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Commodities Briefing - Category | Investment more

Climate rules could put $1.1 trl in oil investment at risk

Posted on 08 May 2014 by VRS  |  Email |Print

Investors could spend up to $1.1 trillion over the next decade on oil projects and assets that never reach production if governments enforce measures to curb climate change, a report by Carbon Tracker Initiative said.
The Carbon Tracker report, released on Thursday, could help funds and other investors avoid putting their money in oil assets that remain buried forever. The $1.1 trillion, around 15 percent of the decade’s total global oil and gas spending at current rates, is earmarked for projects to 2025 that require a market price of at least $95 a barrel to break even………………………………………..Full Article: Source

Jim Rogers Wants a Chance to Buy Gold More Cheaply

Posted on 07 May 2014 by VRS  |  Email |Print

Jim Rogers: I’m very bad at market timing. I’m a very bad short-term trader, so I have absolutely no idea what is going to happen. I do own gold, but I have hedged some of my gold. I expect there will be another opportunity to buy gold sometime in the next year or two.
If that means gold is under $1,000, I hope I’m smart enough to buy. If it means gold is $1,600 because America and Iran end up going to war, I hope I’m smart enough to buy it. In my view, it’s more likely there will be another chance to buy gold lower than now, and that’s why I’ve hedged some of my gold, but I’m not selling………………………………………..Full Article: Source

How to Make an Income Through Gold

Posted on 06 May 2014 by VRS  |  Email |Print

One of the most common objections to an investment in gold is the fact that gold doesn’t pay a dividend. It just “sits there,” and because of this, it evokes the “greater fool” theory from skeptics — that “the only reason to buy gold is so that you can find another sucker to sell it to at a higher price.”
Nevertheless, since the beginning of the 21st century, gold has outperformed virtually all income-generating assets. The reason for this is that gold retains its value, while fiat currencies such as dollars and euros do not: Central banks can create as much of these currencies as they want to, and it doesn’t really matter how much dividend income you can generate if the currency you are being paid in is losing value………………………………………..Full Article: Source

Commodities comeback on the horizon

Posted on 05 May 2014 by VRS  |  Email |Print

Twelve months is a long time in investment. “2013 was a year when many investors may have questioned the role of certain asset classes, especially commodities,” says Nick Spencer, director of consulting at Russell Investments, after a year in which the Dow Jones-UBS commodity index lost 9.5 per cent but the Russell 3000 US equity index jumped 33 per cent.
So far this year the Dow Jones index has rebounded 9 per cent, and Hermes Fund Managers has declared the outlook for commodities to be its most propitious for a decade………………………………………..Full Article: Source

Hedge Funds Reduce Gold Bets to Lowest in 11 Weeks

Posted on 05 May 2014 by VRS  |  Email |Print

Speculators are the least bullish on gold in 2 1/2 months on mounting confidence that U.S. economic growth is accelerating out of its winter retreat.
Money managers cut their net-long position in bullion to the smallest since mid-February during the week ended April 29. Wagers tumbled 25 percent last month, the most since November, and investors cut their holdings in exchange-traded products backed by the metal to the lowest since 2009………………………………………..Full Article: Source

Be glad you didn’t buy gold and silver in 2012

Posted on 05 May 2014 by VRS  |  Email |Print

If you watched much cable television in 2011 and 2012 you couldn’t help but be bombarded by all those commercials urging you to buy gold and silver. The pitch was bolstered by scary economic headlines. The dollar was falling. Congress was one big partisan gridlock and the not-so-subtle message of these ads was you’d better buy now before the whole house of cards collapses.
It would have been easy to be tempted. The price of both precious metals was rapidly rising. At the beginning of 2011 the price of gold stood at $1,405 an ounce. The following September it peaked at over $1,900………………………………………..Full Article: Source

Are commodities a good long-term investment?

