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Commodities Briefing - Category | Investment more

China’s biggest bank just bought a vault that holds 2,000 tons of gold in a secret location near London

Posted on 18 May 2016 by VRS  |  Email |Print

ICBC Standard Bank Plc expanded its push into London’s precious metals market by agreeing to buy one of Europe’s largest vaults from Barclays Plc. ICBC Standard, formed last year after Industrial and Commercial Bank of China Ltd. — China’s biggest bank — bought a controlling stake in Standard Bank Plc’s global markets business, expects the purchase of the vaulting business and related contracts to be completed in July.
No financial details were given. About US$5 trillion of transactions are cleared every year in London’s gold market, which Barclays is exiting as it pulls out of precious metals………………………………………..Full Article: Source

Palladium left out of precious metals rally; investors shy away

Posted on 18 May 2016 by VRS  |  Email |Print

Investor appetite for palladium-backed exchange-traded funds is failing to pick up after a dismal 2015, pointing to another difficult year for the metal despite the prospect of a deepening supply deficit.
Market watchers are predicting the market shortfall for palladium will grow this year as mine output abates and demand from carmakers picks up. However, its prices have lagged the rest of the precious metals complex this year, rising 5 percent versus a 20 percent jump in gold and 17 percent climb in platinum………………………………………..Full Article: Source

Ag prices soar: Commodities get mojo back

Posted on 13 May 2016 by VRS  |  Email |Print

Investors have been harvesting big gains in the past month from agricultural commodities, and some of the futures, such as sugar and soybeans, were near levels this week not seen in 18 months or more.
Latin America weather woes and the Brazilian government turmoil are playing a major role in the month-long ag rally. Brazil’s real has strengthened against the dollar, encouraging producers of traditional export products, such as coffee and sugar, to sell supplies at home………………………………………..Full Article: Source

Africa Investors Look East as Commodity-Driven Boom Withers

Posted on 13 May 2016 by VRS  |  Email |Print

Investors targeting Africa are looking east, as depressed commodity prices and slowing growth in China put the brakes on a two-decade growth surge in the world’s poorest continent. Kenya, Tanzania and host Rwanda are the countries in vogue at the World Economic Forum’s annual confab of Africa’s business and political leaders that began Wednesday in Kigali.
All three economies should expand at least 6 percent this year, double the sub-Saharan Africa average, according to the International Monetary Fund. Growth in Ethiopia, the investors’ darling at last year’s WEF Africa summit, is set to slow to 4.5 percent this year, from 10.2 percent in 2015, as a drought curbs farm output………………………………………..Full Article: Source

Lithium - the commodity winner you can’t buy: Russell

Posted on 13 May 2016 by VRS  |  Email |Print

Lithium is the hottest commodity around these days, enjoying spectacular price gains and a blue-sky outlook that’s the envy of the natural resource sector. There’s just one problem though. It’s extremely difficult, and somewhat risky, to gain exposure to the sector.
Lithium isn’t traded on any major exchange, and doesn’t have futures contracts or swaps, thereby cutting out one of the main ways investors gain exposure to a commodity. This means the best way to access lithium’s story is through equities, but this isn’t as straightforward as it may seem………………………………………..Full Article: Source

Hedge-Fund Investors Called Commodities Markets’ Rebound: Chart

Posted on 13 May 2016 by VRS  |  Email |Print

Hedge-fund investors rushed into commodities money pools in the first quarter and the bet’s paying off. They allocated about $4 billion to the strategy in the period, benefiting as the pools returned 6 percent in the first four months.……………………………………….Full Article: Source

Blink and you’ll miss it: China’s two-month commodities bubble

Posted on 12 May 2016 by VRS  |  Email |Print

Chinese investors are known for their ability to drive markets to eye-popping extremes, resulting in some of the most spectacular booms and busts of recent times. The latest frenzy has been a bet on China’s economic recovery expressed through trading the commodities futures market, but how does it compare with history’s most-famous bubbles?
If the charts are anything to go by, the latest rage in trading commodities futures could already be over, after just two months that saw futures pricing in everything from iron ore to eggs and cotton rise as much as 50 per cent. ……………………………………….Full Article: Source

From bull to bear market: China commodities shakeout hits investors, threatens mills

