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Commodities Briefing - Category | Investment more

Commodities Investors Get Relief After July’s Drubbing

Posted on 11 August 2015 by VRS  |  Email |Print

Commodity bulls are finally getting some relief after suffering through the worst price plunge in almost four years. The Bloomberg Commodity Index that tracks 22 raw materials had its biggest gain since February on Monday amid increased Chinese crude-oil imports, supply disruptions at copper mines and worsening crop conditions for corn.
The gauge last month had its worst performance since September 2011 amid a stronger U.S. dollar, expanding gluts in many raw materials and signs of a slowing economy in China. Money managers cut their net-long positions in commodities by 67 percent in the past year, according to U.S. government data released Friday………………………………………..Full Article: Source

Falling commodity prices draw speculators and speculation

Posted on 11 August 2015 by VRS  |  Email |Print

The beauty of falling commodity prices is in the eye of the beholder as investors wrestle with whether to invest into the slide or invest in some kind of defensive strategy. Even with crude oil now hovering around $45 a barrel, there is debate over whether it is time to buy or steer clear of the global commodity.
One thing that is certain: Commodity, energy and precious metals have been among the worst-performing categories this year. Commodity broad basket mutual funds, as tracked by Morningstar Inc., are down 13.7% this year; natural resource funds are down 11.6%; equity limited partnership funds are down 15.5%; and equity precious metals funds are down 23.5%………………………………………..Full Article: Source

Barron’s: Time to Buy Commodities, Market Is Oversold

Posted on 11 August 2015 by VRS  |  Email |Print

With commodities indices hitting 13-year lows last week, now must be time to exit the asset class with both feet running, right? Quite the contrary, says Barron’s columnist Andrew Bary. “It’s time to consider commodities,” he writes.
“While the Standard & Poor’s 500, Nasdaq Composite, and other key equity indexes are near record levels, commodity stocks, including energy shares, are way below their peaks. Commodities are probably the most out-of-favor industry group in the stock market.”……………………………………….Full Article: Source

Oil speculators move in, but price slide continues

Posted on 11 August 2015 by VRS  |  Email |Print

Speculators increased bullish bets for the first time in seven weeks, a move that came too early in a market that continues to slide. Money managers’ net-long position in crude climbed 13 percent in the week ended Aug. 4, U.S. Commodity Futures Trading Commission data show. That’s a rebound from last week’s figure, which was the lowest level since 2010.
Major oil companies are preparing for a longer downturn and banks including Societe Generale SA are reducing their price forecasts as crude approaches a six-year low. The plunge has gathered strength as U.S. producers return drilling rigs to service and Iran seeks to increase exports after last month’s nuclear agreement with world powers………………………………………..Full Article: Source

Gold isn’t a safe haven any more

Posted on 10 August 2015 by VRS  |  Email |Print

Something strange is happening within the gold market. It used to be the first place investors rushed to in a crisis, but that’s changing. An analyst note from Barclays shows investors pulled money from financial derivatives based on the gold price, even as the Greek debt crisis reached its peak in June.
Barclays said $480 million (£310 million) was pulled from the market that month, putting total outflows in the past two months at over $1 billion (£640 million). “There are limited signs of safe-haven demand for gold,” said Barclays. “Since September 2014, gold has underperformed other haven assets such as bunds and US Treasuries.”……………………………………….Full Article: Source

Worst-Hit Commodity Investments? Not Commodities

Posted on 07 August 2015 by VRS  |  Email |Print

What is falling harder than commodity prices? Some exchange-traded funds that seek to track the companies that dig and drill for raw materials and fuel. It is no small feat to overshadow recent declines in industrial materials such as oil and metals. The Bloomberg Commodity Index, which tracks the prices of 22 raw materials, this week hit a 13-year low and is down 13% this year.
For 2015, copper prices have slumped 17%, oil prices have dropped 16% and gold prices have fallen 8%. Exchange-traded funds that track these commodities are down by a similar percentage. But some exchange-traded funds that invest in and aim to track the share prices of commodity-producing companies are doing much worse………………………………………..Full Article: Source

