Tue, Apr 28, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Investment more

Should I Have Held Commodities In My Portfolio?

Posted on 28 April 2015 by VRS  |  Email |Print

Commodity funds manifest inferior risk-adjusted return, relative to other asset classes. Absence of conclusive superior risk-adjusted returns for portfolios holding commodity funds. Commodity performance as an investment varies by the particular fund (proxy) used. Commodities are a relatively new asset class. (They are new at least with respect to domestic equities.)
That is, it was only within the last dozen years that a lay investor could get their hands on a commodities mutual fund. And as with many new investments, the fledgling commodities fund history has been relatively volatile; the previous bull run has turned bear………………………………………..Full Article: Source

Where should investors look when Oil recovers?

Posted on 24 April 2015 by VRS  |  Email |Print

When oil prices recover-and plenty of analysts think the climb back up will start soon-Canada’s western frontier of Saskatchewan and neighboring Alberta will ’still have the edge’, according to a report from TD Economics. Depressed oil prices may have skewed the view from Canada’s oil-producing west, but this will be one of the better places to bet on the oil rebound.
Saskatchewan remains the last highly accessible onshore North American oil frontier and it is home to part of the prolific Williston Basin. And as the industry gears up for the Williston Basin Petroleum Conference(WBPC) on 28 April, the message is clear: Saskatchewan is still alive and kicking…………………………………..Full Article: Source

Gold down as investor indifference to bad news takes hold

Posted on 23 April 2015 by VRS  |  Email |Print

Gold’s inability to break out of its recent $20 range could indicate that the market has become numb to bubbling geopolitical risk. Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $4.20 at $1,198.90 per ounce. Trade has ranged from $1,197.70 to $1,204.40.
“History has shown how well gold can perform during times of elevated uncertainty – as it happens, the height of the Eurozone crisis a few years ago coincided with gold rallying to record highs,” UBS analyst Edel Tully said. “It appears that the market has, in a sense, become desensitised to bad news. Eurozone uncertainty is acting more as a cushion for gold right now, rather than an upside catalyst as it had in the past, and prices are clinging to the $1,200 mark,” she added. …………………………………..Full Article: Source

Investors See Opportunities in Commodities

Posted on 21 April 2015 by VRS  |  Email |Print

Commodities from crude oil to copper to sugar are luring investors, fueled by signs of a healing global economy and a pause in the dollar’s rally. Investors are tiptoeing back into commodities from crude oil to copper to sugar, fueled by signs the global economy is healing and a pause in the U.S. dollar’s rally.
The Standard & Poor’s GSCI Index, which tracks the prices of 24 commodities, has risen more than 12% over the past month and around midday stands near its highest level since December. Fueling those gains are higher prices for oil, which have risen by nearly a third from their lows, as well as rallies in copper, sugar, gold and other raw materials…………………………………..Full Article: Source

Researchers Warn of Global Oil Price Crisis as Investors Shy Away

Posted on 20 April 2015 by VRS  |  Email |Print

The drop oil prices has changed the longstanding laws of the energy market and made investors deeply insecure about financing expensive projects in the future. The risk of a global oil crisis has increased and investors are becoming more and more cautious about financing expensive projects, according to a study by the Hamburg Research Office Energycomment, presented by the German magazine “Der Spiegel”.
The researchers stated that low oil prices resulted in a drastic cut of investments in long-term energy projects, including the development of the Arctic and production of synthetic and biological fuels. Oil prices have almost halved since the summer of 2014, and currently lie below the level of 60 dollars per barrel. For the first time, the drop was caused not by an economic crisis, but tough competition in the global oil market, experts claim……………………………………Full Article: Source

Investors Who See ‘Froth’ in Market Go All In for Oil

Posted on 20 April 2015 by VRS  |  Email |Print

Joseph Gladbach and his fellow bankers at Jefferies Group field three to five calls a day from investors eager to park their millions in energy stocks or bonds in the worst down cycle in 30 years. They’re no dummies, Gladbach says. One of the biggest mysteries of the oil market crash is why the money hasn’t dried up. The collapse in crude prices was supposed to devastate companies and spook investors after wiping more than $200 billion off the balance sheets of U.S. and Canadian producers. It didn’t.
As industry luminaries gather at the IHS CeraWeek Energy Conference in Houston this week to ponder the implications of $50-a-barrel crude, the money keeps piling into oil, with hedge funds, buyout firms and asset managers rushing to claim a spot at the table……………………………………Full Article: Source

