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Commodities Briefing - Category | Investment more

Commodities luring investors

Posted on 14 July 2014 by VRS  |  Email |Print

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 About $5.9 billion was added to raw materials investments this year, compared with a record $50 billion withdrawn in 2013, Citigroup Inc. estimates.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

Goldman Stays Gold Bear as Bullish Wagers Increase: Commodities

Posted on 14 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc.’s Jeffrey Currie isn’t backing down from his bearish call on gold. As bullion’s 11 percent rally this year beats gains for equities, commodities and Treasuries, he’s sticking with the view that the metal will be lower by the end of December as the economy improves.
Currie, who last year got ahead of the biggest gold collapse since 1980, is an undeterred bear even as hedge funds add to their bullish holdings for a fifth straight week and assets in exchange-traded products advance………………………………………..Full Article: Source

The Best Way to Invest in Silver

Posted on 11 July 2014 by VRS  |  Email |Print

Mining is highly cyclical, with commodity prices rising and falling in long-term trends. For Foolish investors, these cyclical industries allow for classic value investing, with the market offering great companies at deep discounts that can yield market-crushing long-term total returns. This article highlights silver and explains the long-term bullish case for the precious metal.
More importantly, it offers a low-risk way for long-term investors to profit immensely should silver prices soar. Silver has many important uses other than jewelry or a store of value that can justify long-term price appreciation………………………………………..Full Article: Source

Is it Time to Put Precious Metals in Your Portfolio?

Posted on 11 July 2014 by VRS  |  Email |Print

Many experts have been calling “game over” for more than a year, yet the stock market continues reaching new highs. And while the “average length” of a bull market is quoted as being anywhere from four to nine years or more – the experts can’t agree on that either – at five years at counting, many believe the current bull market is at least approaching retirement.
And that always brings out the promoters of a precious metal play. Is it time to put a little gold or silver in your portfolio? In a typical Wall Street hedge, Russ Koesterich, chief investment strategist for BlackRock says yes – and no………………………………………..Full Article: Source

Is investing in gold a good decision?

Posted on 10 July 2014 by VRS  |  Email |Print

Is this is a ‘golden’ opportunity? There is so much media glare on equities that investors have little opportunity to evaluate other options. The perceptive investor however, does not focusing on the media. He wants to know if there is any opportunity out there that he may be overlooking; perhaps an opportunity in gold?
It is normal for investors to think a little contrarian at this stage. Everyone is talking of equities hence they are looking for something other than equities that has not quite shot up to the same extent. Enter gold………………………………………..Full Article: Source

Is Now The Right Time to Buy Silver?

Posted on 10 July 2014 by VRS  |  Email |Print

Silver is indeed a gentleman’s currency. However, it has been two years of downside pressure for investors in silver, but I have recommended accumulating it heavily once it dipped under $23 an ounce and almost took to the streets to encourage buying at $18 an ounce. I have been buying silver at a strong clip.
Prices have now come back and stabilized around $21 and it is likely just the beginning. Inflation is slowly — very slowly — starting to creep up in corners of the world, and that is a nice source of upward pressure for the metal. Still, we are a long way from $50 per ounce. Is now a good time to buy silver? There are key supply and demand issues that you need to be aware of and several ways to play the metal………………………………………..Full Article: Source

Good returns bring investors back to commodity ETFs

Posted on 09 July 2014 by VRS  |  Email |Print

The best commodities performance in years has rekindled interest in exchange traded funds that allow investors to trade the price of energy, metals and grains on stock markets. At one time, some ETFs were so large that critics contended they distorted wholesale markets for food and energy. Assets held in many of the biggest funds have shrunk from their peaks.
But new figures show investors began to creep back into commodity ETF products as the benchmark Bloomberg Commodity Index rose 7.1 per cent in the first half of the year. The direction of flows varied by geography and sector, however……………………………………Full Article: Source