6 Investments Suffering in Commodities Rout

Posted on 07 August 2015 by VRS  |  Email |Print

Factors have been conspiring to take the commodities market on a stiff ride—downwards. Nervous investors have watched everything from oil and natural gas to sugar, industrial metals and even precious metals plunge, with some items hitting price levels not seen in more than a decade.
Oil, of course, has been in the headlines for months as its price has moved downward, but there’s plenty of other turmoil bedeviling investors. Some of the downward pressure has come from the possibility—or threat—of the Fed raising interest rates at long last, which would boost the dollar against gold. But there are other forces at work, too. A slowing economy in China has lessened demand for raw materials, but it’s not just China—and it’s not just the slowing economy………………………………………..Full Article: Source

Commodities market bearish like it’s 2008 all over again

Posted on 06 August 2015 by VRS  |  Email |Print

Attention commodities investors: Welcome back to 2008! The meltdown has pushed as many commodities into bear markets as there were in the month after the collapse of Lehman Brothers, which spurred the worst financial crisis seven years ago since the Great Depression.
Eighteen of the 22 components in the Bloomberg Commodity Index have dropped at least 20 per cent from recent closing highs, meeting the common definition of a bear market. That’s the same number as at the end of October 2008, when deepening financial turmoil sent global markets into a swoon………………………………………..Full Article: Source

Poor commodities: An asset without a central bank backer

Posted on 05 August 2015 by VRS  |  Email |Print

Commodity investors stung by the four-year bear market made one simple mistake: investing in an asset class not backed by a central bank. Whereas equities and bonds have benefited from very meaningful support, direct and indirect, from central bank asset-purchase programs, commodities have not.
That may or may not be good policy; certainly you can argue that the current downdraft in commodities prices reflects a singular lack of inflation risk in the global economy. That might argue for more quantitative easing, but given that what we’ve had so far has neither generated much inflation or kindled demand for raw materials, it would be hard to be too sure that more central bank buying of financial assets would help commodities prices………………………………………..Full Article: Source

How to invest in resources while commodities crash

Posted on 04 August 2015 by VRS  |  Email |Print

There is quite a dichotomy in the markets these days as the S&P 500 has been flirting with its all-time high while commodities prices have reached near-decade lows by falling back to 2008 financial crisis levels. And the spread between the two is getting worse.
U.S. equity markets have benefited from investor interest in tech giants such as Google Inc., Apple Inc., Amazon.com Inc. and Facebook Inc., with some of these names rocketing more than 20 per cent in the past month alone due to better-than-expected quarterly results. By comparison, the S&P GSCI index, which measures a basket of 24 commodities, lost 13 per cent of its value in July………………………………………..Full Article: Source

Oil-and-Gas Debt Deals Sting Investors

Posted on 04 August 2015 by VRS  |  Email |Print

Funds face paper losses on substantial investments this year in exploration-and-production companies. It is shaping up as a cruel summer for debt investors wagering on a rebound in the oil-and-gas business.
Funds managed by Franklin Resources Inc., Blackstone Group LP and Oaktree Capital Group LLC, among others, are facing paper losses on substantial investments this year in exploration-and-production companies. The sector is coming under further pressure as oil prices have turned downward again, dropping below $46 a barrel in New York to a four-month low………………………………………..Full Article: Source

Why gold has lost its shine for investors

Posted on 04 August 2015 by VRS  |  Email |Print

The observation that gold has been a disappointing investment of late should come as no surprise to anyone in the investment world. The fact that this has occurred in the context of developments that would normally push gold prices higher is notable. But the most consequential hypothesis of all is that gold may be losing its traditional role in a diversified investment portfolio.
To say that gold has underwhelmed investors the past couple of years is an understatement. It did not participate in the surge upwards in nearly all financial asset prices; and it has not provided protection in the more recent downturn in risk markets………………………………………..Full Article: Source

