Fri, May 27, 2016
A A A
Welcome vaishu
RSS

Commodities Briefing - Category | Investment more

The long view is the only view on commodity income

Posted on 06 January 2016 by VRS  |  Email |Print

We hear a lot of criticism these days of people focussing too much on the short term. Whether it be business people not looking beyond next quarter’s financial results, or politicians supposedly hostage to a 24 hour news cycle. Both claims, in my view and experience, are greatly overstated.
Where I do find worrying short-termism, however, is in Australia’s approach to commodity prices. The media will show a 2-3 year graph of, say, oil or iron ore prices dropping from over $100 a barrel or tonne to now be around $40………………………………………..Full Article: Source

Base metal investors may not be able to wake up from this nightmare

Posted on 06 January 2016 by VRS  |  Email |Print

You know it’s grim when a sector’s primary bull case involves bankruptcy. Unfortunately for those in the base metals space, “that’s the situation we find ourselves in,” said Edward Meir, senior commodity analyst with INTL FCStone. The just-concluded year of 2015 is one that base metals investors will desperately want to forget.
Amid a dour environment for commodities overall, these industrial metals were among the hardest hit. Aluminum slid 11 percent, copper was down 24 percent, nickel dropped 42 percent, and precious-metal-with-industrial-uses platinum fell 26 percent. With that in mind, observers warn not to expect much in the way of a reprieve………………………………………..Full Article: Source

Commodities a ‘compelling’ investment opportunity in 2016

Posted on 05 January 2016 by VRS  |  Email |Print

Having serially disappointed investors for a while, commodities could offer one of the most compelling investment opportunities in 2016. The sector’s attractiveness is likely to increase as the year proceeds, offering multiple entry points for potentially attractive medium-term return opportunities.
Exploiting them will require emphasis on portfolio construction, with the design of the right investment vehicles as important as careful asset selection. To say that 2015 was a difficult year for commodities would be an understatement. While oil grabbed most of the headlines with a drop of one-third in price to seven-year lows, the damage was widespread with copper, corn, platinum and sugar also falling significantly………………………………………..Full Article: Source

Commodity exposure in 2016 requires care

Posted on 05 January 2016 by VRS  |  Email |Print

Having serially disappointed investors for a while, commodities could well offer investors one of the most compelling investment opportunities in 2016.
The sector’s attractiveness is likely to increase as the year proceeds, offering multiple entry points for potentially attractive medium-term return opportunities. Exploiting them will require emphasis on portfolio construction, with the design of the right investment vehicles as important as careful asset selection………………………………………..Full Article: Source

Why Now Is the Time to Buy Gold

Posted on 05 January 2016 by VRS  |  Email |Print

Gold has a message for the market: You’re a nut if you trust the Fed. In the days since the arbiters of American monetary policy raised interest rates on December 16 — the first rate hike in nearly a decade — gold prices have pretty much gone nowhere. On December 15, the day before the Fed’s announcement, gold closed near $1,065.
As I write this, it’s at $1,070 … and it has seen a high of $1,084 and a low of $1,052. Like I said, it has gone nowhere. Which, if you believe the claptrap that passes for institutional knowledge and learned wisdom on the business news channels, defies preconceptions about the metal………………………………………..Full Article: Source

Investors Go for Gold as Market Tumbles

Posted on 05 January 2016 by VRS  |  Email |Print

Gold started 2016 on a bright note. Investors seeking safety from the tumbling stock market and rising tensions in the Mideast are buying beaten-up exchange-traded funds that track the price of gold and the miners that dig it out of the ground.
The nearly $22 billion SPDR Gold Trust , or GLD, and was up 1.2% while the S&P 500 fell 2.2%. Even gold producers, some of last year’s most troubled companies as gold prices fell for a third straight year, rose on Monday. The $4.3 billion Market Vectors Gold Miners ETF added 1.5% on the heels of five years of declines, 2015’s topping 25%………………………………………..Full Article: Source

