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Commodities Briefing - Category | Investment more

Banks seen likely to stay in commodities

Posted on 03 September 2014 by VRS  |  Email |Print

Financial institutions could remain active in commodities markets following the dismissal of antitrust litigation that accused major banks and the London Metal Exchange of conspiring to artificially inflate aluminum prices, according to several U.S.-based aluminum traders.
A U.S. court recently dismissed the remaining claims against Hong Kong Exchanges & Clearing Ltd. (HKEx) and its subsidiaries, the LME and LME Holdings Ltd. (LMEH), in the class-action lawsuits. Other defendants included Baar, Switzerland-based Glencore Plc, New York-based Goldman Sachs Group Inc., New York-based JPMorgan Chase & Co. and their respective warehouse subsidiaries………………………………………..Full Article: Source

Agriculture ETPs Losing Investors on Record U.S. Harvests

Posted on 02 September 2014 by VRS  |  Email |Print

The investment binge in U.S. agriculture funds has ended as record crops and the promise of improving meat supplies send prices plunging. After taking in more money than precious metals or energy funds during the first five months of 2014, exchange-traded products backed by agriculture had a net outflow for the year of $57.7 million as of Aug. 29, down 2.9 percent, data compiled by Bloomberg show.
Energy, precious-metal, industrial-metal and broad-based funds saw net inflows over the period, boosting total raw-material investment by $341 million, or 0.5 percent………………………………………..Full Article: Source

How to Simplify Commodities

Posted on 01 September 2014 by VRS  |  Email |Print

Investors have long known that adding a dash of commodities to their portfolios can be beneficial to their wealth. The only problem has been implementing this strategy. It’s difficult to know which commodities are a good bet, and broad commodities-focused indexes are inadequate. Investors also worry that futures prices don’t always track the spot market.
But veteran economist David Ranson, at Cambria, Calif.-based HC Wainwright & Co. Economics, might have a solution to all these potential problems: investing in just four commodities………………………………………..Full Article: Source

Oil and gas investment boom ‘fading fast’

Posted on 29 August 2014 by VRS  |  Email |Print

The boom in oil and gas investment that insulated Australia from the Global Financial Crisis is fading fast and there are few signs of new projects on the horizon, EnergyQuest says.
Dr Graeme Bethune - chief executive of the energy economics group – said the level of oil and gas investment is already well below the peak reached in the last quarter of 2013 and will keep falling as new LNG projects are completed………………………………………..Full Article: Source

IEA expects $1.7 trillion in clean-energy investments through 2020

Posted on 29 August 2014 by VRS  |  Email |Print

Investments in new clean-energy capacity will total $USUS1.61 trillion ($1.72 trillion) through 2020 even as the expansion of renewables is expected to slow, the International Energy Agency said.
Funding for power generation from wind, solar radiation and biomass will average $US230 billion a year from $US250 billion in 2013 as technology costs fall and growth loses pace, the Paris-based adviser to 29 nations said today in its annual renewables report………………………………………..Full Article: Source

Gold shines most in September on seasonal buys

Posted on 28 August 2014 by VRS  |  Email |Print

Gold investors are hurting from prices within 1% of a two-month low can find solace from the historical record and research and showing gold performs best in September.
Our Bloomberg chart of the day shows bullion averaged gains of 3% each September over the past 20 years, beating next best month November, when prices rose an average 1.8% according to Bloomberg based on a market update by GoldCore. We covered gold’s seasonality and gold’s best performing months here………………………………………..Full Article: Source

Gold Speculators Reduce Positions

Posted on 26 August 2014 by VRS  |  Email |Print

Investors are exiting the Gold market on speculation that signs of sustained U.S. economic growth will push the Federal Reserve closer to raising interest rates, cutting demand for bullion as an inflation hedge.
Hedge funds reduced their bullish gold bets for the third time in four weeks and open interest in New York futures and options are near the lowest in five years, U.S. government data show. Prices tumbled 2 percent last week, the most since late May, erasing $1.2 billion from the value of exchange-traded products backed by bullion………………………………………..Full Article: Source