Don’t enter commodities market for quick bucks: Sebi to investors

Posted on 03 August 2015 by VRS  |  Email |Print

Ready to regulate commodity trading, Sebi has cautioned small investors against entering this market for quick gains through speculation, which is “risky” and requires a lot of technical expertise. “People will come and tell you that with a small margin, you can make a lot of money. Do not fall into the trap,” Sebi Chairman U K Sinha said.
He asserted that the capital markets watchdog was fully prepared to begin regulating commodities trading and all necessary safeguards would be put in place to keep scamsters and manipulators at bay. Sebi, which expects the merger of commodities market regulator FMC with it to be completed by next month, will soon put in place a new set of regulations for this segment and the restrictions, including for trading lot sizes, would also be implemented to ensure safety of small investors………………………………………..Full Article: Source

Investors Are Far From Sold on Gold

Posted on 03 August 2015 by VRS  |  Email |Print

To understand the stock market, check out the gold market. The two tell a lot about each other. People buy gold when they are afraid of the future. They buy stocks at the opposite time, when they are hopeful. Today, despite worries about China, Greece, a likely Federal Reserve interest-rate increase and an uncertain corporate-earnings outlook, the gold market is giving a clear signal: Investors, on the whole, aren’t very frightened.
The last time gold hit a record, after controlling for inflation, was 1980. It has never been back in inflation-adjusted terms and, at Friday’s close, was 57% below its 1980 peak. The Dow Jones Industrial Average, also adjusted for inflation, last hit a record on May 19. At Friday’s close it was 3.7% off that level………………………………………..Full Article: Source

No need to rush to buy gold or silver just yet

Posted on 03 August 2015 by VRS  |  Email |Print

Gold prices are at a five-year low. However, experts feel investors should wait and watch as prices could slide further. Analysts feel this is not the time to go bottom fishing. Global gold pric es touched a 5-year low of $1,090 per troy ounce (31.1 gram) on July 22, down more than 42% from the all-time peak of $1,900 in September 2011.
Though prices bounced back a bit the next day , experts feel more pain is in store. The metal is trading very close to the support level of $1,080. If it falls below $1,080, prices could recede by another 4-8% in the international market. “If the $1,080 support is broken, the next major supports are $1,040 and $990,” says C.P. Krishnan, Whole Time Director, Geojit Comtrade………………………………………..Full Article: Source

Is it Time to Buy Commodities?

Posted on 31 July 2015 by VRS  |  Email |Print

A quick glance at recent headlines would lead a reasonable person to assume that this year’s big losers are Greek and Chinese stocks . Yet, despite all the furor in the news , the Athens Stock Exchange is down less than 5 percent year-to-date, while the Shanghai Composite remains up more than 10 percent, according to Bloomberg data.
The real damage has been in the commodity complex. Through late July, year-to-date crude oil prices were down around 10 percent, platinum prices were off nearly 20 percent and coffee prices were down almost 30 percent, Bloomberg data shows. Based on the Bloomberg Commodity Index of 22 commodities, the overall complex is now trading at a 13-year low. Several factors account for the sell-off………………………………………..Full Article: Source

Is Now the Time to Invest in Agriculture?

Posted on 31 July 2015 by VRS  |  Email |Print

Do today’s agricultural equity opportunities offer a parallel to the bull market of 2010? During the last significant El Niño cycle in 2010, Chicago corn futures rallied 78%.
We are currently living in an exciting time for the agricultural equity market that has yet to be widely recognised by investors. In particular, we do not believe the market has adequately discounted the potential impact of El Niño – a band of warm air that comes off the ocean, which can cause tropical storms – on agricultural commodity prices and what it could mean for upstream producers………………………………………..Full Article: Source

Get ready to cash in on the bottom for commodities

Posted on 30 July 2015 by VRS  |  Email |Print

A five-day rout was put to rest yesterday, with a 1% gain for the S&P 500 and other indexes. Dead-cat bounce? The Federal Reserve may chart out the fortunes for this market, depending on what’s in its statement later. Investors will comb through the Fed’s words for clues to a September hike, though they may get fewer hints than they’re hoping for.
But they may stay away from Internet stocks, after Twitter’s earnings call got messy and Yelp disappointed. Can Facebook rally the sector with results later? The pressure is on, as those shares have run up 15% in the last three months. At least the social-media group now has a what-not-to-say-at-your-conference-call blueprint to work off. Here’s what to expect from Facebook………………………………………..Full Article: Source

