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Commodities Briefing - Category | Investment more

Gold’s Recovery Falters as Fund Investors Keep Selling Assets

Posted on 30 November 2016 by VRS  |  Email |Print

Gold halted its biggest gain in almost a month as investors extended the longest run of sales from bullion-backed funds in a year. Palladium climbed to the highest in almost 18 months.
Holdings in exchange-traded funds backed by gold have fallen for the past 12 days and are heading for the biggest monthly drop in three years. Bullion prices are near a nine-month low as traders are certain that the Federal Reserve will raise U.S. interest rates in December following Donald Trump’s election win………………………………………..Full Article: Source

IEA expects oil investment to fall for third year in 2017

Posted on 25 November 2016 by VRS  |  Email |Print

Investment in new oil production is likely to fall for a third year in 2017 as a global supply glut persists, stoking volatility in crude markets, the head of the International Energy Agency (IEA) said on Thursday.
“Our analysis shows we are entering a period of greater oil price volatility (partly) as a result of three years in a row of global oil investments in decline: in 2015, 2016 and most likely 2017,” IEA director general Fatih Birol said at an energy conference in Tokyo. “This is the first time in the history of oil that investments are declining three years in a row,” he said, adding that this would cause “difficulties” in global oil markets in a few years………………………………….Full Article: Source

Energy investments in 2017 look good

Posted on 24 November 2016 by VRS  |  Email |Print

Thanksgiving will mark two years to the day since ministers at the Organization of Petroleum Exporting Countries (OPEC) made a decision that triggered a swoon in global oil prices. But the energy sector strategist for UBS Wealth Management anticipates the oil market will get back into equilibrium by mid-2017 and that should mean good news for investors.
“Yes, this is a good time to invest in the energy sector on a selective basis,” Nicole Decker said Tuesday in a telephone interview from her office in New York City. “We take it day by day but we like the opportunities and the risk-reward, finally, two years later.”………………………………..Full Article: Source

Are Commodities Stuck in a Bear ‘Super-Cycle’?

Posted on 23 November 2016 by VRS  |  Email |Print

Higher rates and a stronger dollar are weighing on commodities prices especially precious metals. Soon after Donald Trump won the presidential election expectations grew that inflation would rise along with bigger deficits as a result of prospective tax cuts coupled with increased spending.
Long-term Treasury bond prices fell as yields climbed, reaching a 12-month high of 2.35% by Friday, and the dollar surged as a result of higher rates. Gold, a traditional inflation hedge, however, lost 5% in price since the election and silver fell almost 9%. “Higher yields along with a sharply higher U.S. dollar are usually poison for gold,” explains Bart Melek, head of global commodity strategy at TD Securities………………………………………Full Article: Source

Goldman says buy oil, other commodities

Posted on 23 November 2016 by VRS  |  Email |Print

Investors should buy commodities on Chinese demand and rising oil prices in the coming year, according to Goldman Sachs. “Historically, when the US and Chinese output gap closes and inflation begins to rise, this has been a buy signal for commodities. We believe the recent reacceleration in global PMIs suggests commodity markets are entering a cyclically stronger environment,” Jeffrey Currie, global head of commodities research at Goldman Sachs, said.
“Recommending overweight commodities and long enhanced GSCI. [S&P GSCI Enhanced Commodity Index] ” S&P GSCI Enhanced Commodity Index contains commodities such as oil, heating oil, natural gas, wheat, corn, lean hogs and live cattle………………………………………Full Article: Source

Five Best Ways To Invest In Gold

Posted on 23 November 2016 by VRS  |  Email |Print

Gold will always be the ultimate instrument for hedging investments in dollars. This because the price of gold will rise whenever the price of the dollar falls. Financial market experts are of the opinion that in the coming years and decades, the potential for generating profits is much higher when you invest in gold rather than the traditional blue chip company stocks.
According to them, these stocks are incapable of competing in the world market. You can invest in gold in many ways and position yourself to benefit from a bull run in the gold market. The aim of this article is to explain why online gold trading in any of the ways mentioned in the article makes sense and how you can position your portfolio to generate more profits………………………………………Full Article: Source

