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Commodities Briefing - Category | Investment more

Worried Indian investors hasten to sell out gold

Posted on 23 May 2014 by VRS  |  Email |Print

Indian investors are seen in a hurry to sell out their physical gold collection as Modi-led new government has eased gold import duties to boost the precious metal import which is likely to pull down gold prices significantly.
At present, the gold market has thronged with sellers rather than buyers. The anxious investors bring gold bars and coins that they purchased months ago, said Mr. Jitendra Kantilal Jain, proprietor of Jugraj Kantilal and Co., a large dealer in recycled gold in the western Indian city of Mumbai’s Zaveri Bazaar……………………………………..Full Article: Source

Geopolitical Changes Keeping Investors’ Interest in Gold

Posted on 22 May 2014 by VRS  |  Email |Print

According to the World Gold Council (WGC), the gold demand in Q1 2014 was 1,074 tonnes, three tonnes lower than in Q1 2013. Consumer demand, especially jewellery demand, has continued to drive gold demand. Central banks have net purchased 122 tonnes of gold, the 13th consecutive quarterly rise while ETP outflows have dropped to 0.2 tonnes for the quarter.
While the WGC described that the fundamentals and long-term demand trend have remained robust, the world largest gold-backed ETP, the SPDR Gold Trust, has just seen its lowest holdings since December 2008………………………………………Full Article: Source

Should you invest in gold now?

Posted on 22 May 2014 by VRS  |  Email |Print

The rally in the equity markets from August/September 2013 has seen the benchmark indices, the S&P Sensex and the CNX Nifty, move up by 35 per cent till now, with investor preference shifting to riskier assets such as equities.
In contrast, gold and silver, considered safe haven bets in uncertain times, lost 8.8 per cent and 20.4 per cent, respectively, during this period. Consumer demand (in monetary terms) for jewellery, gold bars and coins dipped 41 per cent in the first quarter of calendar year 2014 to $7,911 million. In physical terms, it was 26 per cent lower, at 190.3 tonnes………………………………………Full Article: Source

Gold: Global jewellery demand rises 3%, investment demand remains unchanged in Q1

Posted on 21 May 2014 by VRS  |  Email |Print

Gold demand for jewellery making rose 3% in Q1 2014 to 57 lt while total investment demnad was 282 tons compared to 288 tons in the same quarter previous year, according to World Gold Council.
WGC report shows a return to the long-term quarterly average demand trends established over the past five years.Following an exceptional year in 2013 gold demand in Q1 2014 was 1,074 tonnes (t), almost unchanged compared to the same period in 2013 - a clear demonstration that the fundamentals of the gold market remain robust…………………………………..Full Article: Source

Africa investors turn away from commodities

Posted on 20 May 2014 by VRS  |  Email |Print

Foreign investors pouring money into Africa are increasingly turning away from commodities-led projects to tap into the growing consumer market, while smaller, less-established countries are also getting a bigger lion’s share. In its annual report on Africa released last week, EY revealed the continent became the world’s second-most attractive investment destination in 2013, just behind North America. In addition, Africa’s share of global foreign direct investment (FDI) reached its highest level in a decade, at 5,7%, while capital investments grew by 12,9% in the same period.
But 2013 also saw some major shifts in investment trends on the continent. Mining and metals, for instance, are no longer the main beneficiaries of FDI and the list of the top 10 countries in FDI projects showed some surprising trends…………………………………….Full Article: Source

Investors Set To Pressure Oil Industry Over $1.1 Trillion Exposure To High-Cost Projects

Posted on 16 May 2014 by VRS  |  Email |Print

ExxonMobil’s publication of a report into its climate risks felt like a ground-breaking moment in the debate about carbon-stranded assets. Just a month later, another such moment has arrived, in the form of the latest report from Carbon Tracker, the campaign group that highlights the risks that climate change presents for investors.
The report says that energy companies have earmarked an estimated $1.1 trillion of capital expenditure for projects that can only make money if the oil price remains higher than $95 per barrel, while some are only viable at a price of $120-$150………………………………………..Full Article: Source

Wall Street banks count commodities trading profits

Posted on 15 May 2014 by VRS  |  Email |Print

While the world has been writing epitaphs for Wall Street banks’ commodity trading desks, Wall Street has been counting its ­profits. Banks that held firm amid an industry pullback from energy, metals and agricultural markets – and even some that beat a partial retreat – mined a rich seam as North America’s coldest winter in three decades drove up energy prices, results show.
Citigroup, Goldman Sachs, Morgan Stanley and Macquarie flagged commodities trading as a bright spot in first-quarter earnings. Coalition, a consultancy which tracks banks’ performance, estimates revenues for the top 10 banks in commodities rose 20 per cent year on year in the three months to March………………………………………..Full Article: Source

Is Now The Time To Buy Gold?

