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Commodities Briefing - Category | Investment more

Can physical demand boost gold during traditionally dour March?

Posted on 25 February 2014 by VRS  |  Email |Print

Gold investors relived by the yellow metal’s strong performance in February, have good reason to take the 7% rise this month as a good portend - historically, February is not a good month for gold. According to UBS, which looked at historical data from the mid-1970s to today, February is usually a weak month for gold returns, “although percentage declines are generally modest on average.”
Indeed, the bank notes, this is not the only seasonal trend that’s at odds with historical norms. “On the physical side, Chinese demand remained strong in February even after the New Year holidays, defying its typical seasonal post-holiday lull.”……………………………………….Full Article: Source

Hedge funds place largest bullish bets on commodities since 2011

Posted on 24 February 2014 by VRS  |  Email |Print

Hedge funds plowed into gold and crude oil as prices rallied this week, driving the bullish money wagered by commodity speculators to the highest level since 2011, data showed on Friday. Gasoline, natural gas and soybeans were other commodities that attracted huge buying during the week that ended Feb. 18, according to the data from the Commodity Futures Trading Commission.
The net-long or bullish money held by hedge funds and other speculators across 22 U.S. commodity markets rose to $119.5 billion in the Feb. 18 week from $102 billion during the week to Feb. 11, Reuters calculations of the CFTC data showed………………………………………..Full Article: Source

Commodities ‘great place to be’

Posted on 24 February 2014 by VRS  |  Email |Print

The economy would benefit from a long-term rise in world commodity prices, driven by the rising middle classes of the world, Goldman Sachs president Gary Cohn said. “You are a commodity-rich nation which is becoming even more richer with all the LNG you are investing in,” said Mr Cohn, who is visiting Australia for the G20 meeting in Sydney.
“You have abundant supply of iron ore, coal and LNG. Not only is Australia a consumer of resources but you are a huge exporter, so you have this double leverage to the commodity cycle.”……………………………………….Full Article: Source

Big spikes for coffee and natgas show end of commodity correlation

Posted on 21 February 2014 by VRS  |  Email |Print

Investors looking for more evidence that a years-long correlation between commodity prices and financial markets is well and truly dead have found it this year in two of the industry’s more remote corners.
Fueled by extreme weather conditions in both hemispheres, benchmark U.S. natural gas and coffee futures prices have surged about 50 percent this year, after languishing out of favor for years………………………………………..Full Article: Source

Upside for oil appears limited, but investments in oil markets aren’t

Posted on 20 February 2014 by VRS  |  Email |Print

Oil prices have rallied back to the $100.00-per-barrel level on some near-term supply and inventory concerns. While the upside move is rewarding the buyers of oil stocks, I don’t think oil prices are set for an extended rally.
The chart of the West Texas Intermediate (WTI) crude oil shows oil prices bouncing higher after the formation of a bullish double bottom, based on my technical analysis. And while oil prices can head higher on the chart, I just don’t see any moves being sustainable………………………………………..Full Article: Source

Secrets of diamond investing

Posted on 20 February 2014 by VRS  |  Email |Print

How can I track diamond prices real-time? Since there not a centralized spot or futures market for diamonds, “real-time pricing” does not exist the way that it does for stocks or fungible commodities.
Given the unique characteristics of each diamond, there is technically a separate market for each category of diamond, of which there can be upwards of 12,000 categories. There is also a separate market for rough and polished diamonds. That said, there are still ways to actively track diamond prices………………………………………..Full Article: Source

Quant funds feel investor bite after underperforming

Posted on 19 February 2014 by VRS  |  Email |Print

Investors are losing patience with hedge-fund managers who rely on computers to follow global market trends after three years of underperformance. Quantitative hedge funds run by companies such as Man Group Plc (EMG) and Michael Platt’s BlueCrest Capital Management LLP saw investors pull $4.9 billion in the last three months of 2013, the most in five years, according to Chicago-based data provider Hedge Fund Research Inc.
That followed outflows of $1.1 billion in the second quarter and $668 million in the third, HFR said………………………………………..Full Article: Source

How much should you be investing in gold?