Copper Bulls Backing Away as China Woes Trump Supply Concerns

Posted on 20 April 2015 by VRS  |  Email |Print

Investors are backing away from copper after the biggest two-month rally since 2012. The problem is that demand is slowing in China, which accounts for about half of global copper use. Producers including Freeport-McMoRan Inc. say Chinese buying hasn’t picked up as it normally does at this time of year, and Goldman Sachs Group Inc. and Societe Generale SA are among banks predicting lower prices.
The metal is losing its appeal for money managers, who have reduced their net-long positions for two straight weeks, according to Commodity Futures Trading Commission data. Analysts, traders and hedge funds surveyed by Bloomberg last week were split on the price outlook, assessing rising inventories and prospects for reduced China consumption against aging mines that will mean limited supply gains……………………………………Full Article: Source

Are Low-Risk High-Yield Investments Real?

Posted on 16 April 2015 by VRS  |  Email |Print

The low-risk, high-yield investment—it’s the Holy Grail of finance, or perhaps more aptly, the perpetual motion machine. One that rewards its holder out of proportion to the danger of holding it. But is there indeed such a thing as a vehicle that can combine the returns of a Lotto ticket with the safety of a Series I savings bond?
As a rule, the correlation between risk and reward in the market is almost perfectly positive. Common sense or a few seconds’ rumination should show you why that’s the case, but here’s an explanation anyway. The more people desire an investment because of its expected returns, the greater the demand, and thus the higher its price goes………………………………………..Full Article: Source

Heartwood invests in commodities after two year hiatus

Posted on 16 April 2015 by VRS  |  Email |Print

Heartwood Investment Management has bought back into commodities after years of ignoring the sector. Its investment manager Jade Fu said he had not had any direct exposure to commodities, such as oil or gold, on his multi-asset portfolios for more than two years.
Weaker-than-expected demand, a surge of the supply of some commodities and a strong dollar have dragged down prices across the sector. Ms Fu said these fundamental factors were still present and meant the asset class “remains weak”. But she said: “We are beginning to see tentative signs of stabilisation across a number of sectors, particularly in energy, and we consider that now is the time to gain an entry point into the asset class.”……………………………………….Full Article: Source

It’s Time To Buy Gold

Posted on 13 April 2015 by VRS  |  Email |Print

Despite a rally this week, the broad market remains on edge and any downside in equity markets is likely to spur safe haven demand for gold. Treasury bond performance has mirrored that of gold recently, showing that after a period in the wilderness gold is once again used as a hedge against equity market volatility. The gold chart pattern is set up very bullishly, and should the pattern play out we will likely see a $50 move to the upside in the near term.
In last week’s article I noted that if we were to move higher than $1217 early in the week we would then have a bullish 5 wave move up from the lows, and as long as we did not exceed $1193 on the subsequent retrace, the chances were that a rally would ensue………………………………………..Full Article: Source

Mark Mobius’ top conviction: Buy commodities

Posted on 09 April 2015 by VRS  |  Email |Print

While the price outlook for many commodities remains bleak, veteran investor Mark Mobius recommends positioning for a recovery in the beleaguered asset class. “Right now it’s commodities believe it or not, they are so far out of favor,” Mobius, executive chairman at Templeton Emerging Markets Group, told CNBC when asked what his top conviction call was.
“No one knows what’s going to happen next in terms of the military situation in the Middle East, so oil is something you’ve got to watch. I think there will be a recovery,” he added………………………………………..Full Article: Source