JP Morgan: The best way to invest in commodities

Posted on 25 August 2014 by VRS  |  Email |Print

It has been a rocky summer for global equity markets with escalating geopolitical risk and some investors fearing the consequences of interest rate rises, the natural resources sector has actually strongly outperformed global equities.
Base metals prices for example have moved higher across the board driven by positive data from China and further signs that their economy continues to stabilise. It has been a positive for commodities that China sentiment is improving on the back of the government’s continued reform measures. In particular, relaxation of restrictions in the China property market has eased pressure on the iron ore price. Platinum and palladium prices have also fared much better in recent weeks, as those markets have remained tight………………………………………..Full Article: Source

China to Let Foreign Investors Trade in Shenzhen Carbon Market

Posted on 25 August 2014 by VRS  |  Email |Print

China, the world’s biggest emitter of greenhouse gases, said it will allow foreigners to trade carbon permits in Shenzhen, making it the nation’s first emissions exchange to welcome outside investors. The Shenzhen exchange has yet to set the date or finalize other entry procedures for foreign investors. The State Administration of Foreign Exchange has allowed foreign participation in principal, according to a statement today on the website of the China Emissions Exchange.
The southern city of Shenzhen near Hong Kong started carbon trading last year as the first of seven pilot programs in China. The exchanges, constituting the world’s biggest emissions trading system after Europe, may be a precursor to a nationwide system………………………………………..Full Article: Source

Oil investors bet on future supply risks

Posted on 22 August 2014 by VRS  |  Email |Print

Bloodshed in Iraq, sanctions on Russia, conflict in Palestine. If you had asked market participants at the start of the year what would happen to the oil price if such events coincided, few would have predicted it would stay near $100 a barrel.
But since rising to $115 a barrel in mid-June, amid initial fears that fighting with Islamist militants in Iraq would result in major stoppages, the front month price of Brent crude has since dropped to 14-month lows………………………………………..Full Article: Source

CalPERS Removing Billions From Commodities?

Posted on 21 August 2014 by VRS  |  Email |Print

The California Public Employee Retirement System (CalPERS) is the largest U.S. public pension fund. It provides retirement, health, and financial benefits to more than 1.6 million public employees. With $295 billion in assets under management, CalPERS has long been viewed as a bellwether in the industry.
It tends to be an early adopter of alternative assets, too, setting the trend for the entire investment community. In October 2007, for example, the fund initiated its commodities program as a way of diversifying its portfolio – a move that helped establish commodities as a mainstream investment………………………………………..Full Article: Source

Is commodity bull alive?

Posted on 21 August 2014 by VRS  |  Email |Print

Global mining investors have been demanding greater returns following a period marked by failed acquisitions and spending on mine expansions that flooded metals markets. After a decade of explosive price gains fueled by Chinese demand, often defined as the commodities supercycle, mining companies are contending with slower growth by spurning mergers and cutting costs.
“The supercycle ain’t over, China is still buying, demand for commodities hasn’t tapered off, it’s even higher than it’s ever been,” Glencore Plc’s billionaire Chief Executive Officer, Ivan Glasenberg said. “The demand is pretty good. We’ll grow. We may do acquisitions where you’re not creating more supply in the market.”……………………………………….Full Article: Source

Why You Should Buy Silver Before It’s Too Late

Posted on 20 August 2014 by VRS  |  Email |Print

Too often silver falls in the shadow of its flashy, favored cousin gold, but the precious metal grabbed headlines last week when a 117-year-old tradition came to an end. Until last week, the price of silver had been decided, or “fixed,” each day at noon in London by representatives from three different banks. The process was conducted in private and it was all very secretive.
Now, regulators have finally dragged the silver “fix” into the 21st century in an effort to improve transparency and reduce the risk of price manipulation. The new system, called the London Silver Price, is run by CME Group and Thomson Reuters. It uses trading on the over-the-counter market and determines the price through an algorithm………………………………………..Full Article: Source

Should Investors Fear Global Tensions?

