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Commodities Briefing - Category | Investment more

UBS: Gold-Investment Demand Offsetting Soft Physical Market

Posted on 15 April 2016 by VRS  |  Email |Print

Investment demand for gold is more than offsetting weakness in the physical market, thereby driving prices higher so far this year, says UBS. “Many are becoming increasingly convinced about gold’s strength and believe that the market has entered a new phase,” UBS says, noting it has a “constructive” view on the metal.
“Those who are looking for higher gold prices argue that low/negative interest rate environments, deteriorating confidence (in) central banks and the effectiveness of monetary policy, currency depreciation and downside risks to equities markets should all make a case for more upside.”……………………………………….Full Article: Source

Private Equity Eyes Base-Metal Deals as Rally Buoys Gold Miners

Posted on 15 April 2016 by VRS  |  Email |Print

Private equity firm Waterton Global Resource Management is finding the best investment opportunities are in industrial metals as surging gold prices give precious metal companies some “breathing room.”
The Canadian firm, whose billion-dollar investment fund focuses on North American mines, expects to do half a dozen base-metal deals this year as producers continue debt-reduction efforts after prices slumped, Chief Investment Officer Isser Elishis said. In contrast, gold’s 16 percent rally this year is taking pressure off miners to sell assets, at least for now………………………………………..Full Article: Source

Investment in copper, a boom and bust cycle of a different kind: Andy Home

Posted on 13 April 2016 by VRS  |  Email |Print

Do you remember JPMorgan’s Physical Copper Trust? Registered in October 2010 with the Securities and Exchange Commission (SEC), it was probably one of the most controversial commodity investment vehicles ever conceived.
Although structured as a publicly-traded stock offering, it was to be backed by physical copper, 61,800 tonnes of it. Within days BlackRock had filed for an identical product almost twice the size with an implied holding of 121,000 tonnes. Copper manufacturers were outraged at the concept of nebulous “investors” stepping into the physical supply chain and several of them fought a two-year rearguard action in the courts to block it. ……………………………………….Full Article: Source

Why Some Investors Are Hot on Gold

Posted on 12 April 2016 by VRS  |  Email |Print

Some investors most likely entered a panic mode at the very beginning of 2016. With growing uneasiness in the Chinese markets, money was withdrawn from China. Also, equity markets went tumbling with the oil market rout. Currencies were vulnerable, and one option where investors could park their money was precious metals. Gold has surged a whopping 16% on a year-to-date basis. Silver followed gold, rising 9.3% on the same basis.
Changes in gold and other precious metals have been largely dependent on the US dollar in 2016. The US dollar eased 3.8% on a year-to-date basis as speculation of an interest rate hike continued. Weakness in the US dollar often gives some breathing room to US-dollar-denominated assets………………………………………..Full Article: Source

Gold Sees Safe-Haven Demand on European Union Worries

Posted on 08 April 2016 by VRS  |  Email |Print

A feature in the world marketplace Thursday is the rally in the gold market. Safe-haven demand has again surfaced for the yellow metal as a referendum in the Netherlands on European Union-Ukraine trade relations has failed, prompting more concerns about the U.K. referendum in June to opt out of the European Union.
A U.K. exit from the European Union could spell the eventual doom for the EU. A weaker U.S. dollar index that hit a nearly eight-month low Thursday is also a positive for the precious metals markets on this day. June Comex gold was last up $14.70 at $1,238.30 an ounce. May Comex silver was last up $0.166 at $15.22 an ounce………………………………………..Full Article: Source

Why Goldman’s commodity chief wants investors to bet against gold

Posted on 06 April 2016 by VRS  |  Email |Print

Gold futures have been among the best performers this year. But that hasn’t stopped Goldman Sachs’ head of commodities, Jeff Currie, from recommending that investors bet against the yellow metal. “Short gold! Sell gold!” That was Currie’s unabashed advice during a CNBC interview Tuesday after discussing the outlook for crude-oil futures.
Currie’s rationale is fairly straightforward: The closely followed Goldman strategist sees the Federal Reserve raising benchmark interest rates at some point in 2016 and believes the result of higher rates will be a drag on the dollar-denominated precious metal………………………………………..Full Article: Source