Record Investment in ETFs

Posted on 09 April 2015 by VRS  |  Email |Print

The European ETF market has posted the best ever quarter in terms of net inflows in Q1 2015. According to preliminary calculations, investors directed €30.8 billion of net new money to European-domiciled ETFs during the first three months of 2015. This was by far the highest sum channelled into ETFs in a single quarter; greatly surpassing the previous high of €17 billion posted all the way back in Q4 2008.
In fact, by historical standards, this quarterly sum is more akin to the figures the European ETF market has usually posted on a full calendar year basis. Indeed, 2014, which I personally dubbed “a fantastic year for the ETF industry” saw net inflows of €43.5 billion for the entire year………………………………………..Full Article: Source

10 Commodities Investments to Rev Up Your Portfolio

Posted on 02 April 2015 by VRS  |  Email |Print

You may not have much of a taste for commodities right now, and who could blame you? At a time when Wall Street has seen healthy run-ups, many commodities stocks have taken a beating. But as equities experts put it, you can’t keep a good stock down, especially when it trades in an area where there’s a proven need or demand that’s bound to increase.
“The [Thomson Reuters CoreCommodity CRB Index] has been in a bear market since its peak in 2011, making commodities seem like a questionable investment,” says John O’Donnell, chief knowledge officer of Online Trading Academy, based in Irvine, California. “But just like it’s proven contrarian wisdom that the best time to buy is when there’s ‘blood in the street,’ courageous and patient investors now have the opportunity to buy when there’s gold in the street.”……………………………………….Full Article: Source

Investors exit commodities at record rate

Posted on 01 April 2015 by VRS  |  Email |Print

Investors are bailing out of commodity funds at the fastest pace on record, and the exodus shows no signs of ending. US exchange-traded funds linked to broad baskets of raw materials saw a net outflow of $1.23bn over the first three months of the year, the most of any quarter since the securities were created in 2006, data compiled by Bloomberg show. Bank of America says ample supplies have unleashed price wars, and Goldman Sachs predicts a 20% drop for commodities already near a 13-year low.
Morgan Stanley and Société Générale also have cut forecasts for a whole range of items. Rising supplies created bear markets over the past year as drillers unlocked more oil and natural gas, copper mines expanded and farmers harvested record maize and soya bean crops. The strongest dollar in at least a decade encouraged countries with weaker currencies to export more………………………………………..Full Article: Source

Investors fall out of love with Aussie equities, commodities

Posted on 01 April 2015 by VRS  |  Email |Print

Australian equities and commodities are firmly out of favour with international investors who prefer exposure to Europe, technology and health care. Institutional investors are bearish on the outlook for the local market because stocks look expensive, along with the prospect of the Australian dollar plunging and concerns around Australia’s reliance on China as a source of demand, a survey of respondents at the Credit Suisse Asian Investment Conference revealed.
In spite of this, Australian stocks have just posted the best first-quarter since 1991 with a return of 9 per cent sealed on Tuesday. Low interest rates and compelling yields on offer in equities have supported a wave of buying at odds with dour expectations for the domestic economy………………………………………..Full Article: Source

Hedge Market Risks with Alternative Investments, ETFs

Posted on 01 April 2015 by VRS  |  Email |Print

After the recent swing in the equities market, more anxious investors may consider alternative investments and exchange traded funds to help even out an investment portfolio.
Alternative investments provide exposure to assets with little or no correlation to traditional stocks and bonds, which can help offset a portfolio’s potential losses in volatile conditions. For those with a low risk tolerance, an alternative investment strategy could help protect one’s assets……………………………………….Full Article: Source

Commodity investors are bailing at the fastest pace on record

Posted on 31 March 2015 by VRS  |  Email |Print

Investors are bailing out of commodity funds at the fastest pace on record, and the exodus shows no signs of ending. U.S. exchange-traded funds linked to broad baskets of raw materials saw a net outflow of $919 million over the first three months of the year, the most of any quarter since the securities were created in 2006, data compiled by Bloomberg show.
Bank of America Corp. says ample supplies have unleashed price wars, and Goldman Sachs Group Inc. predicts a 20% drop for commodities already near a 13-year low. Morgan Stanley and Societe Generale SA also have cut forecasts for a whole range of items. Rising supplies created bear markets over the past year as drillers unlocked more oil and natural gas, copper mines expanded and farmers harvested record corn and soybean crops………………………………………..Full Article: Source

