Sat, Aug 1, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Investment more

Is it Time to Buy Commodities?

Posted on 31 July 2015 by VRS  |  Email |Print

A quick glance at recent headlines would lead a reasonable person to assume that this year’s big losers are Greek and Chinese stocks . Yet, despite all the furor in the news , the Athens Stock Exchange is down less than 5 percent year-to-date, while the Shanghai Composite remains up more than 10 percent, according to Bloomberg data.
The real damage has been in the commodity complex. Through late July, year-to-date crude oil prices were down around 10 percent, platinum prices were off nearly 20 percent and coffee prices were down almost 30 percent, Bloomberg data shows. Based on the Bloomberg Commodity Index of 22 commodities, the overall complex is now trading at a 13-year low. Several factors account for the sell-off………………………………………..Full Article: Source

Is Now the Time to Invest in Agriculture?

Posted on 31 July 2015 by VRS  |  Email |Print

Do today’s agricultural equity opportunities offer a parallel to the bull market of 2010? During the last significant El Niño cycle in 2010, Chicago corn futures rallied 78%.
We are currently living in an exciting time for the agricultural equity market that has yet to be widely recognised by investors. In particular, we do not believe the market has adequately discounted the potential impact of El Niño – a band of warm air that comes off the ocean, which can cause tropical storms – on agricultural commodity prices and what it could mean for upstream producers………………………………………..Full Article: Source

Get ready to cash in on the bottom for commodities

Posted on 30 July 2015 by VRS  |  Email |Print

A five-day rout was put to rest yesterday, with a 1% gain for the S&P 500 and other indexes. Dead-cat bounce? The Federal Reserve may chart out the fortunes for this market, depending on what’s in its statement later. Investors will comb through the Fed’s words for clues to a September hike, though they may get fewer hints than they’re hoping for.
But they may stay away from Internet stocks, after Twitter’s earnings call got messy and Yelp disappointed. Can Facebook rally the sector with results later? The pressure is on, as those shares have run up 15% in the last three months. At least the social-media group now has a what-not-to-say-at-your-conference-call blueprint to work off. Here’s what to expect from Facebook………………………………………..Full Article: Source

Investors fret over falling commodities

Posted on 29 July 2015 by VRS  |  Email |Print

Investors’ expectations are for more falls in commodity prices amid worries about the Chinese economy and interest rates. Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south.
But while more losses are certain, their scope could be limited because many speculators have already made bets that prices will fall. Commodities from iron ore, to oil, grains and gold have shed value as the current extended price boom or “super-cycle” wanes………………………………………..Full Article: Source

Speculators show global commodities rout still not over

Posted on 28 July 2015 by VRS  |  Email |Print

Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south. But while more losses are certain, their scope could be limited because a large number of speculators have already made bets that prices will fall.
Commodities from iron ore, to oil, grains and gold have shed value as the current extended price boom, or “super-cycle”, wanes. Losses are not new, with oil and gold having peaked in July 2008 and September 2011 respectively, while iron ore has been on a downtrend since January 2011 and has shed more than 70 percent since that time………………………………………..Full Article: Source

As Oil Prices Slide Investors Prepare To Buy

Posted on 28 July 2015 by VRS  |  Email |Print

Unless you’ve been living in a cave for the past year, you know that the price of crude oil has plummeted. At under $50 per barrel (WTI Crude), gas prices are lower, it’s cheaper to transport goods, and there are a host of other benefits. However, lower oil has also created a few problems. In this article, we’ll explore some of each and discuss a great investment opportunity emerging as a result.
Oil, fossil fuel, crude, whatever moniker you prefer, is highly ingrained in the fabric of our society. Until such time as a less expensive, more efficient, and abundant energy source is identified, oil should continue its dominance………………………………………..Full Article: Source

Oil Bulls Flee at Fastest Pace in Three Years as Glut Expands

Posted on 27 July 2015 by VRS  |  Email |Print

Speculators’ conviction that oil will rally weakened at the fastest pace in three years, just before futures tumbled into a bear market. The net-long position in West Texas Intermediate contracted 28 percent in the seven days ended July 21, U.S. Commodity Futures Trading Commission data show. Long positions dropped to a two-year low while short holdings climbed 25 percent.
Oil traded in New York fell more than 20 percent from its June high, meeting the common definition of a bear market. U.S. output has held near a four-decade high while the largest OPEC members pump at record rates, keeping the market oversupplied. The drop was part of a broader retreat in commodity prices to a 13-year low, driven by concern that slower economic growth in China and a stronger dollar will hurt demand………………………………………..Full Article: Source