Hedge funds up bullish bets on rising oil prices

Posted on 31 March 2016 by VRS  |  Email |Print

Hedge funds and other money managers have amassed a near-record number of bullish bets on increasing oil prices, helping push the main international benchmark well above $40 per barrel.
By the close of business on March 22, money managers held a net long position equivalent to almost 579 million barrels in the three largest crude oil futures and options contracts. Hedge funds have more than doubled their net long position from just 242 million barrels at the end of last year, according to an analysis of data published by regulators and exchanges………………………………………..Full Article: Source

China investors drive gold price spike as bullion beats jewellery

Posted on 30 March 2016 by VRS  |  Email |Print

Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewellery and contributing to the metal’s price rise of about 15 per cent from six-year lows in December.
Typically, gold purchases in China are strongly associated with jewellery buying around the Lunar New Year holiday, which this year fell in early February. But uncertainty confronting global economies along with forces in Chinese markets have driven up gold demand from a different sort of buyer: the hard-nosed investor………………………………………..Full Article: Source

Bears are fleeing the oil market at a record pace, but that’s no reason to be bullish

Posted on 29 March 2016 by VRS  |  Email |Print

Oil enthusiasts haven’t been jumping on board the latest rally. As crude has soared 50 per cent since Feb. 11, the number of bets on increased prices has barely budged. Instead, the upward pressure on prices appears to have come from traders cashing out of bearish wagers at an unprecedented pace.
The liquidation of short positions during the last seven weeks covered by data from the U.S. Commodity Futures Trading Commission was the largest on record. “The rally has come from shorts getting scared out of their positions, and you’re not seeing a lot of money coming in on the long side,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. “It really calls into question the fortitude and staying power of the rally.”……………………………………….Full Article: Source

Chinese Investors See Golden Opportunity

Posted on 29 March 2016 by VRS  |  Email |Print

Jewelry demand takes a back seat to demand for coins and bars as a haven from global economic uncertainty. Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewelry and contributing to the metal’s price rise of 16% from six-year lows in December.
Typically, gold purchases in China are strongly associated with jewelry buying around the Lunar New Year holiday, which this year fell in early February. But uncertainty confronting global economies along with forces in Chinese markets have driven up gold demand from a different sort of buyer: the hard-nosed investor………………………………………..Full Article: Source

China mutual funds turn to commodities, bet on reforms

Posted on 29 March 2016 by VRS  |  Email |Print

China’s mutual fund industry is pushing to develop investment products linked to local commodity futures, betting that plans to fight chronic oversupply in the country’s mammoth resource sector will drive up prices for raw materials.
The funds want to branch out beyond their traditional focus on stocks and fixed-income, with no immediate upturn in sight in the wake of turmoil last year that pulled down share markets by nearly 50 per cent and forced bond yields to multi-year lows………………………………………..Full Article: Source

Commodity bulls twisting in the wind

Posted on 24 March 2016 by VRS  |  Email |Print

On Wednesday investors curbed their enthusiasm for commodities, sending everything from copper and gold to oil and iron ore sharply lower. But despite nervousness returning to metals and mining markets this week, 2016 is still looking decidedly better for the sector. Year to date gold is holding onto 15% gains, silver and platinum are up 10% while bellwether copper’s trading nearly 15% higher than its January lows.
Industrial metals have all advanced in 2016 led by zinc which has jumped by more than 20% in three months while volatile iron ore is the best performer with a 33.5% gain this year………………………………………..Full Article: Source