Posted on 12 May 2016 by VRS  |  Email |Print

Only a month ago, Chinese commodities prices were skyrocketing, led by a stampede of speculative investors betting on early signs of recovery in the world’s second-biggest economy. Now, not only has the bubble been popped but a dive has left steel and iron futures 23 per cent off their April peaks and in bear market territory.
This in turn threatens to put the brakes on the restart of steel plants that became profitable as prices rose, as well as drive investors to other markets. When prices shot up in April, Chinese commodities exchanges moved quickly to raise trading fees and push speculators to dial down trading positions, anxious to ensure there was no repeat of the boom and bust Chinese stocks suffered last year………………………………………..Full Article: Source

Oil and Gas Drag Down Canada Investment Plans for Second Year

Posted on 11 May 2016 by VRS  |  Email |Print

Oil and gas companies hurt by low prices are leading a drop in Canadian investment plans for a second year, a government survey found. Planned spending by companies and governments on non-residential construction and machinery and equipment will fall.
4.4 percent in 2016 to C$241.6 billion, Statistics Canada said Tuesday from Ottawa. The survey backs up recent statements from Bank of Canada policy makers, who say the country is undergoing a complex adjustment as an oil-price shock and slower global demand hamper growth………………………………………..Full Article: Source

Is Gold a Strong Investment Through the Rest of 2016?

Posted on 11 May 2016 by VRS  |  Email |Print

There’s no doubt that gold has been an incredible investment throughout the year 2016. Since January first, the price of the precious metal has already gained by around 18%. Now the big question is, “Will gold remain as a strong investment throughout the rest of the year? In my opinion, the answer is yes. Today, we’ll talk about why.
Gold, like any other commodity is heavily dependent on the law of supply and demand. When supplies are low and demand is high, we tend to see gains in the price of gold. Adversely, when supplies are high and demand is low, we will likely see declines in the value of the commodity………………………………………..Full Article: Source

Gold investors return to funds as prices drop from one-year high

Posted on 11 May 2016 by VRS  |  Email |Print

Gold investors are piling back into exchange-traded products. While prices are hovering near the lowest in more than a week, holdings in bullion-backed funds rose 50 metric tons since April 25. That’s the biggest 10-day increase and longest run in two months.
A surge in purchases that helped boost bullion prices earlier this year ran out of steam in April as holdings fell 0.2%, the first monthly decline since December. After climbing to the highest in more than a year, prices retreated in the past week as the dollar gained on speculation the Federal Reserve remains on track to raise interest rates this year………………………………………..Full Article: Source

Should I Ever Invest in Gold?

Posted on 10 May 2016 by VRS  |  Email |Print

There are two schools of thought regarding gold: One camp advocates owning gold as a hedge against inflation, a weakening dollar, and stock market disaster. The other camp, which includes Warren Buffett, argues the yellow metal has no role in a modern portfolio.
“Gold is always an interesting topic to discuss with clients and other advisers,” says Joe Heider, founder of Cirrus Wealth Management in Cleveland. He shares Buffett’s view that your investment dollars are put to better use in other assets. “Gold has no intrinsic value other than for jewelry and some industrial use, and it produces no income,” says Heider………………………………………..Full Article: Source

Asset class pushes higher on sustained demand from investors

Posted on 09 May 2016 by VRS  |  Email |Print

Commodities markets were awash in green at the end of the week despite another small gain for the US dollar, as data showed that investors were continuing to pile into the asset class. Gold was among the strongest performers, with the June 2016 COMEX contract up by 1.71% to $1,294.00/oz. by the closing bell.
Commodity funds had another week of inflows, the 17th so far this year, pushing year-to-date inflows to almost $6bn, analysts at Bank of America-Merrill Lynch said citing figures from EPFR Global………………………………………..Full Article: Source

Gold is a useful portfolio diversifier

Posted on 09 May 2016 by VRS  |  Email |Print

Gold tends to perform well during periods of declining confidence. So, while you are framing an appropriate portfolio, remember that gold is an essential diversification tool. Investors have been worried about the volatility in equity markets over the past one year.
The first two months of 2016 also saw sharp correction in equities, and then a sharp pullback in March. Asset markets have been volatile and often bring into context the financial crisis of 2008, when equities were badly hit. Gold bucked the trend, and did well during this period. It also did well this year when equities were struggling………………………………………..Full Article: Source

Junk investors scramble after commodities rally

Posted on 06 May 2016 by VRS  |  Email |Print

The commodities rally has flummoxed junk-bond investors who bet on the sector staying soft this year, hurting returns at dozens of funds that did not foresee the rebound in energy and metals.
Oil, mining, steel and gas bonds have delivered whopping sector returns this year up to 27%, wrong-footing those who moved underweight after high-yield lost almost 5% in 2015. Investors who were heavy in commodities last year, as the sector was pummeled, but then got out before the bounce-back in recent months, have now been hit coming and going………………………………………..Full Article: Source

Investors – and Donald Trump – are loving gold. How long will the rush last?

