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Commodities Briefing - Category | Investment more

Gold steady as investors remain cautious ahead of central bank meetings

Posted on 20 September 2016 by VRS  |  Email |Print

Gold was little changed early on Monday, after touching a two-week low on Friday, as investors remained cautious ahead of central bank meetings in Japan and the United States this week. Spot gold was steady at $1,310.06 an ounce by 0055 GMT. The yellow metal dropped 0.3 per cent to $1,306.26 on Friday, its lowest since September 1.
US consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32-1/2 years, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year………………………………………..Full Article: Source

Barclays: Investor Demand For Gold ‘Likely To Persist’

Posted on 20 September 2016 by VRS  |  Email |Print

Barclays anticipates investor demand for gold will persist on concerns about the global economy, with the bank also saying investment in commodities generally should hold up. The bank reports that some $54 billion has flowed into commodity exchange-traded products and index investments so far in 2016.
“However, if expectations were to shift suddenly, then a rush for the exit could send prices sharply lower,” Barclays says, referring to commodities in general. “Although we cannot rule out that risk entirely, we think the key themes that have supported commodity investments in the year to date should ensure continued inflows over the next few years and that the risk of large-scale liquidation, even if commodity markets disappoint in Q4, is limited.”……………………………………….Full Article: Source

Commodities attract record $54bn of inflows

Posted on 16 September 2016 by VRS  |  Email |Print

Is the sun shining again on commodity investments? With inflows of $54bn during January and August, investment flows into the asset class are at an all-time high for the first eight months of any year, according to Barclays.
In its latest report on investment flows into commodities, the bank says investments into commodities are supported by three factors: Worries about global economic growth have fuelled money into gold, the desire of investors to benefit from volatility in individual commodities, and lastly, the revival of commodities as a diversification and inflation hedging tool……………………………………….Full Article: Source

Spooked Gold Bull Cohen Trims Holdings as Yields Rise

Posted on 16 September 2016 by VRS  |  Email |Print

The Federal Reserve is giving some gold investors a case of the jitters. Cohen & Steers Capital Management, which oversees $61 billion in assets, was overweight on gold until last week, when comments from some Federal Reserve officials boosted speculation that the central bank will tighten monetary policy as soon as this month.
With the interest-rate decision due next week, the asset manager opted to play it safe, paring its gold allocation. The New York-based firm isn’t alone. Over the past week, investors pulled $698 million from SPDR Gold Shares, the largest exchange-traded fund backed by the metal, taking their holdings to the lowest since June, data compiled by Bloomberg through Tuesday show……………………………………….Full Article: Source

Legendary Investor Stan Druckenmiller Is Increasing Commodity Exposure

Posted on 13 September 2016 by VRS  |  Email |Print

If the investing community’s track record is ultimately the only thing that matters, and Stan Druckenmiller has one (since 1986, he has averaged returns of 30%) without posting a single down year (he returned 11% during the market meltdown in 2008).
Druckenmiller closed down his $12 billion fund, Duquesne Capital Management, in 2010 and currently manages his own fortune via Duquesne Family Office. With Druckenmiller’s track record, it is wise to watch his moves, and recent disclosures from Duquesne Family Office indicate that Druckenmiller has taken positions in several Canadian names, and these names are largely in the commodity space………………………………………..Full Article: Source

Race into commodity investments risks stalling as rallies falter

Posted on 12 September 2016 by VRS  |  Email |Print

Flows into commodity investments have hit their highest levels since the global financial crisis as negative interest rates boost the appeal of real assets, but they risk reversing as rallies falter in metals and oil. The threat of investors liquidating their commodity stakes has climbed in recent years as speculative funds have become dominant and longer-term investors increasingly shun the sector.
Some $51-billion (U.S.) has moved into commodities investments in the first seven months of the year, the most since 2009, according to Barclays, which tracks the flows. Investors scrambled to take advantage of this year’s rebound in many markets after the 19-commodity Thomson Reuters/Core Commodity CRB Index had more than halved since 2011………………………………………..Full Article: Source