Investors dump commodities for the second half

Posted on 24 July 2015 by VRS  |  Email |Print

Oil and metal prices have faced a beating this year, with fresh data showing investors have been offloading commodities in the last quarter on fears that interest rate hikes later in the year will toss up even more market volatility.
Data from UBS shows investors dumped holdings in global energy Exchange Traded Funds (ETFs) by some 50 percent in the last three months, as the market prepares for a U.S. Federal Reserve rate rise later in the year………………………………………..Full Article: Source

Investors pulling back as gold prices plunge

Posted on 24 July 2015 by VRS  |  Email |Print

With gold prices tumbling to a five-year low, investors aren’t just getting out of gold, they’re betting against it. Speculators in July amassed record short holdings in the metal, meaning they’re wagering that the price has further to fall. Also telling, the number of hedge funds that are hoping to profit from declines is near a record high.
Altegris Investments’ $513 million Futures Evolution Strategy Fund has increased its bets that gold will fall. “The only place to be right now is short,” said Lara Magnusen, a La Jolla, California-based portfolio strategist at Altegris. “We’ve been in persistently downward price action for gold, but it’s been exacerbated, certainly, this year by a host of fundamental reasons.”……………………………………….Full Article: Source

An investor’s guide to navigating a commodities roller coaster

Posted on 23 July 2015 by VRS  |  Email |Print

It has been a rough ride for commodities traders so far this year. Prices for many commodities are suffering from sizable losses, but there are ways to help make the road smoother.
Frank Holmes, chief executive officer and chief investment officer at U.S. Global Investors, spoke with MarketWatch recently to offer a few hints on the best ways to navigate the commodity landscape. Holmes, a well-known fund manager, and natural-resources and emerging-markets expert, was in town for the San Francisco Money Show………………………………………..Full Article: Source

Palladium under siege but strong fundamentals may end carnage

Posted on 23 July 2015 by VRS  |  Email |Print

Palladium investors are keeping record bets on a further slump in the market as broad-based weakness plagues the precious metals complex, but some analysts say the metal’s slide to 3 1/2-year lows is overwrought and a supply deficit will help the metal reclaim lost territory.
Spot prices of palladium, mainly used in emissions control systems for cars, trucks and other vehicles, have dropped more than 22 percent this year – the most among precious metals. Gold has fallen 7.6 percent, silver is down 6.1 percent and platinum has tumbled 20 percent. The commodity backlash has been fuelled by the prospect of higher U.S. interest rates, a stronger dollar and weaker Chinese demand. Short positions in palladium futures on the New York Mercantile Exchange have hit all-time highs since June………………………………………..Full Article: Source

Commodities are “in a mess” – pity the investor tied to yo-yo prices

Posted on 22 July 2015 by VRS  |  Email |Print

Worldwide, commodities investors in the primary sector – still struggling after the banking crisis of 2008 and the eurozone quaking that began in 2012 – were faced with the worst performance in precious metals and agricultural products this week. The falls were prompted by a stronger dollar as fears that the Greek debt impasse were irrelevant, and queries over a growth slowdown in China.
The gold price is at its lowest in two years, and this fact and allied falls in other commodities has driven linked equities and hedge funds south – some after years of buoyancy. The Bloomberg Commodities Index dropped to a 13-year low Monday, weaker than after the banking meltdown of 2008 and the euro-zone crisis of 2012. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class………………………………………..Full Article: Source

Investors Flee Commodities

Posted on 21 July 2015 by VRS  |  Email |Print

Prices of raw materials tumble, underscoring an aversion to commodity investments as the Fed prepares to raise rates. The prices of raw materials from oil and gold to copper, cotton and sugar tumbled, underscoring an increasing aversion to commodity investments as the Federal Reserve prepares to raise interest rates for the first time in nearly a decade.
U.S. oil prices dipped below $50 a barrel on Monday during intraday trading for the first time since April, while gold slid 2.2% to its lowest level in five years. The drops extend a retreat from the commodity sector that has picked up speed in recent months. Hedge funds and other investors are holding more bearish than bullish wagers on gold for the first time on record going back to 2006, according to data released Friday by the Commodity Futures Trading Commission. Investors cut their bullish bets on oil to the lowest level since March………………………………………..Full Article: Source

