Daily Investment Tips

Marc Faber is nick named ‘Doctor Doom’ He dishes out his market predictions and Forecast advice in his newsletter Gloom Boom & Doom Report.

Marc Faber is famous for predicting 1987 stock market crash. He advised his clients to get out of the stock market one week before the October 1987 crash.

Marc Faber Current Market Predictions & Forecast

1. US is going to go bankrupt – His current tag-line is: ‘buy a $100 US bond and frame it to teach your children about inflation by watching the US bond value diminish to almost nothing over the next 20 years’
2. As world population expand, food prices will continue to rise – Faber advises stock pickers to play on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
3. Commodities – Gold and other metals are still long term buys.
4. One of his most controversial forecast is imminent dirty war between US  and China over access to limited oil resources.

written by Constantine Njeru \\ tags: Bond Value, Boom, Commodities, Current Market, Dirty War, Doctor Doom, Food Prices, Future Food, Gloom, Inflation, Marc Faber, Market Predictions, Metals, Oil Resources, Stock Market Crash, Stock Pickers, Tag Line, Water Shortages, Water Treatment Technologies, World Population

Copper has soared to a record of $4.2705 per pound on Tuesday December 2010 in New York. Copper was up 28.3% in 2010.

The common knowledge is Copper prices and prices of all other metals have been driven up by the rising demand in China and India. But the truth is another hidden hand is at play here : Some commodity traders have successfully cornered the markets.

Fundamentals for Higher Copper Prices

The wallstreet journal is reporting a single trader has reported it owns 80%-90% of the copper sitting in London Metal Exchange warehouses, equal to about half of the world’s exchange-registered copper stockpile and worth about $3 billion.

If a single player has such a large control of the commodity you can only conclude this has created an artificial shortage.

Copper ETFs

Another hand is the power of ETF. This funds have increased the amount of money flowing into metal prices. They are buying up the metal pushing the prices higher and higher.

When you combine, the rising demand for the commodity in China, the dominant control by one player plus the power of the ETFs you can predict or forecast Copper prices will continue to remain high, atleast for now.

written by Constantine Njeru \\ tags: Amount Of Money, Atleast, China, Commodity Traders, Common Knowledge, Copper Prices, Dominant Control, Half Of The World, India, London Metal Exchange, Metals, Pound On, Single Player, Stockpile, Truth, Wallstreet Journal, Warehouses

2009 has to be the year of commodities. If you are a follower of trend following you must have made lots of cash by trend of gold, Silver & Platinum.

Look at this 2009 Price trends of this metals

2009 Gold Price Trend – up 34%

2009 Silver price trend – up 63%

2009 Platinum price trend – up 56%

2009 Palladium price trend – up an impressive 98%

If your mind was focused on the falling prices of real estate & non-starter stock market recoveries, you might have missed this commodities bull.

Should investors jump in? No! I don’t think just because this metal commodities have done well in the past they will continue doing well.

Strategy for making money in Metal commodities.

Whatever goes up, eventually comes down, one strategy is to focus on shorting the metals or sell the futures contract.

Strategy two, only for the seasoned pro, if you know how to play the speculation game keep buying the futures contract.

written by Constantine Njeru \\ tags: Amp, Contract Strategy, Follower, Futures Contract, Game, Gold Price, Gold Silver, Investors, Making Money, Metal Commodities, Metals, Palladium Price, Platinum Price, Price Trend, Price Trends, Real Estate, Silver Platinum, Silver Price, Speculation, Stock Market