Tuesday, August 5, 2008
World commodity markets have entered a sudden free-fall. This information is important enough that I want both subscribers and registered members of the site to be aware of it. Please feel free to distribute this report.
My strong advice is to hold off on pre-purchasing your winter heating oil and not lock in any contracts for natural gas. Ditto for pre-purchases of food, all metals, and gasoline/diesel.
If you were thinking of buying into gold or silver, better prices would seem to lie in the future, although the charts are a little less clear here.
This is all consistent with my advice from the last Martenson Report for subscribers (sent 8/2/08), where I said:
“I have my concerns about commodity prices over the remaining portion of 2008, and even more so for 2009. The reason is that extra supply from mines and newly planted acreage should be coming online right as the recession (depression?) is hitting full force in 2009.”
Here are the charts of the commodity damage:
Below is a chart of heating oil, the price of which is falling rapidly. After the price (the blue line) broke through the 50-day moving average (red line), the price declines have been relentless. Because of this, I am personally waiting to lock in my winter oil. I will keep a close eye on the price of heating oil and alert you if or when I think it is ready to climb back up.