Posted on 20 August 2014 by VRS  |  Email |Print

Over the past few months, geopolitical crises seem to have proliferated. First, in March, long-simmering tension between Russia and the Ukraine metastasized to a full-blown crisis after the government of Ukraine was toppled by a popular revolt.
That then led to the Russian annexation of Crimea, which was followed by sanctions imposed by the Western states, armed conflict between Russian separatists and the Ukrainian government in eastern Ukraine, and even more sanctions. Then, in June, we witnessed the sudden eruption of another brief, intense war between Israel and Hamas-controlled Gaza, which saw daily scenes of bombs and missiles and reports of death and mayhem………………………………………..Full Article: Source

Investors Raise Their Shields Against Russia

Posted on 19 August 2014 by VRS  |  Email |Print

Investors are scrambling to reduce their exposure to the potential economic fallout from continuing fighting in Ukraine, unsettling already-fragile markets. Currencies in Central and Eastern Europe, including the Hungarian forint and Polish zloty, have plunged to at least one-year lows against the dollar as investors pull back from the economies most vulnerable to blowback from sanctions against Russia. European stocks also have sagged.
Investors are responding to escalating violence and tit-for-tat sanctions that are reverberating throughout the region’s financial markets and exposing new vulnerabilities in Europe’s struggling economy………………………………………..Full Article: Source

Has Gold Become a Bad Investment in India?

Posted on 19 August 2014 by VRS  |  Email |Print

Indians love gold, they cover their brides and shower their temples with the precious metal, traditionally used as a sparkling insurance policy and inflation hedge to be cashed in when needed. While the South Asian nation is the world’s second largest consumer of gold after China, it seems to be losing some of its appetite for the precious metal as an investment.
Demand for gold in India fell 39% from a year earlier in the quarter ended June to 204.1 tons, the World Gold Council said last week. Investment demand — buying of gold in the form of coins or bars rather than jewelry — plummeted even further, losing 67%………………………………………..Full Article: Source

Gold investors eye EU’s next move

Posted on 18 August 2014 by VRS  |  Email |Print

Gold moved higher in the initial part of the week and closed lower on Friday as news of the EU reviewing the sanctions on Russia began to surface. At $1,304.7 per troy ounce, gold was down 0.3 per cent for the week. It was trading at $1,319.3/ounce on Thursday.
The number of people filing for jobless claims in the US rose more than expected last week. The US Labour Department reported that the claims rose to 3,11,000, against the expected 2,95,000. Weak economic data from the Euro Zone also helped gold prices inch up………………………………………..Full Article: Source

Calling all nervous investors! The case for commodities

Posted on 13 August 2014 by VRS  |  Email |Print

As geopolitical risk and fears of stock market falls continue to loom large, some investors believe now may be the time to back commodities – despite the woeful returns from the asset class over recent years. Commodities have performed poorly since 2010, with the Bloomberg/UBS Commodity index falling 30% over that period. And while the index rose 7.1% in the first half of 2014, its best start to a year since 2008, a difficult July saw many of those gains evaporate.
But as fears of a market correction gain ground, with some seeing the FTSE 100’s weakness over the last fortnight as a prelude to a further falls, some are taking a shine to commodities, which traditionally have shown a low correlation to broader markets. Their resilience in times of geopolitical stress is adding to their appeal, as tensions persist between Russia and the West and the US conducts air strikes in Iraq………………………………..Full Article: Source

Aluminium in Gulf to reach $55bn by 2020

Posted on 13 August 2014 by VRS  |  Email |Print

Gulf region’s investments in the aluminium sector are forecast to reach $55 billion by 2020, compared to $30 billion in 2011, thanks to smelters’ expansion and new projects in the region, according to organisers of Aluminium Middle East exhibition.
Statistical data shows that the Gulf aluminium industry is growing by 8.4% annually, compared to an average annual global expansion of 3.5%, making the Middle East the fastest growing aluminium market in the world, said the event organisers who cited figures by Harbor Intelligence, a firm specialised in global aluminium market trends, analysis and forecasts………………………………..Full Article: Source

Commodities: Has Their Time Come Again?

