Gold headed for a second quarterly loss as holdings in exchange-traded products fell by the most on record and the dollar climbed on prospects for a U.S. recovery, eroding the metal’s allure as an alternative investment.
Bullion for immediate delivery traded little changed at $1,605.97 an ounce at 10:48 a.m. in Seoul from $1,605.25 yesterday. Prices have fallen 4.1 percent this quarter in the first back-to-back quarterly losses since 2001. The metal touched $1,555.55 on Feb. 21, the cheapest since July 2012………………………………………..Full Article: Source

As the broad markets are approaching their all-time highs, investors are gaining confidence over the riskier asset classes. As such, equities and equity ETFs are showing heavy inflows this year on the heels of improving global economic conditions.
In this backdrop, commodities like gold, agriculture and industrial metals have experienced some weakness due to a lack of investor interest and a strong dollar. The fears of a deepening euro zone crisis of late has also taken a toll on these commodities, hurting demand for raw materials, further adding to their woes………………………………………..Full Article: Source

Water is reaching super-commodity status as it is always in demand and we rely upon a constant supply. As water infrastructure systems continue to age, the case for a water-focused exchange traded fund gets stronger, within a properly diversified portfolio.
“There are estimated to be between 700,000 and 800,000 miles of public sewer mains in the U.S., and over one million miles of drinking water systems, with pipes over 100 years old, meaning they are either past or nearing the end of their useful life, according to a ASCE report. Pipes represent the largest capital investment, accounting for 80%-85% of all wastewater systems investment requirements in the U.S.,” S&P Capital wrote in a recent note. ……………………………………….Full Article: Source

Water is reaching super-commodity status as it is always in demand and we rely upon a constant supply. As water infrastructure systems continue to age, the case for a water-focused exchange traded fund gets stronger, within a properly diversified portfolio.
“There are estimated to be between 700,000 and 800,000 miles of public sewer mains in the U.S., and over one million miles of drinking water systems, with pipes over 100 years old, meaning they are either past or nearing the end of their useful life, according to a ASCE report. Pipes represent the largest capital investment, accounting for 80%-85% of all wastewater systems investment requirements in the U.S.,” S&P Capital wrote in a recent note. ……………………………………….Full Article: Source

As the broad markets are approaching their all-time highs, investors are gaining confidence over the riskier asset classes. As such, equities and equity ETFs are showing heavy inflows this year on the heels of improving global economic conditions.
In this backdrop, commodities like gold, agriculture and industrial metals have experienced some weakness due to a lack of investor interest and a strong dollar. The fears of a deepening euro zone crisis of late has also taken a toll on these commodities, hurting demand for raw materials, further adding to their woes………………………………………..Full Article: Source

Although some commodities have had a strong start to 2013, many have seen severe weakness to open up the year. This has been especially true in the beaten down base metal space, in products such as aluminum, zinc, and copper.
These metals have been victims of relatively sluggish conditions in some key emerging markets like China, as well as worries over continued dollar strength. This currency issue has been especially bad this year as the U.S. dollar has appreciated significantly, reversing a long trend in the space………………………………………..Full Article: Source

Commerzbank lowered its gold price forecast by 10% as it sees reduced demand by investors weighing on prices, the bank said on Thursday. The bank said while it has downwardly adjusted its gold price forecast, it still expects to see higher prices later this year, saying it is “premature to call the end of the bull market in gold.”
They also reduced price forecasts for silver, platinum and palladium, saying that price performance for those metals is “mediocre” when considering the strong exchange-traded fund inflows this year. However, they also see prices for these metals rising toward year’s end………………………………………..Full Article: Source

The exchange-traded fund business resembles an episode of HBO’s Game of Thrones. Alliances have been formed, surprise attacks have been launched and everyone wants to be king. And why not?
ETFs are the fastest-growing segment of the staid mutual fund industry. ETFs, which are investment funds traded on exchanges that usually track market indexes, offer investors lower costs and more tax efficiency than traditional mutual funds. Since the financial crisis, more money has flowed out of mutual funds and into ETFs………………………………………..Full Article: Source