Posted on 18 February 2014 by VRS  |  Email |Print

Gold should be seen as one of the numerous investment options for accumulating wealth. The price of gold, which is primarily a commodity, tends to rise over time. Since investors do not adjust the price for inflation, they see the increase as positive. Kumar should understand that the longterm return from gold could be the same as the rate of inflation.
However, the prices of assets are not always driven by long-term trends. There are short-term events that can move the price significantly above or below the long-term average. Gold is valued for its ability to act as a substitute for any other asset, including currency. Therefore, the demand for gold rises when all other assets, such as equity, debt and currency, are falling………………………………………..Full Article: Source

Are commodities safe yet?

Posted on 17 February 2014 by VRS  |  Email |Print

After watching commodities take a beating over the past three years, investors may want to consider carefully treading back into the sector, financial advisers say. The average U.S. commodity-focused mutual fund and exchange-traded fund has gained 2.2% in 2014 through Thursday, according to Chicago-based investment-research firm Morningstar. Meanwhile, blue-chip stocks, as represented by shares of the SPDR S&P 500 ETF Trust, are down 0.91% over that period.
“Commodities still need to be approached with caution,” says Stephen Jury, global head of currencies and commodities at J.P. Morgan Private Bank in New York, which oversees $977 billion. “They’re not ready for another bull run.”……………………………………….Full Article: Source

Where to look for commodities gains in the year ahead

Posted on 13 February 2014 by VRS  |  Email |Print

Many analysts have postulated that the so-called commodity super-cycle popped back in 2008 when the global economy collapsed. If it didn’t then, you can definitely make the case that it has over the last year or so.
As many emerging market economies have seen growth dwindle, so has overall commodity demand. Funds tracking various natural resources futures contracts- like the popular PowerShares DB Commodity Index Tracking –still haven’t recovered from their former glory-day highs………………………………………..Full Article: Source

Commodities investing down but not out, Masters says

Posted on 13 February 2014 by VRS  |  Email |Print

Despite the current lack of enthusiasm for commodity investing, veteran oil trader Daniel Masters sees light at the end of the tunnel. Masters, co-founder and portfolio manager at Global Advisors, a Jersey-based hedge fund focusing on commodities, acknowledges that commodity funds have fallen on hard times recently, but argues that the market will soon hit bottom and savvy investors will return.
“In the very, very short term, we maintain an active participation in the commodity business, but we understand and we reflect the current apathy about commodities,” says Masters, a former head of JP Morgan’s global energy trading business………………………………………..Full Article: Source

Platinum tops investors’ commodities picks

Posted on 13 February 2014 by VRS  |  Email |Print

Commodities’ poor form last year has not scared off investors with many still intending to buy industrial metals in 2014, according to an ETF Securities survey. Many of the 450 investment professionals surveyed at the four ETF Securities Annual Commodity Investment conferences in Europe last week still saw commodities as a “favoured asset class”, ETF Securities says.
A fifth of conference delegates said commodities were one of their top three picks for the year. ETF Securities head of research Nicholas Brooks says most investors surveyed expected robust global growth, led by the recovering US………………………………………..Full Article: Source

Advisers see opportunities in select commodities

Posted on 12 February 2014 by VRS  |  Email |Print

To many investors, 2008’s global financial crisis marked an end to the so-called commodity supercycle of double-digit annual growth since the late 1990s. More than five years later, investors still remain cautious about commodity funds, which have lagged behind the broader market.
But many financial advisers say they aren’t ready to give up on the asset class, noting some select segments offer growth opportunities as the global economy improves………………………………………..Full Article: Source

Buy while the price of gold is still supressed - Levenstein

Posted on 05 February 2014 by VRS  |  Email |Print

As gold prices continue to hover around the $1240 an ounce level, demand for the physical metal remains extremely robust especially demand from China. Yet, despite reports of strong demand, prices still seem to be taking the lead from traders reacting to announcements from central banks, particularly the US Federal Reserve and certain non-related economic news.
After gaining for most of the month, the price of gold notched up its first weekly drop in six due to further signs of U.S. economic growth, concerns over the U.S. Federal Reserve’s withdrawal of monetary stimulus and a slump in Chinese demand………………………………………..Full Article: Source

Silver price “needs investment” to rally

Posted on 05 February 2014 by VRS  |  Email |Print

Silver demand in 2014 is likely to be “helped” by continued recovery in the global economy, says a leading analyst, but the price will continue to rely on investment if it’s to move higher.
“A recovering global economy will help boost silver demand,” writes Dr.David Jollie, precious metals analyst at Japanese trading house Mitsui. But while “economic growth is certainly positive for silver, [it] is unlikely to be enough to drive significant price strength alone.”……………………………………….Full Article: Source

Could gold surprise investors in 2014?