Copper Rises as Investors Bet on Growing Chinese Demand

Posted on 23 November 2016 by VRS  |  Email |Print

Copper futures resumed their climb on Tuesday, supported by predictions of greater demand from China and higher oil prices. Copper for December delivery was recently up 1% at $2.5390 a pound on the Comex division of the New York Mercantile Exchange.
Dee Perera, an analyst at brokerage firm Marex Spectron, said the copper market was buoyed on Tuesday by improved sentiment at a key industry conference in Shanghai………………………………………Full Article: Source

Speculators Are Finally Bailing Out Of Gold – And That’s A Good Thing

Posted on 21 November 2016 by VRS  |  Email |Print

All this talk of massive new infrastructure spending financed with a tsunami of freshly-minted currency should be lighting a fire under gold. That it hasn’t is a testament to how out-of-whack the precious metals market had gotten during the first six months of this year.
As gold rose, the futures contract traders whose games tend to dictate near-term price action had set the metal up for a fall. Specifically, the speculators (who are always wrong at the extremes) were ridiculously long. With the suckers all-in, a big correction was needed to restore balance……………………………………Full Article: Source

Now Is The Best Time Ever To Invest In The Global Economy!

Posted on 16 November 2016 by VRS  |  Email |Print

While it may seem as though the global economy faces a difficult outlook, in reality there is a vast amount of opportunity on offer for long term investors. Certainly, the US economy could endure a challenging period after the election of a new President and the potential for interest rate rises.
Similarly, China’s transition towards a more consumer-focused economy is unlikely to be frictionless. And with Europe having an uncertain future, it may feel as though there is nothing but difficulties and risks ahead for investors. However, the reality is that there has never been a better time to invest in the global economy. For starters, doing so today is easier than ever thanks to advances in technology and globalisation………………………………….Full Article: Source

Chinese Speculators Shake Up Global Commodity Markets

Posted on 15 November 2016 by VRS  |  Email |Print

Global commodity markets are being rattled again by a familiar force: China’s army of cash-rich investors. A renewed rush into Chinese commodity futures is encouraging wild swings in prices for products including coal, iron ore and rubber, raising concerns about the return of a speculation frenzy.
The price paid for physical iron ore, the key ingredient in steel, has risen by about a quarter in the past week to its highest level in more than two years. Analysts and traders have linked the rally to renewed bets by Chinese speculators……………………………………..Full Article: Source

Should you buy or sell gold after Trump’s victory?

Posted on 15 November 2016 by VRS  |  Email |Print

When it became increasingly clear that Donald Trump was about to win the US election, the price of gold soared. It reached a high of $1332 per ounce and sustained most of this rise through the day following the election victory. However, since then it has fallen back to $1220 per ounce, as investors have favoured risk-on trades rather than risk-off ones.
In the short run, this trend could continue and the price of gold may come under pressure. Investors seem to have put political risk to one side for the moment and are not all that interested in Trump’s policies on immigration and foreign policy……………………………………..Full Article: Source

India considering permitting FIIs in commodities

Posted on 11 November 2016 by VRS  |  Email |Print

Allowing foreign institutional investors (FIIs) in commodity trading is under consideration, but no decision has been taken, the finance ministry on Thursday said.
“Many suggestions have come with regard to permitting FIIs into commodity trading, but no decision has been taken. The matter is under consideration. The matter is also under consideration of Sebi,” Economic Affairs Secretary Shaktikanta Das said. “If the Sebi board after taking a view makes recommendation as a regulator, if they permit… if it requires government permission, we will see. But so far, no decision has been taken,” he said…………………………………..Full Article: Source

Is the Uptrend in Commodities Far From Over?

Posted on 08 November 2016 by VRS  |  Email |Print

Rising volatility prices across the financial markets in recent weeks has many investors concerned about the future direction and stability of their investments.
Commodity traders have shown to be especially sensitive and based on the broad selling it appears that most assets were getting dragged down regardless of underlying fundamentals. In the article below, we’ll take a look at the charts of several commodity-related assets and try to determine if recent momentum has created a buying opportunity………………………………………Full Article: Source

Oil investor impatience grows over global surplus

Posted on 08 November 2016 by VRS  |  Email |Print

Oil investors are growing increasingly disgruntled with the pace at which supply and demand are rebalancing, cutting their bullish bets and pushing the benchmark price to its biggest discount relative to future prices in nine months.
The premium of Brent crude futures for delivery in six months over those for prompt delivery, one measure of confidence in the market outlook, on Monday shot to its largest since February, the point at which Opec first floated the idea of a possible deal on output to erode a two-year-old global surplus………………………………………Full Article: Source