Why commodities belong in your retirement portfolio

Posted on 04 July 2014 by VRS  |  Email |Print

The recent turmoil in Iraq led many forecasters to predict that oil and gasoline could be headed for a substantial price increase. Jay Leno once joked, “Gas prices continue to rise. At the gas station near my house they have a slot for your credit card and one right next to it for your 401(k).”
The price of oil can be very volatile. Oil prices have a history of price spikes that are associated with geopolitical unrest. In 1979, the price of crude doubled to $38 per barrel. Using an inflation adjustment based on CPI data from 1946-2014 that equates to over $115 per barrel in today’s dollars. Oil spiked again in 1990 during the Gulf War. In June 2008 oil reached an all-time high when it averaged an inflation-adjusted price just over $135 per barrel for the entire month………………………………………..Full Article: Source

Gold Investing Sentiment Hits 4.5-Year Low

Posted on 02 July 2014 by VRS  |  Email |Print

Gold investing amongst private households sank to the weakest sentiment in nearly 4.5 years in June. Bulls can blame last month’s jump above $1300 per ounce. It spurred the number of sellers on Bullion Vault – the world’s largest physical gold provider online – and deterred new buyers. That took our Gold Investor Index down to 51.2, the lowest reading since February 2010.
The Gold Investor Index is a unique window onto private investing behavior in gold. Unlike an exchange-traded trust fund (ETF), BullionVault has few professional money managers amongst its 52,000 users. Unlike a retailer dealing coins or small bars, we also enable our users to sell their vaulted property instantly, when they choose (and offering it at their own price too if they wish)………………………………………..Full Article: Source

More investors plan to overweight commodities -Credit Suisse

Posted on 27 June 2014 by VRS  |  Email |Print

More investors plan to ramp up on commodities over the next 12 months after years of pessimism toward the sector, betting that the Iraq conflict will push oil prices higher while other commodities prices advance in volatile trade, a Credit Suisse poll showed on Thursday.
The Swiss bank said it found a favorable view developing toward commodities at a conference in New York this week, when it surveyed 350 investors, including institutions, hedge funds, family offices, mutual funds and corporate firms. A year ago, the bank said most investors at a similar Credit Suisse conference expressed reservations on commodities………………………………………..Full Article: Source

Is Now The Time To Buy Commodities?

Posted on 27 June 2014 by VRS  |  Email |Print

For active traders thinking about investing in commodities now could be the time. As you can see from the chart below, the price of the iPath Dow Jones-UBS Commodity Total Return ETN (DJP) has recently bounced off its 200-day moving average. The bullish long-term buy signal is being confirmed by the MACD indicator crossing above its signal line.
These two technical buy signals along with a rising RSI indicator suggests that commodity prices could be heading higher over the months ahead. Aside from the technical chart patterns, price movements of major underlying commodities are also suggests that a move higher is likely in the cards……………………………………….Full Article: Source

Buy gold if it dips to $1,298-1,302/ounce

Posted on 27 June 2014 by VRS  |  Email |Print

Comex gold futures were lower on Thursday, retreating from this week’s two-month high as a firmer tone in equities suggested investors could be switching back into risky assets, abandoning haven gold.
It has struggled to maintain gains, however, as higher prices curbed physical demand and investors stuck to the side lines, awaiting a clearer picture for the US monetary policy. China’s gold imports from Hong Kong dropped in May to the lowest level since January last year as a weaker yuan curbed appetite for the precious metal………………………………………..Full Article: Source

A New Way to Buy Gold

Posted on 26 June 2014 by VRS  |  Email |Print

Despite some truly frightening conflicts in the Middle East and Ukraine, despite signs of inflation in the United States, and despite promises to “print” from both the Japanese and European central banks, the price of gold has barely managed to climb above $1,300 an ounce.
In fact, gold was the worst-performing asset class in 2013 — down 24.8 percent. Yet gold is still the best-performing asset of this century!……………………………………….Full Article: Source