Posted on 02 May 2014 by VRS  |  Email |Print

Since the beginning of this year, commodities have performed remarkably well. For example, while the S&P 500 has gained 2%, the Dow Jones Commodity index has gained 10%. Why have commodity values increased? Well, it is due to a number of reasons that include more positive news regarding the global economy, international political concerns, and extreme weather conditions.
Which Commodities are Currently Increasing in Price? Two commodities that have done particularly well are coffee and nickel with increases of over 15% in the past month alone. Coffee is up in price mainly due to the dry weather Brazil is experiencing, and nickel is mainly up in price due to the mineral ore export ban Indonesia imposed in January. However, as the economies in China, Europe, and the US improve, most base metals have benefited from the more positive economic news………………………………………..Full Article: Source

Secretive Swiss commodities giants are buying big chunks of US energy

Posted on 02 May 2014 by VRS  |  Email |Print

Some of the world’s biggest commodities traders are buying up key pieces of the infrastructure that’s driving the US energy production boom. Secretive commodities investors like Vitol Group, Trafigura Beheer B.V. and Mercuria Energy Group are among the firms amassing physical assets like shale oil wells, oil and gas pipelines and offshore drilling projects in the US, Bloomberg reports.
Why? The controversial fracking boom, which has driven US energy production sharply higher in recent years. Commodities firms want to get a piece of that production. They also see opportunities for arbitrage—that is profiting from price discrepancies—in the sometimes inefficient US oil and gas transport system………………………………………..Full Article: Source

Commodities favoured in portfolio rotation

Posted on 30 April 2014 by VRS  |  Email |Print

After several years of poor performance investors are warming to commodities. Helped by the return of volatility, strong returns and declining correlations with other asset classes, money has started to trickle back into the sector.
After a record $50bn of net redemptions in 2013, total inflows into passive index tracking and commodity-linked exchange traded funds this year have so far totalled just over $6bn, according to research by Citigroup. Agriculture, energy and bullion funds have led the way………………………………………..Full Article: Source

Investing in South America – Watch out for falling copper prices

Posted on 30 April 2014 by VRS  |  Email |Print

To say the least, 2014 has proven to be a difficult year for copper bulls. The metal has been drastically underperforming the major indexes such as the Dow Jones Industrial Average and the S&P 500. In addition the performance has also been lagging gold and silver.
Unfortunately, news from this past week isn’t providing much comfort and it appears that the pressure will continue to be to the downside over the short-term. From a trader’s perspective, the strategic move will be to take this underperformance and examine the influence that it is having on copper exporting nations such as Peru and Chile………………………………………..Full Article: Source

Commodities: To buy or not to buy?

Posted on 28 April 2014 by VRS  |  Email |Print

Commodity prices are on the rise, as gold, corn and other basic materials climb back from steep declines—and outpace U.S. stocks. The rebound may stir hopes that a longer-term boom has resumed after three rough years for natural resources, and a measured bet could pay off.
But for ordinary investors, commodities often are a raw deal. They should take a hard look before loading up. First, weigh whether you need the exposure. Perhaps the main reason investors hold commodities is to hedge against inflation. But inflation remains muted in the U.S………………………………………..Full Article: Source

Commodities: A better long-term bet?

Posted on 28 April 2014 by VRS  |  Email |Print

For longer-term investors, equity markets have generally remained the risk asset class of choice. However, with equities around the world now finding it hard to continue the bullish momentum of the last few years, investors are now looking to alternative markets to diversify risk, and for potentially better returns.
One such is commodities, which has performed well since the start of the year, with the Dow Jones Commodity index currently up 10%, compared with to just 2% for the S&P 500. In addition, and perhaps more significantly, many of the traditional correlations between equities, bonds, commodities and currencies, and in particular the risk-on-risk-off relationships, have all broken down as the financial markets continue to be distorted by quantitative easing………………………………………..Full Article: Source

Investors starting to look at commodities again

Posted on 25 April 2014 by VRS  |  Email |Print

After several tough years, investors are once again starting to warm to commodities. That is the view of one of the sector’s most successful hedge fund managers. According to Pierre Andurand, “smart investors” are growing concerned about their exposure to equities and are looking to place contrarian bets in other asset classes such as commodities.
“We feel sentiment is turning. Pension funds are coming to us and saying they want to invest in commodities while others aren’t looking,” says Mr Andurand, whose eponymous hedge fund returned almost 25 per cent last year………………………………………..Full Article: Source