Posted on 12 August 2014 by VRS  |  Email |Print

Ever since the Great Recession, it’s been a mixed bag for investors in natural resources. Though driven by the expanding emerging world, prices for commodities — with the exception of energy — haven’t really approached their pre-recession highs. From lower growth in key markets like China to oversupplies of several metals and minerals, commodities as a whole have been a terrible place to park your money over the last three or four years.
That could make them an ideal bargain play. Aside from their diversification benefits, the overall stronger global economy has some of the supply-demand dynamics finally working in investors favor. And after the recent slide in risk assets, the time to buy could be now……………………………………Full Article: Source

Silver: Investing Essentials

Posted on 12 August 2014 by VRS  |  Email |Print

Mankind has been mining silver for more than 5,000 years. It is believed to have first been mined in what is now Turkey. Through the centuries it became an important trading component especially along the Asian spice routes. Today, silver is not only important for the value it holds but for the vast array of usages derived from its versatility.
What is silver and why is it important ?: Silver is a soft and shiny metal that has the highest electrical and thermal conductivity of all the metals, as well as being the most reflective……………………………………Full Article: Source

Investors warm to commodities in search for return

Posted on 07 August 2014 by VRS  |  Email |Print

Global uncertainty, coupled with the strength of the Chinese markets, is leading U.S. investors back into commodities. Investors put more money into commodities ETFs and ETNs in July than they have in any single month over the past two years, according to ETF.com., which provides research on exchange-traded funds and exchange-traded notes.
The lift came as Chinese markets — and, in many cases, the funds tracking them — notched their best gains since late 2012, raising hopes that the world’s second-largest economy will support demand for the industrial metals used to manufacture cars, buildings and consumer electronics bought by the country’s growing middle class………………………………………..Full Article: Source

Are commodities’ days of true diversification behind them?

Posted on 07 August 2014 by VRS  |  Email |Print

The ability of commodities to offer uncorrelated returns has historically given them status as an important diversifier, but has this reputation been irreparably damaged by structural change in the years since the financial crisis?
Before 2009 correlations between commodity prices and stock markets were close to zero, cementing their reputation as reliable portfolio diversifiers. While gold is a more obvious diversifier, other precious metals, industrial metals, oil and agricultural commodities continue to be used to broaden a portfolio’s mix from stock, bonds and cash………………………………………..Full Article: Source

Gold Investors Shouldn’t Fear Rising Interest Rates: Here’s Why

Posted on 07 August 2014 by VRS  |  Email |Print

Investors commonly assume that rising interest rates adversely impact the gold price, and vise versa. They believe that a rising interest rate environment is indicative of a strong economy, which is supposed to drive investors out of gold and into the stock market. They further assume that investors will want to exchange their gold, which has no yield, for stocks and bonds, both of which have yields and generate income.
But this intuition is unfounded, at least when tracking the Fed Funds Rate since the Nixon abandoned the gold standard (i.e. after August 15th, 1971). Since then, a rising Fed Funds Rate has usually coincided with rising gold prices, and vise versa………………………………………..Full Article: Source

4 Reasons To Invest In Silver Rather Than Gold

Posted on 05 August 2014 by VRS  |  Email |Print

With Wall Street and a number of institutional investors like Ray Dalio and billionaire George Soros placing big bets on a recovery in precious metals, now is likely the time for investors to take the plunge. But the key question remains, which precious metal should they choose?
Gold has remained a firm favourite among investors and Mr. Soros has made a massive US$120 million plunge on the world’s largest gold producer Barrick Gold Corporation. However, my preference is to invest in Silver and not gold. Not only does it share similar characteristics to gold, including acting as an inflationary hedge, being a well of value in uncertain times and a safe-haven asset, it possesses four unique characteristics which could propel its price skyward………………………………………..Full Article: Source