Posted on 06 May 2016 by VRS  |  Email |Print

The gold price has soared alongside the fortunes of Donald Trump, a big fan of the precious metal. How long can the new gold rush last? Two phenomena that pundits said would almost certainly never happen have taken place this week: Donald Trump clinched the Republican presidential nomination, and the price of gold capped a 15-month rally by soaring above $1,300 an ounce.
Coincidence? Logic would suggest so. But then, this is anything but a logical market environment or presidential electoral cycle. And there are, in fact, several ways in which gold is the ultimate Trumpian investment……………………………………….Full Article: Source

Investing in Gold Through ETFs (Video)

Posted on 06 May 2016 by VRS  |  Email |Print

Greg King, chief executive officer at Rex Shares, discusses the price of gold, investing through ETFs and the outlook for the commodity. Last month REX launched the REX Gold Hedged S&P 500 ETF and the REX Gold Hedged FTSE Emerging Markets ETF . Both exchange-traded funds enable investors to diversify their portfolios by accessing exposure to the precious metal without reducing equity allocations.
The exchange traded funds also can help protect against the risk of a weakening U.S. dollar through exposure to the yellow metal, according to King. King speaks to Bloomberg’s Vonnie Quinn on “Bloomberg Markets.”……………………………………….Full Article: Source

How to Invest in Bottoming Commodities

Posted on 05 May 2016 by VRS  |  Email |Print

After falling to multi-year and in some cases, multi-decade lows, it appears that commodity markets might be bottoming. Barclays says the low the Bloomberg Commodity index put in during January’s selloff matched the all-time lows last hit in 1999, and since then the index has risen.
Investor interest is back in the commodity sector as assets under management for the precious metals, base metals, energy and agriculture markets are rising so far for 2016. That’s lifted values, with prices for commodities as disparate as crude oil, iron ore, gasoline, soybeans, coffee and gold all up for the year, too………………………………………..Full Article: Source

Investing after commodities super-cycle

Posted on 05 May 2016 by VRS  |  Email |Print

According to conventional wisdom, the challenges of global commodities can be attributed to China’s slowdown. Advanced economies are not immune. In the US, just two commodity-related sectors — oil and gas, as well as metals and steel — accounted for more than half of the defaults in 2015.
And yet, the rebound of most commodity price indexes in the first quarter suggests different realities. From iron ore to aluminum, most commodities have rallied. Silver is surging. And in China policy authorities have begun to clamp down the frenzy in the commodities markets. Conventional wisdom is off, once again. But why?……………………………………….Full Article: Source

Myths about investing in ETFs

Posted on 05 May 2016 by VRS  |  Email |Print

Exchange Traded Funds (ETFs) are one of the top investment trends of the last few years. We are seeing a growing number of investors buying ETFs and incorporating them into their strategies. But as the popularity of these investments has grown, so have the misconceptions. Below are five of the most common ETF myths.
ETFs can be a natural complement to a portfolio of individual shares. This is mainly because they offer access to a wide range of markets globally, many of which may not be accessible to UK investors………………………………………..Full Article: Source

Commodities become China’s hottest new casino

Posted on 04 May 2016 by VRS  |  Email |Print

China’s market regulator may have succeeded in taking much of the froth off the country’s surging commodities markets last week, but the message is not filtering down to many dedicated retail traders. As Chinese markets reopened on Tuesday after the May Day holiday, a few dozen young traders in Shanghai crowded into a small room provided by a local brokerage.
The mostly 20-something male traders, dressed in jeans and T-shirts, were looking forward to another week of fevered risk-taking in China’s hottest new casino. “It’s better for futures traders to be young because they can learn faster,” said Zhang Jun, 26, who has been trading commodities on the Shanghai Futures Exchange for three years but has only recently begun to make any money………………………………………..Full Article: Source

