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Commodities Briefing - Category | Investment more

African investors discover routes to riches beyond commodities

Posted on 06 October 2014 by VRS  |  Email |Print

Legend never had it that there would be diapers, foam mattresses, tampons and bottled water at the end of the rainbow. But private equity firms investing in Africa have been using the special financial alchemy at their disposal to turn just this kind of humble household goods into pots of gold.
Over the past decade and more, specialist private equity funds have played a significant role in dispelling the popular myth among investors that the only real money to be made in Africa is from the continent’s natural resources: its oil, diamonds, gold and other minerals………………………………………..Full Article: Source

Super rich return to gold’s safe haven

Posted on 03 October 2014 by VRS  |  Email |Print

Every month a property investor walks into Neil Tremaine’s gold vault and deposits $250,000 worth of bullion. Why? The investor hopes it will act as a hedge against a plunge in an overheated property market. He is not alone. Demand for the precious metal is growing among the super rich, who are snapping up gold coins and bars.
At the Perth Mint – Australia’s only gold refinery and the world’s second-biggest producer after China – sales of gold coins and minted bars rose to 68,781 ounces in September, their highest since October 2013. Minted bars, which range from one to 100 grams, took the lion’s share of the increase, rising 37 per cent to 12,238 ounces, with investors in Germany and the United States the biggest buyers………………………………………..Full Article: Source

Gold is back en vogue as investors worry

Posted on 03 October 2014 by VRS  |  Email |Print

If you want to know just how awful a week it’s been on Wall Street, look no further than gold and utilities. Both have held up quite nicely while stocks have done their impersonation of Felix Baumgartner jumping from space.
Speaking of which, even GoPro (GPRO) has gotten hit hard during this recent sell-off. The stock plunged Thursday after GoPro CEO Nick Woodman and his wife gifted shares to a new charity of theirs. By doing so, they’ll be able to sell some of their stock before the IPO lockup period expires. It was unclear if the charity actually intends to sell GoPro stock, however. But I digress. Back to gold and utilities………………………………………..Full Article: Source

Investors Head for Exit as Commodities Extend Slump

Posted on 01 October 2014 by VRS  |  Email |Print

Investors are betting that the worst isn’t over for commodity prices that already are the lowest in five years. About $907 million was pulled from U.S. exchange-traded products backed by raw materials this month, the most since April, data compiled by Bloomberg show.
Expanding surpluses, a surging dollar and slowing growth in China helped send the Bloomberg Commodity Index to the lowest since 2009, reversing first-half gains fueled by a polar vortex and dead pigs in the U.S., and escalating tensions in Ukraine and the Middle East………………………………………..Full Article: Source

Rising political risk could lure commodity investors

Posted on 30 September 2014 by VRS  |  Email |Print

Commodities may be out of favour but the political landscape could change that. The macroeconomic environment and the outlook for the geopolitical landscape will often dictate whether investors flock to perceived safe haven assets such as gold. Geopolitical tensions have been escalating in recent months in Ukraine and Russia, as well as in the Middle East, while the Scottish referendum created some uncertainty in the markets.
Meanwhile, central banks continue to diverge when it comes to monetary policy. In spite of all these factors, investors have turned their backs on precious metals, leaving gold out in the cold………………………………………..Full Article: Source

Bearish investor sentiment may pin down Gold prices: Barclays

Posted on 30 September 2014 by VRS  |  Email |Print

It appears as if bearish investor sentiment has indeed set in, and it may continue to pin down Gold prices, a report by Barclays said. Over the longer term, expectations for rising rates and a stronger dollar will continue to pressure gold, keeping the price-negative macro backdrop too large a burden for any seasonal uptick in physical consumption to overturn.
Gold tumbled recently but last week it largely oscillated in a range around $1220/oz. This trend could be sustained in Q4 before once again turning lower, in line with the Barclays’ 2015 price forecast and tactical short recommendation, the report said………………………………………..Full Article: Source

CIC to Cut Stake in Singapore Commodity Trader Noble Group

Posted on 30 September 2014 by VRS  |  Email |Print

Sovereign-wealth fund China Investment Corp. is seeking to raise up to 405 million Singapore dollars (US$318 million) by selling a portion of its stake in Singapore-listed commodity trader Noble Group, people with knowledge of the deal said Monday.
CIC, which currently owns close to a 15% stake in Noble Group, will see its holding fall to about 10% post sale, one of the people said. China’s sovereign-wealth fund had spent US$850 million in 2009 to buy a stake in the Hong Kong-based Noble Group, a diversified commodities company with assets ranging from Brazilian sugar mills to Australian iron ore to oilseed-processing facilities in China and India………………………………………..Full Article: Source