Don’t ignore precious metals

Posted on 01 August 2014 by VRS  |  Email |Print

What is hard about investing? It’s not the simple mechanics of investing. Nowadays if you have the money, it’s easy to open an online trading account and start trading. You don’t even have to talk to anyone usually, just mail in a check to the broker and off you go. So the how or mechanics of investing is not hard.
Is finding what to trade hard? This is an interesting question. I would submit that finding what to trade is not the hard part about investing either. Studies have shown that selecting stocks at random, a.k.a. monkeys throwing darts at a dartboard, have outperformed market averages in a wide variety of years. But this is only because stocks as an asset class tend to move in the same direction, creating bull and bear market trends over time………………………………………..Full Article: Source

Common-Sense Commodities Investing

Posted on 01 August 2014 by VRS  |  Email |Print

To most investors, investing in commodities seems hopelessly complicated and treacherous. My first visit to the commodity trading pit of the Chicago Mercantile Exchange (CME) was memorable. The swirling, bright-colored jackets and the shouting, jostling, and rapid hand signals were captivating and reminded me of a wrestling ring rather than a business setting.
It was also the polar opposite of my later visit to the currency trading floor of JP Morgan at 23 Wall Street: row after row of white shirts hunched over flickering computer screens………………………………………..Full Article: Source

Investors not enthused by improving health of Commodities: Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

A Barclays report says the current year witnessed an improvement in the health of commodities but investors have continued to withdraw assets from commodity investments on a quarterly basis. The slow pace at which institutional investors are able to take and implement the kind of long-term investment decisions and make allocations to commodities is the major reason for this trend. But the situation is expected to improve gradually, the report said.
The report maintains key recommendations as: long crude oil; short gold (due to weak fundamentals); and long nickel – the base metal with the best short-term fundamentals and a sector likely to benefit from better global growth in this quarter………………………………………..Full Article: Source

Stephanie Flanders: Now is the time to invest in commodity stocks

Posted on 25 July 2014 by VRS  |  Email |Print

Stephanie Flanders, chief market strategist at JP Morgan Asset Management, believes that now is the time for investors to back commodity companies. She commented that while ‘it is too early’ to call the bottom of the commodity cycle, commodity stocks should still play an increasing role in investors’ portfolios because of the diversification they offer.
Flanders noted that 2014 has seen strong returns for commodities, with the Bloomberg/UBS Commodity Index having returned 7.1 per cent so far this year………………………………………..Full Article: Source

Investors swap grains for metals as flows trickle to commodities

Posted on 22 July 2014 by VRS  |  Email |Print

Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within sub-sectors, typified by current investment flows out of grains into industrial metals.
The sector has been shunned in recent years, knocked by poor returns during the financial crisis which saw commodities move in step with other assets. Commodities has benefited this year after China unleashed stimulus measures to prop up growth and recovery took hold in the United States………………………………………..Full Article: Source

Investing in Water

Posted on 22 July 2014 by VRS  |  Email |Print

Water scarcity is making headlines, particularly as a drought savages California, and heightened tensions about water supply and use won’t evaporate any time soon. Whether it is concern about climate change, global population growth or the need to revamp aging water infrastructure, investment advisers say the water sector offers long-term buying opportunities. However, they add, carefully review the type of investment since offerings are as vast as the ocean.
It has become easier to add water investments to a portfolio. Some water utilities are publically traded, as are a few agricultural producers, and a handful of exchange-traded funds have bubbled up to make it simpler to get broad sector exposure. Farmland remains another way to get water ownership………………………………………..Full Article: Source

