-- Posted Tuesday, 19 August 2008 | Digg This Article | Source: GoldSeek.com
DAILY COMEX REPORT
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
KNOW YOUR COMMODITY BEFORE INVESTING
There are traders in commodities who do not know the use of the commodity. Someone in India had incurred losses while trading in commodities. I had asked which commodity did he loose his money. He told me lead, zinc and nickel. I asked the person whether he knew the uses of these commodities. He told me that lead and zinc are used for pollution control. The first basic rule of investing in commodities is know to the fundamentals of the commodity, its uses etc.There are huge number of commodity traders like the example I have mentioned in India. Then they will curse the commodity exchanges for their losses and plight.Do not shift the blame game on the commodity exchanges when you are responsible for the losses. I know traders who trade in carbon credits in MCX and do not know what exactly is a carbon credit. All they know is the profit or loss per tick. There is a thin line of difference between wager/speculation and investment. It is your money and one needs to protect his capital at all cost. The rest is up to you for you to decide.
TODAY
The US dollar and crude oil will be the key factory for all metals and energies. Crude oil has risen due to a storm in Cuba prompting evacuation in oil rigs in the Gulf of Mexico. The US dollar has weakened as traders booked profit before key US economic numbers this week. There should be a technical bounce in gold and silver and all metals. Highly oversold conditions exist. Thereafter it remains to be seen whether the rise is sustainable.
COMEX SILVER SEPTEMBER
A lot of traders are long in silver and short in gold after looking at the gold-silver ratio. This move has backfired. Failure to break $1380 will result in a fall back to $1220 and $1160 in short term.
Disclaimer:Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employeeshave any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information.
Nothing in this article is, or should be construed as, investment advice.
-- Posted Tuesday, 19 August 2008 | Digg This Article | Source: GoldSeek.com
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