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Ocean shipping delays through Panama Canal. News link.
Some friends were recently on a week long Caribbean cruise that was scheduled to stop in Panama City. But the ship decided to skip the stop due to some kind of “social unrest” there. Yes, there is a large lake, as I recall, in Panama that services the canal. Who would’ve thought it would ever run low? There have been suggestions of building a rail system across Mexico. But the amount of cargo it could handle would be minuscule compared to ships.
This low-water situation has been developing over the last few years. The number of ship transits through the canal has been substantially reduced. Additionally, the largest freighters are being required to offload a significant number of containers so as to reduce their depth through the canal and thus not use as much water for the transit.
I've not seen any information regarding possible effects on military ship transit, if in fact there has been any such impact.
“Is this a reason that gold is up in recent weeks?”
Good question. Gold’s been a bumpy ride as usual, but generally has gained ground throughout the year. Peaked over $2100 (a record high) 2-3 weeks back. Around $2050 today. It’s hard to assign causes for its erratic moves. But increasing international tensions would probably push it higher. Also, I think the easing (or perceived easing) of monetary policy by the Fed is the bigger ingredient in its gains this year.
Disclosure - I’ve followed gold for decades. But moved out of my only gold + pm funds completely 6-12 months ago due to the need to reduce portfolio volatility with increasing age. While I don’t like to identify specific holdings, I’ll say I’m a long time owner of PRPFX, which maintains significant gold and silver exposure, and also own one CEF that owns gold miners along with other natural resource stocks. Neither bullish nor bearish on gold. Have always viewed it more as a “hedge” inside a widely diversified portfolio.
I guess you'd be right about the WHY re: how come gold is up. It never held any interest for me, especially now, after the passage of time.(That means I'm getting old.) The miners are too streaky and volatile, AND most offer no dividends. I have been tempted with CNQ, but hate hate hate hate the idea of giving them my money as they LITERALLY deface the Province of Alberta with their Oil Sands project way up by Ft. McMurray.
Comments
I've not seen any information regarding possible effects on military ship transit, if in fact there has been any such impact.
https://www.cnbc.com/2023/12/18/how-houthi-attacks-in-red-sea-threaten-global-supply-chain.html
Disclosure - I’ve followed gold for decades. But moved out of my only gold + pm funds completely 6-12 months ago due to the need to reduce portfolio volatility with increasing age. While I don’t like to identify specific holdings, I’ll say I’m a long time owner of PRPFX, which maintains significant gold and silver exposure, and also own one CEF that owns gold miners along with other natural resource stocks. Neither bullish nor bearish on gold. Have always viewed it more as a “hedge” inside a widely diversified portfolio.