ETF Securities, one of the world’s leading, independent providers of Exchange Traded Commodities (ETCs), has launched ETFS GBP Daily Hedged Physical Gold on the London Stock Exchange and will be launching ETFS EUR Daily Hedged Physical Gold on Deutsche Boerse on 21st March.
The new currency-hedged investment solutions complement the firm’s current physical gold product range by offering an inbuilt daily currency-hedging mechanism, mitigating the effect of currency volatility in investors’ portfolios………………………………………..Full Article: Source

Commodity exchange-traded fund investors have put money into funds with wider commodities exposure after pulling record amounts from bullion-specific funds as the price of gold tumbled, data from funds tracker Lipper showed.
U.S.-based ETFs tagged as “General Commodities Funds” attracted more than $1 billion in February, their highest in nearly a year after outflows from September though December, the data showed. They had inflows of a little more than $1 billion in January and were headed for another positive month in March………………………………………..Full Article: Source

Indian gold funds are shrinking for the first time since June as investors in the biggest bullion-consuming nation follow billionaire George Soros in pulling money from products backed by the precious metal. Exchange-traded funds in gold saw outflows of Rs8 crore ($1.5 million), data from the Association of Mutual Funds in India show.
Investments in sovereign-debt funds rose by Rs446 crore, the sixth straight month of inflows. Gold prices in India have slid 4% this year, while rupee bonds returned 2.7%, the second-highest gains in Asia………………………………………..Full Article: Source

The long term outlook for potable water remains uncertain, but the prospects for water becoming a valued commodity is not a matter of if, just a matter of when as the global population rises.
“The increasing need for fresh water has emerged in recent years as a potentially lucrative long-term investment theme. The investment thesis is based on the fact that demand for clean water increases along with the global population. PowerShares Water Resources aims to provide exposure to this theme by tracking an index of firms that have business lines focused on water treatment services and infrastructure,” John Gabriel wrote for Morningstar………………………………………..Full Article: Source

Gold – valued as a currency, commodity and investment for thousands of years – is popular among today’s investors because it can be used as a 05hedge against currency devaluation, inflation or deflation, and due to its ability to provide a “safe haven” during times of economic uncertainty.
The gold market is highly liquid and there are a number of ways in which investors can gain exposure to this precious metal, including holding physical gold (i.e., gold coins and bars) and exchange traded funds (ETFs)………………………………………..Full Article: Source

To enhance yields, three of the Canada’s seven ETF providers, BMO, Horizons and First Asset, have a specialty group of funds that use covered call writing as a fundamental component of their investment strategy. In total, there are 20 ETFs available in Canada that generate income from option premiums.
These covered call funds focus on equities and commodities, with total assets under management of $1.7-billion. In the right environment, the premiums from writing covered calls can add an extra 50 per cent or more to an ETF’s dividend income. The ideal environment involves high volatility, which results in a higher price for the calls being sold………………………………………..Full Article: Source

Commodities are once again on the rise this month as fear over Chinese growth is waning and the U.S. is now exhibiting a pretty robust recovery. As a result, most commodity ETFs and ETNs tracking the broad market have added some solid returns in the first half of March trading.
This trend is expected to continue, according to a recent report from Goldman Sachs ( GS ). The analysts at Goldman Sachs believe that the broad commodity markets - as represented by the S&P GSCI Enhanced Commodity Index - will advance 3% over the next 12 months………………………………….Full Article: Source

U.S. stocks as measured by the Dow Jones Industrial Average are trading at all-time highs despite a 5% decline the past month in copper prices, which are seen as a leading indicator for the global economy.
Now technical analysts are eyeing a bearish pattern in copper ETFs that could foreshadow further declines. Some investors say copper isn’t the reliable leading indicator it once was for the global economy, but copper ETFs falling below a key support line has triggered worries about the stock rally…………………………………….Full Article: Source

