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Commodities Briefing - Category | Investment more

3 Best Commodities Funds to Buy Now

Posted on 27 January 2015 by VRS  |  Email |Print

Commodities come in several varieties. Therefore choosing the best commodities funds for your portfolio depends upon what you want them to do for you. From a portfolio management perspective, commodities funds are best used as diversification tools because they typically have a low correlation to a broad market index, such as the S&P 500 Index.
From a market timing perspective, commodities funds can be tricky, especially with regard to the biggest commodities story of the moment — the slide in oil prices — that has all the elements of the proverbial peril of “catching a falling knife.”……………………………………….Full Article: Source

As Commodities Fall, Some Investors See Reasons to Buy

Posted on 26 January 2015 by VRS  |  Email |Print

A few brave investors are betting the gloom oppressing global commodity markets is on the verge of lifting. The world’s farmers, mining companies and oil producers spent billions of dollars over the last decade to increase output. The result: huge surpluses and sharply lower prices for commodities ranging from oil to sugar to iron ore.
The magnitude of the decline has exceeded the expectations of the vast majority of investors and analysts. The Bloomberg Commodity Index, tracking 22 commodities, fell for a fourth straight year in 2014 and is down 3.1% this year. But some investors see the seeds of a recovery in daily reports of plunging prices. They are buying some of the hardest-hit commodities, in a bet that low prices will quickly force producers to cut back, erasing the global surpluses behind the multi-year slide………………………………………..Full Article: Source

Precious Metals Coveted Once More as Draghi Acts: Commodities

Posted on 26 January 2015 by VRS  |  Email |Print

Investors’ desire for precious metals is deepening after Mario Draghi’s $1.3 trillion pledge drove gold to a five-month high and silver to the brink of a bull market. Their buying helped boost the value of exchange-traded products backed by gold and silver by $8.94 billion this month, the most since September 2012, data compiled by Bloomberg show.
Hedge funds and other speculators in futures are the most bullish on gold in two years and have bet more on silver in all but two weeks since the start of November. At a time when the price of almost every other commodity is sinking, silver and gold are having their best start to a year in more than three decades………………………………………..Full Article: Source

Speculators Looking for Havens from Slowing Growth are Piling Into Silver

Posted on 23 January 2015 by VRS  |  Email |Print

Silver headed for a bull market in its best start to a year in more than three decades as the European Central Bank expanded economic stimulus measures, boosting demand for the metal as a store of value.
Holdings in exchange-traded products backed by the metal have posted three straight weekly gains, while U.S. government data show money managers raised their net-bullish wagers to the highest since August. An ounce of gold bought as much as 71.5 ounces of silver on Thursday, compared with an average of 58 in the past decade, signaling the white metal is inexpensive relative to gold………………………………………..Full Article: Source

How to benefit from commodities in 2015

Posted on 20 January 2015 by VRS  |  Email |Print

Probably every investor knows that the worst performing commodity in 2014 was Brent which lost 48.08% of its value. However, what many investors do not know is that the best performing commodity last year was coffee which returned 37.74%. The reason was that Brazil (which is the world’s biggest producer of coffee) suffered a severe drought which threatened this year’s crop.
Subsequently traders drove the price of coffee higher in the expectation of a shortage. Investors are now interested to know which commodity could generate attractive returns in 2015 now that that a potential shortage in coffee is priced in and the oil price is expected to remain in bear market territory, at least for the short term………………………………………..Full Article: Source

Investors Get Commodities Super-Slump Jitters

Posted on 15 January 2015 by VRS  |  Email |Print

From super cycle to super slump. Europe’s top mining companies and steel makers bore the brunt of heavy selling on stock markets Wednesday as the renewed slump in commodity prices caught investors off guard amid an increasingly bearish outlook for global economic growth.
Slowing demand for raw materials like iron, copper, coal, nickel, and steel as well as oil—all the life blood of global industry–are making investors reassess the earnings and dividend prospects across the resources sector. With oil prices falling further below $50 a barrel, copper prices, in particular, fell sharply late Tuesday and Wednesday, ensnaring other commodities in their wake………………………………………..Full Article: Source