Commodity investors brace for El Niño

Posted on 25 April 2014 by VRS  |  Email |Print

Commodities investors are bracing themselves for the ever-growing possibility for the occurrence of a weather phenomenon known as El Niño by mid-year which threatens to play havoc with commodities markets ranging from cocoa to zinc.
The El Niño phenomenon, which tends to occur every 3-6 years, is associated with above-average water temperatures in the central and eastern Pacific and can, in its worst form, bring drought to West Africa (the world’s largest cocoa producing region), less rainfall to India during its vital Monsoon season and drier conditions for the cultivation of crops in Australia………………………………………..Full Article: Source

Indecent exposure [to commodities]

Posted on 25 April 2014 by VRS  |  Email |Print

Before there were alternative investments (”alts”) or hedge funds, having some exposure to commodities, served as a good way to diversify a portfolio against stock market volatility. Historical correlations to the stock market are rather low, or at least sporadic, and owning commodities can also be seen as a hedge against inflation (higher costs of raw goods).
However, since the price of crude oil cratered from $150 per barrel all the way down to $40 back in 2008, the commodities asset class as a whole has been more or less shunned. Despite the price of oil having somewhat recovered — it currently trades around $100 — now might be a good time to un-shun………………………………………..Full Article: Source

Investors exit ETFs as commodities seen fading

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg. The benchmark Standard & Poor’s/TSX Composite Index (SPTSX) is in its 10th month of gains, the longest winning streak since 1983, and has soared 20 percent in the past year. The gauge rose 0.2 percent to 14,557.27 at 10:55 a.m. in Toronto………………………………………..Full Article: Source

Canadians are dumping ETFs on commodity doubts

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg………………………………………..Full Article: Source

How to protect your portfolio from rising geopolitical risk

Posted on 24 April 2014 by VRS  |  Email |Print

Investors should buy into the energy sector to protect their portfolios from rising levels of geopolitical risk, according to Russ Koesterich, global chief investment strategist at BlackRock. Data from FE Analytics shows that specialist energy funds have done very well so far this year, with an uptick in performance in recent weeks as the Ukraine crisis has escalated.
Koesterich says he expects the outperformance to continue, and suggests overweighting the sector. “We are advocating an allocation to energy stocks, which have outperformed the broader market year-to-date,” he said………………………………………..Full Article: Source

Is this the best contrarian strategy for precious metals investors?

Posted on 23 April 2014 by VRS  |  Email |Print

Often, the word “contrarian” equates to investors attempting to catch a falling knife. You don’t need to look like a used butcher’s block for contrarian strategies to pay off in the long run, however.
Recently, the precious metals markets have been consolidating following a severe decline from all-time highs. If you believe that they will someday regain popularity following another economic decline, political debacle, above average inflation, or other crisis, however, then join the club………………………………………..Full Article: Source

Should your portfolio own commodities?

Posted on 22 April 2014 by VRS  |  Email |Print

Should your investment portfolio have exposure to commodities? The problem with commodities is that most of us don’t have storage space in the garage for a herd of cattle or pork bellies. And even if we did, it still wouldn’t give us diversified exposure to other important commodity sectors like agriculture, energy and metals.
It’s true commodities have significantly lagged the performance of U.S. stocks over the past several years. But that doesn’t diminish their importance………………………………………..Full Article: Source

Time to rethink your commodity investment strategy, says Citi

Posted on 16 April 2014 by VRS  |  Email |Print

It is time to take commodities seriously as an investment, and in particular a portfolio diversifier, according the strategists at Citi. They point out metals, hydrocarbons and basic foodstuffs have outperformed equities and bonds over the past quarter.
Citi’s team expects that trend to continue into the second three months of the current year. And its analysts go as far as to suggest the historic relationship between stocks, government debt and commodities has returned to a normal pattern. The negative correlation between equities and commodities, made the latter and ideal ‘diversifier’ in a balanced portfolio………………………………………..Full Article: Source

China underinvestment affects commodities in South Africa

Posted on 16 April 2014 by VRS  |  Email |Print

A long-term investment in South African commodities — especially gold — is expected to produce a sizable payoff, according to a CCTV Africa report. Standard Bank Commodities Analyst, Walter De Wet, expects that prices will continue to rise as stocks mature and production heightens. More importantly, with the increased investment of China, commodities in Africa — and on a global scale — will edge toward stability.
“We think that China is underinvested in this metal. We do think the physical demand from west to eats will continue. Once the U.S. market is normalized and stabilized, we do think that gold will continue to grind higher,” De Wet said. ”We think long-term price for gold is closer to $1,500 than $1,100.” ……………………………………….Full Article: Source