Commodities are crashing to 13-year lows as investors dump gold ahead of Fed rate hike

Posted on 21 July 2015 by VRS  |  Email |Print

The rout in commodities deepened with prices heading for the lowest close since 2002 as the prospect of higher U.S. interest rates sent gold tumbling. Raw materials are losing favour with investors as the dollar gains amid signals from Federal Reserve Chair Janet Yellen that the central bank may raise rates this year on the back of an improving U.S. economy.
Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities. The Bloomberg Commodity Index dropped as much as 1.1 per cent, falling for a fifth day in the longest stretch of declines since March………………………………………..Full Article: Source

Gold Leads Commodities ‘Mess’ That Has Many Investors Smarting

Posted on 21 July 2015 by VRS  |  Email |Print

Pity the commodity investor. The Bloomberg Commodities Index dropped to a 13-year low Monday, weaker than after the banking meltdown of 2008 and the euro-zone crisis of 2012. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class.
“Commodities are a mess,” said Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama, in a telephone interview. “We are not looking to add to positions.” Gold, the most heavily-weighted commodity in the index, is the latest to get hit hard, socked by a stronger dollar and concern about a slowdown in China………………………………………..Full Article: Source

Rebounding rhodium bests nearly any other investment

Posted on 17 July 2015 by VRS  |  Email |Print

The best asset over the past week is a metal you’ve probably never heard of: rhodium. Rhodium, one of the rarest precious metals, soared 29 per cent in five days, beating every single stock in the MSCI World Index, all currencies and major commodities. While the market for rhodium is tiny and doesn’t trade on an exchange, a fund that holds the physical metal is up 23 per cent since July 9, and shares of producers are climbing.
Low prices are attracting companies that use rhodium for catalytic converters in cars, according to Jonathan Butler, a precious-metals strategist at Mitsubishi Corp. in London. The metal plunged to an 11-year low earlier this month on forecasts that South Africa, the biggest producer, is increasing production at the fastest pace in two decades………………………………………..Full Article: Source

Gold up in Asia as investors eye Greece talks, news on banking sector

Posted on 13 July 2015 by VRS  |  Email |Print

Gold prices gained on Monday in Asia as investors awaited concrete announcements on the status of Greece’s banks and a third bailout program as talks in Europe dragged on through the weekend after some earlier hopes a deal was near.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose 0.34% to $1,161.80 a troy ounce. Also on the Comex, silver futures for September delivery gained 0.47% to $15.608 a troy ounce. Elsewhere in metals trading, copper for September dropped 0.73% at $2.524 a pound………………………………………..Full Article: Source

Miners’ focus shifts from investor returns to survival

Posted on 13 July 2015 by VRS  |  Email |Print

Hit hard by the accelerated downturn in metal prices in recent months, global mining companies preparing to report results are likely to announce another round of austerity measures to cut costs and convince investors to remain committed to the sector. With investors looking for evidence of continued capital discipline while credit ratings and dividends are pressured by a rout in prices for anything from iron ore to platinum, reductions in capital expenditure, operational costs and jobs could all be on the cards.
It comes as little surprise, therefore, that miners have been among the worst performers on London’s FTSE 100 index of blue-chip companies so far this year. The FTSE 350 mining index has fallen by about 15 percent since the start of the year………………………………………..Full Article: Source

Copper Bears Rewarded as Economic Threats Spur Metal Rout

Posted on 13 July 2015 by VRS  |  Email |Print

Investors are hastening their retreat from copper, unnerved by the threats to global economic growth. The metal slumped to a six-year low last week as Greece’s efforts to reach a deal with creditors stumbled and Chinese equities plunged. Europe and China consume about two-thirds of the world’s copper. Goldman Sachs Group Inc. and Societe Generale SA see little prospects of a rebound anytime soon.
Speculators are holding their biggest bearish bet on copper in almost 16 months, with Barclays Plc forecasting that supply will flip from shortages to surpluses from this year. The International Monetary Fund cut its global economic-growth forecast and the Federal Reserve released minutes that showed policy makers saw risks to the economy from the turmoil in Europe and China………………………………………..Full Article: Source

What happened to gold’s safe-haven status?