Oil projects worth billions put on hold

Posted on 15 January 2015 by VRS  |  Email |Print

Billions of dollars of spending on oil and petrochemicals projects has been scrapped or put on hold, with Royal Dutch Shell and UK-based Premier Oil announcing the first big cost-cutting moves of 2015 after a brutal slide in crude prices.
The Anglo-Dutch oil major on Wednesday abandoned plans for one of the world’s biggest petrochemical plants, a $6.5bn project with Qatar Petroleum, blaming “the current economic climate prevailing in the energy industry”………………………………………..Full Article: Source

Gold miners struggle to shine in investors’ eyes

Posted on 12 January 2015 by VRS  |  Email |Print

Gold miners are hoping that the four-year low in the precious metal’s price, recorded in November, marked the end of a torrid period for the industry – and that the outlook will be brighter in 2015.
But many investors in gold fear the miners are still placing too much faith in a cyclical recovery and not making structural changes to put the sector on a stronger footing………………………………………..Full Article: Source

US investors buy into oil price dip

Posted on 09 January 2015 by VRS  |  Email |Print

Funds tracking oil experienced large inflows last month as US investors bet on a recovery in crude prices. Almost $1.7bn was ploughed into oil exchange traded products in December, according to ETF Securities, as US crude prices approached $50 a barrel for the first time in five and a half years.
“This is clear indication that investors are buying into the price dip,” said Nitesh Shah, analyst at ETF Securities, an investment group which runs some of the biggest exchange traded commodity funds. “They are taking a contrarian view.”……………………………………….Full Article: Source

Investors bet on copper price fall

Posted on 09 January 2015 by VRS  |  Email |Print

Investors are betting the price of copper will fall further as the US dollar continues to strengthen and global economic growth shows few signs of recovery. Yet a reduction in mine supply last year has left the market almost balanced, meaning any pick-up in demand or further supply reduction could tip the price into positive territory, leaving those short the metal on the wrong side of the trade.
At 16 per cent of the London Metal Exchange market, the largest market in the world for metals trading, contracts betting that copper will fall are at the highest level since the exchange started publishing the data in July. On the Shanghai Futures Exchange, the number of similar contracts has jumped by 180 per cent since the beginning of December………………………………………..Full Article: Source

Oil investors pile most money into funds in four year as price rout continues

Posted on 08 January 2015 by VRS  |  Email |Print

Investors poured the most money in more than four years into funds that track crude oil on speculation prices will rebound from a five-year low. The four biggest oil exchange-traded products listed in the U.S. received a combined US$1.23 billion in December, the most since May 2010, according to data compiled by Bloomberg. Another US$109.9 million was added this month through Jan. 5.
Investors are piling into oil ETFs even after West Texas Intermediate crude, the U.S. benchmark, tumbled the most since 2008 last year amid signs of rising supply and weak demand. Shares outstanding of the four funds surged to the highest since 2009………………………………………..Full Article: Source

Will you buy gold in 2015 as prices projected to come down?

Posted on 05 January 2015 by VRS  |  Email |Print

The yellow metal market witnessed wide fluctuations in price in 2014. In the New Year, investors can look forward to relatively lower gold price in the international market, as some of the biggest gold investors and gold reserve holders may sell the metal to tide over current financial pressure from lower oil prices.
Leading gold and jewellery investors and traders said the price fluctuation in 2014 and the lower gold prices by the year-end is a welcome trend and gold price may continue to remain low in the New Year. Gold jewellery retail sales in Dubai will increase by at least 25 per cent, due to the lower gold prices, but tourists from Russia may not be buying gold as they used to do in the past………………………………………..Full Article: Source

