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Commodities Briefing - Category | Investment more

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

Industry to promote platinum as an investment

Posted on 12 November 2014 by VRS  |  Email |Print

An industry body to promote investment demand for platinum should be set for launch late this year or early 2015 as South African producers try to boost sales in the face of falling prices, industry and banking sources said. The new body, called the World Platinum Investment Council, will most likely be based in London or Johannesburg, the sources said.
“This is a collaborative industry initiative. The aim is to promote investment into platinum,” said a source at a producer, who declined to be named. The source said the world’s top platinum producers Anglo American Platinum and Impala Platinum were heavily involved but several of the smaller companies in the sector were also taking part in the discussions and would likely sign up and help finance it………………………………………..Full Article: Source

It’s Time to Consider Commodities

Posted on 10 November 2014 by VRS  |  Email |Print

Commodities are an outlier at a time of record or near-record prices for other major asset classes, such as stocks, bonds and real estate. With commodities so out of favor, it may be a good time for investors to allocate a portion of their portfolios to the sector.
Investors can get direct exposure through exchange-traded products (ETPs) tied to single commodities like SPDR Gold Trust (GLD), iShares Gold Trust (IAU) and iShares Silver Trust (SLV), or broader indexes such as PowerShares DB Commodity Index fund (DBC) or iPath Bloomberg Commodity Total Return note (DJP). The diversified ETPs have different exposure to various commodities and sectors, notably energy………………………………………..Full Article: Source

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Global Commodity Funds - SELL

Posted on 10 November 2014 by VRS  |  Email |Print

Funds that invest in Indian energy and commodity stocks have been on a roll for the last one year, thanks to pricing reforms and expectations of an economic pick-up benefiting cyclical companies. In sharp contrast, India-based global industrial commodity and energy funds have been underperforming.
Birla Sun Life Global Commodities Fund and DSP BR World Energy Fund fell 7-8 per cent last year, while Mirae Asset Global Commodity Stock Fund slipped about 2 per cent. The annualised returns of these funds since inception in 2008 and 2009 are just 3 to 6 per cent………………………………………..Full Article: Source

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European asset managers, pension funds question value of commodities

Posted on 05 November 2014 by VRS  |  Email |Print

Dutch pension funds and investment managers have questioned the value in outperforming commodity benchmarks, while in the UK Hermes Investment Management has shut down its commodities business line. The asset manager, wholly owned by the £40bn (€51bn) BT Pension Scheme, will close its business after finding it increasingly difficult to deliver active returns in the asset class.
The news follows a growing trend in the Netherlands, where a number of pension funds – including large market players such as PMT, PME and PGB – have shifted away from commodities entirely………………………………………..Full Article: Source

Hedge Fund, Investor Groups Hammer Swaps ‘Stays’

Posted on 05 November 2014 by VRS  |  Email |Print

Hedge funds, insurers and other companies said global regulators shouldn’t implement new rules aimed at protecting the financial system against the failure of big banks. At issue are changes endorsed by global banking regulators that would require banks and investors to give up their contractual rights to terminate swaps contracts with a troubled financial institution.
Instead, the firms would have to wait up to 48 hours before seeking to terminate derivatives contracts and collect associated payments from a troubled financial institution. Eighteen of the largest lenders in the U.S., Europe and Asia agreed to the changes in principle last month and global regulators plan to enshrine the changes in new regulation by the end of 2015………………………………………..Full Article: Source

The Current State of the Global Investment Climate

Posted on 04 November 2014 by VRS  |  Email |Print

There are three elements to the investment climate: The divergence between the US on one hand and Europe and Japan on the other, the drop in many commodity prices, including oil, and the slowing of the Chinese economy.
Last week, the divergence was driven home by policy makers. The contrast could not be starker. The FOMC ended QE, and seemingly began prepare investors for a rate hike next year, and the Bank of Japan, surprise of extending its asset purchases from JPY60-70 trillion a year to JPY80 trillion………………………………………..Full Article: Source

Gold Prices at 4-Year Lows: Should You Buy Now?

Posted on 04 November 2014 by VRS  |  Email |Print

Gold prices have dropped to 26,350 levels in India - the lowest in nearly four years. And some analysts say that gold prices could be heading even lower. A weak trend in global markets, strong US economic data and a stronger dollar have been cited for their weak outlook on the precious metal.
Here is why analysts expect gold prices to fall: Dollar’s rise against major currencies: The rise of the greenback has been one of the big factors behind the plunge in global gold prices. The gains in the greenback negatively impact the price of commodities priced in dollars such as gold, silver and oil………………………………………..Full Article: Source

FS Investment Committee: Which way for commodities?