Why This Commodities Bust Could Test Investor Patience

Posted on 31 March 2015 by VRS  |  Email |Print

Commodities sure have a way of touching all of the major asset classes. With that said, let’s take a look at one of the benchmark commodity indices, the Reuters/Jefferies CRB Index, to see where we stand and if the pain of the 34% decline since June 2014 is behind us. All of course, from a technical perspective.
Why the CRB Commodities Index? In short, following the CRB Index can give investors a sense of the broad spectrum of the commodities market as it is composed of Agricultural (41%), Energy (39%), Base/Industrial Metals (13%), and Precious Metals (7%) commodities. To begin with, let’s take a look at the long-term monthly chart to see if we have hit bottom or if we still have to leave the question “How low is low?” open………………………………………..Full Article: Source

World Gold Council Tells China to Increase Gold Reserves

Posted on 27 March 2015 by VRS  |  Email |Print

China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.
“The ideal amount should be at least 5 percent of its total forex reserves,” Wang told Reuters in an interview in Hong Kong. China last raised its gold holdings in April 2009, when reserves rose to 33,890,000 troy ounces (about 1,054 tonnes), from 19,290,000 troy ounces, according to central bank data. The holding was unchanged as of December 2014………………………………………..Full Article: Source

Top gold experts share secrets for making money in any market

Posted on 25 March 2015 by VRS  |  Email |Print

Pierre Lassonde, co-founder and chairman of Franco-Nevada Corp.: I think today’s gold market is reminiscent of the 2001–2004 era. Gold bottomed around August of 2001 at $250/ounce ($250/oz) when the gold stocks recorded their absolute lows. I became president of Newmont Gold Co. at that point, and we were selling for $18/share and our cash costs were $160/oz.
Over the next three years, gold went up to $450/oz, then $500/oz. Our stock price went up to $62/share because our cash costs stayed exactly the same. That allowed us to deliver real shareholder value. After that, producers’ costs have been going up atrociously every year, and companies have struggled to deliver anything to shareholders………………………………………..Full Article: Source

Oil ETF investors, not just OPEC, hold sway over crude market

Posted on 25 March 2015 by VRS  |  Email |Print

Tumult in Libya, U.S. rig counts, production plans of the oil exporting cartel and a pact on nuclear relations with Iran can all affect crude supply and demand, but oil traders have kept an equally close watch on retail investors in recent weeks.
Those investors and hedge funds, betting on a reversal of oil’s long rout, poured billions of dollars into exchange traded products at the tail end of the slide last year, providing unexpected support that helped prices stabilize. Even as concerns about U.S. storage capacity triggered renewed slide over the past week investors have stuck with the view that a bottom might be in sight, pouring more money into financial products backed by oil futures………………………………………..Full Article: Source

Is Fossil Fuel Divestment A Bad Idea?

Posted on 24 March 2015 by VRS  |  Email |Print

The fossil fuel divestment movement has exploded in popularity over the last several years, thanks in parts to the massive efforts of groups like 350.org, the group behind Fossil Free, the organizers of Global Divestment Day. In addition, the sweeping divestment movement is particularly attractive to tertiary education institutions around the world, and each month closes with more universities and colleges around the world announcing their divestment from fossil fuel investments.
Beyond the education world, a number of cities are making independent announcements of their own intention to divest from fossil fuels — the most recent being the city of Oslo, capital of Norway, which announced at the beginning of March that it would divest $7 million worth of coal investments from its pension fund………………………………………..Full Article: Source

Fall in energy prices to impact oil and gas investments

Posted on 12 March 2015 by VRS  |  Email |Print

The rapid decline in energy prices is expected to have a large impact on investment in oil and gas projects worldwide. Since June 2014, the price of Brent crude oil price has collapsed due to a supply glut fuelled by a rise in US shale oil production, as well as weaker global demand, particularly in China and Europe.
Speaking during the Middle East Oil and Gas Show in Manama, Bahrain, Amin Nasser, Senior Vice President for Upstream Operations at Saudi Aramco, told local press: “Challenges during down cycles are more complicated today than before. At this moment the global industry is poised to potentially cancel about US$1 trillion in capital funding.” This figure includes delayed projects as well as those that could be cancelled outright………………………………………..Full Article: Source

Should you invest in commodities or shares?

