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Commodities Briefing - Category | Investment more

Forget gold, these three metals are soaring ahead

Posted on 24 August 2016 by VRS  |  Email |Print

Silver has been the best-performing raw material in 2016 so far; its dollar-denominated price grew by 42.6 per cent year-on-year, followed by zinc, up 40.7 per cent, and platinum with a price increase of 32 per cent.
In comparison, the price of gold increased by only 26.1 per cent over the year, which is the same price increase that tin experienced. The bottom performers were uranium, which shed 27 per cent, and among the ’soft’ commodities corn, which lost 10.6 per cent, and cocoa, which fell by 5.5 per cent………………………………………..Full Article: Source

Commodities Are The Best Bargain Now

Posted on 23 August 2016 by VRS  |  Email |Print

What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities? The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim. Don’t worry. There are still many places to invest your money. I’m talking about hard assets, aka commodities. Hard assets go well beyond real estate and gold. They include all types of natural resources like oil, wheat, copper, timber, coffee, zinc, and pork bellies………………………………………..Full Article: Source

Commodities on upswing in FY17 as funds return

Posted on 23 August 2016 by VRS  |  Email |Print

International commodities markets are on a boil since beginning of the current financial year and most commodities are up be that metals, crude oil or agri commodities. While so far US has refrained from raising rate after last December hike which has attracted global financial investors to commodities again, the decision will continue to be a biggest headwind for commodity rally to continue.
Bloomberg all commodity index is up 9.4 per cent from April while LME metal index (up 6.3 per cent) and Bloomberg agri index (4.6 per cent) has followed………………………………………..Full Article: Source

Morgan Stanley throws cold water on hopes of any OPEC freeze deal

Posted on 23 August 2016 by VRS  |  Email |Print

Energy investors got all excited last week on hints of a freeze deal among major oil producers, but anyone hoping for coordinated action to boost the struggling oil market is bound for disappointment, according to Morgan Stanley.
In a note out on Monday, strategists led by head of energy commodity research Adam Longson warned that an output agreement between members of the Organization of the Petroleum Exporting Countries remains “highly unlikely” as the cartel members battle for market share………………………………………..Full Article: Source

How to Hedge Against Inflation With Commodities

Posted on 22 August 2016 by VRS  |  Email |Print

Investors in search of an inflation hedge may want to consider commodities. Commodities are an insurance policy, says Vic Sperandeo, president and CEO of EAM Partners, which developed the Trader Vic Index, a collection of futures contracts in commodities, currencies and U.S. interest rates.
A broad basket of commodities offers a hedge against inflation, and gold in particular is a hedge against both inflation and geopolitical chaos, Sperandeo says. “If you’re a typical retail investor, you must have commodities in your portfolio,” he says………………………………………..Full Article: Source

How to invest in gold bars, bullion and investment funds

Posted on 18 August 2016 by VRS  |  Email |Print

There’s been a surge in demand for gold as interest rates fall. Here’s how you can put your money into it and what it might cost. The recent Bank of England Base Rate cut has led to a surge in demand from people wanting to invest in gold, says the Royal Mint.
It saw a 25% increase in transactions on its bullion website in the first week of August, as well as a 50% increase in sales of gold bars and coins, compared to the previous week. Falling returns on cash and bonds as a result of the Bank of England’s decision to cut rates is thought to be making investors turn to gold………………………………………..Full Article: Source

Is George Soros Calling a Top in Gold?

Posted on 17 August 2016 by VRS  |  Email |Print

George Soros is getting out of gold. The billionaire investor jumped back into trading this year with a big bet on the precious metal, buying up a 19-million share stake in the world’s largest gold producer, Barrick Gold But in the second quarter, Soros Fund Management sold the majority of his shares in the gold miner and his full stake in mining company Silver Wheaton, according to regulatory filings.
The first-quarter bet on gold looked particularly prescient, as the precious metal has rallied 26% this year………………………………………..Full Article: Source