Posted on 15 May 2014 by VRS  |  Email |Print

Is the recent rebound in gold too good to be true? After falling hard in 2013 – posting a decline of 28% – the precious metal managed to claw its way upwards to revisit $1,300 an ounce. Many analysts began to believe that the yellow metal was about to rally. As such, funds like the iShares Gold Trust once again saw inflows.
But some big-name strategists are saying that investors shouldn’t be buying into the bling just yet. There are more declines and better prices around the corner. And when they hit, investors should be buying all they can………………………………………..Full Article: Source

Precious Metals Investing: Gold, Silver, Platinum, and Palladium

Posted on 15 May 2014 by VRS  |  Email |Print

The precious metals complex looks a little discombobulated lately, with each metal playing from a different page of sheet music. Gold, after hitting a six-month high of $1,391 mid-March, quickly lost over $100 in two weeks to below $1,280 by the start of April, and has been stuck in a sideways range since then.
Silver, after hitting a four-month high of $22.04 at the end of February, has been dropping ever since, losing more than 11% to its current $19.50………………………………………..Full Article: Source

Why you should short gold now: BofA technician

Posted on 14 May 2014 by VRS  |  Email |Print

Is it time to short gold? That’s the latest call from MacNeil Curry, head of global technical strategy at Bank of America Merrill Lynch, who says the yellow metal is poised to drop as much as 9 percent.
“First and foremost, we’ve been in a medium-term downtrend since peaking out back in March at about the $1,392 area. And price action since the beginning of April has done nothing to reverse that downtrend. All we’ve been doing is consolidating,” Curry said……………………………………….Full Article: Source

Cool commodities? Mining stocks back in vogue

Posted on 13 May 2014 by VRS  |  Email |Print

Bashed, beaten and unloved, mining stocks have fallen out of favor with investors in the last two years as commodity prices showed signs of peaking. But just when things could have turned from bad to worse it appears that the basic resources sector is the new contrarian play for 2014.
Nothing sums up the change in opinion better than JPMorgan’s assessment of the situation in a research note on Monday. Detailing a rebound in activity, the U.S. investment bank has stated it is now “overweight” on the mining sector, after being “underweight” for the last two years………………………………………..Full Article: Source

IEA says extra $44 tn needed for clean energy future

Posted on 13 May 2014 by VRS  |  Email |Print

The global cost of securing a clean energy future is rising by the year, the International Energy Agency (IEA) warned Monday, estimating that an additional $44 trillion of investment was needed to meet 2050 carbon reduction targets. Releasing its biennial “Energy Technology Perspectives” report in Seoul, the agency said electricity would increasingly power the world’s economies in the decades to come, rivalling oil as the dominant energy carrier.
Surging electricity demand posed serious challenges, said IEA executive director Maria van der Hoeven. “We must get it right, but we’re on the wrong path at the moment,” Van der Hoeven told reporters in the South Korean capital………………………………………..Full Article: Source

A Warning For Oil Investors: Is Carbon Riskier Than You Think?

Posted on 09 May 2014 by VRS  |  Email |Print

For oil executives there are few things more exciting than expensive, large-scale projects aimed at pumping more of the black gold. That doesn’t mean investors in oil majors should approve.
Large oil companies are betting up to $1.1 trillion on “high-risk” oil projects over the next decade, according to London-based think tank The Carbon Tracker Initiative. Investors, it says, should question the assumptions underpinning that spending………………………………………..Full Article: Source

Oil groups warned over spending on high-cost areas

Posted on 08 May 2014 by VRS  |  Email |Print

Oil companies with reserves in high-cost areas such as Canadian tar sands or deep water are at risk of committing too much capital to uneconomic projects, according to an environmental campaign group that works with investors to highlight the risks of climate change.
In a report to be published on Thursday, Carbon Tracker warned that policies to curb greenhouse gas emissions and improve energy efficiency would restrict future oil demand and prices, meaning that companies with high-cost production would find they could not earn acceptable returns on their investments………………………………………..Full Article: Source