Investors fret over falling commodities

Posted on 29 July 2015 by VRS  |  Email |Print

Investors’ expectations are for more falls in commodity prices amid worries about the Chinese economy and interest rates. Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south.
But while more losses are certain, their scope could be limited because many speculators have already made bets that prices will fall. Commodities from iron ore, to oil, grains and gold have shed value as the current extended price boom or “super-cycle” wanes………………………………………..Full Article: Source

Speculators show global commodities rout still not over

Posted on 28 July 2015 by VRS  |  Email |Print

Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south. But while more losses are certain, their scope could be limited because a large number of speculators have already made bets that prices will fall.
Commodities from iron ore, to oil, grains and gold have shed value as the current extended price boom, or “super-cycle”, wanes. Losses are not new, with oil and gold having peaked in July 2008 and September 2011 respectively, while iron ore has been on a downtrend since January 2011 and has shed more than 70 percent since that time………………………………………..Full Article: Source

As Oil Prices Slide Investors Prepare To Buy

Posted on 28 July 2015 by VRS  |  Email |Print

Unless you’ve been living in a cave for the past year, you know that the price of crude oil has plummeted. At under $50 per barrel (WTI Crude), gas prices are lower, it’s cheaper to transport goods, and there are a host of other benefits. However, lower oil has also created a few problems. In this article, we’ll explore some of each and discuss a great investment opportunity emerging as a result.
Oil, fossil fuel, crude, whatever moniker you prefer, is highly ingrained in the fabric of our society. Until such time as a less expensive, more efficient, and abundant energy source is identified, oil should continue its dominance………………………………………..Full Article: Source

Oil Bulls Flee at Fastest Pace in Three Years as Glut Expands

Posted on 27 July 2015 by VRS  |  Email |Print

Speculators’ conviction that oil will rally weakened at the fastest pace in three years, just before futures tumbled into a bear market. The net-long position in West Texas Intermediate contracted 28 percent in the seven days ended July 21, U.S. Commodity Futures Trading Commission data show. Long positions dropped to a two-year low while short holdings climbed 25 percent.
Oil traded in New York fell more than 20 percent from its June high, meeting the common definition of a bear market. U.S. output has held near a four-decade high while the largest OPEC members pump at record rates, keeping the market oversupplied. The drop was part of a broader retreat in commodity prices to a 13-year low, driven by concern that slower economic growth in China and a stronger dollar will hurt demand………………………………………..Full Article: Source

Investors dump commodities for the second half

Posted on 24 July 2015 by VRS  |  Email |Print

Oil and metal prices have faced a beating this year, with fresh data showing investors have been offloading commodities in the last quarter on fears that interest rate hikes later in the year will toss up even more market volatility.
Data from UBS shows investors dumped holdings in global energy Exchange Traded Funds (ETFs) by some 50 percent in the last three months, as the market prepares for a U.S. Federal Reserve rate rise later in the year………………………………………..Full Article: Source

Investors pulling back as gold prices plunge

Posted on 24 July 2015 by VRS  |  Email |Print

With gold prices tumbling to a five-year low, investors aren’t just getting out of gold, they’re betting against it. Speculators in July amassed record short holdings in the metal, meaning they’re wagering that the price has further to fall. Also telling, the number of hedge funds that are hoping to profit from declines is near a record high.
Altegris Investments’ $513 million Futures Evolution Strategy Fund has increased its bets that gold will fall. “The only place to be right now is short,” said Lara Magnusen, a La Jolla, California-based portfolio strategist at Altegris. “We’ve been in persistently downward price action for gold, but it’s been exacerbated, certainly, this year by a host of fundamental reasons.”……………………………………….Full Article: Source