When investment bankers go wrong on Gold, Silver prices predictions

Posted on 14 April 2014 by VRS  |  Email |Print

On average, every quarter we are exposed to yet another price guidance by a mainstream analyst. Such analysts usually reside within a large investment bank. These calls become focal points for a sector and often seem to carry with them some form of self fulfilling prophecy.
Many come directly from the big financial firms and investment houses. They are respected because of their size and brand, which gives them credibility based solely on relative visibility. Goldman-Sachs was too big too fail; it was rescued and given banking status. “When the world’s most intelligent FDIC-backed hedge fund, pardon, bank says the current market structure is no longer necessary to Goldman, people notice, and promptly imitate”………………………………………..Full Article: Source

Silver being left behind in latest gold price surge – but don’t despair!

Posted on 14 April 2014 by VRS  |  Email |Print

Silver investors will have been a little disappointed by the metal’s performance vis-a-vis the gold price following the latter’s gains after the release of the latest U.S. FOMC meeting minutes. The minutes suggested that the low interest rate regime may well continue longer than expected and resulted in a major boost to the stock market and a significant uptick in the gold price.
But it had rather less impact on silver which initially remained stuck below the $20 mark, although this morning’s trade has at last see it move up above this mark. Perhaps European investors are less pessimistic about silver’s investment credentials………………………………………..Full Article: Source

Do commodities belong in your allocation?

Posted on 08 April 2014 by VRS  |  Email |Print

The market price of a basket of commodities should increase roughly in line with inflation, but why would there be returns beyond this? While the spot prices of commodities tend to track inflation, futures contracts of commodities have historically delivered positive returns.
John Maynard Keynes laid the foundation of modern thinking on commodity futures markets . He proposed that investors in commodity futures are providing risk capacity to the producers of commodities by allowing them to lock in a fixed price for commodities to be delivered at a future date. In other words, investors in future contracts are essentially insuring commodity producers against a decline in prices in the future………………………………………..Full Article: Source

Happy days are here again:Commodities spring back to life

Posted on 07 April 2014 by VRS  |  Email |Print

Happy news! Investors are coming back to commodities. Barclays pointed out that there has been a huge increase in hedge funds length across commodity markets in 2014 with more investors likely to raise their commodity exposure in the next twelve months.
Volatility is back, returns are strong and declining correlations with other asset classes- the mood is improving. Barclays survey showed that financial investors are optimistic and raised their exposure to US commodities futures to a post financial crisis peak in recent weeks………………………………………..Full Article: Source

Investor risk rises as energy partnership world gets crowded

Posted on 07 April 2014 by VRS  |  Email |Print

High-yielding energy partnerships have lured billions in capital from investors in the past few years and the returns have often matched or beaten expectations.
But as riskier kinds of businesses adopt the Master Limited Partnership (MLP) structure, and as interest rates rise, investors are getting a wake-up call about some of the scary stuff lurking in the sector………………………………………..Full Article: Source

Is the bull phase of the commodity super-cycle over?

Posted on 02 April 2014 by VRS  |  Email |Print

Many investment banks, with Goldman Sachs among them, say that the bull phase of the commodity super-cycle is over. Commodity super-cycles generally last 30 to 40 years. There is an initial 15 to 20 year phase where demand outstrips supply, and a later 15 year phase where supply outstrips demand.
In the first phase of the current commodity cycle, many metal, energy, and agricultural commodities have doubled in price since 2000. Over the past several years, however, prices have been, at best, range-bound. This has led to many market pundits declaring that the bull phase of the commodity super-cycle is over. So what’s causing prices to stay range-bound, and are there any compelling reasons to own commodity producers?…………………………Full Article: Source

