Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. In this column, JWR also covers hedges, derivatives, and various obscura. This column emphasizes JWR’s “tangibles heavy” investing strategy and contrarian perspective. Today, we look at the burgeoning global derivatives market. (See the Derivatives section.)
Precious Metals:
Israel’s war with Hamas puts new safe-haven focus on gold.
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Mark Lundeen, at Gold-Eagle.com: Studying Barron’s Gold Mining Index.
Economy & Finance:
Bidenomics, in action: Inside Today’s Jobs Report: 885,000 Full-Time Jobs Lost, 1.127 Million Part-Time Jobs Added, Record Multiple Jobholders.
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Renewable energy stocks plunge as going green gets ‘expensive’.
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H.L. flagged this news: After Getting the Largest Bailout in U.S. History in 2008, 85.5 Percent of the $1.34 Trillion in Deposits at Citigroup’s Citibank Lack FDIC Insurance Today.
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Linked over at the Whatfinger.com news aggregation site: Disney’s Financial Disasters Are Even Worse Than Previously Reported.
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And over at Zero Hedge: Fed’s Presidents Agree: Soaring 10Y Yields Means No Need For Further Rate Hikes.
Commodities:
Futures, Yields Slide, Oil Jumps As Israel-Hamas War Sparks Global Flight To Safety.
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Rare Earth Prices Skyrocket Following Burmese Mining Suspension.
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Solar module prices continue to fall. JWR’s Comment: You’ve gotta love a truly competitive market.
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August 2023 Gun Sales Top 1.1 million, At Least.
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Hedge funds boost bearish bets on grains.
Derivatives:
This report uses some dated figures, but it is still of interest: Essential Derivative Market Size Statistics in 2023. Here are a couple of quotes:
“Delving into the heart of derivative market size statistics, the figure of $15.48 trillion in over-the-counter (OTC) derivatives notional amounts outstanding for 2020 is not just a number. It serves as a key indicator of the pervasive and significant role played by derivatives in the labyrinth of financial markets worldwide.
This astronomical sum affirms the vastness, depth, and complexity of the OTC derivative market. It plays a crucial role in painting a vivid image of a globally interconnected market where banks, corporations, and individuals are constantly hedging risks, speculating on future price movements, and acquiring secure investments.”
and,
“…a remarkable trend came to light by the close of 2019: approximately 80% of the overall OTC derivatives market was dominated by interest rate derivatives. This overwhelming majority carries profound implications. It earmarks interest rate derivatives as the lion of this financial jungle, setting the tone for market movement and influencing trading strategies. Moreover, it indicates the preference of global investors for hedging against or exploiting fluctuations in interest rates.”
A June, 2023 ISDA report notes:
“The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows a significant increase in gross market value and gross credit exposure of OTC derivatives during the second half of 2022 compared to the second half of 2021. The growth was driven by higher interest rate derivatives (IRD) market value following increases in interest rates for key currencies in 2022.
The gross market value of OTC derivatives contracts rose by 66.8% at year-end 2022 compared to the end of 2021. Gross credit exposure – gross market value after netting – grew by 44.9%. Global OTC derivatives notional outstanding increased by 3.3% at year-end 2022 compared to year-end 2021.”
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A one-year limits countdown in Australia: The 2024 Rules from 21 October 2024.
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A proposed rule from the Federal Reserve: Regulatory Capital Rule: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies; Systemic Risk Report (FR Y-15).
Forex & Cryptos:
Bank of Israel to sell $30 billion of forex to stabilize shekel amid Gaza war.
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At Currency Thoughts:
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Dollar surges against euro on flight to safety amid Israel-Palestinian fighting.
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Early XRP Investor who made millions sets sight on a new crypto.
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What is going on with Sam Bankman-Fried’s defense?
Tangibles Investing:
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Palmetto State Armory (one of our affiliate advertisers) has some great specials in their “Daily Deals” this week.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or via our Contact form.) These are often especially relevant because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News items from local news outlets that are missed by the news wire services are especially appreciated. Thanks!