Harvard Professor Urges EMs To Buy Gold

Posted on 04 May 2016 by VRS  |  Email |Print

Emerging market economies need to shy away from the U.S. dollar and U.S. treasuries, and instead invest more in gold, this according to one Harvard profession.
Tuesday, in a commentary for Project Syndicate, Kenneth Rogoff, professor of Economics at the Ivey League university and former chief economist at the International Monetary Fund, recommended that emerging economies boost their gold reserves to about 10%, which would still keep them below some developed country’s gold reserves………………………………………..Full Article: Source

Beijing’s controls on speculative commodities trading are likely to increase

Posted on 02 May 2016 by VRS  |  Email |Print

Investors will be looking at Beijing’s efforts to rein in the latest outburst of speculative trading in Chinese commodity markets with a mixture of trepidation and dread. That’s because the surge in speculative trading in China’s commodity futures exchanges, and the vertiginous rise in prices, is worryingly reminiscent of the Chinese share market before the bubble burst in the middle of last year.
In the past month, Chinese retail investors and fund managers have flocked to the country’s commodity futures markets. On many days, trading in some commodity future contracts, such as iron ore, has been so large that it has topped the country’s annual imports………………………………………..Full Article: Source

Iron ore is China’s new casino

Posted on 02 May 2016 by VRS  |  Email |Print

The price of iron ore for decades was hammered out in secret talks between the world’s biggest miners and steelmakers. Now, the dominant force is an obscure commodities market in northeastern China, a stark example of how pricing power for everything from steel to copper is shifting east.
The change has been driven by Chinese investors who have poured billions of dollars into iron-ore futures traded on the Dalian Commodity Exchange. Their bets, reminiscent of last year’s frenzy in Chinese stocks, have generated as much dollar volume as gold futures in New York, according to data from Citigroup Inc………………………………………..Full Article: Source

Chinese Commodity Speculators Drop Out After $261 Billion Binge

Posted on 29 April 2016 by VRS  |  Email |Print

The speculators that traded $261 billion in Chinese commodities in a single day last week are retreating as regulators prepare to step up control of the market.
The value of futures traded across China’s three biggest commodity exchanges has shrunk 42 percent since investors spent 1.7 trillion yuan last Thursday on everything from steel bars to eggs. The amount that changed hands was on a par with the entire U.S. equities market on the same day………………………………………..Full Article: Source

Believe it or Not – It’s Way Too Early to Take Profits in Gold and Silver

Posted on 29 April 2016 by VRS  |  Email |Print

It was no fun investing in precious metals for most of 2011-2015, but the past few months have sure been a blast for buy-and-hold investors. Silver prices are up 22.5% year to date, and gold isn’t far behind. Now that there are some profits available to take, some gold and silver investors wonder if they should grab them. The answer for most people is not yet — not even close.
Yes, there are gains. But the real question for gold and silver investors isn’t whether or not there are profits, it’s whether there are better options for their investment dollars. What other assets have a better risk/reward profile? Cash? Stocks? Bonds? No thank you!……………………………………….Full Article: Source

Speculative Bubble in China Commodity Futures Rattles Industry Players

Posted on 28 April 2016 by VRS  |  Email |Print

A surge of volatility in China’s once placid commodities futures markets has rattled industrial players who use them for hedging, with some taking losses or cutting exposure, driven out by a flood of speculative money from hedge funds and retail investors.
A herd of financial investors charged into commodities futures markets this year, throwing money into iron ore, rebar, cotton, and even egg futures, causing rapid spikes and leading many to warn of similarities with last year’s boom and bust in Chinese stocks………………………………………..Full Article: Source

China acts to cool frenzied speculation in commodities

Posted on 27 April 2016 by VRS  |  Email |Print

China has moved to clamp down on excessive speculation in commodities after weeks of frenzied trading boosted prices and ignited fears of another bubble in its domestic markets.
Iron ore and steel futures in China fell back again yesterday after the authorities raised transaction costs to cool rapid gains that had raised concerns that an unstable speculative bubble was forming. However, other commodity futures, including coking coal, kept surging………………………………………..Full Article: Source

China’s Gold Imports Jump on Investment Demand as Price Falters

Posted on 27 April 2016 by VRS  |  Email |Print

China, the world’s biggest gold consumer, increased bullion imports from Hong Kong in March as a global price rally stalled and local investment demand showed signs of recovery. Net purchases climbed to 64.1 metric tons from 42.9 tons in February and 61.8 tons a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg.
The mainland bought nearly 76.3 tons compared with 55.1 tons a month earlier, while exports to Hong Kong were 12.1 tons from 12.2 tons. Mainland China doesn’t publish the data………………………………………..Full Article: Source