Hedge funds turn record bullish on soft commodities

Posted on 16 August 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on soft commodities to record levels, holding massive long positions in New York-traded sugar and cotton, according to data from the Commodity Futures Trading Commission (CFTC) regulator.
Managed money, a proxy for speculators, lifted its net long position on the main New York traded soft commodities, arabica coffee, cocoa, raw sugar, and cotton, to the tune of 28,684 lots, in the week to last Tuesday. This brings the net long across softs – the extent to which long positions, which benefit when prices rise, outnumber short bets, which profit when values fall – to 401,379 lots………………………………………..Full Article: Source

Gold losing appeal for investors retreating from rally bet

Posted on 16 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1% in August as the US economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

Gold and silver are 2016’s shining investments

Posted on 15 August 2016 by VRS  |  Email |Print

10 best-performing mutual funds so far this year in the US and Europe are all precious-metal funds. Gold and silver funds have topped the list of best-performing investment products so far this year, benefiting from a huge rise in the price of precious metals driven by fears over the global economy.
Precious-metal funds account for all 10 best-performing mutual funds in both the US and Europe, nearly doubling investors’ money during the first seven months of 2016, according to Morningstar, the data provider………………………………………..Full Article: Source

Gold Losing Appeal for Investors Stepping Back From Rally Bet

Posted on 15 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1 percent in August as the U.S. economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

Improved Approach To Investing In Commodities​

Posted on 12 August 2016 by VRS  |  Email |Print

New analysis by Source UK shows that commodity investors can maximise their risk-adjusted returns by using ETFs that provide exposure to ‘second generation’ indices. These aim to improve performance compared to ‘first generation’ indices by managing exposures across the futures curve and diversifying trading strategies.
‘First generation’ indices are susceptible to the negative roll-yield problem because of an inflexible approach to reinvesting in the futures used to track commodities, as they are restricted to trading the front-month contracts where the futures curve is typically the steepest………………………………………..Full Article: Source

Why investors should expect the gold price to rise much higher, and how to invest in it

Posted on 12 August 2016 by VRS  |  Email |Print

Geir Lode, the veteran investor who is head of global equities at Hermes, has asserted that wider economic conditions mean the gold price will go up in the coming years, and revealed the share he is buying to profit from the market movements.
He remarked that, ‘Historically gold has been seen by investors as a safe haven protecting the downside in a portfolio. Over the next two to three years we believe an increased allocation to gold is likely due to macro-economic uncertainty, higher geopolitical risk, and low or even negative interest rates………………………………………..Full Article: Source

Gold investment at highest ever level – 16% above previous record

Posted on 12 August 2016 by VRS  |  Email |Print

For the first time, investors were the largest buyers of gold for two consecutive quarters. Hedge funds and other western investors have been piling into gold this year, pushing investment to a record high and driving the price of bullion to its biggest first-half gain since 1980.
The latest report from the World Gold Council, which represents gold miners, indicates that global gold demand reached 2,335 tonnes in the first six months of the year………………………………………..Full Article: Source

Hedge funds double down on bets against oil

Posted on 11 August 2016 by VRS  |  Email |Print

Oil bears are betting the recent rally is over. Hedge funds nearly doubled their bets against West Texas Intermediate crude oil over the last month as prices pulled back from their June highs in the low $50s, according to Bloomberg data.
Short interest — betting that the price will fall further — in “black gold” is even greater than it was in January, when the price of oil plunged to the low-$30s. Bearish oil bets likely reflect traders’ belief that the supply glut will continue weighing on the market, despite chatter from some oil-rich nations about setting new limits on production to pump up prices………………………………………..Full Article: Source

Gartman Still Bullish Despite Lower Gold Price Post-Jobs

Posted on 10 August 2016 by VRS  |  Email |Print

One veteran gold investor remains bullish on the metal, especially in non-U.S. dollar terms, even though gold is still trading lower since jobs data Friday turned sentiment toward the U.S. economy more positive. Dennis Gartman of the popular newsletter The Gartman Letter said the employment data was “demonstrably less strong” than it appeared to be.
“Let’s say this was a strong number, much stronger than people anticipated, but there are some circumstances incumbent in it that reduce that number or reduce the bullishness that most people want to put into it,” he noted………………………………………..Full Article: Source

Is Now The Time To Invest In Commodities?