Climate rules could put $1.1 trl in oil investment at risk

Posted on 08 May 2014 by VRS  |  Email |Print

Investors could spend up to $1.1 trillion over the next decade on oil projects and assets that never reach production if governments enforce measures to curb climate change, a report by Carbon Tracker Initiative said.
The Carbon Tracker report, released on Thursday, could help funds and other investors avoid putting their money in oil assets that remain buried forever. The $1.1 trillion, around 15 percent of the decade’s total global oil and gas spending at current rates, is earmarked for projects to 2025 that require a market price of at least $95 a barrel to break even………………………………………..Full Article: Source

Jim Rogers Wants a Chance to Buy Gold More Cheaply

Posted on 07 May 2014 by VRS  |  Email |Print

Jim Rogers: I’m very bad at market timing. I’m a very bad short-term trader, so I have absolutely no idea what is going to happen. I do own gold, but I have hedged some of my gold. I expect there will be another opportunity to buy gold sometime in the next year or two.
If that means gold is under $1,000, I hope I’m smart enough to buy. If it means gold is $1,600 because America and Iran end up going to war, I hope I’m smart enough to buy it. In my view, it’s more likely there will be another chance to buy gold lower than now, and that’s why I’ve hedged some of my gold, but I’m not selling………………………………………..Full Article: Source

How to Make an Income Through Gold

Posted on 06 May 2014 by VRS  |  Email |Print

One of the most common objections to an investment in gold is the fact that gold doesn’t pay a dividend. It just “sits there,” and because of this, it evokes the “greater fool” theory from skeptics — that “the only reason to buy gold is so that you can find another sucker to sell it to at a higher price.”
Nevertheless, since the beginning of the 21st century, gold has outperformed virtually all income-generating assets. The reason for this is that gold retains its value, while fiat currencies such as dollars and euros do not: Central banks can create as much of these currencies as they want to, and it doesn’t really matter how much dividend income you can generate if the currency you are being paid in is losing value………………………………………..Full Article: Source

Commodities comeback on the horizon

Posted on 05 May 2014 by VRS  |  Email |Print

Twelve months is a long time in investment. “2013 was a year when many investors may have questioned the role of certain asset classes, especially commodities,” says Nick Spencer, director of consulting at Russell Investments, after a year in which the Dow Jones-UBS commodity index lost 9.5 per cent but the Russell 3000 US equity index jumped 33 per cent.
So far this year the Dow Jones index has rebounded 9 per cent, and Hermes Fund Managers has declared the outlook for commodities to be its most propitious for a decade………………………………………..Full Article: Source

Hedge Funds Reduce Gold Bets to Lowest in 11 Weeks

Posted on 05 May 2014 by VRS  |  Email |Print

Speculators are the least bullish on gold in 2 1/2 months on mounting confidence that U.S. economic growth is accelerating out of its winter retreat.
Money managers cut their net-long position in bullion to the smallest since mid-February during the week ended April 29. Wagers tumbled 25 percent last month, the most since November, and investors cut their holdings in exchange-traded products backed by the metal to the lowest since 2009………………………………………..Full Article: Source

Be glad you didn’t buy gold and silver in 2012

Posted on 05 May 2014 by VRS  |  Email |Print

If you watched much cable television in 2011 and 2012 you couldn’t help but be bombarded by all those commercials urging you to buy gold and silver. The pitch was bolstered by scary economic headlines. The dollar was falling. Congress was one big partisan gridlock and the not-so-subtle message of these ads was you’d better buy now before the whole house of cards collapses.
It would have been easy to be tempted. The price of both precious metals was rapidly rising. At the beginning of 2011 the price of gold stood at $1,405 an ounce. The following September it peaked at over $1,900………………………………………..Full Article: Source

Are commodities a good long-term investment?