Seven magnificent commodity bets for 2016

Posted on 04 January 2016 by VRS  |  Email |Print

It’s always tempting for commodity analysts to issue forecasts for the coming year, even though we intrinsically know that the future is inherently uncertain and even the most reasoned expectations can be easily confounded by events. With that in mind, and with a nod to my fellow Australians’ love of a punt, I’ve decided rather to do a list of bets I may be tempted take in commodity markets in 2016, assuming I was allowed to wager.
1. Crude oil will trade both below $30 a barrel and above $60 in 2016: Logic and momentum suggest the first part of this bet is a no-brainer, with both Brent and WTI crude already having tested below $35 (Dh128.45) a barrel. The second part relies on history repeating itself insofar as when the bottom is reached, the rebound tends to be rapid………………………………………..Full Article: Source

Big oil to cut investment again in 2016

Posted on 04 January 2016 by VRS  |  Email |Print

With crude prices at 11-year lows, the world’s biggest oil and gas producers are facing their longest period of investment cuts in decades, but are expected to borrow more to preserve the dividends demanded by investors.
At around $37 a barrel, crude prices are well below the $60 firms such as Total, Statoil and BP need to balance their books, a level that has already been sharply reduced over the past 18 months. International oil companies are once again being forced to cut spending, sell assets, shed jobs and delay projects as the oil slump shows no sign of recovery………………………………………..Full Article: Source

2016 to see global oil and gas investments at lowest level in six years

Posted on 04 January 2016 by VRS  |  Email |Print

News agency Reuters is reporting that the oil price slump witnessed in 2015 will loom large over 2016 as: “Global oil and gas investments are expected to fall to their lowest in six years in 2016 to $522 billion, following a 22 percent fall to $595 billion in 2015, according to the Oslo-based consultancy Rystad Energy.”
This news comes as little surprise as the appetite for expensive investment projects is likely to be low amongst management teams looking to batten down the hatches to ride out a crude oil price slump largely attributed to an oversupplied market………………………………………..Full Article: Source

Commodity funds hemorrhage cash as investors bail at record pace

Posted on 29 December 2015 by VRS  |  Email |Print

Investors can’t seem to get away from non-energy commodities fast enough. A record US$857 million was pulled this year from U.S. exchange-traded funds backed by broad baskets of everything from grains to metals, according to data compiled by Bloomberg through Dec. 23.
The value of the funds plunged 26 per cent as raw materials tumbled to a 16-year low. Hedge funds are expecting more losses, betting on price declines for gold, copper, corn and natural gas. While energy-linked funds were the only commodity group to see net inflows this year, oil and gas didn’t escape an almost across-the-board decline in prices………………………………………..Full Article: Source

Commodities’ cycle upsets investor returns

Posted on 29 December 2015 by VRS  |  Email |Print

If one of your new year’s resolutions in 2015 was to invest in a FTSE 100 tracker, you may be ruing the day you did so. With the end of the year upon us, the global resources rout has dragged the index down by more than 7 per cent since January (though an average dividend yield of 4 per cent provides some consolation).
The big question is whether the oil companies and mining stocks that have dug passive investors into a deep hole can climb out of it next year — but few are willing to predict a happy ending in the short term. The table of the FTSE 100’s biggest losers is dominated by the miners. Topped by Anglo American — down 75 per cent this year as the collapse in the iron ore price caused its dividend payments to cave in — Glencore, BHP Billiton and Antofagasta make up four of the worst five performing stocks, with Rio Tinto languishing at number seven………………………………………..Full Article: Source

Seven (possibly) magnificent commodity bets for 2016

Posted on 28 December 2015 by VRS  |  Email |Print

It’s always tempting for commodity analysts to issue forecasts for the coming year, even though we intrinsically know that the future is inherently uncertain and even the most reasoned expectations can be easily confounded by events.
With that in mind, and with a nod to my fellow Australians’ love of a punt, I’ve decided rather to do a list of bets I may be tempted take in commodity markets in 2016, assuming I was allowed to wager. 1. Crude oil will trade both below $30 a barrel and above $60 in 2016………………………………………..Full Article: Source

Patient Investors Will See Rewards When Commodities Rebound

Posted on 18 December 2015 by VRS  |  Email |Print

Commodities continue to slump. Prices for gold, silver, oil, natural gas and other commodities are languishing, in some cases, at levels not seen for years. ETF commodity funds have also struggled. But for individuals with a long-term perspective, this may be the perfect time to invest in commodities.
Prices will eventually rebound A number of major mining companies have also done an admirable job cutting costs and improving efficiency. They will be well prepared to address returning demand. That is likely to occur when the Chinese economy bounces back and other emerging and European markets hit smoother waters………………………………………..Full Article: Source