An investor’s guide to navigating a commodities roller coaster

Posted on 23 July 2015 by VRS  |  Email |Print

It has been a rough ride for commodities traders so far this year. Prices for many commodities are suffering from sizable losses, but there are ways to help make the road smoother.
Frank Holmes, chief executive officer and chief investment officer at U.S. Global Investors, spoke with MarketWatch recently to offer a few hints on the best ways to navigate the commodity landscape. Holmes, a well-known fund manager, and natural-resources and emerging-markets expert, was in town for the San Francisco Money Show………………………………………..Full Article: Source

Palladium under siege but strong fundamentals may end carnage

Posted on 23 July 2015 by VRS  |  Email |Print

Palladium investors are keeping record bets on a further slump in the market as broad-based weakness plagues the precious metals complex, but some analysts say the metal’s slide to 3 1/2-year lows is overwrought and a supply deficit will help the metal reclaim lost territory.
Spot prices of palladium, mainly used in emissions control systems for cars, trucks and other vehicles, have dropped more than 22 percent this year – the most among precious metals. Gold has fallen 7.6 percent, silver is down 6.1 percent and platinum has tumbled 20 percent. The commodity backlash has been fuelled by the prospect of higher U.S. interest rates, a stronger dollar and weaker Chinese demand. Short positions in palladium futures on the New York Mercantile Exchange have hit all-time highs since June………………………………………..Full Article: Source

Commodities are “in a mess” – pity the investor tied to yo-yo prices

Posted on 22 July 2015 by VRS  |  Email |Print

Worldwide, commodities investors in the primary sector – still struggling after the banking crisis of 2008 and the eurozone quaking that began in 2012 – were faced with the worst performance in precious metals and agricultural products this week. The falls were prompted by a stronger dollar as fears that the Greek debt impasse were irrelevant, and queries over a growth slowdown in China.
The gold price is at its lowest in two years, and this fact and allied falls in other commodities has driven linked equities and hedge funds south – some after years of buoyancy. The Bloomberg Commodities Index dropped to a 13-year low Monday, weaker than after the banking meltdown of 2008 and the euro-zone crisis of 2012. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class………………………………………..Full Article: Source

Investors Flee Commodities

Posted on 21 July 2015 by VRS  |  Email |Print

Prices of raw materials tumble, underscoring an aversion to commodity investments as the Fed prepares to raise rates. The prices of raw materials from oil and gold to copper, cotton and sugar tumbled, underscoring an increasing aversion to commodity investments as the Federal Reserve prepares to raise interest rates for the first time in nearly a decade.
U.S. oil prices dipped below $50 a barrel on Monday during intraday trading for the first time since April, while gold slid 2.2% to its lowest level in five years. The drops extend a retreat from the commodity sector that has picked up speed in recent months. Hedge funds and other investors are holding more bearish than bullish wagers on gold for the first time on record going back to 2006, according to data released Friday by the Commodity Futures Trading Commission. Investors cut their bullish bets on oil to the lowest level since March………………………………………..Full Article: Source

Commodities are crashing to 13-year lows as investors dump gold ahead of Fed rate hike

Posted on 21 July 2015 by VRS  |  Email |Print

The rout in commodities deepened with prices heading for the lowest close since 2002 as the prospect of higher U.S. interest rates sent gold tumbling. Raw materials are losing favour with investors as the dollar gains amid signals from Federal Reserve Chair Janet Yellen that the central bank may raise rates this year on the back of an improving U.S. economy.
Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities. The Bloomberg Commodity Index dropped as much as 1.1 per cent, falling for a fifth day in the longest stretch of declines since March………………………………………..Full Article: Source

Gold Leads Commodities ‘Mess’ That Has Many Investors Smarting

Posted on 21 July 2015 by VRS  |  Email |Print

Pity the commodity investor. The Bloomberg Commodities Index dropped to a 13-year low Monday, weaker than after the banking meltdown of 2008 and the euro-zone crisis of 2012. From oil to copper to sugar, little has escaped the rout in the year’s worst-performing asset class.
“Commodities are a mess,” said Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham, Alabama, in a telephone interview. “We are not looking to add to positions.” Gold, the most heavily-weighted commodity in the index, is the latest to get hit hard, socked by a stronger dollar and concern about a slowdown in China………………………………………..Full Article: Source

