Overnight Glencore’s CEO had some fascinating comments about commodities.
Here are the comments that came from Glencore’s CEO, courtesy of Art Cashin: Overnight And Overseas – Perhaps the key feature overnight comes from Glencore. They had lousy numbers but the CEO said that commodities had bottomed. Given his reputation as a sharp trader that brought a quick response. Many commodities and commodity currencies are higher.
Oil is up on the Glencore comments, Russia’s call for a meeting of all its internal producers and the imminence of a Venezuelan default, which could take them off the market (explain tomorrow). Asian markets a bit better with India red hot. European markets are generally firmer as is the dollar.
King World News note: Below you can see the commodity hedgers position, which is very close to the least bearish posture in the past 5 years. So perhaps Glencore’s CEO is correct in his assessment that commodities have bottomed.
King World News note: As an example, the price of natural gas has been battered for many years, and sentiment is now at one of the lowest levels in the past decade. Maybe commodities such as natural gas and the commodity complex itself have finally bottomed (see chart below).
What does this mean for gold and silver?
King World News note: As we have noted, there is a large concentration of commercial short positions in both gold and silver. This may put pressure on their price action in the short-term. Having said that, if commodities have finally bottomed, this will mean inflationary pressures will ratchet higher in 2016 and this will be bullish for gold and silver in both the intermediate- and long-term. This may signal a very good year for both metals in 2016, despite the noise of the pullbacks that will have to be endured along the way.
***KWN has now released the Stephen Leeb KWN audio interview where he discusses the gold and silver, China, Russia, what surprises to expect in 2016, and much, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: One Of The Last Major Warnings From The Godfather – Richard Russell CLICK HERE.
***KWN has also now released the Dr. Paul Craig Roberts KWN audio interview where he discusses the gold and silver market in greater detail. Dr. Roberts also discusses the greatest threat facing the world, systemic collapse, major markets, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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