Gold Still a Hot Commodity Even as Rally Starts to Fade: Chart

Posted on 24 March 2016 by VRS  |  Email |Print

Investors are still pouring cash into gold funds, even though prices haven’t done much this month. Assets in exchange-traded funds have kept consistently increasing, with total holdings near a two-year high. Gold has dropped 2.9 percent since March 10.
“It’s peculiar that ETFs were net buyers even as prices dropped, but the narrative has shifted and remains more supportive for gold,” said Bernard Dahdah, a commodities analyst at Natixis SA in London………………………………………..Full Article: Source

Despite the Rally in Commodities, Investors Should Avoid Miners

Posted on 23 March 2016 by VRS  |  Email |Print

It has been a tough year for miners with weak commodity prices and concerns about the outlook for China weighing heavily on mining stocks. Now it appears that there are further dark skies ahead as a falling U.S. dollar and rising oil prices renew cost pressures on miners. This is certainly not good news for beleaguered coal and metals miners such as Teck Resources Ltd. and First Quantum Minerals Ltd.
The primary problem for miners has been the sharp collapse in commodity prices. Key commodities such as iron ore, coal, and copper have fallen between 20% and 50% over the last year. This has caused considerable pain for miners that earn substantial amounts of their revenue from coal and copper such as Teck and First Quantum………………………………………..Full Article: Source

Is now the time for commodity fans to use leveraged products?

Posted on 22 March 2016 by VRS  |  Email |Print

Increasing numbers of investors are being tempted to dip their toe into the energy markets – and oil specifically – following the dramatic decline in commodity prices over the past 18 months.
Crude oil and natural gas prices more than halved as fears over slowing global growth, climbing inventories and a lack of intervention from oil cartel Opec have combined to push energy down to multi-year lows. With prices now at levels not seen since the early 2000s, investors have been increasing their exposure, in particular to oil which is one of the most accessible commodities………………………………………..Full Article: Source

Dilemma for gold investors after recent price rise

Posted on 21 March 2016 by VRS  |  Email |Print

We’ll defer to The Clash to sum up the dilemma facing investors in local gold stocks after the sector’s recent virile surge: should I stay or should I go now? Stay? There will be trouble if global economic growth improves and monetary authorities start to ratchet up interest rates, which is guaranteed to kill the mood for gold.
Even some of the most ardent gold bulls concede the sector’s valuation looks toppish. Go? Investors miss out on the spoils of a sector that is enjoying unprecedented profit margins, courtesy of the depreciated Aussie dollar and tumbling costs………………………………………..Full Article: Source

Private capital is ready to invest $7 billion in mining

Posted on 21 March 2016 by VRS  |  Email |Print

According to a study of private capital in the resources sector from industry tracker Preqin, finds half of investors in the mining and metals sector will deploy more capital this year despite two-thirds of institutional investors displaying less appetite for the sector compared to a year ago.
The pullback comes after fundraising for natural resources investment reached record levels in 2015, with 74 funds raising a total of $67.8bn. In total natural resources investment firms have $400 billion assets under management. Of this $243 billion represent unrealized value with the remaining $157.3 billion so-called dry-powder capital ready to invest. The vast majority is destined for North America………………………………………..Full Article: Source

Why Gold Investors Should Love Central Banks

Posted on 18 March 2016 by VRS  |  Email |Print

After the European Central Bank (ECB) announced new rounds of monetary stimulus last week, gold initially surged upward on the news. It did fall back down on Friday, but there is little question that gold prices were reacting to the news of European monetary policy.
The ECB cut its key interest rate to zero, while going further into negative territory on its bank deposit rate. The deposit rate now stands at -0.4%, meaning that banks will be charged this amount for their deposits held at the central bank. This policy is supposed to encourage banks to lend out deposits to businesses and individuals, instead of holding it as reserves with the central bank………………………………………..Full Article: Source