Gold Investors Shift Gears As Election Volatility Spikes

Posted on 08 November 2016 by VRS  |  Email |Print

The U.S. presidential election is chasing some commodities investors out of gold futures because of high volatility and rising costs. Gold has been at the center of election-related trading, along with the dollar, the peso and other currencies tied to how investors expect a new president to impact global markets.
In the past 10 days, gold has had a series of swings coinciding with revelations about an FBI investigation of Hillary Clinton. Gold has fallen 1.7% Monday, on track for its biggest loss in a month, after the agency announced it found no new evidence to warrant charges………………………………………Full Article: Source

Copper Could Be Forming A New Bull Market

Posted on 04 November 2016 by VRS  |  Email |Print

The copper chart is attracting our attention, and it could be setting up for an enticing investment opportunity sooner rather than later. Copper is doing something it hasn’t done in a very long time: it is consolidating in a tight price range. Check out copper’s chart below. The key price level to watch is $2.30, and it is only 3 percent above today’s price level.
From a secular perspective, copper’s price is clearly in a downtrend. However, this potential bottom formation, which was triggered after touching secular support early 2016, could result in a tactical bull market………………………………………Full Article: Source

Buy Gold No Matter Who Wins the Election, HSBC Says

Posted on 02 November 2016 by VRS  |  Email |Print

There’s one certain winner of next week’s presidential election, according to HSBC Holdings Plc: investors in gold. Although they deem a Donald Trump victory more supportive for the price of the metal than a win by Hillary Clinton, the bank’s Chief Precious Metals Analyst James Steel says it’ll enjoy at least a 8 percent jump whoever wins the race.
Both candidates have espoused trade policies that could stimulate demand, with gold offering a potential “protection against protectionism,” he says……………………………………Full Article: Source

The price of oil is heading up - should I invest, and how?

Posted on 31 October 2016 by VRS  |  Email |Print

After recovering from its recent lows, the price of oil should continue to rise, in the short term at least, experts say. A trend towards equilibrium in the continuing battle between supply and demand, and a rare agreement between the members of Opec, the oil cartel, are among the reasons.
The price of oil is notoriously difficult to project, and any prediction needs to be taken with a hefty dose of salt. However, there appear to be compelling arguments in favour of a continued recovery in the oil price and Telegraph Money has rounded up a selection, along with the opposite view……………………………………..Full Article: Source

Now is the time to add commodities to your portfolio

Posted on 28 October 2016 by VRS  |  Email |Print

With commodities currently sitting at or near multiyear lows, now may be a good time for investors to take advantage of lower prices and gain exposure.
Commodities — such as precious metals, including gold and silver; industrial materials, such as iron ore and copper; and agricultural products, such as wheat and pork bellies — can offer strong diversification benefits to an investment portfolio. It’s essential that investors look at the overall market factors that could make now a good time to add commodities to their portfolio……………………………………Full Article: Source

Should Commodities Be in Your Portfolio?

Posted on 26 October 2016 by VRS  |  Email |Print

Whether investors should allocate to commodities is often a topic of debate. A few years back, the Wall Street Journal profiled 8 investment professionals on the issue. The opinions were mixed.
Common arguments for including commodities in a portfolio are that they can act as an inflation hedge and that they diversify core equity and bond holdings. Some of the arguments cited against commodity allocations are that they are too volatile and often mean reversionary, leading to large losses from poorly timed investments…………………………………..Full Article: Source

Investors’ New Message to Global Governments: Spend More

Posted on 24 October 2016 by VRS  |  Email |Print

A growing number of investors and policy makers, seeing central banks as powerless to revive an anemic global economy, are championing a resurgence of fiscal spending.
A move away from central-bank-led policy, and toward the use of the government’s taxing-and-spending power to revive growth, would end a years-long economic era and could cause upheaval in financial markets. Investors, among them bond king Bill Gross, once feared that government profligacy was a death knell for sovereign bonds………………………………….Full Article: Source