Silver prices in 2015 to be driven by investor sentiments

Posted on 02 January 2015 by VRS  |  Email |Print

Silver prices tend to move in tandem with gold’s prices. However, the price movements of Gold and Silver in 2014 proved that the correlation between them does not hold any more. Silver has clearly underperformed Gold in recent times. During 2014 alone, Silver plunged by nearly 12% as against gold’s 1% drop. Also, Silver is down nearly 67% from its peak reached in 2011.
On the other hand, gold has dropped only by 37% from its highs touched during the same year. Industry participants expect major rebound in silver prices in 2015. According to them, two key factors are likely to drive Silver prices higher………………………………………..Full Article: Source

Investors eye 2015 with big appetite for hedge funds

Posted on 02 January 2015 by VRS  |  Email |Print

Wealthy investors are poised to put at least $90 billion into hedge funds next year, even after returns have largely been lackluster this year, research firm eVestment said on Tuesday. Fresh demand from pension funds, endowments, and insurers looking for alternatives to traditional stock and bond holdings will fuel next year’s flows, the researchers wrote in a report.
“Will institutional investors maintain their investments and continue to allocate more to hedge funds in 2015 … The short answer is yes,” they wrote, adding “We expect asset flows into hedge funds of at least between $90 billion and $110 billion in 2015.” Hedge funds manage roughly $3 trillion in assets………………………………………..Full Article: Source

The Best and Worst Investments of 2014

Posted on 23 December 2014 by VRS  |  Email |Print

To lose money in the markets in 2013, you had to really try. Three-quarters of the world’s stocks rose, by an average of 42 percent. The S&P 500 jumped 30 percent.
This year, the S&P’s up another 12 percent, but the market laid lots of traps for investors. You could have owned lots of energy stocks while the price of oil was plunging. Or, almost anything in Russia or Eastern Europe while the Ruble was in free fall. You could have easily panicked and sold out during the intense sell-offs in late January, October and December, then missed out on the market’s rebounds………………………………………..Full Article: Source

Avoiding Commodities when Investing for Retirement

Posted on 15 December 2014 by VRS  |  Email |Print

There are several reasons for restricting your commodities-based investing to your trading account and keeping it out of your retirement account.
As investors try to diversify the investments in their retirement account, the choice is often made to select a commodities-based ETF, or a commodities-based stock, such as a gold mining company. While some investment advisors suggest including small portion of commodities investments in one’s retirement account, they are recommended as a hedge………………………………………..Full Article: Source

Sell bonds and buy commodities in 2015

Posted on 15 December 2014 by VRS  |  Email |Print

Commodities tend to zig when the equity markets zag,’ according to investment guru Jim Rogers. Sometimes a simple trade can make your year. If, a year ago, you had sold everything you owned that was in any way commodity-related and bought some sovereign fixed income bonds of a reasonable maturity, you would have done very well and probably beaten your benchmark quite handsomely.
Investment management, though, is not always about repeat performances. You have to regularly re-sift the evidence, look at valuations, factor in sentiment and make predictions about the future………………………………………..Full Article: Source

Miners lose billions in commodity plunge

Posted on 15 December 2014 by VRS  |  Email |Print

Miners have lost hundreds of billions in revenue from the fall in commodity prices this year, according to a new analysis, underlining the pressure facing an industry that has responded to the tougher backdrop by slashing costs.
The total market value of the seven raw materials tracked by CRU, a consultancy, has fallen $200bn from last year. The index includes thermal coal, iron ore, metallurgical coal, metallurgical coke, phosphate rock, potash and bauxite………………………………………..Full Article: Source

Here’s What Investors Are Freaked Out About For 2015

Posted on 11 December 2014 by VRS  |  Email |Print

Global fund managers are most concerned about deflation in the coming year, according to Bank of America Merill Lynch. While the collapse of commodities caused by a rapid decline in China’s economy was investors’ biggest concern last December, deflation wasn’t explicitly on their radar.
“Interestingly, at the end of 2013, investors had started to become uneasy about the risk of inflation,” wrote BAML’s Savita Subramanian in the firm’s US Equity Strategy Year Ahead for 2015………………………………………..Full Article: Source