Investors’ take bullish bets on commodities to record highs

Posted on 16 March 2016 by VRS  |  Email |Print

After some relative calm seen in the price of oil, fund managers are putting some of their money back to work in commodities, new data on Tuesday showed. Global investors added to their allocation of commodities this month, according to a survey carried out by Bank of America Merrill Lynch, which said the jump in exposure to commodities in March was the largest ever on record.
This comes after investors hoarded money in cash at the start of the year amid one of the worst starts to the year on record for equities. While many managers are still technically “underweight” on the commodity benchmarks, bullishness on the sector has dramatically improved in the last month as oil prices have climbed closer to $40 per barrel and iron ore prices have soared………………………………………..Full Article: Source

As oil prices bottom out, investors are increasingly bullish on energy sector

Posted on 16 March 2016 by VRS  |  Email |Print

It was one of the darkest periods of the oil market slump. The global economy was showing fresh signs of slowing, and crude prices were collapsing so steeply that virtually every well in America was unprofitable.
But when Diamondback Energy went out to raise $226 million worth of new stock that week in the middle of January, the oil and gas company found more buyers than it could accommodate. It had to nearly double the amount of shares it sold, to 4 million………………………………………..Full Article: Source

Fund Managers Cut Cash, Buy Commodities and Emerging Markets

Posted on 16 March 2016 by VRS  |  Email |Print

Global fund managers have become more optimistic about financial markets, especially those that have been out of favor such as commodities, including energy, emerging markets and high-yield debt.
According to the Bank of America Merrill Lynch Fund Manager Survey for March, managers have cut cash levels to 5.1% from 5.6% in February — their highest level in more than 14 years — while increasing allocations to industrials, commodities, energy, materials, emerging markets and high yield. The survey records changes in allocations between mid-February and mid-March………………………………………..Full Article: Source

How far can the commodities rally go?

Posted on 09 March 2016 by VRS  |  Email |Print

As is the trend these days, where the miners go, the FTSE 100 is sure to follow. So, unsurprisingly, profit-taking in the commodities sector is the main reason why London’s blue-chip index is nursing losses Tuesday. With many miners having surged by 50% or more since mid-January, investors are rightly wondering how far the rally has to run.
The timing and breadth of the upturn certainly caught many investors off guard. Anglo American was the proverbial falling knife until January, since when its share price is up more than 160%. Glencore, once everyone’s favourite dog to kick, is up 126% in the past seven weeks………………………………………..Full Article: Source

Commodities Rebound Hinges on China’s Real Estate Market

Posted on 08 March 2016 by VRS  |  Email |Print

Iron ore prices soared the most ever Monday after China voiced willingness to stimulate the economy. The commodities rebound is being driven by speculation that investments in China’s housing market is recovering, Hao Hong, chief China strategist at Bocom International Holdings Co. in Hong Kong said in a report.
That means Chinese real-estate investments should also register a bounce when figures for January and February are released this month. Hong is not so sure: While housing inventories in bigger cities have fallen, it will “take years to clear” backlogs in smaller towns that account for 60 percent of China’s property investments, he said………………………………………..Full Article: Source

A rally in commodities may be a sign that Wall Street hit a bottom

Posted on 07 March 2016 by VRS  |  Email |Print

Have we hit a bottom yet? Wall Street appears to think that a march higher in the commodities sector may be signaling that the worst is over for the market — at least in the near term.
For many investors, plunging commodity prices have been a sign that all isn’t well in the world. Falling commodity prices, specifically crude-oil prices can serve as a sign that global growth is in a state of retrenchment. In the case of oil, many believe it is simply a matter of an unrelenting glut………………………………………..Full Article: Source

Gold returns to bull market on safe-haven demand

Posted on 04 March 2016 by VRS  |  Email |Print

Gold is back in a bull market for the first time since 2013, buoyed by investors snapping up the metal as they seek a haven from the turmoil rocking equity markets. Bullion for immediate delivery settled at $US1264.25 an ounce on Thursday. That marks a 20 per cent gain from the recent closing low in December, meeting the common definition of a bull market.
Gold rallied 19 per cent this year, beating gauges in Treasuries, currencies and equities amid concerns the slowdown in global growth will hurt the US economy. That’s also fuelling bets the Federal Reserve may delay interest rate increases this year, helping boost the investment appeal for bullion, which doesn’t pay yields or dividends………………………………………..Full Article: Source

Is Silver a Good Investment in 2016?