It’s time to invest in gold: Haywood

Posted on 24 October 2016 by VRS  |  Email |Print

The gold industry has firmly overcome so many obstacles in 2016, while at the same time reinventing itself, that there are no signs of the weakness some analysts talk about. This is the main takeaway from Haywood Securities latest Gold Producers Industry Report.
The investment dealer remains constructive on the yellow metal sector by pointing to its relatively stable prices and producers’ optimized operations………………………………….Full Article: Source

Commodities funds may offer inflation hedge

Posted on 21 October 2016 by VRS  |  Email |Print

If you look in the average investor’s closet of anxieties, inflation is probably the biggest, scariest monster of them all. And increasingly, investors have been looking at commodities funds as a way to offset the effects of inflation and diversify their portfolios.
If you’re considering adding a commodity fund to a client’s portfolio, you have your work cut out for you. “The biggest problem is that there’s no real agreement as to what a commodity fund should look like, and that’s a real problem,” said Dave Nadig, director of exchange-traded funds at FactSet Research…………………………………….Full Article: Source

Sell gold at $1,290-95/oz

Posted on 21 October 2016 by VRS  |  Email |Print

A strong intermediate resistance lies around $1,278-85 followed by a stronger one at $1,295-1,305. Only a fall below $1,250 could revive bearish hopes for $1,208-10 levels. The favoured view expects prices to test resistance around $1,295-1,305, while supports around $1,245-50 holds for the week.
But subsequently, we expect prices to dip again. Only a direct rise above $1,320 on high volumes on a closing basis could revive bullish hopes. Such a rise will hint that the downward correction has ended and the rally above $1,400 levels has begun…………………………………….Full Article: Source

This is the commodity to play: Gartman

Posted on 17 October 2016 by VRS  |  Email |Print

Investors looking for a buy should still look to gold, even as the U.S. dollar rallies, according to commodities king Dennis Gartman. While the greenback has strengthened in the past week, Gartman and other market watchers argue that bullion is still interesting to watch given its short term trends versus the dollar.
In a research note this week, Wells Fargo Investment Institute said the commodity appeared “oversold”, and was ripe for a bounce back in price. “I find it fascinating that gold has held reasonably well, even tries to rally as the dollar has gotten stronger over the course of the past six or seven days,” said Gartman……………………………………..Full Article: Source

Three Reasons To Be Bullish On Gold

Posted on 17 October 2016 by VRS  |  Email |Print

Since the peak of the last gold bull market in September 2011, both buyers and sellers (mostly miners) of gold have been mired in a titanic and frustrating struggle to find an equilibrium clearing range, a price range that will ensure a steady amount of supply and demand growth year-in and year-out.
Unfortunately for many gold prognosticators (and gold bulls), unprecedented monetary and political events have conspired to thwart both gold producers and investors in finding a steady price range, resulting in heightened price volatility……………………………………..Full Article: Source

Safe havens face correction

Posted on 17 October 2016 by VRS  |  Email |Print

Kerr Neilson, the founder of Platinum Asset Management and who ranked as one of the Australia’s wealthiest men in this year’s BRW Rich List with a personal wealth of nearly $2 billion, believes the financial aberration that caused his $23bn fund such pain over the last year is now close to its nadir.
“We can detect there’s a huge change taking place and that’s ­interesting to us,” he said, pointing to the numerous safe havens that are now subject to the start of a sharp correction. Investors are now betting on imminent and steady interest rate hikes in the US and the gold price notched up its biggest weekly slump in three years last week……………………………………..Full Article: Source

Gold coins to be most preferred this festive season: World Gold Council

Posted on 14 October 2016 by VRS  |  Email |Print

This festive season, Indians are more likely to purchase branded gold coins because of the quality assurance and Government of India backing them, a World Gold Council report said. Gold has been considered as an auspicious metal in Indian society and hence holds a special place. Along its ties with Indian traditions, Indians have been buying as an instrument for investment.
Prime Minister Narendra Modi, had launched the Indian Gold Coin, as an initiative under Gold Monetisation Scheme. These gold coins have 24 karat purity and hallmarked by the Beureau of Indian Standards (BIS). The coins are made with tamper proof packaging and available in sizes from two to 100 grams……………………………………Full Article: Source

Now may be the right the time to invest in gold

Posted on 12 October 2016 by VRS  |  Email |Print

Despite recent falls in the price of gold, now may be the time to add exposure to the precious metal thanks to demand from Asia, experts suggest. Gold prices performed well earlier through 2016, hitting a two-year high of $1,366 per ounce in July this year, but have since slumped. Prices are down 6 percent over the past two weeks and finished around $1,254 at the end of Monday trading. Year-to-date, gold prices are up 18 percent.
However, many are seeing this as a price correction, which may be a good opportunity for investors looking to add exposure to the yellow metal and build more favourable positions……………………………………….Full Article: Source

Are commodities a good investment?