Posted on 02 May 2014 by VRS  |  Email |Print

Since the beginning of this year, commodities have performed remarkably well. For example, while the S&P 500 has gained 2%, the Dow Jones Commodity index has gained 10%. Why have commodity values increased? Well, it is due to a number of reasons that include more positive news regarding the global economy, international political concerns, and extreme weather conditions.
Which Commodities are Currently Increasing in Price? Two commodities that have done particularly well are coffee and nickel with increases of over 15% in the past month alone. Coffee is up in price mainly due to the dry weather Brazil is experiencing, and nickel is mainly up in price due to the mineral ore export ban Indonesia imposed in January. However, as the economies in China, Europe, and the US improve, most base metals have benefited from the more positive economic news………………………………………..Full Article: Source

Secretive Swiss commodities giants are buying big chunks of US energy

Posted on 02 May 2014 by VRS  |  Email |Print

Some of the world’s biggest commodities traders are buying up key pieces of the infrastructure that’s driving the US energy production boom. Secretive commodities investors like Vitol Group, Trafigura Beheer B.V. and Mercuria Energy Group are among the firms amassing physical assets like shale oil wells, oil and gas pipelines and offshore drilling projects in the US, Bloomberg reports.
Why? The controversial fracking boom, which has driven US energy production sharply higher in recent years. Commodities firms want to get a piece of that production. They also see opportunities for arbitrage—that is profiting from price discrepancies—in the sometimes inefficient US oil and gas transport system………………………………………..Full Article: Source

Commodities favoured in portfolio rotation

Posted on 30 April 2014 by VRS  |  Email |Print

After several years of poor performance investors are warming to commodities. Helped by the return of volatility, strong returns and declining correlations with other asset classes, money has started to trickle back into the sector.
After a record $50bn of net redemptions in 2013, total inflows into passive index tracking and commodity-linked exchange traded funds this year have so far totalled just over $6bn, according to research by Citigroup. Agriculture, energy and bullion funds have led the way………………………………………..Full Article: Source

Investing in South America – Watch out for falling copper prices

Posted on 30 April 2014 by VRS  |  Email |Print

To say the least, 2014 has proven to be a difficult year for copper bulls. The metal has been drastically underperforming the major indexes such as the Dow Jones Industrial Average and the S&P 500. In addition the performance has also been lagging gold and silver.
Unfortunately, news from this past week isn’t providing much comfort and it appears that the pressure will continue to be to the downside over the short-term. From a trader’s perspective, the strategic move will be to take this underperformance and examine the influence that it is having on copper exporting nations such as Peru and Chile………………………………………..Full Article: Source

Commodities: To buy or not to buy?

Posted on 28 April 2014 by VRS  |  Email |Print

Commodity prices are on the rise, as gold, corn and other basic materials climb back from steep declines—and outpace U.S. stocks. The rebound may stir hopes that a longer-term boom has resumed after three rough years for natural resources, and a measured bet could pay off.
But for ordinary investors, commodities often are a raw deal. They should take a hard look before loading up. First, weigh whether you need the exposure. Perhaps the main reason investors hold commodities is to hedge against inflation. But inflation remains muted in the U.S………………………………………..Full Article: Source

Commodities: A better long-term bet?

Posted on 28 April 2014 by VRS  |  Email |Print

For longer-term investors, equity markets have generally remained the risk asset class of choice. However, with equities around the world now finding it hard to continue the bullish momentum of the last few years, investors are now looking to alternative markets to diversify risk, and for potentially better returns.
One such is commodities, which has performed well since the start of the year, with the Dow Jones Commodity index currently up 10%, compared with to just 2% for the S&P 500. In addition, and perhaps more significantly, many of the traditional correlations between equities, bonds, commodities and currencies, and in particular the risk-on-risk-off relationships, have all broken down as the financial markets continue to be distorted by quantitative easing………………………………………..Full Article: Source

Investors starting to look at commodities again

Posted on 25 April 2014 by VRS  |  Email |Print

After several tough years, investors are once again starting to warm to commodities. That is the view of one of the sector’s most successful hedge fund managers. According to Pierre Andurand, “smart investors” are growing concerned about their exposure to equities and are looking to place contrarian bets in other asset classes such as commodities.
“We feel sentiment is turning. Pension funds are coming to us and saying they want to invest in commodities while others aren’t looking,” says Mr Andurand, whose eponymous hedge fund returned almost 25 per cent last year………………………………………..Full Article: Source