Commodities investing only a mother could love

Posted on 12 September 2016 by VRS  |  Email |Print

There is a long-term, buy-and-hold case for natural resources equities. The man who runs this summer’s best-performing large US mutual fund did a smart thing at the start of the year. Shanquan Li, manager of the Oppenheimer Gold & Special Minerals fund, switched out a large holding of gold, which he owned through an exchange-traded fund, for stakes in some of the world’s big gold mining companies.
As the gold price rose, those mining shares rose by even more. Between the Memorial day and Labor day holidays, when gold was up 9.3 per cent, Mr Li’s fund was up 27.4 per cent………………………………………..Full Article: Source

Investing in commodities: Of mice and markets

Posted on 09 September 2016 by VRS  |  Email |Print

A surge in speculation is making commodity markets more volatile. A game of cat and mouse appears to be taking place in the oil market. The felines are big producers who want prices to go higher, the rodents speculators betting that they will fall.
Twice this year, in the first quarter and the third, hedge funds and others have taken out record short positions on futures of West Texas Intermediate (WTI), an American crude-oil benchmark, only to be mauled by (so far empty) talk among members of the OPEC oil cartel and Russia of a production freeze. The resulting scramble by funds to unwind their short positions has fanned a rally in spot oil prices………………………………………..Full Article: Source

Is It Time to Start Buying Commodities? (Video)

Posted on 09 September 2016 by VRS  |  Email |Print

Chris Gaffney, EverBank World Markets president, discusses the outlook for commodities with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………………Full Article: Source

Buy gold on rebound rally

Posted on 09 September 2016 by VRS  |  Email |Print

The gold price reached the long-term resistance target projection level of $1,360 before consolidating and retreating. The retreat offers a buying opportunity for an uptrend continuation back to $1,360 and higher. There are four technical features that suggest a bullish rebound.
The first feature is the strength of the underlying uptrend. This is shown with the Guppy Multiple Moving Average (GMMA) indicator. The long-term group of averages is consistently well separated. When prices dipped in June 2016, the long-term group did not develop any compression. This shows good investor support………………………………………..Full Article: Source

Zinc drops as investors take a break from year’s best commodity

Posted on 08 September 2016 by VRS  |  Email |Print

Zinc dropped the most in a week as some investors closed out bullish bets on this year’s best-performing major commodity. The metal fell as much as much as 1.3% in London after touching a 15-month high on Monday. Zinc has rallied 45% this year on expectations of a supply shortage after mine closures from Australia to Ireland.
The advance pushed it near a technical level, suggesting to some traders that prices may be poised to retreat. “Perhaps some investors are taking profits,” Casper Burgering, an analyst at ABN Amro Bank NV in Amsterdam, said……………………………………….Full Article: Source

Gold Investing Hits 2012 Level Post-Brexit

Posted on 07 September 2016 by VRS  |  Email |Print

Gold Investing by private savers hit the heaviest level since end-2012 in August, with customers of BullionVault adding nearly half-a-tonne to their aggregate holdings as price gains eased following the UK’s Brexit referendum shock, writes Adrian Ash at the world leading gold-trading platform.
Net purchases of 470kg – almost entirely in Zurich storage rather than the other BullionVault choices of London, New York, Singapore or Toronto – took client gold holdings to a new record total of 35.7 tonnes. Worth $1.5 billion, that’s more than most of the world’s central banks hold, and larger than all but 12 of the world’s 84 gold-backed ETF trust fund products………………………………………..Full Article: Source

Ways to invest in gold, albeit at your own peril

Posted on 02 September 2016 by VRS  |  Email |Print

There are myriad ways to invest in the current ‘gold rush’ but do not presume it to be the holy grail of investing. In the wake of the Brexit vote, investors seeking safe-haven asset classes have their work cut out. Equity markets have seen extreme volatility, low interest rates have destroyed returns for those wanting the safety of cash savings, and foreign exchange plays remain far from predictable.
Meanwhile, commodities remain among the worst performing asset classes. That’s excepting one particular commodity – gold – with the shiny yellow metal soaring by nearly 30% from the start of 2016 to date in dollar terms, rising from $1,050 (£793, €942) an ounce to about $1,350 an ounce………………………………………..Full Article: Source