Posted on 11 October 2016 by VRS  |  Email |Print

Commodities derive their investment returns very differently from other investments like stocks and bonds, and that makes them a good diversifier, said Andy Kapyrin, director of research at RegentAtlantic in Morristown.
“Most investors do not buy commodities directly and put them in storage. Rather, they buy funds that invest in futures contract for the commodity,” he said. “The futures typically trade in line with the underlying commodity they track, but can deviate over longer time periods.”…………………………………Full Article: Source

Five factors drive the outlook for gold

Posted on 11 October 2016 by VRS  |  Email |Print

Investors sitting on a 20% gain so far this year face choice of selling or doubling-down. Has the gold price peaked for the year? The precious metal has just experienced its worst week since June 2013, falling 5 per cent as investors increasingly believe that the Federal Reserve will raise interest rates later this year, bolstering the US dollar.
That leaves gold investors sitting on a gain of more than 20 per cent so far this year, facing a choice: should they sell or double-down? Analysts such as Goldman Sachs see the retreat in gold as a buying opportunity. Ongoing economic uncertainty, from signs of latent inflation to a possible Donald Trump presidency, have some investors ready to buy the dip………………………………….Full Article: Source

Gold Investors Have Doubled Their Money in 2016

Posted on 07 October 2016 by VRS  |  Email |Print

Commodity funds have gained 125% this year, making them the best performing sector of 2016. Thanks to a recovery in the oil price and a low interest rate environment, the top funds year to date are all commodity related.
Oil is not the only commodity up since the start of the year – the gold price has rallied 20%, as concerns about the impact of Brexit have seen investors rush to the perceived safe haven, and several precious metals funds are feeling the benefits……………………………………….Full Article: Source

Commodities to struggle to regain stance in portfolios: JPM

Posted on 06 October 2016 by VRS  |  Email |Print

Commodities will battle to regain a prized place in many portfolios after the “super cycle” fizzled out and in a world of muted global growth, executives at JP Morgan Asset Management said. The sector could, however, claw back a shred of its former glory by providing some diversification benefits, they said during a conference by the fund manager in London this week.
During a commodities boom mainly spurred by China’s hunger for infrastructure in the years leading up to the global financial crisis, many investors boosted allocations to commodities to capture strong emerging market growth while diversifying from equities and bonds………………………………….Full Article: Source

Two Charts That Every Gold Investor Needs to Keep an Eye On

Posted on 06 October 2016 by VRS  |  Email |Print

Gold got off to a great start this year, but it’s been tumbling hard in recent days. It’s now over 7 percent off its highs of the year. Now there’s a major debate about what’s next for this precious metal.
“The way we think about it is, gold looks to be 20 to 25 percent overvalued,” Deutsche Bank AG Chief Global Strategist Binky Chadha said. Conversely, Barnabas Gan, an economist at Oversea-Chinese Banking Corp says upcoming political risks will help gold regain that lost ground………………………………….Full Article: Source

Merrill: Drop in gold might be a buying opportunity

Posted on 05 October 2016 by VRS  |  Email |Print

Investors should use the recent drop in gold prices as a buying opportunity, as increased volatility in the market ahead of a potential Fed interest rate hike could lead investors to seek refuge in the precious metal, according to Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch.
“Gold is really thriving on uncertainty, and frankly, on the end of the U.S. [rate] cycle whenever that happens,” said Blanch. The commodities expert believes that once the U.S. central bank decides to raise interest rates, potentially causing equities to sell off and the dollar to rally, investors will see gold prices stabilize and eventually trend higher…………………………………….Full Article: Source

Should commodities be part of one’s portfolio?