Weaker commodity prices unsettling investors

Posted on 16 December 2015 by VRS  |  Email |Print

The oil price established a new lower range last week, falling below $40 for the first time since 2008. We expect to see some improvement in the oil supply/demand balance as we move through 2016, but in the short term oversupply will persist.
Supply-pressures have been driven by both OPEC and US shale producers. Counter-intuitively, OPEC’s production has been on an increasing trend despite the sharp fall in the oil price since 2014 and capacity is expanding as sanctions are lifted on Iranian exports………………………………………..Full Article: Source

Gold Market Becoming `Dull’ as Investors Factor in Higher Rates

Posted on 10 December 2015 by VRS  |  Email |Print

Gold’s price swings are running out of steam as investors factor in the likelihood that the Federal Reserve will raise interest rates next week. After jumping the most since August on Dec. 4 and then sliding 0.8 percent on Monday, bullion futures gained 0.1 percent on Tuesday.
The metal touched a five-year low last week on expectations that the Fed will soon raise borrowing costs, curbing demand for assets that don’t pay interest. There’s an 78 percent chance that policy makers will raise rates at their Dec. 15-16 meeting, Fed-funds futures show and Fed Chair Janet Yellen has said the pace of increases will be gradual. Holdings in bullion-backed funds snapped the longest run of declines since March………………………………………..Full Article: Source

Investors brace for more losses as commodities crunched

Posted on 09 December 2015 by VRS  |  Email |Print

BHP shares have dropped below $17 each and South32 under $1 for the first time after commodities were crunched again overnight and mining giant Anglo American cancelled its dividend.
Brent oil dipped below $US40 a barrel for the first time since early 2009, before recovering, while iron ore continued its descent, with the Qingdao benchmark shedding another US41¢, or 1.1 per cent, to $US38.65 a tonne. On the London Stock Exchange, investors dumped Rio Tinto, driving the price of its shares down 8.4 per cent, while BHP Billiton dropped a further 5.5 per cent………………………………………..Full Article: Source

Commodities Slump Hammers Sector’s Junk Bonds

Posted on 07 December 2015 by VRS  |  Email |Print

Deep losses on bonds from junk-rated U.S. energy and mining firms are rattling even seasoned investors, underscoring the challenges facing these companies amid a prolonged slump in commodity prices. Many bond prices are down 60% or more this year. Oil prices are still low due to a global supply glut, and metals prices are declining as China’s economic growth slows.
The moves are prompting worries that defaults could increase in the coming months, potentially sparking a fresh bout of selling that could spread to other parts of the junk-bond market. Among this year’s worst performers: some Linn Energy LLC bonds have fallen nearly 80%, Penn Virginia Corp. bonds are down 75% and Chesapeake Energy Corp. bonds are down 60%, according to figures from MarketAxess Holdings Inc. All three firms produce oil and natural gas in the U.S………………………………………..Full Article: Source

Investors have to accept oil market volatility is here to stay

Posted on 04 December 2015 by VRS  |  Email |Print

A three-fear factor – China, the anticipated Fed rate rise and oil – were behind the risk-off flurry that drove the global high yield bond market down for four consecutive months this summer and into an attractive ‘buy’ territory.
We think the worries were exaggerated. Investors feared the Chinese slowdown was out of control, but though the Chinese authorities have been poor at communication they have made sensible decisions, easing fiscal and monetary policy and supporting sectors that needed it. In the US, the Fed has postponed interest rate rises and made it clear that when they come they will be gentle and incremental………………………………………..Full Article: Source

Investors look forward to a better year for oil

Posted on 03 December 2015 by VRS  |  Email |Print

Crude oil prices have seen a volatile 2015, having fallen around 20 percent since the start of the year as the glut of oversupply, which has resulted in a barrel of oil losing over half its value since last summer’s highs, persisted.
But after a year of bearish price forecasts, a large number of investors are finally seeing some light at the end of the tunnel for the oil price next year………………………………………..Full Article: Source