ETFs have opened up the doors to previously hard-to-reach reach corners of the market, including foreign equities, commodities and alternative asset classes. Currency ETFs in particular have seen growing interest among investors and traders alike as they greatly simplify the challenges that are otherwise associated with entering the forex market.
Currency ETFs attempt to replicate the movements of a currency on the foreign exchange market (forex) against the U.S. dollar (USD), or a basket of currencies. This is done by using cash deposits, such as holding euros or Swiss cash for example, or through the use of futures and swaps contracts to achieve a desired exposure……………………………………Full Article: Source

Gold rose nearly 1 percent on Tuesday after a top European Central Bank official said the euro zone crisis was not over, but the metal remained vulnerable as redemptions in gold-backed exchange-traded funds continued, analysts said.
Bundesbank’s chief Jens Weidmann, also a member of the ECB Governing Council, also said the German central bank had set aside billions more euros against what it deemed risky ECB moves. The metal briefly rose to almost $1,600 an ounce, a near two-week high. Last week, it had found support in an area near $1,560 an ounce, weighed down by an equities rally and an improving U.S. economic outlook. ……………………………………….Full Article: Source

After a decade long wait, BNY Mellon has received patents on its commodity exchange traded fund structures, according to a report. The firm received three patents that drive large commodity ETFs, including the popularly regarded SPDR Gold Shares.
BNY Mellon has created grantor trusts to turn physically held gold, silver, platinum and palladium into ETFs that can be traded on an exchange………………………………………..Full Article: Source

The ECB, BOE, BOJ, RBA, BOC all had policy meetings last week. While none of them changed interest rates or asset purchases, all indications were for accommodative policy to continue if not become more aggressive.
Meanwhile the data-flow in the US was extremely positive with a large increase in non-farm payrolls (+236k vs. +165k expected) boosting the US dollar. Gold, silver, and platinum fell in dollar terms after the announcement as investors weighed the probability of less easing from the Fed following the recent fall in unemployment to 7.7%, a four-year low……………………………………….Full Article: Source

Gold appears to be consolidating just below the $1,600/oz level. It is 0.3% higher in dollar terms for the week, 0.4% higher in pound terms and 2.3% higher against the yen which has fallen sharply this week.
While it is 5% lower YTD in dollar and euro terms, it has risen nearly 2% and 4% in pound and yen terms so far in 2013. Physical demand continues to be supportive of gold according to UBS. In their note today they say that physical demand prospects out of China remain positive in the weeks ahead. UBS said Asia remains a net buyer and although premiums on the Shanghai Gold Exchange have fallen, volumes remain elevated………………………………………..Full Article: Source

The greatest downside risk for gold prices arises from ETP interest, which has tended to reflect longer-term, “stickier” investor interest, according to a market analysis by London based Barclays.
Gold ETP flows turning negative pose the key downside risk for prices. ETPs recorded their largest monthly outflow in February, with net outflows on a global basis. Indeed, last year, despite hefty price corrections, ETP holdings remained relatively robust and drew fresh interest on price dips………………………………………..Full Article: Source

Even as the stock market sets new all-time record highs, gold and other precious metals are having a tough time keeping up. But as prices fall, the big question that could determine the future of the long bull market in gold, silver, and other precious metals is this: Will investors flee from the metals ETFs that have created so much of the excitement in precious metals in recent years?
From seedlings to market-movers - The growth in metals ETFs has been truly spectacular. In less than a decade, exchange-traded funds have gone from small players in their respective markets to become some of the most popular ways for both institutional and individual investors to make calls on precious metals………………………………………..Full Article: Source

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In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) globally had net inflows of $11.4 billion, according to new research published in the latest ETFGI Global ETF and ETP industry insights. ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with $11.6 billion, followed by fixed income ETFs and ETPs with $1.3 billion, and active ETFs and ETPs with $1.1 billion, while commodity ETFs and ETPs experienced net outflows with $4.9 billion………………………………………..Full Article: Source

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In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) globally had net inflows of $11.4 billion, according to new research published in the latest ETFGI Global ETF and ETP industry insights. ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with $11.6 billion, followed by fixed income ETFs and ETPs with $1.3 billion, and active ETFs and ETPs with $1.1 billion, while commodity ETFs and ETPs experienced net outflows with $4.9 billion………………………………………..Full Article: Source