Here’s the big mistake oil investors can’t stop making

Posted on 01 September 2016 by VRS  |  Email |Print

Goodbye, August, and don’t let the door hit you on the way out. The S&P 500 index could be in for a whopping 0.3% gain this month, which means the beach bums didn’t miss much.
Bring on September and some big losses as well? Michael Brush, writing for MarketWatch, rattles off seven reasons why stocks are primed for a 5% to 10% drop. Some of those sound familiar — interest rate worries, politics, investors and the media (whaaaaaat?) are too bullish — but he also offers up some ideas on how to prepare………………………………………..Full Article: Source

Why Investors Should Follow George Soros into Gold

Posted on 01 September 2016 by VRS  |  Email |Print

The outlook for the controversial asset, gold, remains murky at best; it has pulled back sharply because of the Fed’s recent hawkishness on interest rates, a stronger U.S. dollar, and the U.S. stock market surging to new heights.
This, along with George Soros’s decision last quarter to dump his 58 million shares of gold miner Barrick Gold Corp., has triggered consternation among investors as to whether or not gold is an appropriate investment. Nonetheless, there are signs that every investor should have exposure to gold at this time………………………………………..Full Article: Source

Why Oil Market Bulls May Be Misguided

Posted on 31 August 2016 by VRS  |  Email |Print

The dollar strengthened and stocks in Europe and Asia mostly gained as investors continued to digest recent comments from Federal Reserve officials on the prospects for a U.S. interest rate increase this year.
The WSJ Dollar Index, which measures the greenback against a basket of 16 currencies, rose 0.2% Tuesday, putting it on track for its third consecutive session of gains. Higher interest rates tend to make a currency more attractive to investors seeking returns……………………………………….Full Article: Source

Commodity pricing divergence calls for ‘discerning and tactical’ investors now that it’s tougher to pick winners

Posted on 30 August 2016 by VRS  |  Email |Print

During the commodity bull market from 2002 to 2011, it was almost impossible not to make money in this space. The price of nearly every energy, metal and agricultural commodity dramatically rose, driven by China’s massive economic growth.
Some performed better than others, of course, but the proverbial monkey with a dartboard could pick winners as well as many humans did. It was just the opposite from 2012 to early 2016. There was nowhere to hide in this period as commodities got mashed. They didn’t all drop at once, but they ended up in the same gutter by early 2016………………………………………..Full Article: Source

Commodities Are the Best Bargain Now: Here’s What to Buy

Posted on 29 August 2016 by VRS  |  Email |Print

What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities? The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim. Don’t worry. There are still many places to invest your money. I’m talking about hard assets, aka commodities. Hard assets go well beyond real estate and gold. They include all types of natural resources like oil, wheat, copper, timber, coffee, zinc, and pork bellies………………………………………..Full Article: Source

Why you should pay attention to liquidity

Posted on 29 August 2016 by VRS  |  Email |Print

If you are like most individuals, you would prefer investments that are highly liquid. The only exception, of course, is your real estate investment. Then, how concerned should you be about investment liquidity? Liquidity refers to your ability to easily sell your investments at the last traded price. The importance of investment liquidity can be best understood in the context of a core satellite portfolio.
In this framework, your core portfolio is geared towards achieving your life goals such as your retirement expenses and funding your child’s college education. Your satellite portfolio is created to take advantage of short-term fluctuations in the financial markets………………………………………..Full Article: Source

Investors’ mad dash for gold

Posted on 26 August 2016 by VRS  |  Email |Print

South Africa’s three biggest listed gold companies paid down debt and started to pump cash in the first half of the year, while gold prices and local currencies were favourable. With fatter purses, they may develop an appetite for acquisitions.
AngloGold Ashanti, Gold Fields and Harmony Gold boosted profits in the period to June as strong dollar gold prices were accompanied by weaker currencies in the countries where they own mines, reducing their operating costs………………………………………..Full Article: Source

The biggest buyers of gold aren’t buying like they used to

Posted on 25 August 2016 by VRS  |  Email |Print

The world’s central banks are still net buyers of gold, but they may be slowing down those purchases. Central banks bought an estimated 166 tonnes of gold and sold 22 tonnes in the first half of 2016, making a net purchase of 144 tonnes, according to Macquarie analysts.
This was not much changed from the net purchases they made in 2013 and 2014, but less than the 179 tonnes they bought at the same time last year, Matthew Turner and his team wrote in a note this week………………………………………..Full Article: Source