Asset Classes Vs. Investment Strategy

Posted on 10 December 2014 by VRS  |  Email |Print

Asset classes and investment strategies are two different concepts. An asset class is a category of tangible or intangible assets whose scope may or may not be fully quantifiable. The quantifiable part is the raw material from which an investment strategy is created. US equity is an asset class that’s fairly easy to define and measure. How one invests in US equity is an investment strategy, and there are many ways.
Each index provider has their own strategy for defining the US equity asset classes. This is by design. Index providers use different rules for inclusion, exclusion, rebalancing and reconstitution so they can be different………………………………………..Full Article: Source

Should Investors Reconsider Commodities?

Posted on 08 December 2014 by VRS  |  Email |Print

Commodity-related investments have unquestionably been an unloved and challenged area of the market over the last few years. The Morningstar Commodities-Broad basket category has fallen by more than 10% so far into 2014, making it the lowest returning asset class this year. Even more dramatically, the category is headed for its fourth annual decline.
Many commodities prices have collapsed dramatically in the last year and some, such as iron ore, are touching rock bottom prices, causing a renewed criticism of the sector. Commodities and resource equities have come under pressure for a number of reasons………………………………………..Full Article: Source

What To Watch Out For As We Head Into 2015

Posted on 05 December 2014 by VRS  |  Email |Print

Who would have predicted oil prices in the sixty-dollar range a year ago? Something is not right about these markets. Our take: don’t get burned when markets add fuel to the fire. Here’s what to watch out for as we head into 2015; ignore at your own peril.
The world isn’t running out of oil, but rather out of cheap oil. Therefore the fundamentals don’t support oil trading in the $60s. As oil prices have plunged from over $100 to just over $60 a barrel, it appears to us the market is driven by a combination of the following: The global economy is experiencing a severe slowdown; Major liquidity providers have left the market; and/or Technicals rather than fundamentals are in charge……………………………………….Full Article: Source

2015 Investor’s Guide: Don’t buy this, buy that—Energy and Mining

Posted on 05 December 2014 by VRS  |  Email |Print

Sometimes the smartest actions are the ones you don’t take. That old dictum seems relevant at a moment when the markets are a paradox: Each new high only makes many veteran investors more nervous that disaster looms. Between lofty valuations, slowdowns from Europe to China, conflict from Ukraine to Syria, the end of the Fed’s bond-buying binge, and more, there are many reasons for caution.
That’s why this year we decided to recommend not only investments to make but also ones to avoid. Smart defense is always wise, and the good news is that even in these precarious times, there are still opportunities to be found………………………………………..Full Article: Source

Equity investors should heed message from commodities and bonds

Posted on 02 December 2014 by VRS  |  Email |Print

It is that season again when commentators review the year’s developments and what they imply for next year. A big surprise is the extent to which record equity prices have diverged from declining commodity prices and unusually low yields on government bonds. This historically unusual divergence can no longer be explained by big macro factors, and the bespoke explanations will be harder to sustain the greater the divergence as we enter 2015.
Had 2014 closed this past weekend, investors in US equity markets would have earned 12 per cent (as measured by the S&P 500). Meanwhile, commodity investors would have lost 9 per cent (as measured by the Thomson Reuters Commodity Index) at a time when the yield on the 30-year US Treasury bond has fallen 100 basis points to 2.89 per cent………………………………………..Full Article: Source

Wanted: Buyer of last resort for commodities

Posted on 02 December 2014 by VRS  |  Email |Print

One of the problems with cartel systems is that when they bust apart they tend to take out not just their own industry but all the other industries that have come to depend on their ability to keep things balanced in their favour.
In fact, best to think of cartels and monopolies as an “ecosystem”, which allow a whole range of different lifeforms to thrive on the back of their ability to keep things in a permanent goldilocked state of not too much and not too little control………………………………………..Full Article: Source