How to Invest in the World’s Most Precious Commodity: Water

Posted on 18 July 2014 by VRS  |  Email |Print

When asked what the world’s most precious commodity is, most people would rattle off guesses from a list of the usual suspects — things like gold, platinum, oil or diamonds. However, there is a commodity more precious than any of those, one that has the potential to rise in value dramatically over the next decade, and one that you can easily invest in.
If you want to know what it is, just watch any episode of a survival reality show. Whether it’s “Man vs. Wild,” “Survivorman” or even “Naked and Afraid,” the first thing the TV survivalists do after assessing their situation is to look for this precious commodity — clean, drinkable water………………………………………..Full Article: Source

Commodities luring investors

Posted on 14 July 2014 by VRS  |  Email |Print

Investors are being lured back to commodities after war and drought helped make raw materials the surprise best-performing major asset class in the first half. About $5.9 billion was added to raw materials investments this year, compared with a record $50 billion withdrawn in 2013, Citigroup Inc. estimates. Assets under management of about $360 billion at the end of last year rose to $365 billion through May and probably increased again in June, the bank said Monday.
While Citigroup and Goldman Sachs Group Inc. forecast in January that prices would fall or remain steady this year, Middle East unrest and pledges by central banks to keep interest rates low sent gold up 11 percent and boosted oil to a nine-month high. Lack of rain in Brazil lifted coffee 58 percent, helping commodities record the best first half since 2008………………………………………..Full Article: Source

Goldman Stays Gold Bear as Bullish Wagers Increase: Commodities

Posted on 14 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc.’s Jeffrey Currie isn’t backing down from his bearish call on gold. As bullion’s 11 percent rally this year beats gains for equities, commodities and Treasuries, he’s sticking with the view that the metal will be lower by the end of December as the economy improves.
Currie, who last year got ahead of the biggest gold collapse since 1980, is an undeterred bear even as hedge funds add to their bullish holdings for a fifth straight week and assets in exchange-traded products advance………………………………………..Full Article: Source

The Best Way to Invest in Silver

Posted on 11 July 2014 by VRS  |  Email |Print

Mining is highly cyclical, with commodity prices rising and falling in long-term trends. For Foolish investors, these cyclical industries allow for classic value investing, with the market offering great companies at deep discounts that can yield market-crushing long-term total returns. This article highlights silver and explains the long-term bullish case for the precious metal.
More importantly, it offers a low-risk way for long-term investors to profit immensely should silver prices soar. Silver has many important uses other than jewelry or a store of value that can justify long-term price appreciation………………………………………..Full Article: Source

Is it Time to Put Precious Metals in Your Portfolio?

Posted on 11 July 2014 by VRS  |  Email |Print

Many experts have been calling “game over” for more than a year, yet the stock market continues reaching new highs. And while the “average length” of a bull market is quoted as being anywhere from four to nine years or more – the experts can’t agree on that either – at five years at counting, many believe the current bull market is at least approaching retirement.
And that always brings out the promoters of a precious metal play. Is it time to put a little gold or silver in your portfolio? In a typical Wall Street hedge, Russ Koesterich, chief investment strategist for BlackRock says yes – and no………………………………………..Full Article: Source

Is investing in gold a good decision?

Posted on 10 July 2014 by VRS  |  Email |Print

Is this is a ‘golden’ opportunity? There is so much media glare on equities that investors have little opportunity to evaluate other options. The perceptive investor however, does not focusing on the media. He wants to know if there is any opportunity out there that he may be overlooking; perhaps an opportunity in gold?
It is normal for investors to think a little contrarian at this stage. Everyone is talking of equities hence they are looking for something other than equities that has not quite shot up to the same extent. Enter gold………………………………………..Full Article: Source

Is Now The Right Time to Buy Silver?