Posted on 03 October 2016 by VRS  |  Email |Print

One asset class that has performed well this year is commodities. Traditionally, commodities serve as an excellent diversifier of one’s investment portfolio. Many asset allocators such as the sovereign wealth funds and university endowment funds have allocated a portion of their portfolio to commodities.
Commodities as an asset class is usually subdivided into sub-sectors such as metals, energy, grains, meats and soft-commodities. In today’s column, we concentrate on precious metals and industrial metals. Some of the best assets to own so far this year are precious metals and industrial metals. Examples of precious metals are gold, silver, palladium and platinum…………………………………….Full Article: Source

Gold Investment’s ‘Remarkable Return’ Set to Run in 2017

Posted on 30 September 2016 by VRS  |  Email |Print

Gold investment is set to keep growing into 2017 says a new report from leading analysts, because the financial and economic backdrop to this year’s “remarkable” return of Western money managers to precious metals is set to continue.
The price of silver, platinum and palladium will likely rise faster however, the research says, with the three white metals attracting “speculative” money, offering “value” relative to gold, and enjoying “healthy fundamentals” respectively. “Investor confidence in precious metals is forecast to continue improving next year,” says the new Precious Metals Investment Focus……………………………………..Full Article: Source

What is the best way to buy gold?

Posted on 29 September 2016 by VRS  |  Email |Print

Should I look at miners, bullion or exchange-traded products? Many investors perceive it to be a haven during times of market turmoil, so it can do well during financial crises. Historically, it has also traded in a way that shows a low correlation to other financial assets.
Our current guidance is for gold to make up between 3 per cent and 5 per cent of a balanced portfolio. It has been a popular commodity investment in 2016, and the price has risen by 26 per cent in the year to date……………………………………Full Article: Source

Mitsubishi: Gold Headed For Quarterly Gain On Investment Demand

Posted on 28 September 2016 by VRS  |  Email |Print

Gold is on track for its third straight quarterly price gain thanks to investment demand, reports Mitsubishi. While down from the July high for the year, spot gold is still higher than on the final day of the second quarter. “Gold is likely to register a third successive quarter of…gains – its best performance since 2011 when bullion was on the run-up to its all-time nominal high,” Mitsubishi says.
“Though the pace of gains has slowed, its performance has remained impressive – it has remained above $1,300 throughout this quarter, a level that is roughly coincident with the 50% retracement of the 2008 low to 2011 high, and has remained above the 500-day moving average since February…………………………………..Full Article: Source

Chinese Commodities Strategy - Food For Thought

Posted on 27 September 2016 by VRS  |  Email |Print

China is the world’s most populous nation with over 1.37 billion people. China is a significant producer of raw materials - the country has tremendous reserves of minerals and metals and the capacity to produce enormous quantities of agricultural products.
However, with around 18.7% of the world’s people, commodity production within Chinese borders is not enough to meet requirements each year. Aside from the population numbers, the Chinese economy has one of the fastest growth rates in the world. While the economy has cooled over recent years and double-digit economic growth appears to be in the nation’s rear-view mirror, in 2015 China grew by 6.9% and in 2016 it is likely that the economy will grow by more than 6%……………………………………..Full Article: Source

How to Invest in the Commodities Turnaround

Posted on 27 September 2016 by VRS  |  Email |Print

It’s been a rough couple of years for the commodities group. Investors nearly abandoned most of the sector during this time, leaving energy and fertilizer stocks in the dust. But in 2016, there was some relief. Gold has rebounded and is up 20% year-to-date. Oil hit lows in February but has bounced off that level and hasn’t re-visited it.
Fertilizer prices, however, continue to struggle but analysts see a turnaround coming in 2017. Is this the time to get into the commodities as a play on the turnaround? It’s a risky proposition. Commodities are still clearly out of favor……………………………………..Full Article: Source

Gold price: ‘Buying fatigue’ could be a turning point

Posted on 27 September 2016 by VRS  |  Email |Print

Bullish bets on price rising fall as US presidential election and possible interest rates rise add to pressure. Gold could be facing a turning point at the end of what has so far proved to be one of its best years for four decades.
The yellow metal, seen as a safe haven in times of economic strife, benefits from low interest rates, which reduce the relative value of other income-yielding assets. Consequently, this year has been one of its most successful since 1980, says Mining.com, with the price up around 26 per cent, or $280, and hitting a two-year high in July of $1,380 an ounce……………………………………..Full Article: Source