Silver has been quite volatile over the past couple of years. The price of the white metal has been declining moderately as of late despite the monetary easing measures of the Federal Reserve to stir up growth in the economy.
Currently, silver bullion is trading in the range of $27–$31 per ounce. It is expected to go up to $33 per ounce this year and again revert to $31 per ounce in the next, according to HSBC. This means that investors could get a decent return of 6%–9%, if they buy and hold the metal for one year, and possibly more if global trends continue………………………………………..Full Article: Source

Exchange traded funds have transformed the gold market. Since the first fund was launched nearly a decade ago, the products have become so successful in offering a simple way for investors to buy physical gold that they have acquired the nickname “the people’s central bank.”
But what happens when the people’s central bank decides to sell? That is the question now haunting the bullion market. Since the start of January, gold ETFs have dumped 140 tonnes of gold. February saw the largest monthly outflow of gold from ETFs on record………………………………………..Full Article: Source

U.S. dollar prices to buy gold hovered around $1,575 per ounce Wednesday morning in London, in line with last week’s close, as dealers in Asia reported an increase in demand for physical bullion, in contrast with exchange traded funds, which have continued to see selling, in what one analyst calls a “tug of war” between physical buying and ETF selling.
“Short-term, gold should drift lower to the short-term support line at $1,569/65 or even to the previous low at $1,555,” say technical analysts at Societe Generale. “Initial support is at $1,564.88,” adds UBS. “A break below [that level] would expose $1,556.50, the June 28 low and then $1533.70, the May 16, 2012 low.”……………………………………….Full Article: Source

Normally, you can’t expect interest or dividends from investing in gold. But this has changed, thanks to a convoluted new vehicle launched by Credit Suisse: an ETN (Exchange-Traded Note) called Gold Shares Covered Call ETN.
As we’ve said before in this space, ETNs are IOUs issued by investment banks based on the returns of particular indexes. In this case, the IOU is issued on the quirky “Credit Suisse NASDAQ Gold FLOWS 103 Index.”……………………………………….Full Article: Source

Price wars have been escalating across the investment world and that means consumers benefit from these competitive dynamics as prices decline. In the ETF marketplace, BlackRock recently slashed fees on many of its funds in response to market share losses to Vanguard, the traditional low cost provider.
Charles Schwab, a relative upstart in the ETF business, has undercut Vanguard’s prices in an effort to take market share. Since ETFs are hot commodities with few supply limitations, a competitive marketplace naturally drives down costs to the benefit of consumers. ETF investors reap the benefits without much effort………………………………………..Full Article: Source

I’ve been saying for a while that investors should have more exposure to commodities. But resources like industrial metals, gas and oil aren’t that easy to tuck away in your investment portfolio. So, how do you get exposure?
Probably the most common approach is to buy exchange-traded funds (ETFs). You can buy them through your regular stockbroker, and they’re designed to move with various commodity indices – anything from aluminium, through to hogs, soybeans and zinc………………………………………..Full Article: Source

Leveraged exchange-traded funds (ETFs), which provide magnified exposure to different market indices, have provided everyday investors with powerful hedging and speculative trading instruments that were once the reserve of institutional investors.
These instruments typically provide two (2x) or three-times (3x) exposure – long or short – to a specific financial market index covering equities, bonds, commodities or currencies………………………………………..Full Article: Source

The value effect has been a very potent source of alpha in the past. I advocate investing in stocks based on value over trying to divine the price movements of commodities. Investors seeking alpha in the agricultural sector are better served by trying to find cheap stocks to buy instead of trying to guess the price movements in futures markets.
This perspective is also based on the observation that commodity markets are tough to predict. A price performance comparison between popular funds, such as the iPath Pure Beta Agriculture ETN (DIRT) and the iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA), versus corn futures has shown that a long corn position outperformed almost all commodity and commodity-related investment products in 2012………………………………………..Full Article: Source

ETFs have rightfully earned the approval of countless buy-and-hold investors as these financial vehicles have proven to be cost-efficient portfolio building blocks. With over 1,400 exchange traded products (ETPs) on the market, it’s also no surprise that more tactical investors and savvy traders have also embraced these instruments for their ease-of-use, transparency and unparalleled liquidity.
As such, ETFs can do a lot more than offer diversified exposure; these funds can be effective in executing both simple and more sophisticated hedging strategies, helping to improve your portfolio’s risk-adjusted returns……………………………………….Full Article: Source