Posted on 09 July 2015 by VRS  |  Email |Print

Conspicuous by its absence in the commodity market turmoil of the last week has been the reaction in the gold price, say analysts who believe the metal has currently lost its safe-haven status. “One of the interesting developments despite the Greece crisis and China uncertainty has been the failure of any rally in gold prices. In fact, gold prices yesterday (July 7) flirted with their year lows,” said Goldman Sachs in a morning note to clients.
“This is an indication that even in a risk-off environment investors are not seeing gold as a safe-haven and rather prefer parking their money in US and German bonds and the US dollar,” the bank said………………………………………..Full Article: Source

How To Invest When El Niño Comes Around

Posted on 07 July 2015 by VRS  |  Email |Print

This year, El Niño is forecast to upend weather patterns across the world and wreak havoc farmers, especially in regions where access to irrigation is limited. The weather phenomenon is expected to cut down on rainfall in Australian and Southern Asia and create unusually wet weather in parts of South America.
The extreme weather conditions have pushed investors to take a closer look into agriculture investments as the difficult growing conditions could lead to price spikes. Prices of wheat have seen a bump over the past two weeks after worries that El Niño would dry out wheat-producing regions. In Australia, where 14 percent of the world’s wheat exports are grown, dryer than expected weather is forecast to significantly cut down on crop yields………………………………………..Full Article: Source

Metals investors look for miners to cut supplies to lift prices

Posted on 06 July 2015 by VRS  |  Email |Print

Investors in industrial metals will keep a close watch on miners’ results in coming weeks for possible announcements of production cutbacks that could bolster weak prices. “What will be very important over the next few weeks is whether we start to see some supply responses emerging during the corporate results period,” said Nicholas Snowdon, metals analyst at Standard Chartered in London.
Iron ore, aluminium and zinc will get the most attention after a slide in prices that is pressuring the bottom line of some mining groups. “Over the past six months Vale, BHP and Rio have independently suggested either cuts to existing production, holding back sales and/or the slower ramp up of growth volumes,” Citi analyst Heath Jansen said in a note………………………………………..Full Article: Source

Gold not getting boost from investors seeking safe haven from Greek crisis

Posted on 03 July 2015 by VRS  |  Email |Print

The precious metal stays in trading range as Greece lives on the edge of default due to tepid inflation, muted demand for gold from China and a strong U.S. dollar. Despite some early noise to the contrary, Greece’s financial woes are having almost no impact on gold prices, so far.
It’s not that the threat of the first country in the developed world to default is not a big deal, it’s just that investors have been well warned, and there are a lot of other forces currently holding down the price of gold………………………………………..Full Article: Source

Finding Investment Opportunities in Emerging Markets

Posted on 03 July 2015 by VRS  |  Email |Print

Within emerging markets the Asian region provided the main winners in 2014 thanks to the sharp decline in the oil price. But what can investors expect from 2015? Emerging market investors had a difficult time in 2014, with returns lagging developed markets. Over the year as a whole the MSCI AC World Index showed a total return of 8.6% in sterling terms against a meagre 1.4% return for the MSCI Emerging Markets Index.
Within emerging markets the Asian region provided the main winners, with the sharp decline in the oil price seen in the latter part of the year being beneficial for the majority of countries in the region as they are net oil importers………………………………………..Full Article: Source

Iran eyes $100bn of western investment in oil industry

Posted on 02 July 2015 by VRS  |  Email |Print

Iran is finalising a contract system to secure about $100bn of new oil and gas deals with western companies if sanctions are lifted. The move marks a big shift for a regime traditionally wary of of foreign groups participating in its energy sector.
Mehdi Hosseini, an adviser to Iran’s oil ministry who has been drafting a new energy contract for the past two years, said he expected President Hassan Rouhani to approve it in the coming months………………………………………..Full Article: Source