Posted on 09 August 2016 by VRS  |  Email |Print

Commodities as an asset class are frequently overlooked by investors. Many investors and financial professionals view commodities as too speculative or too volatile, and they’re right. Investing in commodities is not for the faint of heart. But as a means of diversification within a long-term investment portfolio, commodities should certainly be considered.
To balance the risks and potential rewards of commodities, the rule to keep in mind is that commodities should only ever be between 5-10% of an investor’s overall portfolio. Any more than that, and your portfolio may be too speculatively weighted or volatile. Any less than that and you’re missing an opportunity to further diversify your portfolio and potentially augment returns………………………………………..Full Article: Source

Commodities Fatigue Kicks In After Biggest Investment in 7 Years

Posted on 08 August 2016 by VRS  |  Email |Print

Investors are growing tired of commodities after plowing in the most money in seven years. Inflows into raw materials slowed to $2.4 billion in July, the least since money was withdrawn in December, Barclays Plc said in a report Thursday. The smaller amount — not unusual for this time of year — took investment to almost $51 billion so far in 2016, the most since 2009.
There’s a good chance raw-materials interest has peaked, as it has largely been driven by investors seeking a haven in precious metals, signaling wider concerns about commodity fundamentals, Barclays said………………………………………..Full Article: Source

Investors pouring money into commodities at the fastest rate since 2009

Posted on 08 August 2016 by VRS  |  Email |Print

Largely driven by a fever for gold, demand for commodities this year is the strongest it has been since the financial crisis, according to Barclays. Total commodity inflows year to date stands at $50.8 billion, marking the strongest January-to-July performance since 2009 — which was only $1 billion higher, said Barclays in an Aug. 4 research note written by Kevin Norrish, head of commodities research.
Those inflows, along with some hefty price gains, have pushed commodity assets under management to $235 billion, a sizable leap from $161 billion seen at the end of 2015………………………………………..Full Article: Source

Investing: The great escape

Posted on 08 August 2016 by VRS  |  Email |Print

Switch into emerging markets is less about potential growth and more to do with stagnation at home. When the world’s biggest fund manager reverses its view on half of the global economy it is time to take notice. That is what BlackRock, manager of $4.6tn for investors and savers, has done this year. Once negative on emerging markets, it has turned into a cheerleader for them.
Sergio Trigo Paz, BlackRock’s head of emerging market fixed income portfolio management, now talks of a “great migration” — a mass movement of big institutional investors away from the stagnant growth and negative interest rates of the developed world, to the resurgent economies and enticing yields of emerging markets………………………………………..Full Article: Source

Investing In Commodity Companies

Posted on 04 August 2016 by VRS  |  Email |Print

A popular way of tapping into the commodities market is via the stock market. Millions of investors contribute to the ebb and flow of the commodities industry (consciously or not) by investing in household names such as Exxon Mobil, Shell, Texaco, BP, Glencore, Rio Tinto and many others.
These companies have more in common than being giants of the stock market and Wall Street darlings (except during commodity slumps) for decades. They are all involved in the extraction of precious material from the ground, as well as its refining and processing into high-value goods with essential uses for daily living………………………………………..Full Article: Source

Why oil bears shouldn’t count on U.S. shale rebound

Posted on 04 August 2016 by VRS  |  Email |Print

Oil market bears argue that rebounding production in U.S. shale regions will add to the global glut of crude, slowing the rebalancing of the market. Don’t be so sure, say skeptics.
Production-rebound proponents argue that the recent rise in U.S. rig counts reflects a new reality in the oil market. In this scenario, the U.S. crude benchmark’s spring rebound, which saw prices push back above $50 a barrel by early June, and a continued fall in production costs were likely to entice previously hard-hit shale producers to reopen closed wells and rejoin the fray………………………………………..Full Article: Source

‘A perfect storm’ is making gold one of the hottest assets on the planet

Posted on 04 August 2016 by VRS  |  Email |Print

“A perfect storm” in markets has left investors scrambling to add gold to their portfolios for protection, according to the World Gold Council. Investors have another prime and relatively safe choice in the government bonds of developed markets, but that has been compromised by “unconventional monetary policy,” the council said in its market update for August.
The yields on developed-market government bonds have trended lower as demand has risen. Sovereign authorities like the European Central Bank are stoking this demand through their bond purchases, which are pushing down yields………………………………………..Full Article: Source