Investing In Agriculture: Hard Profits From Soft Commodities

Posted on 25 August 2016 by VRS  |  Email |Print

Agricultural commodities have more diverse price behavior than metals or energy. One sub-sector is a must avoid because trading has broken down. One agricultural commodity has outperformed gold so far in 2016. Of the three major areas of commodities, two of them - energy and metals - get disproportionate attention from the financial media.
While the third major component - agriculture - isn’t usually deemed as being as exciting, it has also had highly profitable trades in 2016. There have, however, been more underperforming farmland commodities, so an investor needs to pick and choose………………………………………..Full Article: Source

Forget gold, these three metals are soaring ahead

Posted on 24 August 2016 by VRS  |  Email |Print

Silver has been the best-performing raw material in 2016 so far; its dollar-denominated price grew by 42.6 per cent year-on-year, followed by zinc, up 40.7 per cent, and platinum with a price increase of 32 per cent.
In comparison, the price of gold increased by only 26.1 per cent over the year, which is the same price increase that tin experienced. The bottom performers were uranium, which shed 27 per cent, and among the ’soft’ commodities corn, which lost 10.6 per cent, and cocoa, which fell by 5.5 per cent………………………………………..Full Article: Source

Commodities Are The Best Bargain Now

Posted on 23 August 2016 by VRS  |  Email |Print

What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities? The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim. Don’t worry. There are still many places to invest your money. I’m talking about hard assets, aka commodities. Hard assets go well beyond real estate and gold. They include all types of natural resources like oil, wheat, copper, timber, coffee, zinc, and pork bellies………………………………………..Full Article: Source

Commodities on upswing in FY17 as funds return

Posted on 23 August 2016 by VRS  |  Email |Print

International commodities markets are on a boil since beginning of the current financial year and most commodities are up be that metals, crude oil or agri commodities. While so far US has refrained from raising rate after last December hike which has attracted global financial investors to commodities again, the decision will continue to be a biggest headwind for commodity rally to continue.
Bloomberg all commodity index is up 9.4 per cent from April while LME metal index (up 6.3 per cent) and Bloomberg agri index (4.6 per cent) has followed………………………………………..Full Article: Source

Morgan Stanley throws cold water on hopes of any OPEC freeze deal

Posted on 23 August 2016 by VRS  |  Email |Print

Energy investors got all excited last week on hints of a freeze deal among major oil producers, but anyone hoping for coordinated action to boost the struggling oil market is bound for disappointment, according to Morgan Stanley.
In a note out on Monday, strategists led by head of energy commodity research Adam Longson warned that an output agreement between members of the Organization of the Petroleum Exporting Countries remains “highly unlikely” as the cartel members battle for market share………………………………………..Full Article: Source

How to Hedge Against Inflation With Commodities

Posted on 22 August 2016 by VRS  |  Email |Print

Investors in search of an inflation hedge may want to consider commodities. Commodities are an insurance policy, says Vic Sperandeo, president and CEO of EAM Partners, which developed the Trader Vic Index, a collection of futures contracts in commodities, currencies and U.S. interest rates.
A broad basket of commodities offers a hedge against inflation, and gold in particular is a hedge against both inflation and geopolitical chaos, Sperandeo says. “If you’re a typical retail investor, you must have commodities in your portfolio,” he says………………………………………..Full Article: Source

How to invest in gold bars, bullion and investment funds

Posted on 18 August 2016 by VRS  |  Email |Print

There’s been a surge in demand for gold as interest rates fall. Here’s how you can put your money into it and what it might cost. The recent Bank of England Base Rate cut has led to a surge in demand from people wanting to invest in gold, says the Royal Mint.
It saw a 25% increase in transactions on its bullion website in the first week of August, as well as a 50% increase in sales of gold bars and coins, compared to the previous week. Falling returns on cash and bonds as a result of the Bank of England’s decision to cut rates is thought to be making investors turn to gold………………………………………..Full Article: Source

Is George Soros Calling a Top in Gold?