World’s best gold forecaster is solidly bearish on bullion

Posted on 02 July 2015 by VRS  |  Email |Print

There will be no relief any time soon from gold’s worst losing streak in almost two decades, according to the most accurate forecaster for precious metals. After sliding about 1 per cent since December, prices will drop an additional 10 per cent by the end of 2015, reaching $1,050 (U.S.) an ounce – a five-year low – predicts Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore.
Gan topped 19 of his peers from banks including Standard Chartered PLC and ABN Amro Bank NV to become the most accurate analyst over the past two years, Bloomberg Rankings show. Gold has fallen for four straight quarters, the longest stretch since 1997. It has been more than two years of disappointment for bulls who had been piling into exchange-traded products (ETPs) backed by the metal, accumulating a record hoard by the end of 2012. Since then, more than $81.8-billion has been wiped from the value of the ETPs backed by bullion………………………………………..Full Article: Source

The 5 Best Stocks to Invest in Commodities

Posted on 02 July 2015 by VRS  |  Email |Print

Commodities aren’t for the faint of heart, which is why it’s best to just stick with the best stocks in each commodity basket. Commodities have been giving investors fits for years. All four commodities have taken investors on triple-digit price rides with rapid ascends and devastating falls. It’s that allure of a rapid rise that continues to draw investors in with hopes of making a mint on higher prices.
However, given that prices can change on a dime, it’s a warning to investors to stick with the companies that can survive the deepest of drops because as history shows those drops are sudden. With that, here are the five companies built to last, making them the best stocks to invest in commodities………………………………………..Full Article: Source

Is there a huge investing opportunity in the oil markets?

Posted on 01 July 2015 by VRS  |  Email |Print

A rare occurrence now happening on oil markets might be a huge opportunity for investors who play it right, says Tim Pickering, president and chief investment officer at Auspice Capital Advisors Ltd.
Pickering said Canadian crude prices are currently in “backwardation,” which means the future price is expected to be lower than the spot price, but every other crude oil market in the world is in contango, meaning the future price is expected to be higher than the spot. “For long-term investors in oil, this is a positive thing because it means they will not lose money as the market rolls over time,” he said in a commentary to clients………………………………………..Full Article: Source

With Greek Uncertainty, Investors Seek Safety in Gold and Bitcoin

Posted on 01 July 2015 by VRS  |  Email |Print

As Greece descends into financial crisis, its citizens and investors globally are turning to hedges old and new. European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say.
As the situation in Europe grows more precarious, the price of both have risen in recent weeks as concerns have grown about the threat to banks in Greece and the risk that turmoil could spread to other countries in the eurozone and elsewhere………………………………………..Full Article: Source

25 Lessons on Commodity Investing

Posted on 26 June 2015 by VRS  |  Email |Print

Commodities can be very powerful investments but they also come with their fair share of risk. In recent years, investors and advisors have begun to adopt commodities into portfolios, as many have seen the benefits of adding these low-correlated assets to a group of holdings.
The launch of a robust lineup of exchange-traded products that utilize both physical commodities and commodity futures contracts has brought commodities to the masses; they’re no longer reserved for the largest and most sophisticated investors………………………………………..Full Article: Source

Oil investors betting on crude hitting $82 per barrel

Posted on 23 June 2015 by VRS  |  Email |Print

European hedge fund believes market for crude is oversold as demand picks up. Investors are beginning to bet on a sharp rebound in the oil price by the end of the year, on the back of rising demand and a slowdown in US production.
Insch Capital Management, a Swiss hedge fund, is predicting that prices will be trading at about $82 per barrel by the beginning of next year, and already claims the market is oversold. The Lugano-based fund says it plans to ramp up investments in the sector in preparation for an expected 50pc uptick in the price of crude by 2016………………………………………..Full Article: Source

Will Chinese Investors Rotate to Gold?

Posted on 23 June 2015 by VRS  |  Email |Print

Gold traders are the most bullish in a month on the prospect of slower U.S. interest rate increases. Gold saw a second weekly advance after efforts to secure a Greek bailout faltered and the Federal Reserve signaled a more dovish stance on interest rate increases. Shanghai Gold Exchange withdrawal volume in the week to June 12 came in at a strong 46.2 metric tonnes.
The Bank of China will become the first Chinese bank to join the auction process that sets gold prices in the London market. The bank, along with seven other lenders, will start participating in the twice-daily electronic auction. The addition of a Chinese bank is another sign that China is increasing its influence in gold and currency markets worldwide………………………………………..Full Article: Source