Commodity investors brace for El Niño

Posted on 25 April 2014 by VRS  |  Email |Print

Commodities investors are bracing themselves for the ever-growing possibility for the occurrence of a weather phenomenon known as El Niño by mid-year which threatens to play havoc with commodities markets ranging from cocoa to zinc.
The El Niño phenomenon, which tends to occur every 3-6 years, is associated with above-average water temperatures in the central and eastern Pacific and can, in its worst form, bring drought to West Africa (the world’s largest cocoa producing region), less rainfall to India during its vital Monsoon season and drier conditions for the cultivation of crops in Australia………………………………………..Full Article: Source

Indecent exposure [to commodities]

Posted on 25 April 2014 by VRS  |  Email |Print

Before there were alternative investments (”alts”) or hedge funds, having some exposure to commodities, served as a good way to diversify a portfolio against stock market volatility. Historical correlations to the stock market are rather low, or at least sporadic, and owning commodities can also be seen as a hedge against inflation (higher costs of raw goods).
However, since the price of crude oil cratered from $150 per barrel all the way down to $40 back in 2008, the commodities asset class as a whole has been more or less shunned. Despite the price of oil having somewhat recovered — it currently trades around $100 — now might be a good time to un-shun………………………………………..Full Article: Source

Investors exit ETFs as commodities seen fading

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg. The benchmark Standard & Poor’s/TSX Composite Index (SPTSX) is in its 10th month of gains, the longest winning streak since 1983, and has soared 20 percent in the past year. The gauge rose 0.2 percent to 14,557.27 at 10:55 a.m. in Toronto………………………………………..Full Article: Source

Canadians are dumping ETFs on commodity doubts

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg………………………………………..Full Article: Source

How to protect your portfolio from rising geopolitical risk

Posted on 24 April 2014 by VRS  |  Email |Print

Investors should buy into the energy sector to protect their portfolios from rising levels of geopolitical risk, according to Russ Koesterich, global chief investment strategist at BlackRock. Data from FE Analytics shows that specialist energy funds have done very well so far this year, with an uptick in performance in recent weeks as the Ukraine crisis has escalated.
Koesterich says he expects the outperformance to continue, and suggests overweighting the sector. “We are advocating an allocation to energy stocks, which have outperformed the broader market year-to-date,” he said………………………………………..Full Article: Source

Is this the best contrarian strategy for precious metals investors?

Posted on 23 April 2014 by VRS  |  Email |Print

Often, the word “contrarian” equates to investors attempting to catch a falling knife. You don’t need to look like a used butcher’s block for contrarian strategies to pay off in the long run, however.
Recently, the precious metals markets have been consolidating following a severe decline from all-time highs. If you believe that they will someday regain popularity following another economic decline, political debacle, above average inflation, or other crisis, however, then join the club………………………………………..Full Article: Source

Should your portfolio own commodities?

Posted on 22 April 2014 by VRS  |  Email |Print

Should your investment portfolio have exposure to commodities? The problem with commodities is that most of us don’t have storage space in the garage for a herd of cattle or pork bellies. And even if we did, it still wouldn’t give us diversified exposure to other important commodity sectors like agriculture, energy and metals.
It’s true commodities have significantly lagged the performance of U.S. stocks over the past several years. But that doesn’t diminish their importance………………………………………..Full Article: Source

Time to rethink your commodity investment strategy, says Citi

Posted on 16 April 2014 by VRS  |  Email |Print

It is time to take commodities seriously as an investment, and in particular a portfolio diversifier, according the strategists at Citi. They point out metals, hydrocarbons and basic foodstuffs have outperformed equities and bonds over the past quarter.
Citi’s team expects that trend to continue into the second three months of the current year. And its analysts go as far as to suggest the historic relationship between stocks, government debt and commodities has returned to a normal pattern. The negative correlation between equities and commodities, made the latter and ideal ‘diversifier’ in a balanced portfolio………………………………………..Full Article: Source

China underinvestment affects commodities in South Africa

Posted on 16 April 2014 by VRS  |  Email |Print

A long-term investment in South African commodities — especially gold — is expected to produce a sizable payoff, according to a CCTV Africa report. Standard Bank Commodities Analyst, Walter De Wet, expects that prices will continue to rise as stocks mature and production heightens. More importantly, with the increased investment of China, commodities in Africa — and on a global scale — will edge toward stability.
“We think that China is underinvested in this metal. We do think the physical demand from west to eats will continue. Once the U.S. market is normalized and stabilized, we do think that gold will continue to grind higher,” De Wet said. ”We think long-term price for gold is closer to $1,500 than $1,100.” ……………………………………….Full Article: Source