JP Morgan: The best way to invest in commodities right now

Posted on 28 November 2014 by VRS  |  Email |Print

Recent falls in commodities prices have brought the natural resources sector back to the lows witnessed last summer. October in particular was a challenging month, mostly due to falling oil prices, with all commodity sub-indices registering negative returns across the month.
Apart from the supply side considerations, of which more below, a number of global economic data points outside the US are continuing to worry investors about the health of the global economic recovery……………………………………Full Article: Source

Jim Rogers Weighs In on Commodities

Posted on 27 November 2014 by VRS  |  Email |Print

Roughly seven years ago, when China’s economy was surging and dollars were cheaper, “commodities” was one of the sexiest words in the investment lexicon. Seven years later, many commodities—including oil, copper, and gold—have fallen in value and out of favor for a host of reasons.
So what’s next for this timeless asset class? In a piece published Wednesday, Street Authority writer David Sterman discussed what legendary investor Jim Rogers is thinking about an investment category he has helped promote in recent years…………………………………..Full Article: Source

Investors maintain interest in gold

Posted on 20 November 2014 by VRS  |  Email |Print

A precipitous fall in the price of gold to a four-year low has done little to damage sentiment to the asset class as investors have gone bargain hunting. The precious metal has been caught up in the general decline in commodity prices in recent months, dropping below $1,200 (£766) per troy ounce, after having traded at values closer to $1,300 for most of this year.
But the drop in the price of gold has seemingly left investors undeterred and data shows that both sentiment to the asset class is holding up well and inflows have started to pick up into gold exchange-traded funds (ETF)………………………………Full Article:

Credit Suisse: ‘We Are Bearish Gold’

Posted on 19 November 2014 by VRS  |  Email |Print

“We are bearish gold.” Credit Suisse is newly out with a huge report on its outlook for 2015, and among its 10 best trade ideas for next year: short gold.
The firm’s technical analysis team puts a price target of $950 on the precious metal for the end of next year, and Credit Suisse’s David Sneddon says that from a technical analysis standpoint, and his team that gold’s recent break below $1,180 confirmed a bearish “triangle” continuation pattern……………………………………Full Article: Source

Metals Investing: Zinc, Aluminum And Nickel Make Good Plays

Posted on 19 November 2014 by VRS  |  Email |Print

Zinc, aluminum and nickel have become a profitable play for investors who have taken a net long position in base metals as supply would dip in the near future, several analysts noted. Robin Bhar, Societe Generale research head, said bargain hunters looking for value should take advantage of the current low prices of base metals before a probable price hike.
“Supply/demand balances are tightening, so that should provide a good support level and help to repel some of the downside moves,” Bhar told Reuters. “I’ve heard that consumers and merchants are looking to do more hedging again, and there’s been good dip buying.”…………………………………..Full Article: Source

Gold miners’ pain could be investors’ gain

Posted on 18 November 2014 by VRS  |  Email |Print

It looked like gold-mining stocks finally bottomed out about a year ago. After prices for the yellow metal peaked in the summer of 2011 at around $1,900 an ounce, they crashed almost 40% to around $1,200 at the start of 2014. Gold miners were brutalized, with the Market Vectors Gold Miners ETF plummeting 65% from September 2011 through January of this year.
But in 2014, the sector regained its footing as gold prices firmed. The Gold Miners ETF bounced back about 30% from January to mid-March. It didn’t last: Gold prices crumbled again and now lie at their lowest levels in 4 1/2 years. And gold miners have caved in as a result…………………………………Full Article: Source