Net gold investment to fall 9.5 mln ozs in 2014 - CPM

Posted on 27 March 2014 by VRS  |  Email |Print

Commodities specialists CPM Group forecast Tuesday that the decline in investment demand for gold will continue this year as “a tug of war between short and long term investors is expected to weigh on overall net additions to gold investment holdings,” which are projected to deteriorate from 30.9 million ounces in 2013 to 21.4 million ounces in 2014.
“The price sensitivity among longer term investors, renewed strength in equity and real estate markets, and weak demand from some major gold consuming nations could deflate the price of gold and drive away shorter term investors,” CPM advised in its Gold Yearbook 2014, which was released Tuesday afternoon…………………………………Full Article: Source

Invest in a gold – Precious metals IRA

Posted on 21 March 2014 by VRS  |  Email |Print

According to a new survey, Only 44% of Americans say they or their spouses have calculate how much money to t live comfortably in retirement, let alone how to invest it. Only 18% of workers are confident they’ll retire comfortably.
For those who do save, taking the extra time to plan out how to shine in their golden years, it is just as important to have a strong, diversified portfolio. To those responsible savers, Gold IRA’s are an obvious choice………………………………………..Full Article: Source

2 easy ways to add commodities to your portfolio

Posted on 19 March 2014 by VRS  |  Email |Print

Commodities have outperformed stocks since the start of the year, but many investors have not benefited. Why? Because if there’s one category where most investment portfolios are lacking market exposure, it’s probably commodities.
Unless you live on a farm, most of us don’t have enough storage space for 150 barrels of crude oil (USO) or a herd of cattle (COW). Like any asset class, commodities have their advantages and drawbacks………………………………………..Full Article: Source

Investors are feeling bullish about gold

Posted on 19 March 2014 by VRS  |  Email |Print

The international markets have witnessed lots of uncertainty of late, especially in respect of the Ukraine crisis. Traders have been shying away from traditional investments in the form of stocks in favour of gold and other safe-haven alternatives. The price of gold has risen sharply this year – in the region of 15%.
The recent referendum results confirm what investors and political commentators already knew: Crimea was always going to side with Russia. Since over 50% of the electorate in the region voted in favour of secession, it would typically be a binding resolution. However, it has largely been condemned as illegal owing to the ubiquitous presence of Russian military personnel and threats of violence. The markets have reacted to this uncertainty in the same way they always do – by buying gold………………………………………..Full Article: Source

Commodity assets expand for first time since August after rally

Posted on 18 March 2014 by VRS  |  Email |Print

Commodity investments grew for the first time since August as prices of coffee to cocoa to hogs surged, and the trend may continue, Barclays Plc said. Raw-materials assets under management expanded $13 billion last month to $327 billion, with exchange traded products gaining $6 billion, the bank said.
Investors added $2 billion to commodities from precious metals to agriculture and energy, while rising prices also boosted the assets. The Standard & Poor’s GSCI gauge of 24 raw materials rose 4.4 percent last month, the most since July………………………………………..Full Article: Source

Time to reconsider commodities?

Posted on 18 March 2014 by VRS  |  Email |Print

Last year the so-called commodities “supercycle” was widely declared dead, but with price drops – and investors more optimistic about the global economy on the whole – it may be worth rethinking shunning this sector.
From the late 1990s to the 2008 crisis, the price of oil rose 1,062%, while copper shot up 487%, according to investment house Pimco. Behind this meteoric rise were emerging markets where wealth was growing quickly, causing increased demand for food, energy and the inputs of industrialisation and urbanisation………………………………………..Full Article: Source

With volatile commodities, ETFs offer a way in

Posted on 17 March 2014 by VRS  |  Email |Print

149 commodity exchange-traded funds out there but just a handful are broadly diversified. Coffee is up 80% this year. Lean hogs are up 28%. Corn is up 13%. Gold is up 12%. Most of these same commodities were down last year, and any of them could fall at the drop of a hat.
So how do rational investors participate in the upside for unpredictable commodities without losing their all-cotton shirts? One approach is to invest in a diversified basket of commodities. That lowers the chance of a big loss and adds diversification to an investment portfolio, since commodities tend not to track the stock market. While there are 149 commodity ETFs, only a handful are broadly diversified………………………………………..Full Article: Source

Three reasons to buy gold now

Posted on 13 March 2014 by VRS  |  Email |Print

When it comes to gold bullion prices, despite their mere 10% climb since the beginning of 2012, I wouldn’t be at all surprised to see gold bullion prices increase even further. With this, companies producing or looking for the precious metal are still presenting a great buying opportunity.
Let me explain… We see demand for gold bullion continues to increase, and at the same time, supply constraints are slowly starting to show. This is something I have been talking about for some time now and at the very core, it is the perfect recipe for higher gold bullion prices ahead………………………………………..Full Article: Source

Is the copper crash an opportunity or a crisis?