Posted on 11 March 2015 by VRS  |  Email |Print

With a burgeoning amount of products available to retail investors that provide direct exposure to commodity prices, we set out to investigate whether you would have been better off investing in instruments (like ETFs and ETNs) that provide direct exposure to commodity prices, or whether you would have fared better owning the underlying equity of resource/commodity companies.
But first a slight detour for the benefit of the uninitiated. In South Africa, investors have traditionally got exposure to commodities via shares of resource companies. This began to change with the development of the exchanged traded fund (ETF) industry in the early part of the last decade, which eventually led to the creation of the first commodity ETF………………………………………..Full Article: Source

Hedge funds cut bullish commodity bets to 6-year low

Posted on 10 March 2015 by VRS  |  Email |Print

Large scale speculators in gold futures added massively to short positions – bets that prices will fall – ahead of Friday’s jobs report in the US which sent gold prices tumbling. On Monday the gold price regained some of its footing, but is still trading at the lowest since November after retreating more than $140 an ounce from its 2015 high above $1,300 hit in January.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – was last trading at $1,166.40 an ounce, up $2.10 or 0.2% from Friday’s close………………………………………..Full Article: Source

Oil, gas industry may cancel $1 trln projects on price fall -Aramco exec

Posted on 10 March 2015 by VRS  |  Email |Print

The steep fall in energy prices will hit investment in oil and gas projects worldwide and the industry may cancel about $1 trillion of planned projects globally in the next couple of years, a senior Saudi Aramco executive said on Monday.
“Challenges during down cycles are more complicated today than before…At this moment the global industry is poised to potentially cancel about $1 trillion in capital funding,” Amin Nasser, senior vice president for upstream operations at the Saudi oil giant, told a conference in Bahrain………………………………………..Full Article: Source

Why Oil Prices Haven’t Hit Bottom Yet

Posted on 09 March 2015 by VRS  |  Email |Print

Investors looking at crude oil technicals and thinking the commodity looks like a good value right now are like the people who saw a white dress when the infamous photo of a blue dress crossed their newsfeeds. In this case, investors’ misperception comes from reports of oil rig shutdowns and crude’s ability to remain above a key technical level, suggesting the commodity has bottomed.
Those are distractions from a real fundamental issue — there’s too much oil and too few places to affordably store it, said Tim Evans, Energy Futures Specialist at Citi Futures. “I’m trying to keep my clients from becoming complacent about rising inventories as if they don’t matter because price action suggests we should look away from physical surplus in the market,” Evans said. “There’s substantial downside risk, particularly at the front of the WTI crude oil curve.”……………………………………….Full Article: Source

Is Silver a Good Investment Right Now?

Posted on 04 March 2015 by VRS  |  Email |Print

The prevailing silver price volatility and surging stock market has investors asking, ” Is silver a good investment right now?” Silver prices have ranged from $15.785 an ounce to $18.31 in 2015. This is the norm for silver. Last year it was as high as $21.965 and low as $15.315.
The current price of silver is around $16.20 an ounce. It’s up about 3.4% on the year, but has been up as high as 16.7%. It can be hard as an investor to stomach that kind of volatility. But even with all these violent price swings, the reasons that make silver a good investment still hold true. ………………………………………Full Article: Source

Platinum buyers seek to limit SA output risk

Posted on 04 March 2015 by VRS  |  Email |Print

Additional platinum metal sourced from recycling is one of the major reasons why the platinum market remains weak and this source of metal is being actively promoted by customers as an alternative to primary supply from South Africa.
That’s according to Royal Bafokeng Platinum (RBPlat) CEO, Steve Phiri, who told financial media and analysts during a presentation of the company’s financial results for 2014 in Sandton today that “… this is a worrying development”. Phiri added: “Secondary platinum from recycling is being viewed as a substitute for primary supply from South Africa because we are no longer seen as a reliable and sustainable supplier of the metal for various reasons including labour issues and regulatory issues……………………………………….Full Article: Source

