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Commodities Briefing - Category | Investment more

Gold demand up, more buying needed:Barclays

Posted on 22 October 2014 by VRS  |  Email |Print

Given that the Diwali holiday is this week, ahead of the wedding season, Gold demand is expected to improve, potentially offsetting macro headwinds in the near term. However, buying needs to pick up materially to overwhelm the gold-negative external drivers, a report by Barclays said.
Broad risk reduction amid tumbling equity markets, the sharp decline in US 10y Treasuries, and weaker-than-expected US retail sales have fueled uncertainty and aided gold’s bounce. The gold-supportive macro environment has seen gold extend its gains above the $1200/oz mark as the dollar has weakened, the St Louis Fed discussed the possibility of further stimulus, and, importantly, demand picked up amid the seasonally strong period for consumption………………………………………..Full Article: Source

6 beginner tips for investing in precious metals

Posted on 22 October 2014 by VRS  |  Email |Print

If you’ve been thinking about investing in precious metals for the first time, you’ve got your homework cut out for you. It’s a complicated space, especially if you’re a newbie, and a good grasp on the basics is essential to achieving any semblance of success.
Of course, many worthwhile investments take effort, so you should never shy away from the challenge if you’ve got funds to spare. Just make sure you arm yourself with as much information as possible, and don’t “bet” more than you can afford to lose………………………………………..Full Article: Source

Exposure on Chinese commodities not for risk-averse

Posted on 21 October 2014 by VRS  |  Email |Print

Millions of Chinese are planning to leave China. Why? Where are they going? What do they plan to do? Run your eye down the list of nationalities taking advantage of the “golden visa” schemes across Europe and you will find that the majority of those buying relatively expensive property to be able to apply for residency are Chinese — 81 per cent so far in Portugal’s scheme.
That might be just about the nice weather in Lisbon, the semi-democracy offered by the EU and the lower levels of air pollution in the west. But it might also be to do with the fact that China’s economy isn’t quite what it was………………………………………..Full Article: Source

Buying Gold on Dhanteras? 10 Things to Know

Posted on 21 October 2014 by VRS  |  Email |Print

Many Indians consider Dhanteras as an auspicious occasion to buy gold. Many jewellers have launched promotional schemes to attract gold buyers while stock exchanges have extended trading hours for gold trading on Tuesday. Here is a 10-point cheat-sheet to understand how gold prices could be impacted:
Analysts say that historically October has been seasonally a good month to buy gold. Vikas Vaid, product head of commodity and currency of Prabhudas Lilladher Group, said it has been observed that historically gold prices bottomed out in October and November is a strong month for the yellow metal in terms of prices………………………………………..Full Article: Source

The sky is falling! Should you buy gold and silver?

Posted on 20 October 2014 by VRS  |  Email |Print

If stock markets are heading for freefall, should one invest in gold and silver as a wealth protector. Perhaps not yet! Fear is stalking the global stock markets. Stock indices have been falling back sharply seeing a move to what might be seemed safer assets like bonds and gold.
The falls have been precipitated by some poor economic data suggesting that most major economies are not out of the recessionary mire yet and, in the U.S. in particular, the realisation that the Fed is getting down to near eliminating its latest Quantitative Easing programme in total, although there may be some succour in that it tends to be putting back the day that it may allow interest rates to rise. And what happens in the U.S. markets tends to have a strong follow-through impact on markets in other parts of the world………………………………………..Full Article: Source

Gold price higher on safe-haven buying, US dollar retreats

Posted on 17 October 2014 by VRS  |  Email |Print

Gold prices held at higher levels after a spate of poor US data in the previous session boosted the metal above resistance levels and weighed on the dollar. The spot gold price was last at $1,242.70/1,243.40 per ounce, u $2.70 on Wednesday’s closing level and bubbling just below the month high hit in yesterday’s session at $1,250.
The dollar has retreated to 1.2804 against the euro, with US equity markets all closing in negative territory after the release of forecast-missing retail sales figures and on fears of the spread of Ebola, bolstering gold’s credentials once again as a safe-haven asset………………………………………..Full Article: Source

Investors cooling towards commodities

Posted on 16 October 2014 by VRS  |  Email |Print

Investors have been showing a more negative sentiment towards commodities in the past few weeks, ETF Securities has found. In its latest 10-page research note, the exchange-traded fund provider also noted that improvement in the US economy and labour market should benefit cyclical assets.
The report also noted that among commodities long gold and silver exchange-traded products saw $88m (£54.7m) and $46m (£28.6m) of outflows respectively because of negative sentiment, despite strong demand for the raw metals. According to the report, in the US, more than 50 per cent of silver demand had come from industrial applications………………………………………..Full Article: Source

Flat commodities may be investors’ chance

Posted on 16 October 2014 by VRS  |  Email |Print

The drop in the iron ore, oil and coal prices has spooked the local market, prompting a selloff of local resources businesses. While the outlook for these commodities remains subdued, this could prompt buying opportunities if shares whose prices are affected by movements in commodity prices continue to fall.
Ric Spooner, chief market analyst at CMC Markets, explains iron ore prices are suffering from rising supply and slowing demand. “It’s been a long time coming but we have passed the inflection point where supply capacity exceeds demand. In these circumstances it can be very difficult to forecast where prices will bottom………………………………………..Full Article: Source

World Economy Gives Investors Growth Scare as They Look to U.S.