Gold investors become sellers

Posted on 27 November 2015 by VRS  |  Email |Print

Gold prices continue to fall as the declining cost for oil assuages investors’ fears of inflation. Growing anticipation that U.S. interest rates will start rising soon is also adding to gold’s woes. Venezuela snapped the gold market to attention earlier this year with its liquidation of 6.6 tons of the yellow metal.
Under former President Hugo Chavez, the country’s central bank accumulated gold as a part of its foreign currency reserves. With plunging oil prices knocking the country’s economy for a loop, Venezuela found itself with little ability to earn foreign currencies. So it said goodbye to those 6.6 tons………………………………………..Full Article: Source

Gold premium over platinum extends to $240/oz; investors eye opportunities - Metals

Posted on 25 November 2015 by VRS  |  Email |Print

The premium of gold over platinum has moved to its largest on record, at around $240/oz, as platinum becomes increasingly detached from gold and some investors look to take advantage, sources said Tuesday.
Platinum was trading around $835/oz on spot markets in morning trading, dragged down by base metals, while gold hovers around $1,075/oz. Both have performed badly this year, hitting multi-year lows, but at $240/oz, the premium of gold over platinum has never been as large………………………………………..Full Article: Source

Hedge funds have never been this bearish on commodities

Posted on 24 November 2015 by VRS  |  Email |Print

Large scale futures investors like hedge funds or so-called managed money have entered an unprecedented bearish position towards commodities markets. According to the Commodity Futures Trading Commission’s weekly Commitment of Traders data, five weeks of selling has seen 13 of the 24 commodities tracked pushed into net short positions.
Thos include the major commodities like crude oil, gasoline, gold, copper, soybeans, corn and wheat where speculators are betting that these commodities will be cheaper in future………………………………………..Full Article: Source

Investors continue to flee gold market

Posted on 24 November 2015 by VRS  |  Email |Print

Gold slipped again on Monday as a strong dollar and a looming Federal Reserve rate hike had speculative investors abandoning the complex. Gold for December delivery on the Comex division of the New York Mercantile Exchange was last down $9.60, or 0.91 percent, at $1,066.70 per ounce. Trade has ranged from $1,065.00 to $1,076.50.
“Despite a recent slight regain, and burgeoning physical demand, the gold price is still in a period of weakness. Even growing geopolitical uncertainties that tend to support the ‘crisis metal’ were not able to change the current trend,” said Heraeus, which added that short-term support is now $1,066, while a test of 2010 low at $1,045 looms on the horizon………………………………………..Full Article: Source

Investors Flee Precious Metals as ETF Outflows Top $1 Billion

Posted on 16 November 2015 by VRS  |  Email |Print

Investors are back to dumping precious metals as gold trades near five-year lows and banks including Barclays Plc forecast more price declines. Outflows from U.S. exchange-traded funds backed by precious metals have reached $1.12 billion so far in November, heading for the first monthly loss since July, data compiled by Bloomberg show.
Gold prices have fallen for four straight weeks as Federal Reserve Chair Janet Yellen signaled that officials are getting closer to raising U.S. interest rates, cutting bullion’s appeal as a store of value. Holdings in futures contracts have dropped to a five-week low………………………………………..Full Article: Source

What fund managers get wrong about commodities?

Posted on 12 November 2015 by VRS  |  Email |Print

Many investors misunderstand commodities. After this year’s torrid performance, it is time to question commodities’ perceived special status as a play on growth and a portfolio diversifier. What once looked like an asset class with unique attributes, now just looks like a way to lose money.
Yet it may be a human weakness to be impressed by the apparent solidity of commodities and their seeming permanence. In a world of abstract securities, physical resources seem to represent something tangible and understandable. Investors need to re-examine the case for commodities with less emotion………………………………………..Full Article: Source

What fund managers get wrong about commodities?