Suppose that natural gas prices are on the rise and you’d like to capitalize. Like most retail investors, exchange-traded funds (ETFs) are probably the first thing that comes to mind, as they’re a lot easier to buy than commodity contracts.
So, you decide to purchase a natural gas ETF that holds natural gas futures contracts of its own, in order to capitalize on this bullish investment thesis over the coming three months. Now, imagine that natural gas prices rise by 10% over this period, and you’re ready to sell and book the profit………………………………………..Full Article: Source

An inconclusive Italian election result and the start of an US$1.2tn program of spending cuts in the US weren’t enough to stop investors rotating into more cyclical assets last week. A stronger US Dollar saw ETP investors continue to shun gold, with February 2013 recording the largest outflows since January 2011.
Copper and Brent crude oil were key beneficiaries of improving, but still fragile, risk appetite. Strength in the US housing market, where new home sales surged to a 4-1/2-year high, buoyant consumer confidence, rising manufacturing activity, and encouraging words from the Federal Reserve’s Chairman about the likely length of monetary easing kept the appeal of cyclical commodities………………………………………..Full Article: Source

Deutsche Bank expects further inflows totalling 400koz this year into Platinum ETFs, which would be enough to tip the platinum market into deficit. At present around 1.5 million ounces are held across five platinum ETFs globally representing around 21% of Deutsche Bank’s total projected demand for 2013 of 7.2moz.
“Clearly any boost in demand for platinum from newly established funds in South Africa would also support out forecast for a sustained deficit in the market over the medium term.” the Bank said………………………………………..Full Article: Source

Exchange traded funds have helped retail investors easily access various commodities assets. However, investors should know the risks associated with commodities investments that use futures contracts, which could lead to underperformance and even losses if you are not careful.
Specifically, commodity ETFs and other funds that invest in futures contracts are susceptible to contango in the futures market. Contango occurs when the price on a futures contract is higher than the expected future spot price, which creates the upward sloping curve on future commodity prices over time, writes Aaron Levitt for Investopedia………………………………………..Full Article: Source

One of things all investors should know for 2013 is how to invest in commodities, as the prices of many of these products head for huge gains. One of the reasons they will soar is because institutional investors have quickly abandoned them in the current risk on/risk off investment climate. There is right now roughly $424 billion invested in commodities, but that is a mere fraction of 1% of all global investment assets.
When all that money comes pouring back in, those commodity-related investments will skyrocket. The few institutions that jumped into the market were disappointed because the commodities “super-cycle” did not generate spectacular gains for them in a year or two. Also, with inflation appearing to be nonexistent in the government-reported numbers, institutions are bailing on commodities………………………………………..Full Article: Source

One of things all investors should know for 2013 is how to invest in commodities, as the prices of many of these products head for huge gains. One of the reasons they will soar is because institutional investors have quickly abandoned them in the current risk on/risk off investment climate. There is right now roughly $424 billion invested in commodities, but that is a mere fraction of 1% of all global investment assets.
When all that money comes pouring back in, those commodity-related investments will skyrocket………………………………………..Full Article: Source

Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, dropped in the longest slump on record as the U.S. economy improves.
Holdings fell 12 metric tons, or 0.9 percent, to 1,258.40 tons, the lowest since August, according to data on the fund’s website today. The assets have fallen for seven straight sessions, the longest stretch since the fund was launched in 2004………………………………………..Full Article: Source

The largest gold miner ETF is down more than 20% the past three months to fall to its lowest level against bullion prices in at least three years. Market Vectors Gold Miners ETFhas dropped 31.6% the past year to triple the loss of SPDR Gold Shares.
“The gold-mining industry, which has underperformed the precious metal for each of the past six years, is pledging to report costs more accurately as part of its efforts to win back investor confidence,” Bloomberg News reports Wednesday………………………………………..Full Article: Source