Interest increases for commodities

Posted on 24 June 2014 by VRS  |  Email |Print

Investor inflows into exchange traded products can broadly be divided into two camps: those that look to use mainly ETFs in specific equity and bonds markets for some tactical asset allocation plays, and those that are looking for exposure to specific and niche areas of the market, particularly commodities.
David Patterson, head of UK wholesale distribution for passive investment products at DeAWM, notes: “Once equity markets bottomed out after the 2008 crash, the recovery has seen US equities in particular show tremendous growth. Anyone holding an ETF tracking the S&P 500 for the past five years would have done extremely well – the index is up almost 200 per cent since the market bottomed out………………………………………..Full Article: Source

Investors need to guard against oil price spike

Posted on 19 June 2014 by VRS  |  Email |Print

Investment managers are learning to embrace failure. They have been wrong on two critical calls this year, on bond yields and on oil. As a result, the best friend of hedge fund managers, momentum, has for the time being deserted them. The issue now is to guard against the growing possibility of a true oil price spike.
The first call investors got wrong was on US Treasury yields. They were almost universally expected to rise gently from 3 per cent; instead, they have fallen to as low as 2.5 per cent. That led to drama within the market in spring as investors exited from cyclical sectors that do well when the economy is expanding (and hence bond yields are rising)…………………………………..Full Article: Source

Why Gold Belongs In Your Portfolio

Posted on 18 June 2014 by VRS  |  Email |Print

Gold as an investment is one of the most difficult assets to forecast, predict and understand. Being a commodity, its price can vary rapidly due to events beyond anyone’s control. So why then does gold belong in your portfolio?
Investors use gold as an investment for a variety of reasons. Some investors use gold as a hedge against inflation, others as a hedge against a declining dollar and some as a safe haven during periods of political and economic turmoil. In my opinion, gold is a great portfolio hedge against a significant market recession as seen in 2002 and 2008………………………………………..Full Article: Source

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5 Things to Know Before Investing in Precious Metals

Posted on 17 June 2014 by VRS  |  Email |Print

Precious metals mining is a fickle industry. It changes constantly because of price volatility, market demand, and the costs incurred for capital-intensive projects. Then, there’s always something else that causes mining companies to change plans. Here are five things to consider before investing in precious metals.
1. Price volatility is inherent to the industry: Precious metals prices follow no set pattern or trend. They can swing up or down in a flash. For example, Canadian Mining Journal reported this month that, “A rare combination of ongoing strikes in South Africa’s platinum group metal mines combined with political tensions between Russia and Ukraine have translated into three-year highs for palladium prices in early June, resulting in one of the few bull markets for a mining commodity this year.”……………………………………….Full Article: Source

Are Gold Miners Worth Investing In?

Posted on 13 June 2014 by VRS  |  Email |Print

Gold mining stocks were hammered last year as gold prices fell almost 30%. Investments in gold fell as investors pulled money out of exchange traded funds. This was mainly due to the fact that the U.S. Federal Reserve indicated that it will start winding up its quantitative easing program.
The Fed has already started easing its bond purchases this year, however, surprisingly gold and gold mining stocks have performed well. So are gold miners worth investing in after last year’s sharp decline?……………………………………….Full Article: Source

IEA Investment Report: What is Right; What is Wrong

Posted on 11 June 2014 by VRS  |  Email |Print

Recently, the IEA published a “Special Report” called World Energy Investment Outlook. Lets’s start with things I agree with: 1. World needs $48 trillion in investment to meet its energy needs to 2035. This is certainly true, if we assume, as the IEA assumes, that world economic growth will actually improve a bit, from 3.3% per year in the 1990 to 2011 period to 3.6% per year in the 2011 to 2035 period. It is likely that the growth in investment needs will be even higher than the IEA indicates.
In my view, this is a CYA report. The IEA sees trouble ahead. There is no way that investment of the needed amount (which is likely far more than $48 trillion) can be met. With the publication of this report, the IEA can say, “We told you so. You didn’t invest enough. That is why energy supply ran into huge problems.”……………………………………….Full Article: Source