Posted on 12 November 2015 by VRS  |  Email |Print

Many investors misunderstand commodities. After this year’s torrid performance, it is time to question commodities’ perceived special status as a play on growth and a portfolio diversifier. What once looked like an asset class with unique attributes, now just looks like a way to lose money.
Yet it may be a human weakness to be impressed by the apparent solidity of commodities and their seeming permanence. In a world of abstract securities, physical resources seem to represent something tangible and understandable. Investors need to re-examine the case for commodities with less emotion………………………………………..Full Article: Source

Why I love commodities

Posted on 11 November 2015 by VRS  |  Email |Print

The popular commentary surrounding commodities is overwhelmingly negative. In the same way that investors could only imagine prices going higher in the midst of the “supercycle” — last decade’s belief that the world had a structural deficit of raw materials — today the general sentiment comprises mostly fear and negativity.
Let’s not forget, however, commodities is the ultimate cyclical asset, prone to dramatic booms and busts. And it has been like that for centuries: think about the tulip mania in the 1630s. But, with the right skills, one can succeed in the commodities sector. Combine a flexible approach to investing, a deep knowledge of the many distinct markets within the commodities sector and an ability to manage risks well, and the opportunity is there………………………………………..Full Article: Source

India to launch Gold Related Schemes Today

Posted on 05 November 2015 by VRS  |  Email |Print

First ever National Gold Coin minted in India with National Emblem of Ashok Chakra engraved to be released among others on the occasion. The Prime Minister Shri Narendra Modi will launch the three Gold related Schemes i.e. Gold Monetisation Scheme (GMS), Gold Sovereign Bond Scheme and the Gold Coin and Bullion Scheme on Thursday, 5th November, 2015 in the national capital.
The salient features of each of the aforesaid scheme are as follows: Gold Monetisation Scheme (GMS), 2015. The GMS will replace the existing Gold Deposit Scheme, 1999. However, the deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely withdraw them………………………………………..Full Article: Source

What the oil and gas industry isn’t telling investors

Posted on 04 November 2015 by VRS  |  Email |Print

Oil prices crashed because of too much supply, but will rebound as production shrinks and demand rises. But what if long-term demand for oil ends up being sharply lower than what the oil industry believes? That is the subject of a new report from The Carbon Tracker Initiative, which looks at a range of scenarios that could blow up oil industry projections for long-term oil demand.
Historically, Carbon Tracker says, energy demand has been driven by population, economic growth, and the efficiency (or inefficiency) of energy-using technologies. Carbon Tracker looks at a couple possible future scenarios in which those parameters are altered, resulting in dramatically lower rates of oil consumption………………………………………..Full Article: Source

Africa should invest in agriculture

Posted on 03 November 2015 by VRS  |  Email |Print

About 65 per cent of the African population lives in rural areas and relies on agriculture as the prime source of income; this is according to John Magnay, head of agriculture finance at Opportunities International.
Opportunity International is a non-governmental organisation working to end global poverty by creating/sustaining 20 million jobs by 2020. The head of agriculture finance called for improved investment in the sector as a step towards ending poverty, creating household disposable incomes and jobs in the region………………………………………..Full Article: Source

Weary commodity investors see end of slump

Posted on 30 October 2015 by VRS  |  Email |Print

After commodity prices tipped over in 1997, it took 21 months to arrest the fall. In 2000-01 it was 13 months. After collapsing along with the global economy in 2008, commodities hit the floor in just eight months. This time, the Bloomberg Commodity Index has been in decline for four years and counting. From its most recent peak in May 2011, the benchmark is off by half and scraping the lowest levels of the 21st century.
Worn-out investors are asking: have commodity prices finally bottomed? “It’s top of mind for anyone looking at the market,” says Norbert Ruecker, head of commodities research at Julius Baer in Zurich………………………………………..Full Article: Source

Why Commodities Are Bad Investments

Posted on 28 October 2015 by VRS  |  Email |Print

Imagine an investment that has roughly the same moneymaking potential as stocks—but that tends to rise when stocks are falling and to fall when stocks are rising, and is a bit less volatile than stocks. In 2004, two Yale University professors published a groundbreaking paper that argued that commodity futures offered precisely that holy grail of investing.
Commodities, wrote Gary Gorton and Geert Rouwenhorst, achieved roughly the same returns as stocks from July 1959 through December 2004. But commodity prices tended to move in the opposite direction of stocks, were less volatile and were particularly profitable during periods of high inflation………………………………………..Full Article: Source