Posted on 13 March 2014 by VRS  |  Email |Print

Copper has been getting a lot of attention as of late. A severe breakdown took place just over the last few days, and media outlet after media outlet is putting a spotlight on the metal. Because copper is so pervasive in industrial production and infrastructure building, the argument goes that its price movement can be indicative of future global growth expectations, particularly in China, which is, at the margin, the largest consumer of all.
In the case of China, copper (and other commodities) have often been used as collateral for lenders, which makes the potential for “margin calls” on the ground high when prices crater and the value of that collateral drops………………………………………..Full Article: Source

El Niño warning puts farmers and commodities investors on alert

Posted on 12 March 2014 by VRS  |  Email |Print

Commodities investors and farmers are on alert after the third official warning in a week of an El Niño weather phenomenon emerging that could affect food and energy markets already reeling from extreme weather in many parts of the world.
El Niño refers to a warming of Pacific sea surface temperatures that occurs naturally every few years and can trigger drought in some parts of the world and floods in others, depending on its strength………………………………………..Full Article: Source

Time to take profits from gold and run: CIBC

Posted on 12 March 2014 by VRS  |  Email |Print

After a strong run-up in gold prices this year, analysts at CIBC World Markets are recommending investors take money off the table. The precious metal has spiked 10% this year, following a crushing 28% decline last year that put an end to a 12-year bull market. CIBC last year called for gold prices to reach US$1,350 an ounce in 2014, a level they quickly achieved last month.
But CIBC said “the returns no longer justify the risk” now that gold has hit that price point………………………………………..Full Article: Source

Gold’s bull days are back?

Posted on 12 March 2014 by VRS  |  Email |Print

Gold is coming back with a vengeance, experiencing a clear recovery and grabbing the attention of market cynics. Analysts from Noruma Securities even upgraded its outlook for gold, expecting bullion to climb over the next three years, according to Barron’s.
Nomura analysts attribute their increased gold forecast to real interest rates that “don’t seem to be heading anywhere at the moment.” In addition, there appears to be “long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential.”……………………………………….Full Article: Source

Commodities could see a return to the top in 2014

Posted on 11 March 2014 by VRS  |  Email |Print

On any investment metric, commodities suffered badly in 2013. The highlight for many being the slump in the gold price from a high of $1,693 (£1,012) an ounce in January 2013 to $1,266 by the end of the year.
On a broader view, the MSCI World Metals and Mining index also struggled woefully in 2013 with a loss of 16.41 per cent compared with the positive return of 24.32 per cent from the MSCI World index. But with the gold price refusing to stay below $1,200 an ounce, and even creeping up to a high of $1,320 on February 14 2014, could this be the start of a turnaround in the sector?……………………………………….Full Article: Source

Get all of your commodities in one basket

Posted on 11 March 2014 by VRS  |  Email |Print

Coffee is up 80 percent this year. Lean hogs are up 28 percent. Corn is up 13 percent. Gold is up 12 percent. Most of these same commodities were down last year, and any of them could fall at the drop of a hat. So how do rational investors participate in the upside for unpredictable commodities without losing their all-cotton shirts?
One approach is to invest in a diversified basket of commodities. That lowers the chance of a big loss and adds diversification to an investment portfolio, since commodities tend not to track the stock market. While there are 149 commodity ETFs, only a handful are broadly diversified. ……………………………………….Full Article: Source

Influential investor Jim Rogers talks commodities and Japanese stocks

Posted on 11 March 2014 by VRS  |  Email |Print

Maverick investor Jim Rogers founded the Quantum Fund hedge fund in 1973 along with George Soros. Rogers made his fortune early and retired at 37. He later traveled on a motorbike around the world in 1990, and then visited six continents over three years in 2003, chronicling his adventures in books.
Around 2005 he relocated with his family to Singapore, partly so his daughters could learn Mandarin Chinese during childhood. In talks, Rogers emphasized China’s rise to economic dominance in the early 2000s and penned “Hot Commodities” (2004), which painted China as a massive consumer of natural resources in coming years………………………………………..Full Article: Source