India: FMC takes steps to restore investor confidence in commodities market

Posted on 09 June 2014 by VRS  |  Email |Print

To revive investor confidence in commodities market that has plummeted after the NSEL crisis, sector regulator FMC has asked the Securities and Exchange Board of India (SEBI) to make it mandatory for listed companies to disclose their exposure in commodities hedging.
The Forward Markets Commission (FMC) has also written to the Finance Ministry to direct banks to insist on borrowers, who have exposure to commodities, hedging their price risks………………………………………..Full Article: Source

IEA warns of looming energy investment shortfall

Posted on 06 June 2014 by VRS  |  Email |Print

A looming energy investment shortfall risks derailing carbon-reduction targets the International Energy Agency (IEA) has warned. In a new report, World Energy Investment Outlook, the IEA said that to meet global energy demand, around $40 trillion will need to be invested by 2035, while a further $8 trillion will need to be spent on energy efficiency.
“The reliability and sustainability of our future energy system depends on investment,” IEA executive director Maria van der Hoeven said. “There is a real risk of shortfalls, with knock-on effects on regional or global energy security, as well as the risk that investments are misdirected because environmental impacts are not properly reflected in prices.”……………………………………….Full Article: Source

Sell gold if it rallies to $1,267-70

Posted on 06 June 2014 by VRS  |  Email |Print

Comex gold futures are seen consolidating in a broad range moving with a bearish bias. As mentioned in the previous update, prices could further accelerate towards $1,245 or even lower to $1,220-25. An immediate target is around $1,220-25 levels. Failure to find support here could be seen a sign of weakness further denting sentiment.
Subsequently, prices have the potential to even test $1,185-90 range. Mild oversold conditions prevailing in charts could see a pullback to resistances in the coming week. Resistances will be seen at $1,260 followed by $1,278 now. Only a move above $1,285 could lessen the chances of the expected decline to above mentioned levels………………………………………..Full Article: Source

Five Reasons Why Indian Investors Are Selling Gold

Posted on 05 June 2014 by VRS  |  Email |Print

Spot gold prices in India are hovering around Rs. 27,000 per 10 gm, the lowest in over four months. The catalyst for the fall has been the recent easing of some import restrictions from the Reserve Bank of India. Also, traders anticipate a further fall in gold prices if the Narendra Modi government decides to rewind some of the import restrictions imposed by the earlier government.
Easing of Import Restrictions: The Reserve Bank of India last month removed some curbs on imports of gold. This led to a fall of Rs. 800 in gold prices on May 22, its biggest one-day fall this year. The RBI expanded the number of private agencies that can import the precious metal while also allowing banks to provide gold loans to the sector………………………………………..Full Article: Source

Mideast investment shortfall may hit oil prices

Posted on 04 June 2014 by VRS  |  Email |Print

A potential shortfall in investment in production in the Middle East could create a $15 increase in the oil price by 2025, the energy arm of the Organisation for Economic Co-operation and Development (OECD) said.
The world will need to invest $40 trillion in energy supply and $8trn on energy efficiency by 2035 to meet growing demand and falling output from mature sources of energy, the International Energy Agency (IEA) said in a report. A large proportion of the investment to increase output will need to come from the Middle East as a rise in non-Opec production such as US shale oil starts to lose steam in the mid-2020s………………………………………..Full Article: Source

Here’s How to Navigate the Commodity Investing Waters

Posted on 03 June 2014 by VRS  |  Email |Print

In the past couple of years, commodities have not been a good place to put your money. However, longer term, they have been outperforming stocks. Since the turn of the century, there are many commodities that have increased several multiples in price:
Oil has risen from $20 per barrel to more than $100 per barrel. Corn has risen from $2 per bushel to nearly $5 per bushel. Gold has risen from $250 per ounce to $1,250 per ounce. Copper has risen from less than $1 per pound to more than $3 per pound. This strong performance is due to a couple of factors. The first is rising demand, particularly from emerging market countries with economies that are growing rapidly………………………………………..Full Article: Source