Posted on 03 March 2016 by VRS  |  Email |Print

After last month’s silver price volatility, investors are asking the same question – is silver a good investment this year? During the first two weeks of February, silver prices rocketed 10.8% to $15.81 – the highest close since Oct. 28. But futures for May delivery fell 5.6% to $14.92 from Feb. 11 to the end of the month.
The dizzying price fluctuations have investors worried that silver will remain risky and unpredictable throughout the year. But Money Morning Resource Investing Specialist Peter Krauth – a 20-year veteran of the metals and commodities market – says there’s a $940 million trend that makes silver a solid investment in 2016………………………………………..Full Article: Source

Gold still a buy, says Deutche Bank

Posted on 01 March 2016 by VRS  |  Email |Print

Gold remains a buy even though it has it has rallied over 16 per cent since the start of the year, according to a note from Deutsche Bank, with global central bank misfires making a strong case for bullion’s safe-haven status.
And in Australian dollars, gold has come within shooting distance of all-time highs, prompting Macquarie Bank to call Western Australia’s gold fields the “golden west”, whose operators were in a “purple patch”. However, while Macquarie predicts Australian dollar gold will break those record highs later this year, it is too late to be buying most gold shares, the bank warned………………………………………..Full Article: Source

Gold’s price rally has diehard fans excited – but for how long?

Posted on 01 March 2016 by VRS  |  Email |Print

China is wobbling, oil is plummeting, Britain is threatening to quit Europe. And the gold bugs couldn’t be happier. With a 15% gain in 2016, gold’s rally has its diehard fans excited. But for how long?
This is the metal’s best start since 1980, when gold prices rallied about 270% to then all-time highs of $850 an ounce on an oil-supply shock crisis and raging inflation. This year gold prices are higher on worries over economic weakness in China and Europe, and the Bank of Japan’s surprise move to negative interest rates………………………………………..Full Article: Source

Six Reasons To Buy Gold In 2016

Posted on 29 February 2016 by VRS  |  Email |Print

Gold bullion and gold mining stocks have rallied 18% and 51%, respectively, in recent months after a brutal bear market over the last five years. Given gold’s proven ability to hold its value in the face of rising inflation and reckless monetary policy, we believe it plays an important role in any diversified portfolio.
At Evergreen Gavekal, we believe it may be time to to start initiating or adding to additional gold holdings for six reasons. Technical trading patterns suggest gold may finally be breaking out into a bull market (we do caution, however, that it appears to be temporarily over-bought)………………………………………..Full Article: Source

Here’s how to play gold: Technician

Posted on 29 February 2016 by VRS  |  Email |Print

Maybe the goldbugs will finally strike gold. After enduring years and years of losses, bullion is tracking for its best month since January 2012, up 9 percent. And according to a highly regarded technician, the hot commodity is about to get even hotter.
“I think we can squeeze a little bit more out of this trade” said Ari Wald of Oppenheimer on CNBC’s Fast Money last week. According to Wald’s chart work, the recent price action in gold is strikingly similar to the activity in 1999 when the commodity reversed a multi-year downtrend and started to form a base………………………………………..Full Article: Source

Gold Industry: Considered as the safest bet for investment in devious times

Posted on 26 February 2016 by VRS  |  Email |Print

Gold is a precious metal and has high ductility as well as malleability, mainly used as jewellery and for investment purposes globally. Gold is currently oversold in a bearish market attributed to its escalating high prices. Gold is considered as the safest bet for investment in devious times of war and high inflation with currency fluctuations.
Recent rebellions and war events in the Middle Eastern countries of Tunisia, Libya, Egypt, Syria and now Ukraine has led to rise in investments in bullion. This has caused overselling of gold and thus rapid increase in prices worldwide. Rising prices are expected to be a major factor driving the global gold market as more and more consumers are purchasing gold as a mean of long terms investments……………………………………….Full Article: Source