The IEA says oil and gas investment hasn’t been this bad in 20 years

Posted on 27 October 2015 by VRS  |  Email |Print

The global energy industry is running on empty, with low prices sending investments plunging. In a speech at Singapore International Energy Week, Faith Birol, the executive director of the International Energy Agency, said low energy prices had made oil companies extremely hesitant to spend money.
A presentation accompanying his remarks (pdf) shows the extent of this year’s drop in investment, which is expected to be a fifth lower than last year, and fall even further next year: “If it comes true, this will be the first time in two decades we will see oil investments declining for two consecutive years, and may be an indication for future oil markets,” he said, according to Reuters………………………………………..Full Article: Source

Commodities offer diversification: Analyst

Posted on 23 October 2015 by VRS  |  Email |Print

While the commodities market is prone to ups and downs, one analyst says investing in this sector can pay off..”In reality, [the commodity sector] is a part of an investor’s asset allocation that can achieve diversification,” said Jeff Sherman, a portfolio manager at DoubleLine. Sherman told CNBC that agricultural stocks are attractive right now in this space.
“The reason for that is the pressure we’ve seen from the El Nino system and kind of forecasting a tougher winter — that tougher winter being from the standpoint of it’s going to be a lot warmer, according to all the weather forecasts,” Sherman said. “That puts pressure on the field and the fertility and ultimately it could have some disappointing crops in the next year.”……………………………………….Full Article: Source

Investors eschew gold’s safe-haven role, leaving price low for longer

Posted on 23 October 2015 by VRS  |  Email |Print

Die-hard gold bugs looking for the market’s return to prominence are being confronted with a sobering truth; in the latter explosive phase of bullion’s 10-year bull run, the last thing on investors’ minds was safety - the watchword for its appeal.
Those buying gold as prices approached a record $1,920.30 (1,244.2 pounds) an ounce were not seeking protection or even diversification; they were looking to make a quick buck on what has become just another financial instrument. This means gold is exposed to the same factors as other instruments, such as equities, without the traditional support of being regarded as a safe haven from political and financial instability………………………………………..Full Article: Source

Africa’s commodities slump is a gold mine for investors

Posted on 22 October 2015 by VRS  |  Email |Print

The recent downturn in Africa’s commodities markets might seem to signal dark times for the continent’s emerging economies. The slump in global oil prices prompted Angola’s government to end fuel subsidies; weak copper rates dramatically reduced the value of Zambia’s currency; and J.P. Morgan delisted the Nigerian naira from the Emerging Markets Bond Index.
But for long-term investors in Africa, these setbacks are blessings in disguise. They exposed the fault lines in sub-Saharan Africa’s growth narrative, but they also emphasized salient new opportunities at both the public and private investment levels………………………………………..Full Article: Source

OPEC, non-OPEC discuss risk to oil investment, no output cuts

Posted on 22 October 2015 by VRS  |  Email |Print

A meeting of oil experts from OPEC and non-member countries discussed the risk that low oil prices would reduce investment in new supplies but agreed no concrete steps on boosting the market, officials said after the talks on Wednesday. The Organization of the Petroleum Exporting Countries invited eight non-member nations including Russia to the talks, ahead of OPEC’s policy-setting meeting at its Vienna headquarters on Dec. 4.
Venezuela’s Oil Minister Eulogio del Pino presented his country’s proposals for measures to bolster prices, such as an OPEC and non-OPEC summit and said the market equilibrium price for crude was around $88 a barrel. “At $40 a barrel, we are below the equilibrium price,” he told reporters, reiterating comments made by Venezuelan President Nicolas Maduro on Tuesday………………………………………..Full Article: Source

Barclays: Use Bullish Options To Play Gold Rally

Posted on 21 October 2015 by VRS  |  Email |Print

More and more analysts are getting bulled up on gold prices. Maneesh Deshpande at Barclays on Tuesday recommended using options on two popular gold-linked exchange-traded funds to play the next leg higher for the yellow metal. Gold prices have risen about 7% since plunging to a multi-year bottom in early August. Gold futures ticked up about 0.5% to 1,178 an ounce on Tuesday.
Chinese demand for jewelry? Panic buying? Nope: the recent rally in gold has had much to do with expectations that the Federal Reserve doesn’t have the economic numbers it needs to justify an increase to interest rates. Gold is moving on the Fed. Indeed, The Wall Street Journal’s Alistair MacDonald and Tatyana Shumsky noted on Monday that the correlation between gold and interest-rate expectations is the tightest in years………………………………………..Full Article: Source