Posted on 10 July 2014 by VRS  |  Email |Print

Silver is indeed a gentleman’s currency. However, it has been two years of downside pressure for investors in silver, but I have recommended accumulating it heavily once it dipped under $23 an ounce and almost took to the streets to encourage buying at $18 an ounce. I have been buying silver at a strong clip.
Prices have now come back and stabilized around $21 and it is likely just the beginning. Inflation is slowly — very slowly — starting to creep up in corners of the world, and that is a nice source of upward pressure for the metal. Still, we are a long way from $50 per ounce. Is now a good time to buy silver? There are key supply and demand issues that you need to be aware of and several ways to play the metal………………………………………..Full Article: Source

Good returns bring investors back to commodity ETFs

Posted on 09 July 2014 by VRS  |  Email |Print

The best commodities performance in years has rekindled interest in exchange traded funds that allow investors to trade the price of energy, metals and grains on stock markets. At one time, some ETFs were so large that critics contended they distorted wholesale markets for food and energy. Assets held in many of the biggest funds have shrunk from their peaks.
But new figures show investors began to creep back into commodity ETF products as the benchmark Bloomberg Commodity Index rose 7.1 per cent in the first half of the year. The direction of flows varied by geography and sector, however……………………………………Full Article: Source

Why commodities belong in your retirement portfolio

Posted on 04 July 2014 by VRS  |  Email |Print

The recent turmoil in Iraq led many forecasters to predict that oil and gasoline could be headed for a substantial price increase. Jay Leno once joked, “Gas prices continue to rise. At the gas station near my house they have a slot for your credit card and one right next to it for your 401(k).”
The price of oil can be very volatile. Oil prices have a history of price spikes that are associated with geopolitical unrest. In 1979, the price of crude doubled to $38 per barrel. Using an inflation adjustment based on CPI data from 1946-2014 that equates to over $115 per barrel in today’s dollars. Oil spiked again in 1990 during the Gulf War. In June 2008 oil reached an all-time high when it averaged an inflation-adjusted price just over $135 per barrel for the entire month………………………………………..Full Article: Source

Gold Investing Sentiment Hits 4.5-Year Low

Posted on 02 July 2014 by VRS  |  Email |Print

Gold investing amongst private households sank to the weakest sentiment in nearly 4.5 years in June. Bulls can blame last month’s jump above $1300 per ounce. It spurred the number of sellers on Bullion Vault – the world’s largest physical gold provider online – and deterred new buyers. That took our Gold Investor Index down to 51.2, the lowest reading since February 2010.
The Gold Investor Index is a unique window onto private investing behavior in gold. Unlike an exchange-traded trust fund (ETF), BullionVault has few professional money managers amongst its 52,000 users. Unlike a retailer dealing coins or small bars, we also enable our users to sell their vaulted property instantly, when they choose (and offering it at their own price too if they wish)………………………………………..Full Article: Source

More investors plan to overweight commodities -Credit Suisse

Posted on 27 June 2014 by VRS  |  Email |Print

More investors plan to ramp up on commodities over the next 12 months after years of pessimism toward the sector, betting that the Iraq conflict will push oil prices higher while other commodities prices advance in volatile trade, a Credit Suisse poll showed on Thursday.
The Swiss bank said it found a favorable view developing toward commodities at a conference in New York this week, when it surveyed 350 investors, including institutions, hedge funds, family offices, mutual funds and corporate firms. A year ago, the bank said most investors at a similar Credit Suisse conference expressed reservations on commodities………………………………………..Full Article: Source

Is Now The Time To Buy Commodities?

Posted on 27 June 2014 by VRS  |  Email |Print

For active traders thinking about investing in commodities now could be the time. As you can see from the chart below, the price of the iPath Dow Jones-UBS Commodity Total Return ETN (DJP) has recently bounced off its 200-day moving average. The bullish long-term buy signal is being confirmed by the MACD indicator crossing above its signal line.
These two technical buy signals along with a rising RSI indicator suggests that commodity prices could be heading higher over the months ahead. Aside from the technical chart patterns, price movements of major underlying commodities are also suggests that a move higher is likely in the cards……………………………………….Full Article: Source

Buy gold if it dips to $1,298-1,302/ounce

Posted on 27 June 2014 by VRS  |  Email |Print

Comex gold futures were lower on Thursday, retreating from this week’s two-month high as a firmer tone in equities suggested investors could be switching back into risky assets, abandoning haven gold.
It has struggled to maintain gains, however, as higher prices curbed physical demand and investors stuck to the side lines, awaiting a clearer picture for the US monetary policy. China’s gold imports from Hong Kong dropped in May to the lowest level since January last year as a weaker yuan curbed appetite for the precious metal………………………………………..Full Article: Source