Steel Speculation Obscures Signals About Chinese Economy

Posted on 27 April 2016 by VRS  |  Email |Print

Investors searching for clues about China’s economy have looked to commodities like iron ore and rebar as a sign of industrial health. Now, speculation in the market is obscuring those signals, some say.
Trading of iron ore futures on the Dalian exchange is up fivefold from a year ago, according to Goldman Sachs Group Inc. Volumes during two days in the past month surpassed the amount of iron ore actually imported by China last year, the bank’s analysts say………………………………………..Full Article: Source

Barclays: Gold Leads Investment In Commodities During First Quarter

Posted on 26 April 2016 by VRS  |  Email |Print

Investors appear to be focusing on individual commodities more-so than passively buying the entire sector, with gold a beneficiary, says Barclays. Commodities investment surged in the first quarter, with $24.2 billion of inflows and price appreciation bringing assets under management in commodities to $193 billion, the bank calculates.
“Gold has been the primary driver of investment flows so far in 2016, taking over from oil, which was the dominant driver in 2015,” Barclays says. Precious metals had the second-largest quarterly inflows on record at $15.7 billion, the bank says………………………………………..Full Article: Source

Hedge Funds Losing Investors, Goldman Seeking Customers – Podcast

Posted on 26 April 2016 by VRS  |  Email |Print

Hedge funds are finally putting up some good performance numbers, but that isn’t doing much for their reputation. On Monday’s MoneyBeat podcast, WSJ reporters Timothy Martin and Tim Puko joined us to talk about hedge funds, and the money that is flowing out of them.
The industry has had net outflows in five of the past six months, a rare stretch of investor rejection. There is one exception, however: Commodity hedge-funds, which just had their best quarter for inflows in six years. The irony is that hedge funds just put in their best performance for a quarter in nearly four years………………………………………..Full Article: Source

Should you run with the commodities herd?

Posted on 22 April 2016 by VRS  |  Email |Print

Another week of climbing commodities prices must be making true believers of professional investors, whether they like it or not. At some point, fund managers have to start looking nervously at their performance against a benchmark that is being turbocharged by the most hated sector of them all: resources.
Last year was tailor made for the average investor using the sharemarket index as a benchmark. All you needed to do was be underweight banks and resources and you could boast you were beating the market and earning your fees………………………………………..Full Article: Source

So investors, what if the oil price heads south again?

Posted on 22 April 2016 by VRS  |  Email |Print

Strong oil and weak dollar influence shares, EM, junk debt and FX. We are all oil traders at the moment. The resilience of crude prices in the wake of a failed production freeze deal in Doha firmly illustrates the importance of black gold for sentiment across the broader financial system at the moment.
Talk of a freeze in recent weeks propelled the robust recovery in oil prices. However, the lack of an agreement and the crackling tension between Iran and Saudi Arabia is being downplayed by energy traders. They are looking ahead to the prospect of supply and demand becoming balanced during the second half of the year, thus supporting crude prices………………………………………..Full Article: Source

5 Tips on Buying Silver

Posted on 22 April 2016 by VRS  |  Email |Print

In today’s economic climate, investing in precious metals makes sense. More and more investors are looking at buying silver, and there are several ways to accomplish this. Investing in gold and silver is an ideal way to both diversify an investment portfolio and to hedge against adverse conditions in the market.
While the silver market isn’t nearly as large as the market for gold investing, it’s an affordable investment that provides many protections as well as healthy returns. In fact, silver has seen double-digit returns in the last seven out of ten years, and 2016 is expected show more promising numbers………………………………………..Full Article: Source

Why you need to ‘stay away’ from gold

Posted on 21 April 2016 by VRS  |  Email |Print

Investors and traders have gone for gold in the past few months, but some analysts warn that the metal could be set for a drop. “Gold is a notoriously difficult trade,” said Eddy Elfenbein, editor of the Crossing Wall Street blog. “It’s a highly speculative bet on the direction of short term interest rates, real rates, and I think with the Fed where they are right now and with the last inflation report, I don’t think real rates are going to go any lower for the rest of the year.”
Gold lost a third of its value between the start of 2013 and the end of 2015. But in 2016, the metal has become a highly sought after commodity, as the Federal Reserve has avoided tightening interest rates, and the dollar has turned a bit lower………………………………………..Full Article: Source