Posted on 17 August 2016 by VRS  |  Email |Print

George Soros is getting out of gold. The billionaire investor jumped back into trading this year with a big bet on the precious metal, buying up a 19-million share stake in the world’s largest gold producer, Barrick Gold But in the second quarter, Soros Fund Management sold the majority of his shares in the gold miner and his full stake in mining company Silver Wheaton, according to regulatory filings.
The first-quarter bet on gold looked particularly prescient, as the precious metal has rallied 26% this year………………………………………..Full Article: Source

Hedge funds turn record bullish on soft commodities

Posted on 16 August 2016 by VRS  |  Email |Print

Hedge funds boosted bullish bets on soft commodities to record levels, holding massive long positions in New York-traded sugar and cotton, according to data from the Commodity Futures Trading Commission (CFTC) regulator.
Managed money, a proxy for speculators, lifted its net long position on the main New York traded soft commodities, arabica coffee, cocoa, raw sugar, and cotton, to the tune of 28,684 lots, in the week to last Tuesday. This brings the net long across softs – the extent to which long positions, which benefit when prices rise, outnumber short bets, which profit when values fall – to 401,379 lots………………………………………..Full Article: Source

Gold losing appeal for investors retreating from rally bet

Posted on 16 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1% in August as the US economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

Gold and silver are 2016’s shining investments

Posted on 15 August 2016 by VRS  |  Email |Print

10 best-performing mutual funds so far this year in the US and Europe are all precious-metal funds. Gold and silver funds have topped the list of best-performing investment products so far this year, benefiting from a huge rise in the price of precious metals driven by fears over the global economy.
Precious-metal funds account for all 10 best-performing mutual funds in both the US and Europe, nearly doubling investors’ money during the first seven months of 2016, according to Morningstar, the data provider………………………………………..Full Article: Source

Gold Losing Appeal for Investors Stepping Back From Rally Bet

Posted on 15 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1 percent in August as the U.S. economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

Improved Approach To Investing In Commodities​

Posted on 12 August 2016 by VRS  |  Email |Print

New analysis by Source UK shows that commodity investors can maximise their risk-adjusted returns by using ETFs that provide exposure to ‘second generation’ indices. These aim to improve performance compared to ‘first generation’ indices by managing exposures across the futures curve and diversifying trading strategies.
‘First generation’ indices are susceptible to the negative roll-yield problem because of an inflexible approach to reinvesting in the futures used to track commodities, as they are restricted to trading the front-month contracts where the futures curve is typically the steepest………………………………………..Full Article: Source

Why investors should expect the gold price to rise much higher, and how to invest in it

Posted on 12 August 2016 by VRS  |  Email |Print

Geir Lode, the veteran investor who is head of global equities at Hermes, has asserted that wider economic conditions mean the gold price will go up in the coming years, and revealed the share he is buying to profit from the market movements.
He remarked that, ‘Historically gold has been seen by investors as a safe haven protecting the downside in a portfolio. Over the next two to three years we believe an increased allocation to gold is likely due to macro-economic uncertainty, higher geopolitical risk, and low or even negative interest rates………………………………………..Full Article: Source

Gold investment at highest ever level – 16% above previous record

Posted on 12 August 2016 by VRS  |  Email |Print

For the first time, investors were the largest buyers of gold for two consecutive quarters. Hedge funds and other western investors have been piling into gold this year, pushing investment to a record high and driving the price of bullion to its biggest first-half gain since 1980.
The latest report from the World Gold Council, which represents gold miners, indicates that global gold demand reached 2,335 tonnes in the first six months of the year………………………………………..Full Article: Source

Hedge funds double down on bets against oil

Posted on 11 August 2016 by VRS  |  Email |Print

Oil bears are betting the recent rally is over. Hedge funds nearly doubled their bets against West Texas Intermediate crude oil over the last month as prices pulled back from their June highs in the low $50s, according to Bloomberg data.
Short interest — betting that the price will fall further — in “black gold” is even greater than it was in January, when the price of oil plunged to the low-$30s. Bearish oil bets likely reflect traders’ belief that the supply glut will continue weighing on the market, despite chatter from some oil-rich nations about setting new limits on production to pump up prices………………………………………..Full Article: Source

