and slack demand. However, it appears things are changing.  

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Why You Should Own Gold

Posted on April 14, 2016 by Eric Twitty

There is a lot of turmoil in the world today. Western governments have massive debt, slowing economies, and are moving towards socialism. Governments operate at massive deficits with no cuts in spending in sight. Higher taxes, negative interest rates, and massive amounts of money creation are all tools governments are using to increase revenues. The U.S. Government has more debt than any nation in the history of mankind. The Federal Reserve is on the verge of insolvency. These aren’t just statements made by me, the numbers are out there for anyone who cares enough to look. The Fed’s assets and liabilities are so bloated that even the slightest drop in the value of their assets will give them a negative net worth. You think their asset values won’t drop? Look at their biggest holdings. They are bonds, which are near all time highs, and mortgage backed securities, which were the […]

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