Posted on 04 February 2014 by VRS  |  Email |Print

The demand for gold bullion is increasing. Each day there’s more evidence that suggests this phenomenon will continue. We see consumers buying gold bullion across the global economy. As a result, mints are working in overdrive mode to meet this demand and gold storage facilities are looking to add more vaults.
The Brinks Company (NYSE/BCO), UBS AG (NYSE/UBS), and Deutsche Bank Aktiengesellschaft (NYSE/DB) are opening new vaults in Asia. What’s their reasoning for taking this step? The demand for gold, especially from China, has increased………………………………………..Full Article: Source

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Investing in bullion–without the bull

Posted on 04 February 2014 by VRS  |  Email |Print

It’s not just the paranoia of Fed-bashing, “hard money” zealots: Inflation really does pose a threat this year. After the yellow metal’s brutal pounding in 2013, gold bugs are starting to feel vindicated. New data suggest that the inflation beast is stirring from its long slumber, which means the classic inflation hedge of gold could be on the verge of a comeback.
Inflation expectations, as measured by the difference between yields on 10-year nominal Treasury notes and Treasury Inflation Protected Securities (TIPS), rose last month to 2.28 percent from a low of 2.10 in the preceding month. The increase represented an eight-month high………………………………………..Full Article: Source

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Why gold lost its lustre for investors

Posted on 31 January 2014 by VRS  |  Email |Print

A couple of years ago, so much scrap gold was coming through the door of Baird and Co that the company could barely keep up. It is the biggest producer of gold products in the UK and Baird, based in east London, uses scrap metal supplied by pawnbrokers, traders and industry.
On the commodity markets, gold prices soared 170% between late 2008 and 2011. On the High Street, “cash for gold” traders were springing up and, with a recession taking its toll on household finances, plenty of people were willing to sell jewellery………………………………………..Full Article: Source

Gold bulls boost bets amid longest rally since 2012: Commodities

Posted on 27 January 2014 by VRS  |  Email |Print

Hedge funds got more bullish on gold for a fourth straight week before prices capped the longest rally in 16 months on mounting global growth concerns. The net-long position in gold climbed 0.2 percent to 43,353 futures and options in the week ended Jan. 21, U.S. Commodity Futures Trading Commission data show.
Long wagers declined 0.2 percent, while short bets slid 0.4 percent. Net-bullish holdings across 18 U.S.-traded commodities increased 5.6 percent, led by natural gas and copper………………………………………..Full Article: Source

What could go wrong for stocks — and right for gold — in 2014?

Posted on 24 January 2014 by VRS  |  Email |Print

Are investors too bullish on the stock market’s prospects for 2014 and too bearish for gold’s? It would certainly seem that way based on the near unanimity of analyst consensus. Most institutional analysts have published bullish forecasts for equities in 2014 and a bearish, or at least cautionary, outlook for gold. The favorable forecast for stocks and bearish gold outlook is based on the assumption that deflation remains at bay for the coming year.
But what if analyst expectations are disappointed and deflation rears its ugly head? That is precisely the scenario we’ll discuss here. For if deflation returns at some point this year it would easily upset the status quo for both asset categories………………………………………..Full Article: Source

Investor interest shows signs of picking up in 2014

Posted on 20 January 2014 by VRS  |  Email |Print

Afer a weak year for commodities when a net $36 bn was withdrawn from commodity investments-the largest total ever, 2014 promises to be a better year with several promising signs of a pick-up in investor interest recently, according to Barclays Research.
The withdrawals in commodity investments were mainly on account of liquidation of gold exchange traded funds (ETFs). After adjusting for gold etf outflows, commodity investments witnessed inflow of $2 bn. Moreover, several institutional investors made decisions last year to exit the sector but are not due to do so until early this year………………………………………..Full Article: Source