Posted on 03 November 2014 by VRS  |  Email |Print

It has been difficult to call the direction of commodities over the past two years but is now the time to buy in? For this month’s investment committee we revisit an asset class we last discussed about 19 months ago – commodities. In March 2013 the subject of the debate was whether, after a decade of rising prices, the “supercycle” enjoyed by commodities was finally at an end.
The general view taken by the committee at the time was that the cycle might not be over on a long-term basis but short-term prices were in for a period of volatility and maybe there was a need to press the pause button on the party………………………………………..Full Article: Source

Time yet to buy commodities?

Posted on 03 November 2014 by VRS  |  Email |Print

With most asset classes at or near record levels, no one seems to want commodities - oil is at just $80 per barrel, gold just took out a multi-year low, and corn is off more than 50% from its 2012 high. Contrarians may want to take a look, writes Andrew Bary in Barron’s, noting commodity markets tend to be self-correcting - lower prices cool production and stimulate demand.
Low rates help too: The opportunity cost of holding commodities, and the price of rolling forward contracts is reduced.Bary also reminds that much of the institutional money which was in love with commodities in 2008 (with oil at $140 per barrel) has exited. The Harvard endowment, for instance, has scaled back its commodity exposure to zero from 8% six years ago………………………………………..Full Article: Source

What Should Gold Investors Do Now?

Posted on 03 November 2014 by VRS  |  Email |Print

Gold fell last week when the Fed cut QE and the Bank of Japan increased QE. The fundamentals right now are not relevant to gold as it is trading based on very negative sentiment.
Investors need to think long-term and control their emotions as that is the only way to weather “sentiment bottoms”. Investors should not be idle, but instead be developing their strategies and culling their portfolios to the best gold stocks………………………………………..Full Article: Source

Why Investments In Gold Will Pay Off

Posted on 27 October 2014 by VRS  |  Email |Print

This autumn is probably going to be the last chance to buy gold and silver at bargain prices before a massive spike in prices. A five-year regime of artificially low US interest rates is responsible for a bubble in stocks, bonds, real estate, emerging markets and many other asset classes. But can it really be said to have boosted gold prices?
Certainly not over the past three years. Gold peaked in October 2011 and silver in April of that year. Precious metal prices today are not so far away from where they stood five years ago………………………………………..Full Article: Source

The Top Technical Indicators For Commodities Investing

Posted on 24 October 2014 by VRS  |  Email |Print

The primary motive for any trader, investor or speculator is to make trading as profitable as possible. Primarily two techniques, fundamental analysis and technical analysis, are employed for making buy, sell or hold decisions. The technique of fundamental analysis is believed to be ideal for investments involving a longer time period.
It is more research based; it studies demand-supply situations, economic policies, and financials as decision-making criteria. Technical analysis is commonly used by traders, as it is appropriate for short term judgment in the markets–namely, deciding a quick buy and sell, entry and exit points, etc. It is pictorial; it analyzes the past price patterns, trends and volume to construct charts in order to determine future movement………………………………………..Full Article: Source

Why It’s Finally Time To Buy Commodities

Posted on 24 October 2014 by VRS  |  Email |Print

My friend, the time has FINALLY come…It is time to buy commodities. For years, I’ve urged you to invest in the stock market and the housing market. (I hope you took my advice… Stocks and housing have soared!) But one asset class has been completely left out of the fun… commodities.
In the summer of 2008, big investors loved commodities… The Dow Jones-AIG Commodity Index peaked at a value around 240. And Harvard University, a big investor, allocated 8% of its endowment to “public commodities.”……………………………………….Full Article: Source

Buy gold if it dips to $1,228-30/oz

Posted on 24 October 2014 by VRS  |  Email |Print

Comex gold futures ended lower on Thursday, as better-than-expected euro zone business activity data lifted stock markets from early lows, while the dollar index held near its highest in a week and demand for the physical metal softened. Gold futures hit a one-month high, supported by growth concerns over slower economic growth in China, with investors seeking safety amid increasing concerns over a slump in the global economy.
However, prices could come under pressure in coming days as demand from top consumers China and India recedes. Buying from India had risen in recent weeks, ahead of Diwali………………………………………..Full Article: Source

Gold demand up, more buying needed:Barclays

Posted on 22 October 2014 by VRS  |  Email |Print

Given that the Diwali holiday is this week, ahead of the wedding season, Gold demand is expected to improve, potentially offsetting macro headwinds in the near term. However, buying needs to pick up materially to overwhelm the gold-negative external drivers, a report by Barclays said.
Broad risk reduction amid tumbling equity markets, the sharp decline in US 10y Treasuries, and weaker-than-expected US retail sales have fueled uncertainty and aided gold’s bounce. The gold-supportive macro environment has seen gold extend its gains above the $1200/oz mark as the dollar has weakened, the St Louis Fed discussed the possibility of further stimulus, and, importantly, demand picked up amid the seasonally strong period for consumption………………………………………..Full Article: Source