High yields on commodity trusts tempt investors

Posted on 21 October 2015 by VRS  |  Email |Print

Data from the Association of Investment Companies (AIC) shows that BlackRock Commodities Income was among the most viewed investment companies in the third quarter on the AIC website. It moved up the rankings from 16th place in the second quarter to 2nd place, while the group’s World Mining trust also moved higher.
A Stifel report into the highest yielding investment trusts showed commodities-focused funds at the top of the heap. BlackRock World Mining tops the list of the highest yielders with an 8.8% yield. However, the group warned that yields may not be sustainable given the issues in the mining sector………………………………………..Full Article: Source

Gold’s role as safe-haven investment wanes

Posted on 20 October 2015 by VRS  |  Email |Print

The price of gold, which typically swings with political, economic and inflationary threats, these days moves in step with a different force: the US Federal Reserve. Traders and analysts say the metal’s role as a safe-haven investment in times of turmoil has waned recently, with the price more likely to fluctuate on shifting expectations about when the Fed will raise rates.
Gold has rallied 5.3 per cent this month after a sour September jobs report in the US encouraged investors to bet there will be no hike this year. Higher rates, when they happen, are widely expected to undermine future demand for gold, which doesn’t pay interest so becomes less competitive against investments that do. Prices slumped to five-year lows in July when expectations for rate increase ran high………………………………………..Full Article: Source

Gold Stocks: The Ultimate Investor’s Guide to Gold

Posted on 19 October 2015 by VRS  |  Email |Print

Mankind’s fascination with gold is believed to have started more than 6,000 years ago when a culture centered in what is now Eastern Europe began to use it to fashion decorative objects. Since then, it has also been used as currency and is seen as a sign of affluence. Given its historical connections to wealth, gold continues to be an object that people desire to both grow and protect their riches.
What has changed over the years, however, is the fact that physical gold, whether it’s in the form of bullion, bars, coins, or jewelry, is no longer the only option for those seeking the profits and protection of gold. In addition to those physical options, we now have gold stocks, which come in their own variety of options, including a range of gold ETFs, mining companies, and mutual funds………………………………………..Full Article: Source

Puzzled investors halt bullion rally

Posted on 19 October 2015 by VRS  |  Email |Print

Last week, data releases in the US painted a mixed picture of the economy, making investors run hither and thither. Gold made a spectacular rally in the first four trading sessions of the week, touching a high of $1,191/ounce on Thursday, but later lost steam to close the week at $1,177/ounce, up only 1.8 per cent.
The Federal Reserve is closely tracking inflation and labour market data, but these data points are lately not leading to a cohesive picture on the economy. So, bullion investors have continued to obsess over the billion-dollar question on whether the Fed hikes its rate before the end of this year. The central bank’s next meeting is during October 27-28………………………………………..Full Article: Source

Mining industry ‘needs’ $205b in investment

Posted on 19 October 2015 by VRS  |  Email |Print

The mining industry needs to invest $US150 billion ($A205 billion) to meet expected demand or face shortages, according to analysts Wood Mackenzie. But before that happens Wood Mackenzie tips even more mine closures and cutbacks. It says about 500,000 tonnes of copper has to be cut from the market and more than half the global nickel production is at a loss.
It comes with Queensland’s economy taking a heavy hit from the slowdown in the state’s mining industry. Deloitte Access Economics, in a report out today, pointed out the slump in commodity prices and related profits meant “the chance of new mining and energy construction projects getting the go-ahead any time soon continues to fall”………………………………………..Full Article: Source

Now’s the time to invest in commodities and emerging markets, says Morgan Stanley

Posted on 15 October 2015 by VRS  |  Email |Print

Morgan Stanley has turned contrarian investor on emerging markets, saying now is the time to buy emerging market and commodity-exposed stocks and currencies while anticipating a sharemarket bounce to finish the year.
The US-based investment bank’s global strategy team doesn’t share market concerns that emerging markets, led chiefly by China, would send the developed world spiralling into a recession. “We believe [global economic] expansion is still in tact, with strong consumer trends in developed markets helping to offset the drag of [emerging markets] growth,” Morgan Stanley said in its updated Autumn Outlook paper………………………………………..Full Article: Source