Posted on 16 October 2014 by VRS  |  Email |Print

The global economy faces its biggest test of confidence since the European sovereign debt crisis as investors fear it’s running out of engines. Japan and the euro area are throwing up fresh signs of weakness by the day and emerging markets such as China are dragging instead of driving growth.
The sense of tumult is being exacerbated by war in the Middle East, the standoff in Ukraine, street protests in Hong Kong and the spread of Ebola to Dallas. The worry is that five years since the world limped out of recession, central banks have virtually exhausted their stimulus arsenals if activity keeps fading………………………………………..Full Article: Source

Banks and investors see appeal of commodity finance

Posted on 14 October 2014 by VRS  |  Email |Print

Despite the retreat of major global banks from commodities, commodity finance is nonetheless viewed as an attractive opportunity. But it is an area where banks face increased competition from trading houses.
Under assault from tighter regulation, falling revenues and higher capital requirements, banks across Europe and the US have been taking the axe to their commodity trading businesses during the past few years. But whereas commodity trading may have fallen out of favour, commodity finance remains very much in vogue………………………………………..Full Article: Source

Commodities tell the truth to spooked equities investors

Posted on 13 October 2014 by VRS  |  Email |Print

Equities investors are spooked. This is October, the month of Halloween, and of virtually all the stock market’s best-known crashes over history. After a lengthy rise, stocks are showing the heaviest volatility in more than a year, while the S&P 500 is almost halfway to its first 10 per cent correction in more than three years.
Factors from the Ebola outbreak to conflagrations in Ukraine, Syria and Iraq give cause for alarm.Screening out this noise, the problem is familiar. The bet has been on for months, as it has been several times before during the five-year post-crisis rally, that the world economy, led by the US, is ready to achieve ignition and show strong growth. Now investors are having second thoughts about that bet………………………………………..Full Article: Source

Investors bet the farm on agriculture

Posted on 13 October 2014 by VRS  |  Email |Print

In the biblical book of Genesis, the pharaoh of Egypt dreams of seven thin cows eating seven fat cows, which signifies seven years of famine to follow seven years of good crops. In 2014, we are seeing the reverse, as bumper crops globally have reversed the trend of rising food prices that led to riots in some countries in recent years.
This has not deterred the many institutional investors who are looking at farmland as an asset class that has hitherto been neglected. Many experts say this is just a blip in a longer-term trend that makes any weakness in prices a buying opportunity………………………………………..Full Article: Source

5 ways to avoid losses in commodity market

Posted on 10 October 2014 by VRS  |  Email |Print

Commodity markets have a tremendous impact on the economy and the life of people. Though demand-supply is the prime factor behind the price volatility, currency moves, geopolitical issues, economic growth and government policies are other factors influencing commodity prices. Typically, the commodities market is subject to rallies and crashes, so it is more susceptible to speculation than the stock markets.
Before participating in commodity futures, an investor or trader should be prepared and ready to learn how the market works. Futures contracts unlike stocks have different expiry periods. As the futures platforms are primarily intended for hedging with a view to reduce the risk in portfolio, those who are participating in the commodities segment without fully understanding the fundamentals of the contract will stand to lose their initial capital or a part thereof………………………………………..Full Article: Source

IEA: Energy Efficiency Worth $310 Billion

Posted on 09 October 2014 by VRS  |  Email |Print

Investments in measures to curb energy waste and boost efficiency are overtaking wind and solar spending and have reached at least $310 billion a year, the International Energy Agency said. That’s almost $100 billion higher than investment in renewable energy in 2013, which amounted to $213 billion, according to estimates from Bloomberg New Energy Finance.
Demand dropped as much as 5 percent from 2001 to 2011, largely due to investments in efficiency, the Paris-based agency said today in a report, which studied countries including the U.K., U.S. and Japan. Savings in 11 nations in 2011 were equivalent to displacing a continent’s energy demand, it said………………………………………..Full Article: Source

Time to buy commodities? Maybe, but not the old ways: Russell

Posted on 06 October 2014 by VRS  |  Email |Print

Crazy or brave? That might be the most logical thought if anybody told you now was a good time to invest in commodities, given the sharp declines in the main indexes in the past few months. But that’s exactly what the overwhelming majority of fund managers and bankers were advocating at last week’s World Commodities Week conference in London.
Their optimism was in contrast to the clutch of analysts who presented at the meeting, who generally reinforced the current bearish theme by pointing to softness in demand in top importer China, as well as plentiful supply for many commodities………………………………………..Full Article: Source

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

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