Investment in ETFs has given higher return than government securities

Posted on 04 August 2016 by VRS  |  Email |Print

The Employees’ Provident Fund Organisation (EPFO) started investing in exchange traded funds (ETFs) in August last year and has invested Rs 7,465 crore till June 30, 2016. Government on Wednesday sought to allay fears over investments by EPFO into ETFs, saying that their performance should be viewed over a long period of time and the retirement fund body has already got over 12 per cent return within a year, higher than G-Secs.
“If you are going to invest wisely in a pool of equity then surely there is not much of a risk. We cannot evaluate the performance of equity on the basis of one, two or three months. When we invest in equity, we invest for 20 or 30 years,” Labour Secretary Shankar Aggarwal said………………………………………..Full Article: Source

Why China and Russia are buying so much gold

Posted on 02 August 2016 by VRS  |  Email |Print

The good news for gold enthusiasts is that China and Russia, the world’s No. 1 and No. 3 producers, are catching up to the big industrial countries in stocks of bullion in their official reserves.
The bad news is that, on present “steady-as-she goes” monthly gold accruals, it will take China and Russia — No. 6 and 7 in the world ranking of global gold reserves — about six years to draw level with the fourth- and fifth-placed countries, France and Italy………………………………………..Full Article: Source

Investors in Metals Look Past Gloomy View of the Economy

Posted on 02 August 2016 by VRS  |  Email |Print

Not even the dimming global growth outlook is enough to scare away investors in metals and mining. Money is pouring into industrial metals and the companies that produce them. Those investors seems undeterred by World Bank and International Monetary Fund forecasts of sluggish economies after the U.K.’s decision in June to leave the European Union added to uncertainty.
The enthusiasm for metals comes as expectations mount that policy makers around the world will take stronger action to counter the slowdown. The market also is beginning to look beyond Brexit and turn its attention toward the rising demand for key metals and slower production………………………………………..Full Article: Source

Investors eye commodities funds

Posted on 01 August 2016 by VRS  |  Email |Print

Commodities funds ended June in positive territory up +2.72 percent, according to performance data from eVestment - a rebound for the funds which has persisted throughout 2016. Asset flows have been consistent over the past 9 months as well, suggesting that investors are once again interested in commodities funds even after the wild price swings in commodity prices over the past few years. For investors looking to cash in, being defensively positioned will be key, says Jason Lejonvarn, Managing Director, Mellon Capital Management.
“The main issue with the commodities benchmark is that it forces you to be long all commodities. But some commodities have big drawdowns so we want the opportunity to be able to go long and short,” Lejonvarn tells Opalesque in an interview. Mellon Capital offers a long/short commodities strategy that he says the firm is offering as a way of helping investors avoid some of the historical pitfalls common to commodity funds………………………………………..Full Article: Source

Mind the gap between oil prices and commodity-sector bonds

Posted on 29 July 2016 by VRS  |  Email |Print

A recent divergence between commodity prices and spreads for bonds of companies in the commodity sector is flashing “mind-the-gap” warnings for the market. After a strong advance earlier in the year, oil prices recently plunged to a three-month low, pulling down the shares of energy companies and even weighing on the broader equity benchmarks.
But bonds of companies in energy, metals, mining and steel seem unaffected by oil’s decline — a trend that baffles analysts and suggests that bonds might actually be mispriced………………………………………..Full Article: Source

Here’s Why You Should Own Both Gold and Silver Right Now, Despite Pullback

Posted on 29 July 2016 by VRS  |  Email |Print

Under normal circumstances, when an investment is up double digits in just seven months, it’s a good time to sell. But with gold and silver, up 24% and 41%, respectively, so far this year, this may just be the beginning of a much bigger rally.
Of course, with that big of a jump in a short period of time, either one might be due for a pullback (more on that later). But even if the price of either falls, it will likely just be a short-term consolidation. Both gold and silver still have a long way to run. As we’ve previously explained, it’s not unreasonable to think gold prices could rise by as much as 500%. And, historically, when gold climbs, silver climbs even higher………………………………………..Full Article: Source