Don’t rush to invest in gold

Posted on 14 November 2014 by VRS  |  Email |Print

With gold prices having fallen about 20% in the past year, many investors wonder whether it is a good time to by gold or further fall is expected. The answer to both is ‘yes’. Gold prices are likely to be under pressure for some more time.
“With favourable conditions for an appreciating dollar, and given the strong correlation between gold and the dollar, we would not be surprised if the price of gold dropped below $1,100/ounce during the first half of 2015,” says a report from Natixis Commodities Research…………………………………Full Article: Source

Investors flee from commodities as markets slide

Posted on 13 November 2014 by VRS  |  Email |Print

After a torrid couple of months, investors are voting with their feet and fleeing raw materials. The latest figures show that almost $9bn was withdrawn from commodity investments in September and October following steep declines in key sectors such as crude oil, agriculture and gold. The figures are likely to add to widespread investor disaffection with commodities, which again have promised much and delivered little in 2014. They will also fuel the debate about the best way to invest in commodities.
After a bright start to the year, all of the leading commodities indices are now in negative territory. For example, the oil-heavy Standard & Poor’s GSCI index, popular among conservative commodities investors, is down more than 20 per cent from its June high and recently hit a four-year low………………………………………..Full Article: Source

Investor Exit Shakes Off Gold Boredom as Volatility Rises

Posted on 13 November 2014 by VRS  |  Email |Print

The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility that’s giving some investors more reason to sell.
The metal’s 30-day volatility is close to the highest since January, according to data compiled by Bloomberg. The measure in October touched the lowest since 2010, with investors ignoring gold in favor of equities for most of the year………………………………………..Full Article: Source

Commodity Curves Bury Passive Investors

Posted on 12 November 2014 by VRS  |  Email |Print

If investors want an epitaph for the commodity supercycle, they could do worse than this: “Strategies best suited for the current environment appear to be dynamic, alternating between long and short positions in different commodities and shifting exposure to different points on the futures curves.”
That was Barclays ’s take last week on how to play commodities. Buy and hold this isn’t: It is more akin to how specialist traders have speculated on commodities for decades than how many retail investors do it. Two big things have happened. First, spot prices for major commodities have been falling. Take energy and precious metals, which last month accounted for 72% of assets under management in commodity-linked products, according to Barclays………………………………………..Full Article: Source

Investment banks caution investors on gold

Posted on 12 November 2014 by VRS  |  Email |Print

The gold price that rebounded strongly on Friday failed to sustain its rally as bearish sentiments started showing signs of dominance. Meantime, investment banks continued to lower gold price forecasts and advise investors to be cautious on gold.
UBS has lowered its short-term gold price forecasts. However, the bank feels that the recent decline in gold prices is ‘overdone’. Gold’s one-month price forecast has been lowered from earlier $1,250 per ounce to $1,180 per ounce. The average gold price forecast for the entire year 2014 too has been lowered from $1,270 per ounce to $1,230 per ounce………………………………………..Full Article: Source

Industry to promote platinum as an investment

Posted on 12 November 2014 by VRS  |  Email |Print

An industry body to promote investment demand for platinum should be set for launch late this year or early 2015 as South African producers try to boost sales in the face of falling prices, industry and banking sources said. The new body, called the World Platinum Investment Council, will most likely be based in London or Johannesburg, the sources said.
“This is a collaborative industry initiative. The aim is to promote investment into platinum,” said a source at a producer, who declined to be named. The source said the world’s top platinum producers Anglo American Platinum and Impala Platinum were heavily involved but several of the smaller companies in the sector were also taking part in the discussions and would likely sign up and help finance it………………………………………..Full Article: Source