Speculators Retreat From Oil as OPEC Oversupply Crowds Out Shale

Posted on 22 June 2015 by VRS  |  Email |Print

Hedge funds reduced both bullish and bearish bets on oil for a fourth week as rising OPEC output was met with forecasts for a contraction in U.S. supply. Money managers trimmed their short wagers in West Texas Intermediate oil by 4.3 percent and long bets by 0.2 percent, leading to a 0.8 percent gain in the net-long position, U.S. Commodity Futures Trading Commission data for the seven days ended June 16 show.
Trading in futures is falling as WTI swings in a $5 range, the narrowest in 19 months. The Organization of Petroleum Exporting Countries pumped the most oil last month since October 2012, while the U.S. government says output will start falling from this month………………………………………..Full Article: Source

Chinese investments in Australian resources lowest in decade

Posted on 22 June 2015 by VRS  |  Email |Print

China’s appetite for Australian mining assets has fallen to its ­lowest level in almost a decade, setting a difficult backdrop for Fortescue Metals Group and its efforts to sell a minority stake in its Pilbara iron ore assets.
An analysis by The Weekend Australian of Bloomberg data has found that the number and value of Chinese acquisitions and ­investments in Australia’s resources sector is on track to record its lowest levels since 2007. With just weeks remaining in the 2015 financial year, the data shows only nine Chinese investments in Australian Securities Exchange-listed mining and exploration companies so far this year………………………………………..Full Article: Source

Low oil price hits $200 billion in mega-projects

Posted on 18 June 2015 by VRS  |  Email |Print

Deepwater oil projects and complex gas facilities worth around $200 billion have been cancelled or put on hold worldwide in recent months due to the sharp drop in oil prices over the past year, consultancy Ernst and Young said on Tuesday. Further project cuts and delays are likely as the industry braces for an extended period of lower oil prices as a result of a supply glut.
“The mind set in the industry at the moment is that prices are unlikely to be bouncing up materially in the near term,” the consultancy’s Andy Brogan said in a presentation. “There is an expectation that volatility is with us for a reasonable period of time to come and companies need to cope with that.”……………………………………….Full Article: Source

Smart investors buy gold when prices are low

Posted on 18 June 2015 by VRS  |  Email |Print

Gold prices have extended last weeks’ gains, due to some short covering in the futures markets and some renewed safe-haven buying amid the collapse of the Greek talks with its European creditors. Negotiation between Greece and its creditors collapsed after just 45 minutes of meeting on Sunday. It’s reported the European Union officials blamed the failure on Greece, which failed to offer anything new for securing the EUR 7.2 billion funding.
Greece’s Prime Minister Alexis Tsipras urged the country’s creditors to get “realistic” a day after weekend negotiations failed to bridge major differences, setting the stage for Eurozone finance ministers to make a final push to reach a deal to avert a default………………………………………..Full Article: Source

Speculating on commodities can add diversity to your portfolio

Posted on 17 June 2015 by VRS  |  Email |Print

Anyone with an equity fund that tracks the S&P 500 has something close to 10 per cent of their investment in commodities companies, such as oil and gas producers or the miners of metals and minerals. For anyone who owns the FTSE 100, the figure is more than 20 per cent, largely because BP and Shell dominate the UK stock market.
Yet an increasing number of financial advisers suggest that investors should also carve out an additional piece of their portfolio to invest directly in commodities………………………………………..Full Article: Source

Saudis seeks to make Iran’s oil and gas less attractive for investment: expert

Posted on 15 June 2015 by VRS  |  Email |Print

A professor of international business and international affairs at the George Washington University says Saudi Arabia “wants to make development of Iran’s and Iraq’s oil and gas less attractive for international oil companies at a time when Iran will be specially looking to attract investors to increase its oil output.”
Hossein Askari who served as special advisor to Saudi minister of finance, also says for the future “oil will trade in the $45-$60 for the next 10 years or so.” Askari, a former member of executive board of the International Monetary Fund, also says the high oil prices of “the first decade of the 21st century enabled heavy investment in alternatives and these investments and their direction are irreversible.”……………………………………….Full Article: Source

Are Precious Metals A Good Investment Right Now?

