In
your
quest
to
mine
information
from
data.
. .
no
pans,
shovels
or
tents
shall
be
required!
Yonder
there...
is
gold
in
them
thar
hills
of
Wall
Street...
COSMIC:
Precious
Metals
maintain
an
intrinsic
value
and
should
be a
part
of a
major
portfolio
for
the
purpose
of
diversification.
Precious
metals,
especially
gold,
can
be
used
to
hedge
against
the
decline
of
the
dollar,
which
has
sparked
an
increase
in
the
volume
within
metals
futures
and
the
creation
of
the
mini
gold
and
mini
silver
products.
Metals
volume
also
has
increased
as a
result
of
Global
economic
growth,
especially,
The
BRIC
Countries:
Brazil,
Russia,
India
and
China.
This
economic
growth
engine
has
created
greater
demand
for
copper,
iron,
steel
and
silver.
Gold
has
been
the
most
sought
after
metal
in
the
world
for
hundreds
of
years.
Gold
has
a
unique
blend
of
rarity
and
is
seen
as a
flight
to
safety
or a
hedge
against
day-to-day
uncertainties
of
paper
money.
Gold
also
plays
a
role
in
industrial
markets,
due
to
its
ability
to
conduct
electricity
and
its
non-corrosive
properties.
Silver
is
the
most
consumed
PRECIOUS
metal
of
industrial
raw
material.
Major
industrial
usages
of
silver
are:
photographic,
jewelry,
and,
most
of
all,
electronics.
For
example,
computer
screens
contain
silver.
Unlike
gold,
most
silver
placed
into
industrial
material
is
consumed
and
not
always
recoverable.
This
makes
the
price
of
the
metal
highly
responsive
to
supply
and
demand
dynamics.
Copper
is
the
third
most
used
metal
in
the
world
and
the
majority
of
its
usage
comes
within
the
construction
and
industrial
machinery
industries.
Many
of
the
copper
mines
in
the
world
are
government
controlled,
which
makes
the
supply
of
the
metal
susceptible
to
political
environment
of
these
countries,
which
can
lead
to a Contango. situation
in
futures. Contango arises
when
the
futures
price
is
above
expected
future
spot
price.
Consequently,
price
must
decline
to
spot
price
prior
to
delivery.
We
primarily
use
metal
futures
as a
position
trading
device,
mostly
applying
a
trend
following
type
system
that
utilizes
the
Derivative
Concepts
proprietary
technical
indicators
and
combines
them
with
key
Fibonacci
inflections
generated
from
monthly,
weekly,
and
daily
charts.
In
order
to
confirm
retracement
and
to
determine
when
to
re-enter
in
the
direction
of
the
long-term
trend,
we
rely
highly
on
weekly
Commitment
of
Traders
[COT]
to
reveal
preponderance
of
commercial
longs
or
shorts.
Note: There
are
two
types
of
metal
traded
on
the
exchanges:
precious
and
industrial.
Gold,
Platinum
and
Silver
are
interesting;
however,
these
entities
are
better
suited
to
swing
or
core
trading
while
those
of
us
are
intrigued
with
intraday
volatility.
One
excellent
source
for
learning
an
effective
method
for
trading
gold
is a 2004
DayTradersUSA talk
by Tom
Loge'
DISCLOSURE: The
High
Degree
of
Leverage
Often
Obtainable
in
Commodity
Trading
Can
Work
against
You
As
well
As
for
You.
Use
of
Leverage
Can
Lead
To
Large
Losses
As
Well
As
Gains.