Bullion investors buoyed gold demand in 2015

Posted on 26 February 2016 by VRS  |  Email |Print

Global gold demand in 2015 was virtually flat compared to 2014 at 4,212 tonnes, according to the World Gold Council’s latest Gold Demand Trends report. Despite a challenging start to the year, gold demand rebounded in the second half of 2015, as a result of sustained buying from central banks and a strong second half from China and India.
This was particularly evident in the retail investment sector, where bar and coin purchases were led by China and Europe, with support from the U.S., as investors took advantage of weaker prices amid a softening economic backdrop, financial turbulence and ongoing geopolitical tension………………………………………..Full Article: Source

3 Ways to Make Precious Metals Print Money

Posted on 26 February 2016 by VRS  |  Email |Print

From an investment standpoint, most investment managers will suggest you put 2% to 3% of your portfolio into precious metals for diversification purposes. The problem with that approach is that precious metals are highly cyclical and volatile, and they don’t have a long-term positive upward bias like equities.
That’s no good for buy-and-hold investors, and instead means that precious metals are much more suited to trading. Of course, the problem with trading precious metals is the very same cyclicality and volatility they exhibit………………………………………..Full Article: Source

Is Gold Still a Good Investment Today?

Posted on 25 February 2016 by VRS  |  Email |Print

In the last few months, China’s economy has been faltering, and it has been having an effect on world financial markets. Due to this recent development, gold prices have shot up compared to what it used to be before.
During the period of the introduction of the Gold Reserve Act back in 1934, the price of gold was set to be $35 an ounce. That is a record increase of more than 300% between then and now. Actually, gold is a volatile investment. When it comes to gold, prices can go down as well as up, and over the last few years they have done both. At the height of the recession, way back in 2011 for instance, gold hit a record high of $2,000 per ounce. But by the end of 2014, the price of gold had fallen to $1,200 per ounce………………………………………..Full Article: Source

Gold nearing a bull market for the first time since 2013

Posted on 24 February 2016 by VRS  |  Email |Print

Investors are falling back in love with gold thanks to the woman who came between them in the first place: Janet Yellen. A rally in prices this month has the precious metal nearing a bull market for the first time since 2013 amid mounting expectations that Federal Reserve Chair Yellen won’t follow through on her forecast for raising US interest rates further this year.
The prospect of lower-than-expected borrowing costs - along with weakening equity and currency markets - is reviving gold’s appeal as a store of value. Global gold holdings in exchange-traded funds (ETFs) also are climbing………………………………………..Full Article: Source

Gold investment demand in China to grow if price rally holds

Posted on 19 February 2016 by VRS  |  Email |Print

Gold investment demand in China has started 2016 quite strongly, outperforming interest in jewelry, but for the momentum to continue bullion would have to maintain its price rally, a World Gold Council (WGC) official said.
With a 14 percent gain, gold XAU= is the best performing asset so far this year after falling for three straight years to 2015. The metal hit a one-year high last week as turmoil in global stock markets triggered safe-haven demand………………………………………..Full Article: Source

Investment Keeps Eluding Australia as Commodities Rout Endures

Posted on 18 February 2016 by VRS  |  Email |Print

Australian policy makers have been scouring economic data every three months for signs of a pick up in investment outside the mining industry. Three years on, and with a 30 percent depreciation in the currency and record-low interest rates, it remains as elusive as ever.
“It has felt a lot like waiting for Godot,” said Gareth Aird, a senior economist at Commonwealth Bank of Australia, the nation’s largest lender by market value. “A lift in non-mining investment remains the missing ingredient in the Australian economic growth transition story.”……………………………………….Full Article: Source

Crude oil looks best bet among assets this year, should rebound towards $47 level