Rebounding rhodium bests nearly any other investment

Posted on 17 July 2015 by VRS  |  Email |Print

The best asset over the past week is a metal you’ve probably never heard of: rhodium. Rhodium, one of the rarest precious metals, soared 29 per cent in five days, beating every single stock in the MSCI World Index, all currencies and major commodities. While the market for rhodium is tiny and doesn’t trade on an exchange, a fund that holds the physical metal is up 23 per cent since July 9, and shares of producers are climbing.
Low prices are attracting companies that use rhodium for catalytic converters in cars, according to Jonathan Butler, a precious-metals strategist at Mitsubishi Corp. in London. The metal plunged to an 11-year low earlier this month on forecasts that South Africa, the biggest producer, is increasing production at the fastest pace in two decades………………………………………..Full Article: Source

Gold up in Asia as investors eye Greece talks, news on banking sector

Posted on 13 July 2015 by VRS  |  Email |Print

Gold prices gained on Monday in Asia as investors awaited concrete announcements on the status of Greece’s banks and a third bailout program as talks in Europe dragged on through the weekend after some earlier hopes a deal was near.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose 0.34% to $1,161.80 a troy ounce. Also on the Comex, silver futures for September delivery gained 0.47% to $15.608 a troy ounce. Elsewhere in metals trading, copper for September dropped 0.73% at $2.524 a pound………………………………………..Full Article: Source

Miners’ focus shifts from investor returns to survival

Posted on 13 July 2015 by VRS  |  Email |Print

Hit hard by the accelerated downturn in metal prices in recent months, global mining companies preparing to report results are likely to announce another round of austerity measures to cut costs and convince investors to remain committed to the sector. With investors looking for evidence of continued capital discipline while credit ratings and dividends are pressured by a rout in prices for anything from iron ore to platinum, reductions in capital expenditure, operational costs and jobs could all be on the cards.
It comes as little surprise, therefore, that miners have been among the worst performers on London’s FTSE 100 index of blue-chip companies so far this year. The FTSE 350 mining index has fallen by about 15 percent since the start of the year………………………………………..Full Article: Source

Copper Bears Rewarded as Economic Threats Spur Metal Rout

Posted on 13 July 2015 by VRS  |  Email |Print

Investors are hastening their retreat from copper, unnerved by the threats to global economic growth. The metal slumped to a six-year low last week as Greece’s efforts to reach a deal with creditors stumbled and Chinese equities plunged. Europe and China consume about two-thirds of the world’s copper. Goldman Sachs Group Inc. and Societe Generale SA see little prospects of a rebound anytime soon.
Speculators are holding their biggest bearish bet on copper in almost 16 months, with Barclays Plc forecasting that supply will flip from shortages to surpluses from this year. The International Monetary Fund cut its global economic-growth forecast and the Federal Reserve released minutes that showed policy makers saw risks to the economy from the turmoil in Europe and China………………………………………..Full Article: Source

What happened to gold’s safe-haven status?

Posted on 09 July 2015 by VRS  |  Email |Print

Conspicuous by its absence in the commodity market turmoil of the last week has been the reaction in the gold price, say analysts who believe the metal has currently lost its safe-haven status. “One of the interesting developments despite the Greece crisis and China uncertainty has been the failure of any rally in gold prices. In fact, gold prices yesterday (July 7) flirted with their year lows,” said Goldman Sachs in a morning note to clients.
“This is an indication that even in a risk-off environment investors are not seeing gold as a safe-haven and rather prefer parking their money in US and German bonds and the US dollar,” the bank said………………………………………..Full Article: Source

How To Invest When El Niño Comes Around

Posted on 07 July 2015 by VRS  |  Email |Print

This year, El Niño is forecast to upend weather patterns across the world and wreak havoc farmers, especially in regions where access to irrigation is limited. The weather phenomenon is expected to cut down on rainfall in Australian and Southern Asia and create unusually wet weather in parts of South America.
The extreme weather conditions have pushed investors to take a closer look into agriculture investments as the difficult growing conditions could lead to price spikes. Prices of wheat have seen a bump over the past two weeks after worries that El Niño would dry out wheat-producing regions. In Australia, where 14 percent of the world’s wheat exports are grown, dryer than expected weather is forecast to significantly cut down on crop yields………………………………………..Full Article: Source