Commodities: China gets taste for cafe latte but investors must wait for returns to stir

Posted on 20 January 2014 by VRS  |  Email |Print

Longer-term investors have already started to position their portfolios to capture higher yields they hope will eventually come from rising demand for beans in emerging markets, especially China.
Coffee prices slumped late last year to a seven-year low on a supply glut but investors should focus on the long-term outlook for the commodity as the emerging trend for cafe latte replacing green tea among Chinese consumers picks up………………………………………..Full Article: Source

Afraid of stocks? Commodities are one place you can look

Posted on 17 January 2014 by VRS  |  Email |Print

With the growing number of calls for a significant stock market pullback ahead, one area likely to start seeing investor inflows is commodities. The space has suffered a rough couple of years as the so-called Commodity Supercycle broke down.
Strong supplies of various crops, wobbly global economic growth and a meltdown in gold and other metals caused prices to sag and money to flow to equities. But the damage may have been done, setting the stage for a rebound. Experts see opportunities in metals outside gold as well as selected agricultural commodities………………………………………..Full Article: Source

No love for gold in 2014? Here’s how to profit

Posted on 17 January 2014 by VRS  |  Email |Print

Gold ended a 12-year bull run in 2013 after posting the largest annual decline for the metal since 1981. After such a bearish year, traders and investors are beginning to position themselves for what can be an uncertain year for gold futures in 2014. Uncertainty surround the tapering of the Fed’s quantitative easing program could still weigh on gold prices.
With gold futures currently trading around $1,241 analysts at major banks are expecting a sideways to down year for gold. UBS, HSBC, Barclays, Bank of America and Deutsche have all come out with their 2014 forecasts for gold prices, and it seems that they are expecting a lackluster year for gold. The average of the banks forecast says that gold should trade on average round $1,200 an ounce this year………………………………………..Full Article: Source

Investing when exchange-traded investments recover

Posted on 17 January 2014 by VRS  |  Email |Print

Should you buy when there is blood in the streets? While the prospect of buying low may sound great, a beaten-up asset can always get battered some more. There’s no certainty when it comes to recognizing precisely when the bludgeoning will stop or when the knife will hit the floor.
There are times, however, when enough evidence comes to the forefront to make a rational re-entry. For example, few asset classes received as much “hate mail” as emerging market debt in the May-June tapering swoon of 2013………………………………………..Full Article: Source

Global investment in clean energy falls for second year running

Posted on 16 January 2014 by VRS  |  Email |Print

New figures show investment fell to $254bn in 2013, with a drop in Europe of 41%. Global investment in clean energy fell for the second year in a row to $254bn last year, with green investment in Europe crashing by 41%, new figures showed on Wednesday.
The drop casts a pall over a high-profile investor summit at the United Nations on Wednesday. The summit, organised by the Ceres investor network, was supposed to build momentum for the shift to a clean energy economy – a transformation requiring global investment of some $1 trillion a year by 2030………………………………………..Full Article: Source

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Commodities set to boom in next phase of recovery, says Cantor

Posted on 15 January 2014 by VRS  |  Email |Print

Investors should be shifting out of cyclical sectors and into natural resources and energy stocks that have lagged behind the market in the past couple of years, according to Charles Tan, investment companies analyst at Cantor Fitzgerald.
Tan says the rally in cyclicals that has dominated the past two years is nearing its conclusion and past economic cycles suggest commodities are about to rally hard next. Closed-ended funds sitting on large discounts are an excellent high-beta, high-yielding way to play this new trend, he explains………………………………………..Full Article: Source

Reasons to buy gold NOW!