A New Way to Buy Gold

Posted on 26 June 2014 by VRS  |  Email |Print

Despite some truly frightening conflicts in the Middle East and Ukraine, despite signs of inflation in the United States, and despite promises to “print” from both the Japanese and European central banks, the price of gold has barely managed to climb above $1,300 an ounce.
In fact, gold was the worst-performing asset class in 2013 — down 24.8 percent. Yet gold is still the best-performing asset of this century!……………………………………….Full Article: Source

Interest increases for commodities

Posted on 24 June 2014 by VRS  |  Email |Print

Investor inflows into exchange traded products can broadly be divided into two camps: those that look to use mainly ETFs in specific equity and bonds markets for some tactical asset allocation plays, and those that are looking for exposure to specific and niche areas of the market, particularly commodities.
David Patterson, head of UK wholesale distribution for passive investment products at DeAWM, notes: “Once equity markets bottomed out after the 2008 crash, the recovery has seen US equities in particular show tremendous growth. Anyone holding an ETF tracking the S&P 500 for the past five years would have done extremely well – the index is up almost 200 per cent since the market bottomed out………………………………………..Full Article: Source

Investors need to guard against oil price spike

Posted on 19 June 2014 by VRS  |  Email |Print

Investment managers are learning to embrace failure. They have been wrong on two critical calls this year, on bond yields and on oil. As a result, the best friend of hedge fund managers, momentum, has for the time being deserted them. The issue now is to guard against the growing possibility of a true oil price spike.
The first call investors got wrong was on US Treasury yields. They were almost universally expected to rise gently from 3 per cent; instead, they have fallen to as low as 2.5 per cent. That led to drama within the market in spring as investors exited from cyclical sectors that do well when the economy is expanding (and hence bond yields are rising)…………………………………..Full Article: Source

Why Gold Belongs In Your Portfolio

Posted on 18 June 2014 by VRS  |  Email |Print

Gold as an investment is one of the most difficult assets to forecast, predict and understand. Being a commodity, its price can vary rapidly due to events beyond anyone’s control. So why then does gold belong in your portfolio?
Investors use gold as an investment for a variety of reasons. Some investors use gold as a hedge against inflation, others as a hedge against a declining dollar and some as a safe haven during periods of political and economic turmoil. In my opinion, gold is a great portfolio hedge against a significant market recession as seen in 2002 and 2008………………………………………..Full Article: Source

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5 Things to Know Before Investing in Precious Metals

Posted on 17 June 2014 by VRS  |  Email |Print

Precious metals mining is a fickle industry. It changes constantly because of price volatility, market demand, and the costs incurred for capital-intensive projects. Then, there’s always something else that causes mining companies to change plans. Here are five things to consider before investing in precious metals.
1. Price volatility is inherent to the industry: Precious metals prices follow no set pattern or trend. They can swing up or down in a flash. For example, Canadian Mining Journal reported this month that, “A rare combination of ongoing strikes in South Africa’s platinum group metal mines combined with political tensions between Russia and Ukraine have translated into three-year highs for palladium prices in early June, resulting in one of the few bull markets for a mining commodity this year.”……………………………………….Full Article: Source

Are Gold Miners Worth Investing In?

Posted on 13 June 2014 by VRS  |  Email |Print

Gold mining stocks were hammered last year as gold prices fell almost 30%. Investments in gold fell as investors pulled money out of exchange traded funds. This was mainly due to the fact that the U.S. Federal Reserve indicated that it will start winding up its quantitative easing program.
The Fed has already started easing its bond purchases this year, however, surprisingly gold and gold mining stocks have performed well. So are gold miners worth investing in after last year’s sharp decline?……………………………………….Full Article: Source

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