State Street Global Advisors (SSgA) has received regulatory approval to allow Hong Kong MPF scheme providers to invest in its gold exchange-traded fund, coinciding with a tumble in bullion prices.
Workers contributing to the city’s Mandatory Provident Fund (MPF) can now gain exposure to the world’s largest gold bullion-backed ETF (and second largest ETF globally), which had $72 billion in AUM as at December………………………………………..Full Article: Source

The last few months have been terrible for gold ETFs. Prices have plummeted for precious metals as investors have been much more willing to take on risk, while outflows out of these products have been enormous as well.
By some estimates, the ultra-popular GLD has seen more than $4 billion in outflows during the year-to-date period, including $2.55 billion in the past week alone. While this might not seem like a huge number, investors should note that this is nearly five times greater than the 2nd biggest outflow for the time period (FXI), and that it is in sharp contrast to broad stock ETFs in the same time frame……………………………………….Full Article: Source

Horizons Exchange Traded Funds Inc. (Horizons ETFs) and its affiliate AlphaPro Management Inc. (AlphaPro) are pleased to announce the launch of the Horizons Auspice Broad Commodity Index ETF (HBR), an innovative alternative strategy ETF that offers investors diversified, tactical long exposure to up to 12 different commodity futures in the energy, metals and agricultural sectors.
HBR is designed to track, before fees and expenses, the Auspice Broad Commodity Excess Return Index (the Auspice Index), hedged to the Canadian dollar. The Auspice Index is a commodity futures based index developed by Calgary-based Auspice Capital Advisors Ltd. (Auspice). Auspice is a leader in the design and execution of systematic commodity trading strategies in Canada, and a seasoned manager of commodity risk.(Press Release)

Gold ETFs have rebounded somewhat early this week with the precious metal testing $1,600 an ounce following two weeks of declines. SPDR Gold Shares (GLD) is down 9% over the last three months.
Gold futures have been under pressure recently on lower safe-haven demand as the global economy recovers, reports Debarati Roy for Bloomberg. Gold dipped below $1,600 on speculation the Federal Reserve will wind down its quantitative easing earlier than anticipated………………………………………..Full Article: Source

Bloomberg news just reported that Hedge Funds cuts their bets on Gold ($GLD) , and became the most bearish on agricultural commodities since 2007 such as sugar and coffee. Hedge Funds are spooked that the Federal Reserve will slow the U.S. stimulus programs that have artificially raised prices for raw materials.
Please don’t get caught up trying to buy a dip in Gold ($GLD) or any other commodities, countless Academic research has proven that hedge funds inflows and outflows into commodities tracked by the Commitment of Traders Report have predicted major price moves. Money flows are very important and the “smart money is all out dumping Gold ($GLD) Silver ($SLV) and agricultural commodities ($DBA)………………………………………..Full Article: Source

Gold’s price cycle has probably turned as the recovery in the U.S. economy gathers momentum and investment holdings collapse, according to Goldman Sachs Group Inc., which reduced forecasts for the metal.
The bank cut its three-month target to $1,615 an ounce from $1,825 and lowered the six- and 12-month forecasts to $1,600 and $1,550 from $1,805 and $1,800. Goldman reversed an assumption exchange-traded products holdings will expand in 2013, analysts Damien Courvalin and Jeffrey Currie wrote in a Feb. 25 report………………………………………..Full Article: Source

Charles Schwab’s exchange traded funds business has reached the $10bn milestone for assets just three years after the US financial services provider launched its first ETF.
Marie Chandoha, president of Charles Schwab Investment Management, said that crossing the $10 billion mark for assets in February was “just the beginning” for Schwab’s ETF business………………………………………..Full Article: Source

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U.S. ETF investors’ five-month love affair with gold came to an abrupt end in January as they pulled $1 billion from the world’s largest bullion-backed exchange-traded fund to put into other commodity funds, data from funds tracker Lipper showed.
The exodus of money from the SPDR Gold Trust was driven initially by encouraging economic trends that boosted appetite for riskier commodities such as oil and grains. The retreat has continued into February despite uncertainties over global growth…………………………………….Full Article: Source