6 beginner tips for investing in precious metals

Posted on 22 October 2014 by VRS  |  Email |Print

If you’ve been thinking about investing in precious metals for the first time, you’ve got your homework cut out for you. It’s a complicated space, especially if you’re a newbie, and a good grasp on the basics is essential to achieving any semblance of success.
Of course, many worthwhile investments take effort, so you should never shy away from the challenge if you’ve got funds to spare. Just make sure you arm yourself with as much information as possible, and don’t “bet” more than you can afford to lose………………………………………..Full Article: Source

Exposure on Chinese commodities not for risk-averse

Posted on 21 October 2014 by VRS  |  Email |Print

Millions of Chinese are planning to leave China. Why? Where are they going? What do they plan to do? Run your eye down the list of nationalities taking advantage of the “golden visa” schemes across Europe and you will find that the majority of those buying relatively expensive property to be able to apply for residency are Chinese — 81 per cent so far in Portugal’s scheme.
That might be just about the nice weather in Lisbon, the semi-democracy offered by the EU and the lower levels of air pollution in the west. But it might also be to do with the fact that China’s economy isn’t quite what it was………………………………………..Full Article: Source

Buying Gold on Dhanteras? 10 Things to Know

Posted on 21 October 2014 by VRS  |  Email |Print

Many Indians consider Dhanteras as an auspicious occasion to buy gold. Many jewellers have launched promotional schemes to attract gold buyers while stock exchanges have extended trading hours for gold trading on Tuesday. Here is a 10-point cheat-sheet to understand how gold prices could be impacted:
Analysts say that historically October has been seasonally a good month to buy gold. Vikas Vaid, product head of commodity and currency of Prabhudas Lilladher Group, said it has been observed that historically gold prices bottomed out in October and November is a strong month for the yellow metal in terms of prices………………………………………..Full Article: Source

The sky is falling! Should you buy gold and silver?

Posted on 20 October 2014 by VRS  |  Email |Print

If stock markets are heading for freefall, should one invest in gold and silver as a wealth protector. Perhaps not yet! Fear is stalking the global stock markets. Stock indices have been falling back sharply seeing a move to what might be seemed safer assets like bonds and gold.
The falls have been precipitated by some poor economic data suggesting that most major economies are not out of the recessionary mire yet and, in the U.S. in particular, the realisation that the Fed is getting down to near eliminating its latest Quantitative Easing programme in total, although there may be some succour in that it tends to be putting back the day that it may allow interest rates to rise. And what happens in the U.S. markets tends to have a strong follow-through impact on markets in other parts of the world………………………………………..Full Article: Source

Gold price higher on safe-haven buying, US dollar retreats

Posted on 17 October 2014 by VRS  |  Email |Print

Gold prices held at higher levels after a spate of poor US data in the previous session boosted the metal above resistance levels and weighed on the dollar. The spot gold price was last at $1,242.70/1,243.40 per ounce, u $2.70 on Wednesday’s closing level and bubbling just below the month high hit in yesterday’s session at $1,250.
The dollar has retreated to 1.2804 against the euro, with US equity markets all closing in negative territory after the release of forecast-missing retail sales figures and on fears of the spread of Ebola, bolstering gold’s credentials once again as a safe-haven asset………………………………………..Full Article: Source

Investors cooling towards commodities

Posted on 16 October 2014 by VRS  |  Email |Print

Investors have been showing a more negative sentiment towards commodities in the past few weeks, ETF Securities has found. In its latest 10-page research note, the exchange-traded fund provider also noted that improvement in the US economy and labour market should benefit cyclical assets.
The report also noted that among commodities long gold and silver exchange-traded products saw $88m (£54.7m) and $46m (£28.6m) of outflows respectively because of negative sentiment, despite strong demand for the raw metals. According to the report, in the US, more than 50 per cent of silver demand had come from industrial applications………………………………………..Full Article: Source

Flat commodities may be investors’ chance

Posted on 16 October 2014 by VRS  |  Email |Print

The drop in the iron ore, oil and coal prices has spooked the local market, prompting a selloff of local resources businesses. While the outlook for these commodities remains subdued, this could prompt buying opportunities if shares whose prices are affected by movements in commodity prices continue to fall.
Ric Spooner, chief market analyst at CMC Markets, explains iron ore prices are suffering from rising supply and slowing demand. “It’s been a long time coming but we have passed the inflection point where supply capacity exceeds demand. In these circumstances it can be very difficult to forecast where prices will bottom………………………………………..Full Article: Source

World Economy Gives Investors Growth Scare as They Look to U.S.