Posted on 15 January 2014 by VRS  |  Email |Print

Gold fell by 28% in 2013. That’s a huge reversal of a decade-plus trend. Between 2001 and 2012, gold managed positive gains every single year, a track record unmatched by any major asset. The precious metal went from a low of $255 in April 2001 to a high of $1,900 in September 2011, for a peak return of 745%.
Since then, gold has given back 35% from its $1,900 high, leading many to call the end of the gold bull market. But is it really finished? By looking at history and numerous indicators, I’ve found a different story. One that will jumpstart your 2014 profits………………………………………….Full Article: Source

The new commodities cycle is less super than the last one, but don’t dump them from your portfolio just yet

Posted on 14 January 2014 by VRS  |  Email |Print

The commodities supercycle of the previous decade, which saw insatiable emerging market demand drive raw materials prices higher, is over. As a result, commodities prices growth has basically ground to a halt in the past few years.
In his latest note, Goldman’s Jeff Currie says that long-term, he remains bearish on the sector. But he says that a new commodities cycle has begun replacing the old one - and argues for hanging on to commodities a bit longer………………………………………..Full Article: Source

Speculators build bullish positions in gold, cover shorts in silverp Platinum - CFTC data

Posted on 14 January 2014 by VRS  |  Email |Print

A rise in price prompted large speculators to add to their bullish futures and options positions in gold at the Comex division of the New York Mercantile Exchange, as seen in the latest weekly commitments of traders data from the Commodity Futures Trading Commission, released Friday.
Large speculators also increased their net-long positions in silver and platinum; however, the rise came because of short covering, which is the buying back of previously sold positions. The data is as of Jan. 7. Speculators added to their palladium net-longs, but their activity between the legacy and disaggregated reports were mixed in copper………………………………………..Full Article: Source

Bullish bets fell most in seven weeks before slump: Commodities

Posted on 13 January 2014 by VRS  |  Email |Print

Hedge funds cut their bullish commodity wagers by the most in seven weeks before prices dropped to an eight-month low on signs of surplus supply and slowing economic growth in China.
The net-long position across 18 U.S.-traded commodities fell by 11 percent to 678,885 futures and options in the week ended Jan. 7, U.S. Commodity Future Trading Commission data show. Investors are the most bearish on wheat ever and anticipate lower prices for corn, coffee, sugar and soybean oil. Bullish gold wagers rose to the highest since mid-November………………………………….Full Article: Source

API predicts massive oil industry spending spree

Posted on 13 January 2014 by VRS  |  Email |Print

Energy companies will spend close to $1 trillion on oil and gas infrastructure and storage over the next decade, to support more than 900,000 US jobs as the US becomes the global leader in oil production capacity growth, according to a new report from the American Petroleum Institute (API).
The report, conducted by IHG Global, estimates that between $85 billion and $90 billion of direct capital will be invested this year alone to build new pipelines, storage and processing facilities, and rail cars and marine vessels needed to transport oil and natural gas across the country………………………………….Full Article: Source

Commodities 2013: Not the best investments, by a long shot

Posted on 09 January 2014 by VRS  |  Email |Print

Commodities, which include everything from industrial and precious metals to agricultural goods and energy supplies, fared badly almost across-the-board in 2013, according to a Capital Economics research note on Wednesday.
“Dismal returns” confronted commodities investors by the end of 2013, as key benchmark indices like the S&P GSCI index fell significantly, led by poor precious metals and agricultural prices. Gold fell 28 percent in its worst year since 1981, while corn had its worst year since 1970………………………………………..Full Article: Source

Why you should consider commodities in 2014

Posted on 08 January 2014 by VRS  |  Email |Print

Investing is not just about buying and selling securities; it is also about buying and selling asset types. Given the aging bull market in stocks, downside pressure on bond prices, and near-zero yields for cash, asset allocation in 2014 will be a challenge, to say the least.
Tactical asset-allocation in 2014: With a tactical approach to your portfolio structure, you will have a target allocation, but you may sometimes find yourself “overweight” some assets and “underweight” others. For example, let’s say your target asset allocation is 70% stocks and 30% bonds………………………………………..Full Article: Source

Gold mining deals seen rebounding on price discount

Posted on 08 January 2014 by VRS  |  Email |Print

Investment bankers see gold-mining deals rebounding this year from a near-decade low as producers target assets at fire-sale prices after the metal plunged.
Gold-mining companies are close to their cheapest relative to book value in at least two decades, according to data compiled by Bloomberg. Meanwhile producers will be enticed to replace some of the output lost when they sold or curtailed less-profitable mines, said Barclays Plc’s Paul Knight………………………………………..Full Article: Source