The Best Way to Trade Commodities Without Playing the Futures Market

Posted on 29 July 2016 by VRS  |  Email |Print

Investors love having as many options as possible available to them to make a profit. Stock trading software and platforms are a dime a dozen, and option trading has become equally ubiquitous in the everyday investor’s world. However, commodities always seemed just out of reach for all but the wealthy or professional investor.
Futures exchanges carry commodities, which can be traded. Futures are typically used by companies to hedge their product against adverse price movements. For example, a gold mining company may use futures to lock in a specific price for the gold it mined………………………………………..Full Article: Source

Gold Moves Higher After Fed Statement

Posted on 28 July 2016 by VRS  |  Email |Print

Investors who stepped to sidelines ahead of central bank meeting will likely jump back in, strategist says. Gold prices traded higher Wednesday after the Federal Reserve left interest rates unchanged but hinted at the possibility of an increase in the coming months.
Gold for December delivery was recently up 0.9% at $1,339.50 a troy ounce on the Comex division of the New York Mercantile Exchange in electronic trading. Prices settled up 0.5% at $1,334.50, but traded as low as $1,323 after the Fed statement was released………………………………………..Full Article: Source

Buy Commodities; They Shouldn’t Be Tanking

Posted on 27 July 2016 by VRS  |  Email |Print

There’s a new meme going around that claims that we’re heading into a global economic slowdown. It sounds a lot like the other dire warnings that we heard in February, May and most recently in June right after the Brexit vote: “Slowdown! Crash! Recession! Catastrophe!” But the fearmongers were wrong then, and I believe that they’re wrong now.
Granted, the global economy isn’t growing very rapidly. But it is growing — and has defied all expectations of a recession so far because we continue to see high and rising levels of fiscal stimulus from the world’s major economies. That means the United States, China, Japan and very soon even the European Union (I predict)………………………………………..Full Article: Source

Buying Gold Today Could Bring You a Profit of 278%

Posted on 27 July 2016 by VRS  |  Email |Print

The gold price today (Tuesday, July 26) was up 0.37% and trading at $1,321.20 an ounce. Gold prices are up 25% in 2016, putting the metal among the top 10 best-performing assets this year. But that’s just the start of gold’s rally…
In fact, our Money Morning experts recommend buying gold today because we see gains as high as 278% for the precious metal by 2020. Before we reveal our gold price prediction, here’s why the price of gold is rallying this year………………………………………….Full Article: Source

How Investor Appetite for Risk Impacts Precious Metals

Posted on 27 July 2016 by VRS  |  Email |Print

Gold has seen a downward swing and has extended its first back-to-back weekly drop since May. Gold and silver have seen trailing-five-day losses of 0.9% and 2.7%, respectively. The reason behind the fall in the precious metals is the buoyancy of the equity markets and the gains in the US dollar. Both factors have significantly hurt the precious metals.
The holdings of the SPDR Gold Shares (GLD), the world’s largest gold-backed ETF, fell 0.22% to 963.1 tons on Thursday, July 21. The physical demand from the giant gold-consuming markets, India and China, has also been slowing down………………………………………..Full Article: Source

Commodities have some investors saying no

Posted on 26 July 2016 by VRS  |  Email |Print

Institutional investors are wondering whether investing in commodities is worth the trouble, as the asset class has suffered an annualized return of -6.46% in the 10 years through June 30. Indeed, the Bloomberg Commodity index has been negative each month for the past 12 months. The Bloomberg Commodity Total Return index, which includes the return of the collateral, showed a return of -5.48% over the same 10-year period.
Asset owners traditionally have invested in commodities as an inflation hedge and for diversification. While some are maintaining their allocations to protect against unanticipated inflation, the asset class’ volatility and poor returns have other investors moving out………………………………………..Full Article: Source

Is This The News Oil Investors Have Been Waiting For?