Gartman Still Bullish Despite Lower Gold Price Post-Jobs

Posted on 10 August 2016 by VRS  |  Email |Print

One veteran gold investor remains bullish on the metal, especially in non-U.S. dollar terms, even though gold is still trading lower since jobs data Friday turned sentiment toward the U.S. economy more positive. Dennis Gartman of the popular newsletter The Gartman Letter said the employment data was “demonstrably less strong” than it appeared to be.
“Let’s say this was a strong number, much stronger than people anticipated, but there are some circumstances incumbent in it that reduce that number or reduce the bullishness that most people want to put into it,” he noted………………………………………..Full Article: Source

Is Now The Time To Invest In Commodities?

Posted on 09 August 2016 by VRS  |  Email |Print

Commodities as an asset class are frequently overlooked by investors. Many investors and financial professionals view commodities as too speculative or too volatile, and they’re right. Investing in commodities is not for the faint of heart. But as a means of diversification within a long-term investment portfolio, commodities should certainly be considered.
To balance the risks and potential rewards of commodities, the rule to keep in mind is that commodities should only ever be between 5-10% of an investor’s overall portfolio. Any more than that, and your portfolio may be too speculatively weighted or volatile. Any less than that and you’re missing an opportunity to further diversify your portfolio and potentially augment returns………………………………………..Full Article: Source

Commodities Fatigue Kicks In After Biggest Investment in 7 Years

Posted on 08 August 2016 by VRS  |  Email |Print

Investors are growing tired of commodities after plowing in the most money in seven years. Inflows into raw materials slowed to $2.4 billion in July, the least since money was withdrawn in December, Barclays Plc said in a report Thursday. The smaller amount — not unusual for this time of year — took investment to almost $51 billion so far in 2016, the most since 2009.
There’s a good chance raw-materials interest has peaked, as it has largely been driven by investors seeking a haven in precious metals, signaling wider concerns about commodity fundamentals, Barclays said………………………………………..Full Article: Source

Investors pouring money into commodities at the fastest rate since 2009

Posted on 08 August 2016 by VRS  |  Email |Print

Largely driven by a fever for gold, demand for commodities this year is the strongest it has been since the financial crisis, according to Barclays. Total commodity inflows year to date stands at $50.8 billion, marking the strongest January-to-July performance since 2009 — which was only $1 billion higher, said Barclays in an Aug. 4 research note written by Kevin Norrish, head of commodities research.
Those inflows, along with some hefty price gains, have pushed commodity assets under management to $235 billion, a sizable leap from $161 billion seen at the end of 2015………………………………………..Full Article: Source

Investing: The great escape

Posted on 08 August 2016 by VRS  |  Email |Print

Switch into emerging markets is less about potential growth and more to do with stagnation at home. When the world’s biggest fund manager reverses its view on half of the global economy it is time to take notice. That is what BlackRock, manager of $4.6tn for investors and savers, has done this year. Once negative on emerging markets, it has turned into a cheerleader for them.
Sergio Trigo Paz, BlackRock’s head of emerging market fixed income portfolio management, now talks of a “great migration” — a mass movement of big institutional investors away from the stagnant growth and negative interest rates of the developed world, to the resurgent economies and enticing yields of emerging markets………………………………………..Full Article: Source

Investing In Commodity Companies

Posted on 04 August 2016 by VRS  |  Email |Print

A popular way of tapping into the commodities market is via the stock market. Millions of investors contribute to the ebb and flow of the commodities industry (consciously or not) by investing in household names such as Exxon Mobil, Shell, Texaco, BP, Glencore, Rio Tinto and many others.
These companies have more in common than being giants of the stock market and Wall Street darlings (except during commodity slumps) for decades. They are all involved in the extraction of precious material from the ground, as well as its refining and processing into high-value goods with essential uses for daily living………………………………………..Full Article: Source

Why oil bears shouldn’t count on U.S. shale rebound

Posted on 04 August 2016 by VRS  |  Email |Print

Oil market bears argue that rebounding production in U.S. shale regions will add to the global glut of crude, slowing the rebalancing of the market. Don’t be so sure, say skeptics.
Production-rebound proponents argue that the recent rise in U.S. rig counts reflects a new reality in the oil market. In this scenario, the U.S. crude benchmark’s spring rebound, which saw prices push back above $50 a barrel by early June, and a continued fall in production costs were likely to entice previously hard-hit shale producers to reopen closed wells and rejoin the fray………………………………………..Full Article: Source