Posted on 16 February 2016 by VRS  |  Email |Print

Slow growth in the global economy, low demand, and comfortable supplies across the world with OPEC nations continuing to pump in more than 30 million barrels per day for most of 2015 was a significant factor in pulling down oil prices.
Besides, robust global inventories in the OECD nations which rose by a notional 1 billion barrels in 2014-15 with the fundamentals suggesting a further build of 285 million barrels over the course of 2016. Hence, the pain on the crude counter has been continuing so long and this is evident in the chart above, wherein crude oil has been consistently falling for three years in a row……………………………………….Full Article: Source

Gold no longer a safe haven asset

Posted on 15 February 2016 by VRS  |  Email |Print

Yet again panicky investors are rushing to buy gold at a time of global financial turmoil. It seems that most of the buying of gold is done by ordinary people who are not fully aware of what is actually happening in the global financial markets or the world economy. The rush to buy gold has pushed its price up sharply this year ignoring the rout in global commodity markets.
Just for a reminder that price of gold has been falling for the past six years. I believe that some of the rally in gold price has something to do with the Indian seasonal festivals and the Chinese New Year. There is this recent argument that has been pushed around by the gold bulls……………………………………….Full Article: Source

Metal Bulls Savor Longest Rally in 10 Months on Feeble Dollar

Posted on 08 February 2016 by VRS  |  Email |Print

Investors are jumping back into metals they were dumping as recently as a month ago. A global slowdown has increased speculation that U.S. growth will cool enough to force Federal Reserve policy makers to wait longer before raising interest rates again.
The prospect of delays sent the dollar lower and gave metals a boost as alternative investments. Speculators increased their bets on price gains for gold and silver and got less bearish on copper. Gold and copper prices have climbed for three straight weeks, the longest rally since at least mid-April………………………………………..Full Article: Source

Here’s What Oil and Gas’s Ugly 2015 Did to Business Investment

Posted on 04 February 2016 by VRS  |  Email |Print

In the final quarter of 2014, business investment related to oil, gas and other mining hit an all-time high. One year later, that’s dropped by more than half. It’s the second-biggest yearlong drop in inflation-adjusted investment seen by any of the major categories in more than 50 years. (Which is how long we’ve had comparable data.)
Even by standards set by previous swings in the relatively small, volatile mining and gas sector, this one’s a humdinger. Mining and petroleum is one of the smallest categories of business investment, especially after that brutal four-quarter stretch lopped off half its size, but it has still caused some of the biggest swings in the distribution of business investment in the modern era………………………………………..Full Article: Source

Chinese Seen Buying More Gold as Investors Seek Haven Assets

Posted on 04 February 2016 by VRS  |  Email |Print

China’s gold demand will keep expanding as investors seek safe assets and jewelry buying increases, the China Gold Association said. Consumption in the country that vies with India as the world’s biggest user climbed 3.7 percent to 985.9 metric tons in 2015 from a year earlier, according to group data released on Wednesday.
Demand rose as prices declined and investors allocated more wealth to the safety of bullion than to other financial assets, according to the association, which represents jewelers, refiners, banks, brokerages and miners………………………………………..Full Article: Source

Investors concerned about commodities, energy: Moody’s

Posted on 02 February 2016 by VRS  |  Email |Print

Major investors listed the credit quality of the commodities and energy sectors as their biggest worry this year, as oil oversupply combines with reduced demand from China to drive energy prices sharply lower, said ratings agency Moody’s Investors Service in a report.
The finding on the most exposed sectors to downside risks in 2016 — the result of polling the region’s largest investors, intermediaries and debt issuers based in Singapore and Hong Kong — was consistent with Moody’s view that rated Asian corporates with commodity exposure remain in a precarious position………………………………………..Full Article: Source