Making green from gold, palladium and pollution

Posted on 10 March 2014 by VRS  |  Email |Print

Gold is coming back with a vengeance, experiencing a clear recovery and grabbing the attention of market cynics. Analysts from Noruma Securities even upgraded its outlook for gold, expecting bullion to climb over the next three years, according to Barron’s: U.S. Global Investors.
Nomura analysts attribute their increased gold forecast to real interest rates that “don’t seem to be heading anywhere at the moment.” In addition, there appears to be “long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential.”……………………………………….Full Article: Source

Can gold be a better investment than cash?

Posted on 10 March 2014 by VRS  |  Email |Print

‘Why do you invest in gold, when it doesn’t pay interest?’ This is one of the most frequently asked questions when it comes to gold investment discussions. Goldmay not pay interest but neither, it seems, do the banks.
Today the Bank of England’s MPC met for their monthly bank-rate setting meeting. This was the 60thmeeting since they first set rates at the record low of 0.5%, five years ago. Savers’ campaign group Save Our Savers estimates that since the first rate cut to 0.5% on the March 5, 2009, savers have lost ‘a staggering £326 billion………………………………………..Full Article: Source

Investors wary of commodity gains despite new money

Posted on 27 February 2014 by VRS  |  Email |Print

A new burst of investment in commodities after a hellish 2013 is expected to fizzle out in coming months, with investors alert to the fickle nature of rallies across basic resources such as gold and agriculture.
The 19-commodity Thomson Reuters/Core Commodity Index has gained 6.6 percent in February, its biggest monthly increase since October 2011, and up nearly 8 percent this year. It has outperformed global equities, based on MSCI’s all world index, which has flatlined so far in 2014………………………………………..Full Article: Source

Commodities investing is still fundamentally sound

Posted on 26 February 2014 by VRS  |  Email |Print

Globally, commodity assets under management plummeted from $418 billion at the end of 2012 to just $319 billion by the end of 2013, according to a February 14 report by analysts at Barclays. During the past few years, numerous commodity hedge funds have been forced to close amid disappointing returns, while December 2013 saw the largest monthly outflow from commodity index products since late 2011.
Nonetheless, commodities enjoyed a “surprisingly strong” start to 2014, helped by the impact of sub-zero temperatures on US natural gas and reduced supplies of precious metals due to a miners’ strike in South Africa………………………………………..Full Article: Source

Should I invest in commodities?

Posted on 26 February 2014 by VRS  |  Email |Print

You’ve got stocks, bonds, ETFs and cash in your portfolio - but what about commodities? Do they belong alongside your other investments, and if so, how much money should you allocate to them?
This can be a very confusing question, especially for inexperienced or young investors. Some might also believe that you have to trade risky futures contracts just to invest in commodities. However, there are actually a wide range of available investment options available, making it much easier………………………………………..Full Article: Source

Senator urges curbs on banks buying commodities

Posted on 26 February 2014 by VRS  |  Email |Print

Ohio Sen. Sherrod Brown on Tuesday said he pushed a pair of nominees for key regulatory posts to take steps to deter big banks from owning and storing oil, aluminum and other key commodities. Brown, chairman of a Senate panel that monitors financial institutions, has been urging regulators to crack down on behavior that could lead to higher prices for consumers.
Some large banks buy and hold commodities in a strategy that can lead to higher prices for things such as beer, canned food or fuel. Brown met with Chris Giancarlo and Sharon Bowen as they made the rounds among senators after their nomination to the Commodities Future Trading Commission. ……………………………………….Full Article: Source

Three reasons to buy gold now

Posted on 25 February 2014 by VRS  |  Email |Print

Most people buy gold as a reaction to the uncertainty around them. Gold in a synonym for wealth and money even though in the modern world it is neither. In an economy where a recently founded vendor of chat software WhatsApp can be worth to Facebook around 14% of the annual gold production, gold for practical purposes has long lost its central place in the global economy.
Money, of which gold was the first iteration, is increasingly becoming more abstract and there is just not enough of it around to fund the liquidity needs of global money………………………………………..Full Article: Source

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