Exchange & Stocks
US stock markets just enjoyed their best week of the year on speculation that the Federal Reserve would once again ride to the rescue of equities and inflate asset prices by cutting rates.
The S&P 500 index is sporting double digit percentage gains so far this year. Meanwhile, the S&P GSCI All Commodities index is down 14% over the past year.
Apart from all things gold, Incrementum's 13th annual In Gold We Trust report also features broader takes on the environment for raw materials and argues that in a historical context commodities remain undervalued compared to stock markets in the extreme.
Plotting the S&P GSCI and the S&P 500 all the way back to 1970 shows the indices long-term upward trend line and the current disconnect between commodities and equities:
To return to this trend line – which happens on average every 6 to 8 years – the S&P would have to fall by 44% and the GSCI to rise by 112%.
This is a scenario that seems highly unlikely, if not impossible, at the moment. However, a glance at the following chart or at the history books puts this alleged impossibility into perspective.
Argentina’s mining industry is following closely what opposition candidate Alberto Fernández, the front-runner for October’s presidential election, has to say when it comes to resources exploitation and foreign investment, as worries about the potential Peronist government turning to protectionist measures and populist policies.
The gold price plunged in early morning trade on Thursday, in one of the worst trading sessions in dollar terms in gold market history.
Iranian Deputy Industry Minister Hossein Modares Khiabani said his ministry has it on the agenda to increase the value of exports to Iran’s 15 neighbors up to $50 billion, Tasnim news agency reported on Saturday.
Canadian bullion producer Eldorado Gold (TSX:ELD)(NYSE:EGO) said on Thursday that exploration carried out at its Quebec’s Lamaque mine so far this year revealed high grade mineralization beyond the 2018 resource model in the lower portion of the deposit, as well as more ore clusters.
The value of exports from Iranian small-sized industrial units has increase 15 percent during the first five months of the current Iranian calendar year (March 21-August 22) compared to the figure of the same period of time in the past year, IRNA reported, quoting Mohsen Salehinia, the deputy industry minister, as saying on Wednesday.
Iranian Energy Minister Reza Ardakanian and his Russian counterpart Alexander Novak stressed accelerating the implementation of the two countries’ joint projects in a meeting in Moscow on Monday.