Copper fluctuates as investors assess lower stockpiles

Posted on 08 January 2014 by VRS  |  Email |Print

Copper fell for the third time in four sessions in New York on concern that new financing rules may curb demand in China, the world’s biggest user of the metal.
China’s Cabinet imposed new controls on shadow finance, the multi-trillion-dollar lending that operates outside of the country’s banking system, according to three people familiar with the matter. Some copper is used in the Asian nation as collateral to back loans………………………………………..Full Article: Source

Return & volatility in stocks, bonds & commodities

Posted on 07 January 2014 by VRS  |  Email |Print

2013 proved to be a revealing lesson in risk and reward, where high rates of return were not always necessarily accompanied by proportionately high levels of risk, and negative or low returns were not necessarily volatile.
The risk-return chart of 21 securities (15 equity indices, 2 bond indices and 4 commodities) shows the percentage price change over the 12-month period ending on January 3rd (proxy for 2013 performance) on the x-axis, and the 90-day volatility, ending on the same day on the y-axis. Here are the findings:……………………………………….Full Article: Source

Ways to invest in gold

Posted on 07 January 2014 by VRS  |  Email |Print

If you were dealing in several stocks until now and want to bring some diversity in your investment, gold investment might be a good option for you. Investing in varied fields has various benefits one of which is staying safe at time of market fall or imbalance.
Gold market is always considered as a better option when the rest of the stocks are not doing well. The reason for this is that gold has an inverse relation from all other stocks. There are various ways how you can make an investment in gold. Here are some ways how you can make an investment in gold………………………………………..Full Article: Source

Gold is no longer a safe investment

Posted on 06 January 2014 by VRS  |  Email |Print

The crash in gold prices was one of the biggest shockers of 2013. A correction had already begun at the fag end of 2012, but prices really crashed in 2013, triggered by fears that the US Federal Reserve would scale down and do away with the economic stimulus.
However, Indian investors in gold were cusioned against the crash due to the fall in the rupee. As the dollar became costlier, gold continued to fetch a higher price in India………………………………………..Full Article: Source

No bounce seen for a deflated commodities sector

Posted on 02 January 2014 by VRS  |  Email |Print

Many investors expect commodities markets to struggle for a fourth consecutive year in 2014, as steady-but-unspectacular economic growth extends a rough patch for what had been one of the hottest investment niches of the past decade.
In 2013, investors appeared to finally give up on hopes for the return of the “supercycle,” the confluence of tight supplies and surging demand that propelled prices for commodities ranging from oil to aluminum to wheat to records in the past decade………………………………………..Full Article: Source

Commodity market assessment for 2014

Posted on 02 January 2014 by VRS  |  Email |Print

Commodity investments this year are on track to register their largest ever outflows. The decline in assets under management in the year till November is the largest on record, indicating withdrawal of funds from the sector by global investors. However, despite this bleak outturn, there are signs that some sectors like base metals are starting to generate investor interest again.
The Federal reserve’s QE stimulus had no major impact on commodity markets and there are unlikely to be very many negative effects as it is tapered. The exception is in precious metals, where investor holdings in these two markets have fallen sharply and a resulting price crash………………………………………..Full Article: Source

Should you invest in stocks or commodities in 2014?

Posted on 30 December 2013 by VRS  |  Email |Print

It’s the dawn of a new year and investors are facing an array of fresh challenges. One of the intriguing investment parlor games is to contemplate whether stocks or commodities loom as the vehicles offering the best returns.
Stocks enjoyed a spectacular showing in 2013. But investors may fret that it is unrealistic to expect continued glowing returns from the Standard & Poor’s 500 in 2014 and thus turn to commodities………………………………………..Full Article: Source

Investors should abandon long-term commodity bets

Posted on 20 December 2013 by VRS  |  Email |Print

A key rule in financial markets is that rational investors should not take unnecessary risks. It is strange, then, that some savvy investors still allocate to commodities over a long-term, five-year-plus horizon. The assumption is that commodities diversify portfolios, hedge against inflation, and, in the case of gold, offer a safe store of value. But our research suggests these justifications for long-term bets on commodities are illusory.
First, the correlation between commodity and other asset price changes was near 20 per cent in the 1980s and 1990s. Commodities were better placed to diversify investment portfolios and hedge against risk………………………………………..Full Article: Source