Posted on 11 June 2015 by VRS  |  Email |Print

There has never been consensus in the investment community as to whether or not Gold and precious metals are a worthwhile investment. Theoretically, what makes Gold, Silver, Platinum and Palladium precious is that their value is not only driven by their practical uses, but also by their role as a store of value and an investment. For example, let’s take the grand-daddy of them all: Gold.
Warren Buffett, in a famous Harvard speech in the late 90s, said, “Gold gets dug out of the ground in Africa or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. Anyone watching from Mars would be scratching their head.” As arguably the most successful investor of the 20th century, his is not an opinion to take lightly………………………………………..Full Article: Source

Radical Gold Underinvestment

Posted on 08 June 2015 by VRS  |  Email |Print

Gold remains deeply out of favor thanks to global central banks’ extreme money printing. This fueled a global stock-market levitation that has temporarily short-circuited normal market cycles, leaving investors infatuated with stocks to the exclusion of prudent portfolio diversification.
This has left them radically underinvested in gold, which sets the stage for massive mean-reversion buying when they inevitably return. Portfolio diversification is an absolutely essential tool for investment risk management. This simple and powerful wisdom is ancient, as a three-millennia-old quote from the Israeli king Solomon reveals………………………………………..Full Article: Source

Fund Managers Cut Oil Bets Ahead of OPEC Meeting

Posted on 05 June 2015 by VRS  |  Email |Print

Money managers have been cutting back their bets on oil in the run up to the crucial meeting of the Organization of the Petroleum Exporting Countries in Vienna this week. The number of bets taken by hedge funds and other big investors on the global oil benchmark Brent—comprising bets on both rising and falling prices—has fallen to just over 320,000, the equivalent of 320 million barrels of oil, its lowest level in nine months.
The number of bets on West Texas Intermediate, the U.S. gauge, is at its lowest since the beginning of January. The $2.5 billion United States Oil Fund USO -2.53 % LP, the largest U.S. exchange-traded fund investing in U.S. oil futures, has also drawn back, registering outflows of close to $1 billion in the past two months, according to investment research company Morningstar. In April, the fund lost $550 million, the biggest withdrawal since 2011. It lost another $390 million in May, the data shows………………………………………..Full Article: Source

Investment: Revaluing commodities

Posted on 04 June 2015 by VRS  |  Email |Print

Commodities “couldn’t be hated more”, said the publicity for an investment conference in New York last month. The reason is simple: investors feel let down after a revolutionary attempt to invest in basic materials went horribly wrong.
Four years of negative returns for indices tracking futures, with a fifth under way, have undermined the idea that leaving part of one’s portfolio in a basket of oil, natural gas, soyabeans, copper and other commodities was prudent. “There’s zero interest right now from the institutional space,” says Lawrence Loughlin of Drobny Capital, which hosted the conference……………………………………….Full Article: Source

Oil Investment Opportunites for the Long Term

Posted on 01 June 2015 by VRS  |  Email |Print

The commodity cycle is a major distraction for investors in the oil market. New energy technologies such as solar and wind will command a larger and larger share of the energy pie, but our thirst for energy continues to grow — and oil will remain a pivotal component of the overall mix for many years to come.
With this in mind, let’s look at some of the longer term opportunities that will shape the way oil will be produced in the future, and how investors will be able to make a decent profit in the process. As a single entity, OPEC oversees the between 70% and 80% of the world’s proven oil reserves, and more than 40% of total production. At its current rate, production could be sustained for approximately 90 years. As long as the member countries all have oil in the ground, they have a common interest in sticking together to maintain certain production levels………………………………….Full Article: Source

Goldman Sticks to Commodity Bear Call as Copper Vulnerable

Posted on 26 May 2015 by VRS  |  Email |Print

Commodities will reverse a rally that started in March as a stronger U.S. dollar, cheaper oil and cooling China again pressure raw materials, especially copper, according to Goldman Sachs Group Inc. Copper will lose at least 16 percent over the coming 12 months on China’s weakening demand growth and slowdown in construction completions, analysts including Jeffrey Currie said in a report e-mailed Monday.
Oil in New York will fall to $45 a barrel by October while the dollar continues its rise, pushing commodities prices lower as production costs slide. “We see downside pressures on commodity prices re-emerging,” the analysts wrote in the report. “The recent rise in commodity prices is clearly at odds with our lower-for-longer bearish view across the complex.”……………………………………….Full Article: Source

Should you be investing in gold right now?