When investment bankers go wrong on Gold, Silver prices predictions

Posted on 14 April 2014 by VRS  |  Email |Print

On average, every quarter we are exposed to yet another price guidance by a mainstream analyst. Such analysts usually reside within a large investment bank. These calls become focal points for a sector and often seem to carry with them some form of self fulfilling prophecy.
Many come directly from the big financial firms and investment houses. They are respected because of their size and brand, which gives them credibility based solely on relative visibility. Goldman-Sachs was too big too fail; it was rescued and given banking status. “When the world’s most intelligent FDIC-backed hedge fund, pardon, bank says the current market structure is no longer necessary to Goldman, people notice, and promptly imitate”………………………………………..Full Article: Source

Silver being left behind in latest gold price surge – but don’t despair!

Posted on 14 April 2014 by VRS  |  Email |Print

Silver investors will have been a little disappointed by the metal’s performance vis-a-vis the gold price following the latter’s gains after the release of the latest U.S. FOMC meeting minutes. The minutes suggested that the low interest rate regime may well continue longer than expected and resulted in a major boost to the stock market and a significant uptick in the gold price.
But it had rather less impact on silver which initially remained stuck below the $20 mark, although this morning’s trade has at last see it move up above this mark. Perhaps European investors are less pessimistic about silver’s investment credentials………………………………………..Full Article: Source

Do commodities belong in your allocation?

Posted on 08 April 2014 by VRS  |  Email |Print

The market price of a basket of commodities should increase roughly in line with inflation, but why would there be returns beyond this? While the spot prices of commodities tend to track inflation, futures contracts of commodities have historically delivered positive returns.
John Maynard Keynes laid the foundation of modern thinking on commodity futures markets . He proposed that investors in commodity futures are providing risk capacity to the producers of commodities by allowing them to lock in a fixed price for commodities to be delivered at a future date. In other words, investors in future contracts are essentially insuring commodity producers against a decline in prices in the future………………………………………..Full Article: Source

Happy days are here again:Commodities spring back to life

Posted on 07 April 2014 by VRS  |  Email |Print

Happy news! Investors are coming back to commodities. Barclays pointed out that there has been a huge increase in hedge funds length across commodity markets in 2014 with more investors likely to raise their commodity exposure in the next twelve months.
Volatility is back, returns are strong and declining correlations with other asset classes- the mood is improving. Barclays survey showed that financial investors are optimistic and raised their exposure to US commodities futures to a post financial crisis peak in recent weeks………………………………………..Full Article: Source

Investor risk rises as energy partnership world gets crowded

Posted on 07 April 2014 by VRS  |  Email |Print

High-yielding energy partnerships have lured billions in capital from investors in the past few years and the returns have often matched or beaten expectations.
But as riskier kinds of businesses adopt the Master Limited Partnership (MLP) structure, and as interest rates rise, investors are getting a wake-up call about some of the scary stuff lurking in the sector………………………………………..Full Article: Source

Is the bull phase of the commodity super-cycle over?

Posted on 02 April 2014 by VRS  |  Email |Print

Many investment banks, with Goldman Sachs among them, say that the bull phase of the commodity super-cycle is over. Commodity super-cycles generally last 30 to 40 years. There is an initial 15 to 20 year phase where demand outstrips supply, and a later 15 year phase where supply outstrips demand.
In the first phase of the current commodity cycle, many metal, energy, and agricultural commodities have doubled in price since 2000. Over the past several years, however, prices have been, at best, range-bound. This has led to many market pundits declaring that the bull phase of the commodity super-cycle is over. So what’s causing prices to stay range-bound, and are there any compelling reasons to own commodity producers?…………………………Full Article: Source

Net gold investment to fall 9.5 mln ozs in 2014 - CPM

Posted on 27 March 2014 by VRS  |  Email |Print

Commodities specialists CPM Group forecast Tuesday that the decline in investment demand for gold will continue this year as “a tug of war between short and long term investors is expected to weigh on overall net additions to gold investment holdings,” which are projected to deteriorate from 30.9 million ounces in 2013 to 21.4 million ounces in 2014.
“The price sensitivity among longer term investors, renewed strength in equity and real estate markets, and weak demand from some major gold consuming nations could deflate the price of gold and drive away shorter term investors,” CPM advised in its Gold Yearbook 2014, which was released Tuesday afternoon…………………………………Full Article: Source