Scotiabank’s top commodity picks for 2014

Posted on 20 December 2013 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index declined by a sharp -5.8 per cent month-over-month in November and is currently -10.4 per cent below a year earlier. While commodity prices lost ground in 2013 — partly due to disappointingly slow global growth (2.9 per cent in 2013, down from 3.2 per cent in 2012) — signs point to a bottoming in 2014 and a return of the ‘Bull-Run’ in the second half of the decade.
Zinc is a Top ‘Pick’ for early investors. Lumber should post another solid advance in 2014, with a 19 per cent year-over-year gain expected in Western Spruce-Pine-Fir 2×4 prices………………………………………..Full Article: Source

Go short gold, long nickel - Barclays

Posted on 20 December 2013 by VRS  |  Email |Print

2014 is likely to be another difficult year for Commodities, writes Barclays, in a note out earlier this week. But, it expects base metals to out perform both oil and precious metals in the early parts of the year.
The main reasons for this are twofold. Firstly, on the base metals side, Barclays expects 2014 to mark the end of a period of structural surplus that has afflicted base metal markets to a greater or lesser degree since 2007/2008………………………………………..Full Article: Source

Commodity investments seen by Barclays set for record outflow

Posted on 18 December 2013 by VRS  |  Email |Print

Commodity investments are heading for record outflows driven by withdrawals from gold exchange-traded funds as some investors lost faith in the traditional store of value, according to Barclays Plc.
Assets under management declined $88 billion since the start of the year through last month, Barclays said in a report e-mailed today. Net outflows reached $36.3 billion, also set for a record decline, it said. Investments in precious metals slid 40 percent since 2012 to $119 billion………………………………………..Full Article: Source

Chinese investors warned about African mining risks

Posted on 17 December 2013 by VRS  |  Email |Print

Chinese companies are keen to pour money into mining projects in Africa, but investors have received a fresh warning about the risks in the continent’s mining sector. Speakers at the recent Global Resource Investment Conference in Shenzhen told of some of the problems that can beset projects in resource-rich Africa.
“There are many potential Chinese clients who are interested in investing in mines in Africa, but there are lots of challenges,” said Cindy Pan, a lawyer at international law firm Dentons. Pan cited poor infrastructure, political instability, corruption, cultural differences, as well as other political and legal risks………………………………………..Full Article: Source

Commodity traders step up investments as prices decline -Trafigura

Posted on 16 December 2013 by VRS  |  Email |Print

The golden era for commodities is far from over and declines in previously overheated prices offer opportunities for trading houses to extend ownership of assets while still betting on continued growth in China and Africa, top player Trafigura said.
In its first fully public annual report since being set up 20 years ago, Trafigura said 2013 has been a year of “reappraisal in commodities” as many resource markets appeared to move into large surpluses while global growth looked insufficient to absorb increases in supply………………………………………..Full Article: Source

Speculators most bullish since October before drop: Commodities

Posted on 16 December 2013 by VRS  |  Email |Print

Speculators got the most bullish on commodities since October, buying more gold, cotton and soybeans, before prices fell the most in six weeks on signs of surplus supply.
The net-long position across 18 U.S.-traded commodities rose 8.9 percent to 677,505 futures and options in the week ended Dec. 10, the highest since Oct. 29, U.S. Commodity Futures Trading Commission data show. Gold wagers rose for the first time in six weeks. The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 1.3 percent last week, the most since Nov. 1………………………………………..Full Article: Source

Gold investors urge caution as miners consider return to hedging

Posted on 13 December 2013 by VRS  |  Email |Print

Investors in major gold miners say a return to hedging future production after a slump in gold prices would be a sign of financial weakness in companies and could rob them of the chance to reap the rewards of any price rebound.
The incoming chairman of Barrick Gold, the world’s largest gold miner, last week rekindled the debate over the practice of selling production forward. John Thornton, a former senior executive at Goldman Sachs, said he would seriously consider hedging………………………………………..Full Article: Source

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