Investment funds hit all time high in 2015

Posted on 27 January 2016 by VRS  |  Email |Print

Investment funds under management hit a record high of £871 billion in 2015, up from £835 billion in 2014. The figures, published by The Investment Association – a body that represents UK investment managers – come despite the turmoil in markets in the latter half of the year as a Chinese slowdown and commodity rout dented investor sentiment.
UK Equity Income was once again the best-selling fund sector of the year. Meanwhile tracker funds, which aim to replicate performance of a particular stock market index such as the FTSE, had their best year ever………………………………………..Full Article: Source

Why Gold Is Not a Good Safe Haven Investment

Posted on 20 January 2016 by VRS  |  Email |Print

Gold is typically considered a safe haven while markets are volatile, and with the recent equity slide both in China and US, investors are thinking of gold as an alternative, safe haven investment. Indeed, since the start of the year gold prices have received a boost, hitting a 2-month high as global stock markets sold-off.
The global stock rout didn’t have any bullish effect on silver prices since the precious metal has an industrial metal status, too. That might help explain why gold fared better than silver in January………………………………………..Full Article: Source

Another Chance to Join Commodity Rally You Probably Missed

Posted on 19 January 2016 by VRS  |  Email |Print

Traders and investors have another chance to join a rare commodity rally that probably passed them by last year. European Union pollution permits, beaten only by London cocoa in 2015, may have further to roll.
Spurred by European Union lawmakers in Brussels, the contracts are poised to gain about 39 percent in 2016, after a poor start to the year, according to a survey of 13 traders and analysts by Bloomberg. That would be a record third year of gains after prices climbed 11 percent in 2015………………………………………..Full Article: Source

Commodity exposure in 2016 requires care

Posted on 11 January 2016 by VRS  |  Email |Print

Having serially disappointed investors for a while, commodities could well offer investors one of the most compelling investment opportunities in 2016. The sector’s attractiveness is likely to increase as the year proceeds, offering multiple entry points for potentially attractive medium-term return opportunities. Exploiting them will require emphasis on portfolio construction, with the design of the right investment vehicles as important as careful asset selection.
To say that 2015 was a difficult year for commodities would be an understatement. While oil grabbed most of the headlines with its volatile drop of one-third in price to seven-year lows, the damage was widespread with copper, corn, platinum and sugar also falling significantly………………………………………..Full Article: Source

Gold rebounds on safe-haven demand as stocks face headwinds

Posted on 11 January 2016 by VRS  |  Email |Print

Gold bounced back on Monday with the market inching towards last session’s nine-week high as pressure on Asian stock markets triggered safe-haven bids for the metal. Gold climbed to its highest since early November on Friday, adding more than 4 percent to its value this year, as concerns over the Chinese economy and tumbling stock markets boosted the safe-haven appeal of the precious metal.
Investment appetite for bullion showed signs of picking up last week. Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 4.2 tonnes on Thursday, data from the fund showed………………………………………..Full Article: Source

Investors in the mood to cut hedge fund exposure

Posted on 11 January 2016 by VRS  |  Email |Print

Global investors are planning to cut their exposure to hedge funds in 2016 following a disappointing performance in the past year, according to a survey. The poll data, from research group Preqin, will be met with dismay by the hedge fund industry, which had hoped volatile stock markets would encourage investors to seek alternative sources of return. It is also likely to add extra pressure on hedge fund fees.
Preqin’s survey of institutional investors showed that more are planning to cut their hedge fund holdings this year than are planning to increase them, by 32 per cent to 25 per cent……………………………………….Full Article: Source

Moody’s: Oil, gas companies to cut investments by quarter

Posted on 07 January 2016 by VRS  |  Email |Print

World’s oil and gas companies will cut capital investments by 20-25 percent against the background of lower oil prices, the international ratings agency Moody’s forecasts. Oil and gas sector expects an increase in the number of defaults in 2016, the agency said in a report Jan. 6.
The excess supply of oil will continue to put pressure on the world oil market, according to analysts of the agency. Moody’s noted that the oil-producing countries, including the non-OPEC states, won’t limit the volume of production due to the struggle for market share………………………………………..Full Article: Source

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