Commodity Outliers Attract Investors

Posted on 26 September 2014 by VRS  |  Email |Print

Hedge funds and other money managers are flocking to small markets ranging from cocoa to coffee to cattle that have defied a broader plunge in raw-materials prices. These investors are betting on goods that are seeing demand soar as emerging-market countries become wealthier and their middle classes expand, increasing demand for products such as chocolate and hamburgers.
Investors and economists view demand for these products as less vulnerable to a slowdown in China’s growth. Demand in China for higher-end foodstuffs is still strong, and the ascent of other emerging markets will help alleviate any pullback, they say………………………………………..Full Article: Source

Why you should have commodities in your portfolio

Posted on 25 September 2014 by VRS  |  Email |Print

Commodities have been a major revelation this millenium and several investors have added it to their portfolios for a variety of reasons. One key factor has, of course, been the outstanding returns commodity investments have given since the year 2000. Secondly, globalization has opened the doors to true diversification in India.
Usually financial advisors recommend an allocation between 5% and 20% in commodities. This is because if you look at returns over the last forty years or so, data shows that commodities offer diversification and good returns with similar volatility as equities. This information usually takes one by surprise as commodities are perceived to be more volatile and therefore more risky………………………………………..Full Article: Source

Gold bullion offer prompts investment warning

Posted on 23 September 2014 by VRS  |  Email |Print

Investment analysts have urged investors to be cautious after the Royal Mint launched a new website selling gold and silver coins. On offer are single gold Sovereigns costing £197, larger gold Britannias at £800 and £19 silver coins.
The Mint is trying to expand the bullion business by selling what it calls “relatively affordable” coins online. It is also offering to store them for larger investors. The World Gold Council has estimated that there is a £4bn untapped market for gold among savers in the UK………………………………………..Full Article: Source

Gold prices tumble, ‘no compelling reason’ to buy

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $US6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, US government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

Chinese Investors Look for Rare Earth Metals in Greece

Posted on 15 September 2014 by VRS  |  Email |Print

The Greek subsoil and its rare earth metals have attracted the interest of Chinese investors. On the occasion of the ERES international conference hosted in Greece from September 4 to 7, a delegation from China, which is considered the absolute leader in the earth metals field, visited Greece.
It is estimated that 17 valuable minerals associated to the high-tech industry are present in Greece. The majority lies in the underwater area of ​​the northern Aegean Sea and in Thrace. Indications of rare minerals appear in the areas of Rhodope, Thessaloniki, Chios, Kilkis, and in the coastal and underwater area of Strymonikos Bay, and bauxites on the Greek mainland………………………………………..Full Article: Source

September is the time to buy gold, history suggests

Posted on 12 September 2014 by VRS  |  Email |Print

For those who like to follow investment trends there is a new one that is growing in popularity – buying gold in September. Over the past 20 years, as the chart below shows, the gold price tends to shine in September. On average bullion has delivered returns of over 3pc, which is by far the best performing month for the precious metal.
Fans say there is a good reason for the trend - September marks the start of India’s gold gifting season. During September a huge amount of gold jewellery is bought by Indians as gifts for family members during the Diwali festival………………………………………..Full Article: Source

6 reasons to invest in silver

Posted on 12 September 2014 by VRS  |  Email |Print

Silver has fallen massively from its highs and arguably offers investors an attractive route to hedge against future market turbulence. Below are 6 reasons to buy this precious metal: 1) The silver price has more than halved from its high of $48 in 2011.
2) History indicates that the recent decline in the silver price volatility, as measured by 30-day volatility, to the lowest levels in over a decade (at the beginning of May), may be a precursor to a strong price move………………………………………..Full Article: Source

Private Equity’s Quest for Mines Foundering as Commodities Slide

Posted on 10 September 2014 by VRS  |  Email |Print

The push by private equity funds to acquire mining assets is slowing as investors struggle to land major deals while commodity prices slide. The funds have raised $1.1 billion for investments in mining and metals this year, compared with about $8.8 billion in 2013, according to data compiled by Bloomberg.
Less than $2 billion has been spent by the funds on mining assets in the past two years, according to Bloomberg Intelligence research. “When private equity make an investment they say they want to be out in three to five years,” David Williams, managing director of corporate adviser Kidder Williams Ltd., said……………………………………….Full Article: Source