Posted on 25 July 2016 by VRS  |  Email |Print

The U.S. Energy Information Administration says that American oil companies are getting closer to balancing capital investment and operating cash flows. This is great news for energy investors, but it doesn’t mean every oil company is worth investing in.
On July 18, the U.S. Energy Information Administration released a report that shows a great trend: U.S. oil companies have begun steadily narrowing the gap between capital investments and operating cash flows………………………………………..Full Article: Source

Gold investors see Trump (and Clinton) as money for jam

Posted on 25 July 2016 by VRS  |  Email |Print

Recent weakness in the gold price has the gold bugs latching on to the next big event that could force the yellow metal higher, the US election. And there is no surprise in knowing that a Donald Trump victory would be a big plus for the price.
Funny thing is though, so too would a Hillary Clinton victory, albeit not to the same extent that a Trump inauguration would serve up. That’s according to ABN Amro analyst Georgette Boele, the winner of the coveted Metal Bulletin precious metals analyst of the year award for 2015………………………………………..Full Article: Source

Investors are kissing gold goodbye - for now

Posted on 22 July 2016 by VRS  |  Email |Print

Gold prices hit a 3-week low as investors decided to plough into riskier asset classes - like stocks. Basically, investors decided they did not need to hide in safe haven asset classes like gold because data shows that the world’s largest economy, the US, is performing pretty well and the Federal Reserve is literally to hike interest rates again later this year.
At one point on Thursday, gold fell to a low of $1,310.70 a troy ounce, a level not seen since June 24. It has since retraced some of those losses but price gains are still under pressure……………………………………….Full Article: Source

This is Goldman Sachs’ best bet in commodities right now

Posted on 22 July 2016 by VRS  |  Email |Print

While investors have been paying close attention to the gold and oil trade, the best bet right now in the commodity space is selling copper, the head of commodities research at Goldman Sachs said Thursday. That’s because there is a lot of supply coming on, Jeff Currie said.
“We like the idea of the revenge of the low-cost player, meaning Peru. Weakness in demand in China — it’s not in the sweet spot,” he said. “Put it all together, this market’s already in a surplus. Prices at $5,000 a ton — target $4,000.”……………………………………….Full Article: Source

Gold retains status as safest asset

Posted on 20 July 2016 by VRS  |  Email |Print

Since the start of this month and in the aftermath of the Brexit vote, the markets have been largely range bound. The British pound went through a brief renaissance in large part because the Bank of England (BoE) held benchmark interest rates unchanged at 0.50 per cent – the markets had been expecting a cut to 0.25 per cent.
Perhaps more surprising was how strongly the bank’s monetary policy committee voted in favour of keeping rates unchanged (8 to 1). This led to a short-term resurgence in the pound, which moved higher against the greenback before finding stiff resistance just below 1.35. Sterling looks to remain entrenched between 1.30 and 1.35 against the greenback………………………………………..Full Article: Source

Commodities reigniting, but buyer beware

Posted on 19 July 2016 by VRS  |  Email |Print

Global resources fund manager Benoit Gervais is adamant the commodities sector is about to be reignited but advises caution while recovery is nascent. Global Resources Fund, saw performance of the fund rise by 38% during the three months to April. As a result, he can see signs of a recovery in the commodities world but would advise caution for now.
A range of major commodity-linked investment indices have also shown a clear upward trajectory in the past three months, encouraging hopes that what has been long-run bear market has turned a corner………………………………………..Full Article: Source

Silver Institute: Silver Investment Sharply Higher In 2016

Posted on 15 July 2016 by VRS  |  Email |Print

Silver investment has soared in 2016 as investors sought the metal as a safe haven and leveraged exposure to the sharp rally in gold, says the Silver Institute. “Investors actively accumulated silver in the first six months of the year, including both the physical and paper markets,” the organization says.
Exchange-traded-product holdings rose by 44.3 million ounces, or 7.2%, to a record high of 662.2 million.
Investors have also raised their net-long positioning in Comex silver futures and options to a record high of 80,522 contracts as of July 5th, after this was 6,282 contracts at the end of 2015, the Silver Institute says. ……………………………………….Full Article: Source

Metals’ Investors Forget About Brexit: Bull Market Continues

Posted on 15 July 2016 by VRS  |  Email |Print

The U.K.’s decision to leave the E.U. hasn’t really scared investors away from industrial metals. The metal complex continues to rally. As we explained in a webinar yesterday, Brexit had little to no impact on the supply and demand dynamics of industrial metals.
On the demand side of the equation, it is — not the U.K or even Europe — that is the world’s biggest consumer of industrial metals. Supply cuts amid low prices and this year’s boost in Chinese demand for industrial metals, thanks to stimulus measures, continue to be the key factors to watch………………………………………..Full Article: Source

