Investors are always interested in gold, everybody has an opinion on it and the talking heads can always find a reason why you should buy or not buy it. OK, I’ll admit to being one of those talking heads from time to time.
Tuesday's trading was a prime example of the strong upside sentiment permeating in the crude oil complex. Genscape reported a huge build in Cushing, Okla., crude oil inventories and after a short lived round of selling the market recovered all its intraday losses and closed higher on the day.
Silver is much more volatile than gold. Typically when we see a weak day for the gold price, silver has a terrible day. Likewise, if we see a strong day for gold, typically silver delivers exceptional performance. Because it's so volatile, we term it the devil's metal.
This week the three main forecasting agencies (EIA, IEA and OPEC) all released their forecasts for 2015. All three reports were relatively consistent with each other in that they all indicated that oil production is unprofitable and already starting to be cut and will likely continue to be cut as long as prices remain depressed.