3 things every gold investor must know today

Posted on 21 April 2016 by VRS  |  Email |Print

ASX-listed gold miners have been killing it in the first four months of 2016, a welcome change after a poor year in 2015. Shares in EVOLUTION FPO are up a massive 29% so far this year, while Northern Star Resources Ltd is up a massive 33%.
However before jumping into gold mining shares today, here are three things that you should be aware of: 1. Analysts reckon the gold price could keep climbing……………………………………….Full Article: Source

How Smart People Mess Up Investing In Commodities (Video)

Posted on 20 April 2016 by VRS  |  Email |Print

Why is it that so many seasoned investors mess up when they decide to enter the commodities market? Otherwise smart people seem to lose all reason and are frequently left with a handful of nothing.
I sat done recently with veteran commodity markets investor Jeff Christian to discuss this matter. His experience goes back decades to the 1970s commodities boom and then he survived the two-decade bear market which lasted from 1980 through the turn of the millennium………………………………………..Full Article: Source

Is investing in commodities worth the effort and hand-wringing?

Posted on 19 April 2016 by VRS  |  Email |Print

Commodities offer Canadian investors the chance to add diversity to their portfolios — which usually include a mix of cash, stocks and bonds — because they tend to generate returns on a different basis than the other asset classes.
But there are a lot of reasons why the prices of commodities fluctuate: seasonality, global or regional economic growth, supply and demand, the U.S. currency, the weather and geopolitical conflict, among others. This complex dynamic is tough for investors, especially novice ones, to decode and then properly time. So yes, there is money to be made in commodities, but can mom and dad stomach the ups, downs and unknowns?……………………………………….Full Article: Source

PE opportunities switching to base metals

Posted on 19 April 2016 by VRS  |  Email |Print

The 16% gold price in 2016 has sent stock market valuations soaring higher and the improved margins have provided gold counters with more flexibility in terms of their finances. As a result, the need to complete deals in order to secure much needed funds has become less urgent.
Isser Elishis, chief investment officer of North America’s Waterton Global Resource Management told Bloomberg the best investment opportunities are currently in base metals and that he expects to do half-a-dozen transactions in this space this year………………………………………..Full Article: Source

Making Africa work: The continent’s future depends on people, not commodities

Posted on 15 April 2016 by VRS  |  Email |Print

Only a few years ago people were queuing up to invest in Africa. As recently as 2012 Zambia paid less than Spain to borrow dollars. Private-equity funds dedicated to Africa raised record sums to invest in shopping malls and firms making everything from nappies to fruit juice.
Businessfolk salivated at the prospect of selling to the fast-growing African middle class, which by one measure numbered 350m people. Miners sank billions into African soil to feed China’s appetite for minerals. Now investors are glum. In the short run, they are right to worry. ……………………………………….Full Article: Source

UBS: Gold-Investment Demand Offsetting Soft Physical Market

Posted on 15 April 2016 by VRS  |  Email |Print

Investment demand for gold is more than offsetting weakness in the physical market, thereby driving prices higher so far this year, says UBS. “Many are becoming increasingly convinced about gold’s strength and believe that the market has entered a new phase,” UBS says, noting it has a “constructive” view on the metal.
“Those who are looking for higher gold prices argue that low/negative interest rate environments, deteriorating confidence (in) central banks and the effectiveness of monetary policy, currency depreciation and downside risks to equities markets should all make a case for more upside.”……………………………………….Full Article: Source

Private Equity Eyes Base-Metal Deals as Rally Buoys Gold Miners

Posted on 15 April 2016 by VRS  |  Email |Print

Private equity firm Waterton Global Resource Management is finding the best investment opportunities are in industrial metals as surging gold prices give precious metal companies some “breathing room.”
The Canadian firm, whose billion-dollar investment fund focuses on North American mines, expects to do half a dozen base-metal deals this year as producers continue debt-reduction efforts after prices slumped, Chief Investment Officer Isser Elishis said. In contrast, gold’s 16 percent rally this year is taking pressure off miners to sell assets, at least for now………………………………………..Full Article: Source

