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Commodities Briefing - Category | Investment more

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

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

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