Investing in gold is the best ‘speculative’ bet there is today

Posted on 27 September 2016 by VRS  |  Email |Print

Gold, simply put, is an investment. And I try to view it as such, based on the current macro and market conditions. It’s moderately risky as far as investments go, sure. But anyone who tries to paint the precious metal as a bulwark against disaster or a pitfall to be perpetually avoided is missing a key piece of the market puzzle.
Because through the end of 2016 and into the start of 2017, gold could be poised for a big leg up even as stocks risk running out of gas. If you think gold is risky, you’re right. But there is no risk-free return in any market, especially in this one……………………………………..Full Article: Source

Is Investor Appetite for Commodities Picking Up? (Video)

Posted on 26 September 2016 by VRS  |  Email |Print

Tim Evans, Long Leaf Trading Group’s founder and chief market strategist, discusses the outlook for gold and oil prices with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………….Full Article: Source

Commodity market is not for investors

Posted on 26 September 2016 by VRS  |  Email |Print

It is a place where users can hedge to mitigate the risk in the physical market. Commodity exchanges are witnessing a lot of action since SEBI took charge. With the trading and other processes getting streamlined, these could be an alternate asset class that investors could consider in the future.
From my perspective, the commodity market is not for investors. It is a place where users such as farmers, importers, exporters, traders or companies can hedge to mitigate the risk that they face in the physical market. As far as investment in commodity market is concerned, yes, anyone can invest in commodity futures as the government does not state explicitly that you cannot trade in commodity futures without an exposure to the physical commodity……………………………………Full Article: Source

Buy, Hold & Lose: How a Commodities Roll Undercuts Investors

Posted on 23 September 2016 by VRS  |  Email |Print

Investors in commodity index funds are coming up short in 2016, even after rallies in more than a dozen raw materials, including sugar, gold and soybeans. While spot prices tracked by the Bloomberg Commodity Index are up 16 percent this year, the total return for funds linked to the gauge was about half that amount, data compiled by Bloomberg show.
The performance gap has been widening since the first quarter of 2015 and is now the largest in five years, just as investors pour more money into commodities………………………………………Full Article: Source

Commodity bulls dare to exude optimism

Posted on 22 September 2016 by VRS  |  Email |Print

After five lean years some investors sense a turning point for the sector. After five years of consecutive declines, has the commodities market finally bottomed? With a leading index up 7 per cent from the start of the year and a jump in investment flows into the market, some investors are daring to be optimistic although others remain resolutely on the sidelines.
“We think that this is a turning point in investment flows in commodities,” says Kevin Norrish, head of commodity research at Barclays. According to the bank’s latest research, commodities saw investment inflows of $54bn between January and August, an all-time high for the first eight months of the year. If the current trend continues, 2016 will mark the first year of net inflows into commodities for the first time in four years…………………………………….Full Article: Source

The ultimate gold investing primer

Posted on 22 September 2016 by VRS  |  Email |Print

When it comes to investing in gold, there’s more than one way to skin a cat. The form in which you hold this yellow metal will largely depend on why you own it in the first place. The way that is most sensible for you will depend on a variety of factors, including liquidity needs, tax status and privacy concerns, among others.
With the Federal Reserve itching to raise rates and with inflation still very muted, I’m not particularly bullish on the yellow metal. In fact, I’m actually short gold as a short-term tactical trade…………………………………….Full Article: Source

In with a bang, out with whimper: How commodities may end the year

Posted on 20 September 2016 by VRS  |  Email |Print

For commodities, 2016 started with a bang. If history is any guide, it will end with a whimper. With supply gluts persisting from corn to oil, traders are gearing up for declines. Investors pulled $US791 million out of exchange-traded funds tracking commodities over the past month, a reversal from earlier this year that have still left inflows up by $US34.1 billion for the year.
Hedge funds have cut their combined bet on a rally for raw materials in nine of the past 11 weeks, and interest for the asset class has fallen………………………………………..Full Article: Source

Oil Investors Flee as OPEC Freeze Hopes Face Supply Reality

Posted on 20 September 2016 by VRS  |  Email |Print

Oil speculators headed for the sidelines as OPEC members prepare to discuss freezing output in the face of signs the supply glut will linger.
Money managers cut wagers on both falling and rising crude prices before talks between OPEC and other producers later this month. The meeting comes after the International Energy Agency said that the global oversupply will last longer than previously thought as demand growth slows and output proves resilient………………………………………..Full Article: Source

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