Invest in a gold – Precious metals IRA

Posted on 21 March 2014 by VRS  |  Email |Print

According to a new survey, Only 44% of Americans say they or their spouses have calculate how much money to t live comfortably in retirement, let alone how to invest it. Only 18% of workers are confident they’ll retire comfortably.
For those who do save, taking the extra time to plan out how to shine in their golden years, it is just as important to have a strong, diversified portfolio. To those responsible savers, Gold IRA’s are an obvious choice………………………………………..Full Article: Source

2 easy ways to add commodities to your portfolio

Posted on 19 March 2014 by VRS  |  Email |Print

Commodities have outperformed stocks since the start of the year, but many investors have not benefited. Why? Because if there’s one category where most investment portfolios are lacking market exposure, it’s probably commodities.
Unless you live on a farm, most of us don’t have enough storage space for 150 barrels of crude oil (USO) or a herd of cattle (COW). Like any asset class, commodities have their advantages and drawbacks………………………………………..Full Article: Source

Investors are feeling bullish about gold

Posted on 19 March 2014 by VRS  |  Email |Print

The international markets have witnessed lots of uncertainty of late, especially in respect of the Ukraine crisis. Traders have been shying away from traditional investments in the form of stocks in favour of gold and other safe-haven alternatives. The price of gold has risen sharply this year – in the region of 15%.
The recent referendum results confirm what investors and political commentators already knew: Crimea was always going to side with Russia. Since over 50% of the electorate in the region voted in favour of secession, it would typically be a binding resolution. However, it has largely been condemned as illegal owing to the ubiquitous presence of Russian military personnel and threats of violence. The markets have reacted to this uncertainty in the same way they always do – by buying gold………………………………………..Full Article: Source

Commodity assets expand for first time since August after rally

Posted on 18 March 2014 by VRS  |  Email |Print

Commodity investments grew for the first time since August as prices of coffee to cocoa to hogs surged, and the trend may continue, Barclays Plc said. Raw-materials assets under management expanded $13 billion last month to $327 billion, with exchange traded products gaining $6 billion, the bank said.
Investors added $2 billion to commodities from precious metals to agriculture and energy, while rising prices also boosted the assets. The Standard & Poor’s GSCI gauge of 24 raw materials rose 4.4 percent last month, the most since July………………………………………..Full Article: Source

Time to reconsider commodities?

Posted on 18 March 2014 by VRS  |  Email |Print

Last year the so-called commodities “supercycle” was widely declared dead, but with price drops – and investors more optimistic about the global economy on the whole – it may be worth rethinking shunning this sector.
From the late 1990s to the 2008 crisis, the price of oil rose 1,062%, while copper shot up 487%, according to investment house Pimco. Behind this meteoric rise were emerging markets where wealth was growing quickly, causing increased demand for food, energy and the inputs of industrialisation and urbanisation………………………………………..Full Article: Source

With volatile commodities, ETFs offer a way in

Posted on 17 March 2014 by VRS  |  Email |Print

149 commodity exchange-traded funds out there but just a handful are broadly diversified. Coffee is up 80% this year. Lean hogs are up 28%. Corn is up 13%. Gold is up 12%. Most of these same commodities were down last year, and any of them could fall at the drop of a hat.
So how do rational investors participate in the upside for unpredictable commodities without losing their all-cotton shirts? One approach is to invest in a diversified basket of commodities. That lowers the chance of a big loss and adds diversification to an investment portfolio, since commodities tend not to track the stock market. While there are 149 commodity ETFs, only a handful are broadly diversified………………………………………..Full Article: Source

Three reasons to buy gold now

Posted on 13 March 2014 by VRS  |  Email |Print

When it comes to gold bullion prices, despite their mere 10% climb since the beginning of 2012, I wouldn’t be at all surprised to see gold bullion prices increase even further. With this, companies producing or looking for the precious metal are still presenting a great buying opportunity.
Let me explain… We see demand for gold bullion continues to increase, and at the same time, supply constraints are slowly starting to show. This is something I have been talking about for some time now and at the very core, it is the perfect recipe for higher gold bullion prices ahead………………………………………..Full Article: Source

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