-- Posted Wednesday, 9 March 2011 | | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
The Libyan war continues as the West thinks of imposing a no fly zone in Libya in a move to end war. The Federal Reserve will not raise interest rates this year and will prefer higher inflation to lower growth. The European central bank’s interest rate hike next month could be a one off move and it may not raise interest rates for the rest of the year. The European sovereign debt crisis is not yet over as Greece’s credit rating has been downgraded. Central banks in the developed nations will not reduce interest rates. The US economy will be in deep shit if it does not raise interest rates early next year. Japan is an example where near zero interest rate for years has not propelled the Japanese economy. The Federal Reserve must learn lessons from Japan. Zero interest rates and high liquidity are not the magic solution for all economic woes. Zero interest rates and excess money supply are an indirect way to devalue the currency. Devaluation does not work in the long term. The end result is a breakdown of global currency markets and paper assets and a continued rise in the value of hard assets such as gold, silver, land etc. In the long term only assets are the best to invest. One is gold, silver and other precious metals and the other is land (not apartment in buildings). The rest of the investments will give you losses in the long term. There are some who say that land, gold, silver etc does not give me dividends. My argument is that there value will never be zero unlike other investment classes.
(I had started “Insignia Consultants” in 2003 and I have been always in favour of investing in land and other forms of hard assets. The prime reason being the break down in the value of paper assets. I continue to maintain the view that the global break down in paper assets is not yet over. There is more to come.)
There is every reason for me to invest in gold at the current prices for the long term. Those who are invested in gold and silver should remain invested. Corrections will be a part and parcel of a long term bull rally. Gold at $1000 is history and gold at $2500 will be a reality over the coming years. Risk to return ratio is in favour of the long term buyer.
COMEX TECHNICAL VIEW
COMEX COPPER MAY
Bearish below $436 with $419 and $407 as price target
Bullish over $443 with $452 and $457 as price target
Neutral Zone between: $445-$451
- $436.30 is the key short term support and copper needs to break and trade over $436 to be in bullish zone.
- As long as copper trades below $436 it will fall to $423 and $412.80
- We prefer to buy only over $436.
NYMEX CRUDE OIL (1ST CONTRACT)
Bullish over $103.10 with $108.80 and $111.50 as price target
Bearish below $100.80 with $99.10 and $97.50 as price target.
There will be sellers as long as crude oil remains below $110.
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 employees have 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. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS
PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.
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-- Posted Wednesday, 9 March 2011 | Digg This Article
| Source: GoldSeek.com