It’s Time to Consider Commodities

Posted on 10 November 2014 by VRS  |  Email |Print

Commodities are an outlier at a time of record or near-record prices for other major asset classes, such as stocks, bonds and real estate. With commodities so out of favor, it may be a good time for investors to allocate a portion of their portfolios to the sector.
Investors can get direct exposure through exchange-traded products (ETPs) tied to single commodities like SPDR Gold Trust (GLD), iShares Gold Trust (IAU) and iShares Silver Trust (SLV), or broader indexes such as PowerShares DB Commodity Index fund (DBC) or iPath Bloomberg Commodity Total Return note (DJP). The diversified ETPs have different exposure to various commodities and sectors, notably energy………………………………………..Full Article: Source

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Global Commodity Funds - SELL

Posted on 10 November 2014 by VRS  |  Email |Print

Funds that invest in Indian energy and commodity stocks have been on a roll for the last one year, thanks to pricing reforms and expectations of an economic pick-up benefiting cyclical companies. In sharp contrast, India-based global industrial commodity and energy funds have been underperforming.
Birla Sun Life Global Commodities Fund and DSP BR World Energy Fund fell 7-8 per cent last year, while Mirae Asset Global Commodity Stock Fund slipped about 2 per cent. The annualised returns of these funds since inception in 2008 and 2009 are just 3 to 6 per cent………………………………………..Full Article: Source

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European asset managers, pension funds question value of commodities

Posted on 05 November 2014 by VRS  |  Email |Print

Dutch pension funds and investment managers have questioned the value in outperforming commodity benchmarks, while in the UK Hermes Investment Management has shut down its commodities business line. The asset manager, wholly owned by the £40bn (€51bn) BT Pension Scheme, will close its business after finding it increasingly difficult to deliver active returns in the asset class.
The news follows a growing trend in the Netherlands, where a number of pension funds – including large market players such as PMT, PME and PGB – have shifted away from commodities entirely………………………………………..Full Article: Source

Hedge Fund, Investor Groups Hammer Swaps ‘Stays’

Posted on 05 November 2014 by VRS  |  Email |Print

Hedge funds, insurers and other companies said global regulators shouldn’t implement new rules aimed at protecting the financial system against the failure of big banks. At issue are changes endorsed by global banking regulators that would require banks and investors to give up their contractual rights to terminate swaps contracts with a troubled financial institution.
Instead, the firms would have to wait up to 48 hours before seeking to terminate derivatives contracts and collect associated payments from a troubled financial institution. Eighteen of the largest lenders in the U.S., Europe and Asia agreed to the changes in principle last month and global regulators plan to enshrine the changes in new regulation by the end of 2015………………………………………..Full Article: Source

The Current State of the Global Investment Climate

Posted on 04 November 2014 by VRS  |  Email |Print

There are three elements to the investment climate: The divergence between the US on one hand and Europe and Japan on the other, the drop in many commodity prices, including oil, and the slowing of the Chinese economy.
Last week, the divergence was driven home by policy makers. The contrast could not be starker. The FOMC ended QE, and seemingly began prepare investors for a rate hike next year, and the Bank of Japan, surprise of extending its asset purchases from JPY60-70 trillion a year to JPY80 trillion………………………………………..Full Article: Source

Gold Prices at 4-Year Lows: Should You Buy Now?

Posted on 04 November 2014 by VRS  |  Email |Print

Gold prices have dropped to 26,350 levels in India - the lowest in nearly four years. And some analysts say that gold prices could be heading even lower. A weak trend in global markets, strong US economic data and a stronger dollar have been cited for their weak outlook on the precious metal.
Here is why analysts expect gold prices to fall: Dollar’s rise against major currencies: The rise of the greenback has been one of the big factors behind the plunge in global gold prices. The gains in the greenback negatively impact the price of commodities priced in dollars such as gold, silver and oil………………………………………..Full Article: Source

FS Investment Committee: Which way for commodities?

Posted on 03 November 2014 by VRS  |  Email |Print

It has been difficult to call the direction of commodities over the past two years but is now the time to buy in? For this month’s investment committee we revisit an asset class we last discussed about 19 months ago – commodities. In March 2013 the subject of the debate was whether, after a decade of rising prices, the “supercycle” enjoyed by commodities was finally at an end.
The general view taken by the committee at the time was that the cycle might not be over on a long-term basis but short-term prices were in for a period of volatility and maybe there was a need to press the pause button on the party………………………………………..Full Article: Source

Time yet to buy commodities?