Investing in Alternative Mutual Funds and ETFs

Posted on 03 March 2015 by VRS  |  Email |Print

Alternative investments are gaining popularity, especially those offered in a liquid format by mutual fund and exchange-traded fund (ETF) providers. Mutual fund companies can’t develop new alternative products fast enough to offer to financial advisors or directly to individual investors.
In the past alternatives were offered primarily in investment products like hedge funds with requirements that investors be accredited, meaning they meet minimum income and net worth conditions. In the wake of the turbulence in the financial markets during the 2008-2009 financial crisis they are increasingly being packaged in more liquid and accessible formats………………………………………..Full Article: Source

India Announces New Gold Schemes: What to Know

Posted on 02 March 2015 by VRS  |  Email |Print

Investors who want to buy gold will soon have a new option. This was among a number of proposals announced by Finance Minister Arun Jaitley in the Budget to reduce India’s import of gold as well as put to work the vast amount of gold deposits held in the country.
The Finance Minister said a Sovereign Gold Bond would be introduced as an alternative to purchasing physical gold. The bond or financial instrument will carry a fixed rate of interest and when investors sell the bond they will get the value of the gold………………………………………..Full Article: Source

Investors hard to come by in mining industry downfall

Posted on 02 March 2015 by VRS  |  Email |Print

As the beleaguered mining sector suffers through another year of its deepening slump, the industry’s boom days are but a distant memory. It’s an ugly time for the junior mining industry, as companies descend on Toronto for the annual Prospectors and Developers Association of Canada conference. Already starved for cash, small mining companies are facing their fourth consecutive year of declining commodity prices.
Since 2011, gold is down 30 per cent. Iron ore and metallurgical coal, both used to make steel, are about 70 per cent lower. Copper is down 40 per cent and nickel is off by 50 per cent. Shares of a slew of junior mining companies have crumbled to just a few pennies apiece………………………………………..Full Article: Source

Global commodity AUM rebounds in Jan to $267 billion

Posted on 27 February 2015 by VRS  |  Email |Print

Total global commodity assets under management ( AUM) rebounded to $267 billion in January from a five year low of $259 billion in December 2014, Barclays capital said on Thursday.
Commodity investments saw net inflows of nearly $5 billion in January, the biggest since September 2012, led by energy and precious metals, Barclays said in a research note………………………………………..Full Article: Source

Investors in Commodity-Related Companies Need To Be Aware Of This Risk

Posted on 25 February 2015 by VRS  |  Email |Print

The business of producing or trading in commodities have always been volatile. The fact that no player in the market has the ability to control the pricing of the underlying commodity they’re involved with makes it extremely challenging for any commodity-related business.
Steel manufacturer BlueScope Steel Ltd is a great example of how difficult it can be to be a commodity producer. Even though BlueScope Steel is the largest company of its kind in Australia, the Wall Street Journal had reported earlier today on the firm’s warning of weaker profit margins in the coming months………………………………………..Full Article: Source

What looks attractive in commodities investment?

Posted on 23 February 2015 by VRS  |  Email |Print

Investors in the equity markets pained by the sideways movement in stocks, have attractive options in another universe called commodities. Even though commodities as an asset class has reached an end of the super bull cycle, there are enough opportunities in the market, which investors can profit from such as industrial and precious metals.
Bullish copper: Fundamentally, a reduction in the surplus situation and supply worries could support copper, the major industrial metal, going forward. Though Chinese consumption and growth have been a major concern, China’s efforts to prop up growth by way of fresh stimulus will deter a further sell-off, analysts say………………………………………..Full Article: Source