Global investors show less confidence in Australia

Posted on 03 June 2014 by VRS  |  Email |Print

A new global study shows the US has extended its lead as the country with the most positive sentiment from offshore investors, while Australia has slipped in the rankings.
The closely watched analysis of investor sentiment, from consulting firm AT Kearney, saw Australia dip to eighth spot after being leapfrogged by both the United Kingdom and Germany………………………………………..Full Article: Source

Why Investors Should Consider Silver

Posted on 02 June 2014 by VRS  |  Email |Print

Silver is the one of the world’s most versatile commodities. Also classified as a currency, silver is one of the world’s best conductors of electricity and heat. Its versatility is exemplified by its use in products ranging from electronics, antiseptics, solar panels, silverware and jewellery.
In the commodity ETF world, silver ETF’s have among the lowest expense ratios, notably because silver is a quasi-currency with very low storage costs yet the majority of its demand is for industrial purposes. Demand is increasing rapidly along with increasing global per-capita incomes and rapid electrisation…………………………………….Full Article: Source

Why Investors Might Want To Exercise Caution

Posted on 30 May 2014 by VRS  |  Email |Print

The M&A frenzy in commodity related stocks is not taking place in the E&P plays like we suspected but rather a much more boring segment of the commodity space; food stocks. There is a rush to combine in the sector as companies look to build up scale in order to help in negotiating placement of their products as well as the price they receive.
This is a trend we suspect will continue and based off of all the recent action it appears that the sweet spot of the market is $4-8 billion market capitalization area. We are not speculators in the sector but if we were that is the area of the market we would focus on………………………………………..Full Article: Source

How to Invest in Commodities—and Why You Should

Posted on 28 May 2014 by VRS  |  Email |Print

For the first time since 2010, commodities are showing signs of life. So far this year, a diversified package of commodities is outpacing both the stock and bond markets. But if you hold some of these basic materials in your portfolio—or are tempted to get back in now—you’ll want to be careful about how you ride the turnaround.
Beyond improving performance, there are two good reasons to hold some commodities—or, to be more precise, investments that track the price of commodities. Diversification is one. Research shows that commodities typically don’t move in sync with stocks and bonds, and that’s holding true now………………………………………..Full Article: Source

In Australia, Mining Investment on a Swift Course Downward

Posted on 28 May 2014 by VRS  |  Email |Print

You know that feeling you get when the rollercoaster passes the crest of the hill and begins to accelerate downward, almost vertically? Welcome to the Australian economy — at least the investment component of it.
Australia is facing what has been dubbed a “capital expenditure cliff,” which essentially marks the moment when the gentle decline in mining investment over the past year gathers sudden, alarming speed. Data on first-quarter investment, due Thursday, is expected to show total business investment fell 1.5% from the fourth quarter, according to a survey of 15 economists by the Wall Street Journal………………………………………..Full Article: Source

Trillion-Dollar Question: Are Oil Companies Over-Investing in High-Cost Projects?

Posted on 27 May 2014 by VRS  |  Email |Print

Over the next decade, private-sector companies may invest over $1 trillion to develop new sources of high-cost oil production. Much of this future production will (1) be profitable only if oil prices remain near current (historically-high) levels; and (2) come online at a time when global oil demand may be entering the start of a long-term decline.
Investors in oil producers need to ask: how rigorously do these companies stress-test new projects against scenarios of declining oil demand and diminished oil prices? Last year the world consumed 91 million barrels per day of oil to fuel cars and trucks, heat buildings, make petrochemicals, and generate electricity, among other uses………………………………………..Full Article: Source

India: Commodity investors keep fingers crossed as Modi takes over

Posted on 26 May 2014 by VRS  |  Email |Print

As Narendra Modi gets ready to take over as Prime Minister, investors in the commodity market are a little worried over his views on futures trading.
The reason: in 2011, a Working Group on Consumer Affairs headed by Modi had recommended a ban on futures trading in essential commodities, to control prices. The Working Group was set up in April 2010 by the UPA Government to find ways to control inflation, which had breached the 11 per cent-mark………………………………………..Full Article: Source

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

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