Why There’s No Better Time to Buy Commodities

Posted on 14 October 2015 by VRS  |  Email |Print

Commodities haven’t just had a rough year. It’s been more like a rough half-decade, in which prices of raw materials and foodstuffs were halved. Once a mainstay ingredient in the investing soup, this asset class is now being shunned, and some people are making ever more bearish price forecasts. So is it time to jump back in and gain the well-documented investing benefits of adding metals, grains and energy into your investment pot?
Maybe so, and there are good reasons to consider it (plus some pitfalls to avoid). First, there is the broad reason to own commodities, which is to reduce risk. Because the prices of commodities tend to be uncorrelated with the prices of other assets such as stocks and bonds, the overall volatility of a portfolio tends to be lower. And because most investors define risk as volatility, when it is lower there is less risk………………………………………..Full Article: Source

Commodities: Time To Buy?

Posted on 14 October 2015 by VRS  |  Email |Print

“Commodities: Time To Buy.” That was the cover story of the August 7 edition of Barron’s, which went on, “The harsh selloff in energy, gold and other commodities is starting to look like capitulation.” We continue to disagree with this optimistic forecast for commodities.
Our August report, “Commodity Weakness Persist,” published at the same time as the Barron’s cover story, analyzed the many negative forces on commodity prices and concluded, “The aggregate CRB index is already down 57% from its July 2008 pinnacle and 45% since the more recent decline commenced in April 2011………………………………………..Full Article: Source

Investors expect gold buying in India to pick up as festival of Navratri is underway

Posted on 14 October 2015 by VRS  |  Email |Print

Demand in the Indian gold market is expected to strengthen over the next 10 days as the festival of good over evil known as Navratri is under way. The nine-night and ten day festival is deemed as an auspicious time for Indians, a time in which they purchase luxury items such as gold. Indians believe that buying such luxury items at this time generates growth and prosperity.
Abhishek Mehta, vice president of RiddiSiddhi Bullions, told IBTimes.co.uk: “The market has always seen the rise of gold price during Navratri and Diwali, being festive season, this is when people tend to buy more.”……………………………………….Full Article: Source

Commodities Rebound but Investors Remain Wary

Posted on 12 October 2015 by VRS  |  Email |Print

A commodity-sector rebound this week lifted raw-material prices, mining-company shares and the currencies of developing nations, the latest sign of the whipsaw trading that has racked markets this year.
Behind the past week’s recovery: tentative signs that China’s economy may be stabilizing after a decline in its growth rate, which could bolster demand for commodities. Many investors also cited a belief that ultralow interest rates will persist longer in the U.S., reducing further dollar appreciation. ……………………………………….Full Article: Source

Are commodities companies livin’ on a prayer?

Posted on 07 October 2015 by VRS  |  Email |Print

Investors have over the past week questioned if major commodities names are – to quote the 1980’s Bon Jovi hit — “Livin’ On A Prayer” if prices relapse or remain battered for years. Glencore has been in the thick of it defending its liquidity, debt maturities and bank loans after its stock tanked 29 per cent at the beginning of last week.
The startling capitulation came despite management seemingly warding off any threat by implementing a plan to tackle its $30 billion debt pile. Much to the relief of its investor relation’s team, a charm offensive at a swanky hotel in Mayfair elevated the flagging share price………………………………………..Full Article: Source

Global Oil to Cut Spending by $130 Billion, OPEC Says

Posted on 07 October 2015 by VRS  |  Email |Print

Global oil investments are set to be slashed by $130 billion this year, crimping supplies and ultimately boosting prices, the chief of the Organization of the Petroleum Exporting Countries said.
OPEC Secretary-General Abdalla Salem el-Badri said global investments in petroleum projects will be reduced by 22.4% to $521 billion in 2015. Lower supply will result in “less supply in the very near future. Less supply means high prices,” he said………………………………………..Full Article: Source

banner
May 2016
S M T W T F S
« Apr    
1234567
891011121314
15161718192021
22232425262728
293031