‘A perfect storm’ is making gold one of the hottest assets on the planet

Posted on 04 August 2016 by VRS  |  Email |Print

“A perfect storm” in markets has left investors scrambling to add gold to their portfolios for protection, according to the World Gold Council. Investors have another prime and relatively safe choice in the government bonds of developed markets, but that has been compromised by “unconventional monetary policy,” the council said in its market update for August.
The yields on developed-market government bonds have trended lower as demand has risen. Sovereign authorities like the European Central Bank are stoking this demand through their bond purchases, which are pushing down yields………………………………………..Full Article: Source

Investment in ETFs has given higher return than government securities

Posted on 04 August 2016 by VRS  |  Email |Print

The Employees’ Provident Fund Organisation (EPFO) started investing in exchange traded funds (ETFs) in August last year and has invested Rs 7,465 crore till June 30, 2016. Government on Wednesday sought to allay fears over investments by EPFO into ETFs, saying that their performance should be viewed over a long period of time and the retirement fund body has already got over 12 per cent return within a year, higher than G-Secs.
“If you are going to invest wisely in a pool of equity then surely there is not much of a risk. We cannot evaluate the performance of equity on the basis of one, two or three months. When we invest in equity, we invest for 20 or 30 years,” Labour Secretary Shankar Aggarwal said………………………………………..Full Article: Source

Why China and Russia are buying so much gold

Posted on 02 August 2016 by VRS  |  Email |Print

The good news for gold enthusiasts is that China and Russia, the world’s No. 1 and No. 3 producers, are catching up to the big industrial countries in stocks of bullion in their official reserves.
The bad news is that, on present “steady-as-she goes” monthly gold accruals, it will take China and Russia — No. 6 and 7 in the world ranking of global gold reserves — about six years to draw level with the fourth- and fifth-placed countries, France and Italy………………………………………..Full Article: Source

Investors in Metals Look Past Gloomy View of the Economy

Posted on 02 August 2016 by VRS  |  Email |Print

Not even the dimming global growth outlook is enough to scare away investors in metals and mining. Money is pouring into industrial metals and the companies that produce them. Those investors seems undeterred by World Bank and International Monetary Fund forecasts of sluggish economies after the U.K.’s decision in June to leave the European Union added to uncertainty.
The enthusiasm for metals comes as expectations mount that policy makers around the world will take stronger action to counter the slowdown. The market also is beginning to look beyond Brexit and turn its attention toward the rising demand for key metals and slower production………………………………………..Full Article: Source

Investors eye commodities funds

Posted on 01 August 2016 by VRS  |  Email |Print

Commodities funds ended June in positive territory up +2.72 percent, according to performance data from eVestment - a rebound for the funds which has persisted throughout 2016. Asset flows have been consistent over the past 9 months as well, suggesting that investors are once again interested in commodities funds even after the wild price swings in commodity prices over the past few years. For investors looking to cash in, being defensively positioned will be key, says Jason Lejonvarn, Managing Director, Mellon Capital Management.
“The main issue with the commodities benchmark is that it forces you to be long all commodities. But some commodities have big drawdowns so we want the opportunity to be able to go long and short,” Lejonvarn tells Opalesque in an interview. Mellon Capital offers a long/short commodities strategy that he says the firm is offering as a way of helping investors avoid some of the historical pitfalls common to commodity funds………………………………………..Full Article: Source

Mind the gap between oil prices and commodity-sector bonds

Posted on 29 July 2016 by VRS  |  Email |Print

A recent divergence between commodity prices and spreads for bonds of companies in the commodity sector is flashing “mind-the-gap” warnings for the market. After a strong advance earlier in the year, oil prices recently plunged to a three-month low, pulling down the shares of energy companies and even weighing on the broader equity benchmarks.
But bonds of companies in energy, metals, mining and steel seem unaffected by oil’s decline — a trend that baffles analysts and suggests that bonds might actually be mispriced………………………………………..Full Article: Source

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