Investors should monitor oil price as key market indicator

Posted on 08 September 2014 by VRS  |  Email |Print

Investors have been advised to watch the oil price as a key indicator of fear levels in markets about geopolitical tension. Apollo Multi Asset Management has said investors have been “far too complacent” in spite of the “severity” of recent events.
The group’s Ryan Hughes said central bank support had been a buffer to markets, which have continued to march higher with only brief spells of mild weakness amid tensions in Russia and Ukraine and the growing conflict linked to Islamic State militants………………………………………..Full Article: Source

Risks associated with investing in commodities right now ‘have diminished’

Posted on 04 September 2014 by VRS  |  Email |Print

The risks associated with investing in commodities have ‘diminished’ in recent months, according to Evy Hambro, manager of the £900 million BlackRock World Mining investment trust. Hambro commented, ‘The mining sector has significantly lagged the general equity market in recent years. However, a number of the downside risks for this sector have reduced, albeit not disappeared.
‘The industry has made good progress in refocusing its strategy: operating costs have been aggressively targeted and investment in projects reassessed. Many commodities are trading close to or below their marginal cost of production, implying that price downside should be limited, in the absence of a collapse in demand.’……………………………………….Full Article: Source

Banks seen likely to stay in commodities

Posted on 03 September 2014 by VRS  |  Email |Print

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

Agriculture ETPs Losing Investors on Record U.S. Harvests

Posted on 02 September 2014 by VRS  |  Email |Print

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

How to Simplify Commodities

Posted on 01 September 2014 by VRS  |  Email |Print

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

Oil and gas investment boom ‘fading fast’

Posted on 29 August 2014 by VRS  |  Email |Print

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

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

Posted on 29 August 2014 by VRS  |  Email |Print

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

Gold shines most in September on seasonal buys

Posted on 28 August 2014 by VRS  |  Email |Print

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

Gold Speculators Reduce Positions

Posted on 26 August 2014 by VRS  |  Email |Print

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

JP Morgan: The best way to invest in commodities

Posted on 25 August 2014 by VRS  |  Email |Print

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

China to Let Foreign Investors Trade in Shenzhen Carbon Market

Posted on 25 August 2014 by VRS  |  Email |Print

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

Oil investors bet on future supply risks

Posted on 22 August 2014 by VRS  |  Email |Print

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

CalPERS Removing Billions From Commodities?

Posted on 21 August 2014 by VRS  |  Email |Print

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

Is commodity bull alive?

Posted on 21 August 2014 by VRS  |  Email |Print

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

Why You Should Buy Silver Before It’s Too Late

Posted on 20 August 2014 by VRS  |  Email |Print

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

Should Investors Fear Global Tensions?

Posted on 20 August 2014 by VRS  |  Email |Print

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

Investors Raise Their Shields Against Russia

Posted on 19 August 2014 by VRS  |  Email |Print

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

Has Gold Become a Bad Investment in India?

Posted on 19 August 2014 by VRS  |  Email |Print

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

Gold investors eye EU’s next move

Posted on 18 August 2014 by VRS  |  Email |Print

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

Calling all nervous investors! The case for commodities

Posted on 13 August 2014 by VRS  |  Email |Print

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

Aluminium in Gulf to reach $55bn by 2020

Posted on 13 August 2014 by VRS  |  Email |Print

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

Commodities: Has Their Time Come Again?

Posted on 12 August 2014 by VRS  |  Email |Print

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

Silver: Investing Essentials

Posted on 12 August 2014 by VRS  |  Email |Print

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

Investors warm to commodities in search for return

Posted on 07 August 2014 by VRS  |  Email |Print

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

Are commodities’ days of true diversification behind them?

Posted on 07 August 2014 by VRS  |  Email |Print

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

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

Posted on 07 August 2014 by VRS  |  Email |Print

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

4 Reasons To Invest In Silver Rather Than Gold

Posted on 05 August 2014 by VRS  |  Email |Print

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

Don’t ignore precious metals

Posted on 01 August 2014 by VRS  |  Email |Print

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

Common-Sense Commodities Investing

Posted on 01 August 2014 by VRS  |  Email |Print

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

Investors not enthused by improving health of Commodities: Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

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

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

Posted on 25 July 2014 by VRS  |  Email |Print

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

Investors swap grains for metals as flows trickle to commodities

Posted on 22 July 2014 by VRS  |  Email |Print

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

Investing in Water

Posted on 22 July 2014 by VRS  |  Email |Print

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

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

Posted on 18 July 2014 by VRS  |  Email |Print

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

Commodities luring investors

Posted on 14 July 2014 by VRS  |  Email |Print

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

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