Investment in copper, a boom and bust cycle of a different kind: Andy Home

Posted on 13 April 2016 by VRS  |  Email |Print

Do you remember JPMorgan’s Physical Copper Trust? Registered in October 2010 with the Securities and Exchange Commission (SEC), it was probably one of the most controversial commodity investment vehicles ever conceived.
Although structured as a publicly-traded stock offering, it was to be backed by physical copper, 61,800 tonnes of it. Within days BlackRock had filed for an identical product almost twice the size with an implied holding of 121,000 tonnes. Copper manufacturers were outraged at the concept of nebulous “investors” stepping into the physical supply chain and several of them fought a two-year rearguard action in the courts to block it. ……………………………………….Full Article: Source

Why Some Investors Are Hot on Gold

Posted on 12 April 2016 by VRS  |  Email |Print

Some investors most likely entered a panic mode at the very beginning of 2016. With growing uneasiness in the Chinese markets, money was withdrawn from China. Also, equity markets went tumbling with the oil market rout. Currencies were vulnerable, and one option where investors could park their money was precious metals. Gold has surged a whopping 16% on a year-to-date basis. Silver followed gold, rising 9.3% on the same basis.
Changes in gold and other precious metals have been largely dependent on the US dollar in 2016. The US dollar eased 3.8% on a year-to-date basis as speculation of an interest rate hike continued. Weakness in the US dollar often gives some breathing room to US-dollar-denominated assets………………………………………..Full Article: Source

Gold Sees Safe-Haven Demand on European Union Worries

Posted on 08 April 2016 by VRS  |  Email |Print

A feature in the world marketplace Thursday is the rally in the gold market. Safe-haven demand has again surfaced for the yellow metal as a referendum in the Netherlands on European Union-Ukraine trade relations has failed, prompting more concerns about the U.K. referendum in June to opt out of the European Union.
A U.K. exit from the European Union could spell the eventual doom for the EU. A weaker U.S. dollar index that hit a nearly eight-month low Thursday is also a positive for the precious metals markets on this day. June Comex gold was last up $14.70 at $1,238.30 an ounce. May Comex silver was last up $0.166 at $15.22 an ounce………………………………………..Full Article: Source

Why Goldman’s commodity chief wants investors to bet against gold

Posted on 06 April 2016 by VRS  |  Email |Print

Gold futures have been among the best performers this year. But that hasn’t stopped Goldman Sachs’ head of commodities, Jeff Currie, from recommending that investors bet against the yellow metal. “Short gold! Sell gold!” That was Currie’s unabashed advice during a CNBC interview Tuesday after discussing the outlook for crude-oil futures.
Currie’s rationale is fairly straightforward: The closely followed Goldman strategist sees the Federal Reserve raising benchmark interest rates at some point in 2016 and believes the result of higher rates will be a drag on the dollar-denominated precious metal………………………………………..Full Article: Source

Hedge funds up bullish bets on rising oil prices

Posted on 31 March 2016 by VRS  |  Email |Print

Hedge funds and other money managers have amassed a near-record number of bullish bets on increasing oil prices, helping push the main international benchmark well above $40 per barrel.
By the close of business on March 22, money managers held a net long position equivalent to almost 579 million barrels in the three largest crude oil futures and options contracts. Hedge funds have more than doubled their net long position from just 242 million barrels at the end of last year, according to an analysis of data published by regulators and exchanges………………………………………..Full Article: Source

China investors drive gold price spike as bullion beats jewellery

Posted on 30 March 2016 by VRS  |  Email |Print

Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewellery and contributing to the metal’s price rise of about 15 per cent from six-year lows in December.
Typically, gold purchases in China are strongly associated with jewellery buying around the Lunar New Year holiday, which this year fell in early February. But uncertainty confronting global economies along with forces in Chinese markets have driven up gold demand from a different sort of buyer: the hard-nosed investor………………………………………..Full Article: Source

Bears are fleeing the oil market at a record pace, but that’s no reason to be bullish

Posted on 29 March 2016 by VRS  |  Email |Print

Oil enthusiasts haven’t been jumping on board the latest rally. As crude has soared 50 per cent since Feb. 11, the number of bets on increased prices has barely budged. Instead, the upward pressure on prices appears to have come from traders cashing out of bearish wagers at an unprecedented pace.
The liquidation of short positions during the last seven weeks covered by data from the U.S. Commodity Futures Trading Commission was the largest on record. “The rally has come from shorts getting scared out of their positions, and you’re not seeing a lot of money coming in on the long side,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. “It really calls into question the fortitude and staying power of the rally.”……………………………………….Full Article: Source

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