Commodities bright spot for investment banks

Posted on 20 February 2015 by VRS  |  Email |Print

Commodities revenues at the world’s largest investment banks rose 9 per cent last year as the fall in oil increased trading turnover, reversing a sharp slide in previous years that saw many of them withdraw from the sector.
Revenues in financial year 2014 came in at $4.9bn due to increased activity in energy markets, according to a report published on Thursday by industry consultant Coalition. That reversed a decline of 18 per cent in commodities revenues for Wall Street the previous year………………………………………..Full Article: Source

Private equity and energy: Refilling the pipeline

Posted on 13 February 2015 by VRS  |  Email |Print

Oil’s plunge may have helped consumers, but it has hurt big private-equity firms. Earlier this month Apollo Global Management announced that profits were down by 79% year on year in the three months to December 31st. This week KKR and the Carlyle Group said they were smarting too, with KKR’s profits down by 94% and Carlyle’s by 68%. Energy-related assets, whose valuations have fallen with the oil price, are largely to blame.
Spurred on by the shale boom in America, private-equity funds have invested heavily in the energy sector. More money was raised for energy buy-outs in America in 2014, and more deals were made, than ever before, according to Preqin, a data provider………………………………………..Full Article: Source

Global investors throng to ‘safe haven’ gold, but Indians dump it

Posted on 12 February 2015 by VRS  |  Email |Print

Indian investors don’t seem to consider gold as a ’safe haven’, unlike their foreign counterparts, gold exchange-traded fund data show. Local investors redeemed units worth Rs 131 crore in gold ETFs in January, up from Rs 111 crore in December, market data show.
In comparison, assets under management in SPDR Gold Shares, the world’s largest gold ETF, increased by 64 tonnes to 773 tonnes in January from 709 tonnes at the end of last year. The sentiment in Indian gold ETFs can be gauged from net inflows or outflows from these instruments. Every unit an investor purchases is backed by gold — one gram normally. An outflow from the fund reflects an investor’s negative sentiment towards the metal………………………………………..Full Article: Source

Protecting Your Portfolio: Should You Buy Gold Or Gold Miners?

Posted on 10 February 2015 by VRS  |  Email |Print

Many investors consider gold to be a safe haven, a hedge against inflation and a hedge against financial calamity. Indeed, a small allocation to gold in your portfolio is a prudent diversification tool but it has its drawbacks.
For example, physical gold becomes expensive and is bulky to store in any large quantity. Additionally, there are plenty of gold-focused investment funds on the market but some charge hefty management fees and others are difficult to understand………………………………………..Full Article: Source

Do Commodities Belong in Your Portfolio?

Posted on 02 February 2015 by VRS  |  Email |Print

Equities are far from the only investing game in town. Gold and other commodities, like corn, beef, oil and natural gas can have much appeal for not only the sophisticated investor, but the average Jane and Joe. “Anyone can invest in gold and silver, regardless of income. We have clients who have begun accumulating precious metals through payroll deductions as little as $10 per pay period, alongside people who have invested over $1 million in gold and silver,” says Josh McCleary, chief operating officer of Mass Metal.
“Investing in commodities is much easier than it has been prior to the last decade. Prior to that period, you would need to invest in futures contracts in order to get exposure to commodity prices. While you could invest in companies that produced those commodities, direct exposure was only available via the futures market,” says Kirk Chisholm, wealth manager and principal with Innovative Advisory Group………………………………………..Full Article: Source

High risk haunts gold buyers in 2015

Posted on 02 February 2015 by VRS  |  Email |Print

Market experts believe that high risk would continue to be associated with gold purchases in 2015 as the prices are to be determined by a host of global and domestic cues. Though considered as a protection against depreciating assets in an inflationary economy, movement of gold prices is unpredictable. Dollar’s strength is always gold‘s weakness. The uncertainty over the price movement in global currency markets makes speculation on gold prices risky.
In fact, Indian gold consumer failed to enjoy the full benefit of falling global gold prices in the recent past due to rapid depreciation of rupee. Economists are finding it difficult to bet on the direction of rupee – dollar exchange rates………………………………………..Full Article: Source

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

banner
banner
April 2015
S M T W T F S
« Mar    
 1234
567891011
12131415161718
19202122232425
2627282930