Posted on 26 May 2015 by VRS  |  Email |Print

Is this the best time to stay invested in gold? Gold, which neared the keenly-watched $1,400 (Dh5,138) an ounce in 2014, had been an investor’s darling, but the yellow metal has mostly been curtailed in a range so far in 2015. But analysts are painting a bearish picture on gold over the short to medium term.
On Thursday, international spot gold traded at $1,200 an ounce level, after having traded in range of $1,163-$1,306.2 so far in 2015. Gold moved around $1,200 an ounce as bullish catalysts, such as signs of faster inflation, were offset by speculation the Federal Reserve will soon raise interest rates. While the weaker dollar usually draws buyers to gold, there’s also less demand for haven assets with equities near all-time highs………………………………………..Full Article: Source

3 Safe Investments in Commodities

Posted on 25 May 2015 by VRS  |  Email |Print

Commodity prices can be very volatile and change without notice. In the past year alone the key commodities of oil, natural gas, iron ore, silver, and gold have all dropped by double-digits at some point in the year. Looking out even farther all of these commodities are down by at least a third from the peak price over the past decade.
Huge price drops like these can sink commodity stocks, especially those already weighted down by a lot of debt. However, despite this downward volatility commodity prices can go higher as well, minting a fortune for investors. The key is to be invested in a company that can make it through the low point of the cycle to cash in when prices rebound. Here are three safe commodity investments that are very likely to be there when a future uptick in commodity prices finally arrives………………………………………..Full Article: Source

Investments in gold could be the next best bet

Posted on 25 May 2015 by VRS  |  Email |Print

An increasing number of professional money managers think gold will be where the retail punters go to next and it’s true gold has been trading more like a currency than a commodity recently. If the dollar is no longer king, then gold looks like a worthy successor.
For a start, gold is at the bottom of a correction of more than three years and attractively priced for an upward move. It topped out at $1,923 in October 2011 and seems to have bottomed out around $1,140 an ounce. Gold has actually already held up very well with the rise of the US dollar and came second only to the dollar last year in performance against all other currencies………………………………………..Full Article: Source

Gold or Miners: Which Investment Shines Brighter?

Posted on 25 May 2015 by VRS  |  Email |Print

Gold mining stocks have been in the headlines lately as their share prices have moved significantly higher. Between early March and mid-May the Market Vectors Gold Miners ETF (GDX) increased over 17%. The Market Vectors Junior Gold Miners ETF (GDXJ), which tracks smaller-capitalization miners, ticked up over 25% in the same period. Both funds’ result dwarfed the underlying metal’s return of roughly 6.4% during that time.
Historically, advisors and fund investors have used gold miners as one of the few ways to get exposure to the precious metal, says John Gabriel, ETF strategist with Chicago-based Morningstar. That’s changed over the past 10 years or so with the arrival of physical-gold ETFs, which provide direct exposure to the commodity’s price movement………………………………………..Full Article: Source

AfDB invests N14 billion in African agriculture

Posted on 25 May 2015 by VRS  |  Email |Print

The African Development Bank, AfDB, said it has invested N14.78 billion (N2.91 trillion) in the agriculture sector of its Regional Member Countries (RMC) in 46 years to grow their economy. Chiji Ojukwu, the Director of Agriculture and Agro-Industry Department of the bank, stated this in a statement published on the bank’s official website.
In the statement, retrieved by the News Agency of Nigeria on Sunday in Lagos, the director said that between 1968 and 2014, the bank group approved 876 operations. These operations had commitments valued at approximately $14.78 billion that provide support to agriculture and rural development………………………………………..Full Article: Source

Commodities, precious metals funds outflows biggest since 2013 -Lipper

Posted on 22 May 2015 by VRS  |  Email |Print

Investors in U.S.-based funds pulled $597 million out of funds that specialize in commodities and precious metals in the week ended May 20, data from Thomson Reuters’ Lipper service showed on Thursday. The outflows were the biggest since December 2013. Stock funds posted $1.7 billion in outflows over the latest week after attracting $3.7 billion in inflows the prior week.
U.S.-based non-domestic-focused stock funds attracted $3.3 billion of inflows, their 15th straight week of net new cash. “I’m speculating here but possibly stronger economic news caused investors to pull money out of commodities and into stocks,” said Patrick Keon, research analyst at Lipper………………………………………..Full Article: Source

banner
August 2015
S M T W T F S
« Jul    
 1
2345678
9101112131415
16171819202122
23242526272829
3031