Posted on 16 October 2014 by VRS  |  Email |Print

The global economy faces its biggest test of confidence since the European sovereign debt crisis as investors fear it’s running out of engines. Japan and the euro area are throwing up fresh signs of weakness by the day and emerging markets such as China are dragging instead of driving growth.
The sense of tumult is being exacerbated by war in the Middle East, the standoff in Ukraine, street protests in Hong Kong and the spread of Ebola to Dallas. The worry is that five years since the world limped out of recession, central banks have virtually exhausted their stimulus arsenals if activity keeps fading………………………………………..Full Article: Source

Banks and investors see appeal of commodity finance

Posted on 14 October 2014 by VRS  |  Email |Print

Despite the retreat of major global banks from commodities, commodity finance is nonetheless viewed as an attractive opportunity. But it is an area where banks face increased competition from trading houses.
Under assault from tighter regulation, falling revenues and higher capital requirements, banks across Europe and the US have been taking the axe to their commodity trading businesses during the past few years. But whereas commodity trading may have fallen out of favour, commodity finance remains very much in vogue………………………………………..Full Article: Source

Commodities tell the truth to spooked equities investors

Posted on 13 October 2014 by VRS  |  Email |Print

Equities investors are spooked. This is October, the month of Halloween, and of virtually all the stock market’s best-known crashes over history. After a lengthy rise, stocks are showing the heaviest volatility in more than a year, while the S&P 500 is almost halfway to its first 10 per cent correction in more than three years.
Factors from the Ebola outbreak to conflagrations in Ukraine, Syria and Iraq give cause for alarm.Screening out this noise, the problem is familiar. The bet has been on for months, as it has been several times before during the five-year post-crisis rally, that the world economy, led by the US, is ready to achieve ignition and show strong growth. Now investors are having second thoughts about that bet………………………………………..Full Article: Source

Investors bet the farm on agriculture

Posted on 13 October 2014 by VRS  |  Email |Print

In the biblical book of Genesis, the pharaoh of Egypt dreams of seven thin cows eating seven fat cows, which signifies seven years of famine to follow seven years of good crops. In 2014, we are seeing the reverse, as bumper crops globally have reversed the trend of rising food prices that led to riots in some countries in recent years.
This has not deterred the many institutional investors who are looking at farmland as an asset class that has hitherto been neglected. Many experts say this is just a blip in a longer-term trend that makes any weakness in prices a buying opportunity………………………………………..Full Article: Source

5 ways to avoid losses in commodity market

Posted on 10 October 2014 by VRS  |  Email |Print

Commodity markets have a tremendous impact on the economy and the life of people. Though demand-supply is the prime factor behind the price volatility, currency moves, geopolitical issues, economic growth and government policies are other factors influencing commodity prices. Typically, the commodities market is subject to rallies and crashes, so it is more susceptible to speculation than the stock markets.
Before participating in commodity futures, an investor or trader should be prepared and ready to learn how the market works. Futures contracts unlike stocks have different expiry periods. As the futures platforms are primarily intended for hedging with a view to reduce the risk in portfolio, those who are participating in the commodities segment without fully understanding the fundamentals of the contract will stand to lose their initial capital or a part thereof………………………………………..Full Article: Source

IEA: Energy Efficiency Worth $310 Billion

Posted on 09 October 2014 by VRS  |  Email |Print

Investments in measures to curb energy waste and boost efficiency are overtaking wind and solar spending and have reached at least $310 billion a year, the International Energy Agency said. That’s almost $100 billion higher than investment in renewable energy in 2013, which amounted to $213 billion, according to estimates from Bloomberg New Energy Finance.
Demand dropped as much as 5 percent from 2001 to 2011, largely due to investments in efficiency, the Paris-based agency said today in a report, which studied countries including the U.K., U.S. and Japan. Savings in 11 nations in 2011 were equivalent to displacing a continent’s energy demand, it said………………………………………..Full Article: Source

Time to buy commodities? Maybe, but not the old ways: Russell

Posted on 06 October 2014 by VRS  |  Email |Print

Crazy or brave? That might be the most logical thought if anybody told you now was a good time to invest in commodities, given the sharp declines in the main indexes in the past few months. But that’s exactly what the overwhelming majority of fund managers and bankers were advocating at last week’s World Commodities Week conference in London.
Their optimism was in contrast to the clutch of analysts who presented at the meeting, who generally reinforced the current bearish theme by pointing to softness in demand in top importer China, as well as plentiful supply for many commodities………………………………………..Full Article: Source

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