The Difference Between Contango and Backwardation

Posted on 14 July 2016 by VRS  |  Email |Print

For equity investors, these terms may sound made up, but they’re required knowledge for commodity investors. Futures trade on curves, so knowing the direction and slope of a curve is a must in order to invest in commodities and be successful.
They are used to track individual commodities, such as oil or gold, and can be plotted on a chart to show the shape of the curve. A standard futures curve will slope up showing the rising price in the commodity over time, while an inverted curve will show the opposite effect………………………………………..Full Article: Source

Why investors should expect the gold price to continue to rise

Posted on 13 July 2016 by VRS  |  Email |Print

Despite the move towards more ‘risk-on’ assets in recent days, investors should continue to expect the gold price to rise, according to Nitesh Shah, commodity strategist at ETF Securities.
Positive economic data from the US, coupled with the view that the Bank of England will boost stock markets, and maybe economic growth with an interest rate cut and perhaps more quantitative easing, has pushed many investors back into equities, with the US S&P 500 hitting an all time high, and the UK FTSE 100 advancing significantly from the lows achieved immediately after the EU referendum result………………………………………..Full Article: Source

How to make money in this lousy market

Posted on 11 July 2016 by VRS  |  Email |Print

Being an investor is tricky these days. There’s broad agreement that the stock market is pricey, the economic recovery is long in the tooth and central banks really can’t do much more to prop up growth.
Hardly anyone is predicting market Armageddon, but this is not the “get rich quick” era. The word on Wall Street is: Prepare for lousy stock and bond returns for years. That doesn’t mean you’ll lose money, but don’t expect to rake in the usual 7% to 8% return on stocks and 3.6% on bonds, according to investment firm Bernstein. Even private equity returns aren’t what they used to be………………………………………..Full Article: Source

What’s Pushing Chinese Investors Into Commodities? (Video)

Posted on 11 July 2016 by VRS  |  Email |Print

Trading volumes for commodities cratered after Chinese regulators took steps in April to deflate a bubble. But speculators aren’t done yet. Bloomberg’s Alexander Kwiatkowski reports on “Trending Business.”.………………………………………Full Article: Source

Japanese Buying Physical Gold, Storing it in Switzerland

Posted on 11 July 2016 by VRS  |  Email |Print

Japanese investors are buying Bullion and storing it in Switzerland because of negative interest rates and fears JPY will depreciate as the government grapples with the heaviest public debt burden in the developed world, according reports.
The number of buyers jumped 62% in 1-H of Y 2016 Vs 2-H of Y 2015 the data show. The Bank of Japan (BOJ) has embarked on unprecedented bond buying to bolster the economy, prompting speculation that JPY could plunge if stimulus efforts fail………………………………………..Full Article: Source

Perils of investing in commodities like gold & oil

Posted on 07 July 2016 by VRS  |  Email |Print

In order to help investors become better at navigating the stock market, Jim Cramer revealed some of the biggest mistakes he has made in over 30 years of investing. “Frankly, there are so many mistakes here that it might take a bit to explain them all,” the “Mad Money” host said.
He learned that when it comes to investing in commodity stocks, investors must know that it doesn’t matter which ones they pick — like going for a better balance sheet or higher growth — if the underlying commodity is hit. If that happens, they will all go lower………………………………………..Full Article: Source

Investors Expand Their Appetite for Commodities

Posted on 06 July 2016 by VRS  |  Email |Print

Desire for commodities-based funds is expanding beyond just oil and gold. In recent months, investors also have developed a healthy appetite for funds focused on agricultural products and industrial materials. Indeed, the entire commodities complex has become a magnet for fund investors’ money, according to new research.
In the first four months of this year, investors poured $38 billion into commodities exchange-traded funds and other commodities investment funds globally, according to a recent report from Barclays. That compares with annual outflows of as much as $83.2 billion in each of the prior three years, through 2015………………………………………..Full Article: Source

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