Posted on 03 November 2014 by VRS  |  Email |Print

With most asset classes at or near record levels, no one seems to want commodities - oil is at just $80 per barrel, gold just took out a multi-year low, and corn is off more than 50% from its 2012 high. Contrarians may want to take a look, writes Andrew Bary in Barron’s, noting commodity markets tend to be self-correcting - lower prices cool production and stimulate demand.
Low rates help too: The opportunity cost of holding commodities, and the price of rolling forward contracts is reduced.Bary also reminds that much of the institutional money which was in love with commodities in 2008 (with oil at $140 per barrel) has exited. The Harvard endowment, for instance, has scaled back its commodity exposure to zero from 8% six years ago………………………………………..Full Article: Source

What Should Gold Investors Do Now?

Posted on 03 November 2014 by VRS  |  Email |Print

Gold fell last week when the Fed cut QE and the Bank of Japan increased QE. The fundamentals right now are not relevant to gold as it is trading based on very negative sentiment.
Investors need to think long-term and control their emotions as that is the only way to weather “sentiment bottoms”. Investors should not be idle, but instead be developing their strategies and culling their portfolios to the best gold stocks………………………………………..Full Article: Source

Why Investments In Gold Will Pay Off

Posted on 27 October 2014 by VRS  |  Email |Print

This autumn is probably going to be the last chance to buy gold and silver at bargain prices before a massive spike in prices. A five-year regime of artificially low US interest rates is responsible for a bubble in stocks, bonds, real estate, emerging markets and many other asset classes. But can it really be said to have boosted gold prices?
Certainly not over the past three years. Gold peaked in October 2011 and silver in April of that year. Precious metal prices today are not so far away from where they stood five years ago………………………………………..Full Article: Source

The Top Technical Indicators For Commodities Investing

Posted on 24 October 2014 by VRS  |  Email |Print

The primary motive for any trader, investor or speculator is to make trading as profitable as possible. Primarily two techniques, fundamental analysis and technical analysis, are employed for making buy, sell or hold decisions. The technique of fundamental analysis is believed to be ideal for investments involving a longer time period.
It is more research based; it studies demand-supply situations, economic policies, and financials as decision-making criteria. Technical analysis is commonly used by traders, as it is appropriate for short term judgment in the markets–namely, deciding a quick buy and sell, entry and exit points, etc. It is pictorial; it analyzes the past price patterns, trends and volume to construct charts in order to determine future movement………………………………………..Full Article: Source

Why It’s Finally Time To Buy Commodities

Posted on 24 October 2014 by VRS  |  Email |Print

My friend, the time has FINALLY come…It is time to buy commodities. For years, I’ve urged you to invest in the stock market and the housing market. (I hope you took my advice… Stocks and housing have soared!) But one asset class has been completely left out of the fun… commodities.
In the summer of 2008, big investors loved commodities… The Dow Jones-AIG Commodity Index peaked at a value around 240. And Harvard University, a big investor, allocated 8% of its endowment to “public commodities.”……………………………………….Full Article: Source

Buy gold if it dips to $1,228-30/oz

Posted on 24 October 2014 by VRS  |  Email |Print

Comex gold futures ended lower on Thursday, as better-than-expected euro zone business activity data lifted stock markets from early lows, while the dollar index held near its highest in a week and demand for the physical metal softened. Gold futures hit a one-month high, supported by growth concerns over slower economic growth in China, with investors seeking safety amid increasing concerns over a slump in the global economy.
However, prices could come under pressure in coming days as demand from top consumers China and India recedes. Buying from India had risen in recent weeks, ahead of Diwali………………………………………..Full Article: Source

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