Metals investors look for miners to cut supplies to lift prices

Posted on 06 July 2015 by VRS  |  Email |Print

Investors in industrial metals will keep a close watch on miners’ results in coming weeks for possible announcements of production cutbacks that could bolster weak prices. “What will be very important over the next few weeks is whether we start to see some supply responses emerging during the corporate results period,” said Nicholas Snowdon, metals analyst at Standard Chartered in London.
Iron ore, aluminium and zinc will get the most attention after a slide in prices that is pressuring the bottom line of some mining groups. “Over the past six months Vale, BHP and Rio have independently suggested either cuts to existing production, holding back sales and/or the slower ramp up of growth volumes,” Citi analyst Heath Jansen said in a note………………………………………..Full Article: Source

Gold not getting boost from investors seeking safe haven from Greek crisis

Posted on 03 July 2015 by VRS  |  Email |Print

The precious metal stays in trading range as Greece lives on the edge of default due to tepid inflation, muted demand for gold from China and a strong U.S. dollar. Despite some early noise to the contrary, Greece’s financial woes are having almost no impact on gold prices, so far.
It’s not that the threat of the first country in the developed world to default is not a big deal, it’s just that investors have been well warned, and there are a lot of other forces currently holding down the price of gold………………………………………..Full Article: Source

Finding Investment Opportunities in Emerging Markets

Posted on 03 July 2015 by VRS  |  Email |Print

Within emerging markets the Asian region provided the main winners in 2014 thanks to the sharp decline in the oil price. But what can investors expect from 2015? Emerging market investors had a difficult time in 2014, with returns lagging developed markets. Over the year as a whole the MSCI AC World Index showed a total return of 8.6% in sterling terms against a meagre 1.4% return for the MSCI Emerging Markets Index.
Within emerging markets the Asian region provided the main winners, with the sharp decline in the oil price seen in the latter part of the year being beneficial for the majority of countries in the region as they are net oil importers………………………………………..Full Article: Source

Iran eyes $100bn of western investment in oil industry

Posted on 02 July 2015 by VRS  |  Email |Print

Iran is finalising a contract system to secure about $100bn of new oil and gas deals with western companies if sanctions are lifted. The move marks a big shift for a regime traditionally wary of of foreign groups participating in its energy sector.
Mehdi Hosseini, an adviser to Iran’s oil ministry who has been drafting a new energy contract for the past two years, said he expected President Hassan Rouhani to approve it in the coming months………………………………………..Full Article: Source

World’s best gold forecaster is solidly bearish on bullion

Posted on 02 July 2015 by VRS  |  Email |Print

There will be no relief any time soon from gold’s worst losing streak in almost two decades, according to the most accurate forecaster for precious metals. After sliding about 1 per cent since December, prices will drop an additional 10 per cent by the end of 2015, reaching $1,050 (U.S.) an ounce – a five-year low – predicts Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore.
Gan topped 19 of his peers from banks including Standard Chartered PLC and ABN Amro Bank NV to become the most accurate analyst over the past two years, Bloomberg Rankings show. Gold has fallen for four straight quarters, the longest stretch since 1997. It has been more than two years of disappointment for bulls who had been piling into exchange-traded products (ETPs) backed by the metal, accumulating a record hoard by the end of 2012. Since then, more than $81.8-billion has been wiped from the value of the ETPs backed by bullion………………………………………..Full Article: Source

The 5 Best Stocks to Invest in Commodities

Posted on 02 July 2015 by VRS  |  Email |Print

Commodities aren’t for the faint of heart, which is why it’s best to just stick with the best stocks in each commodity basket. Commodities have been giving investors fits for years. All four commodities have taken investors on triple-digit price rides with rapid ascends and devastating falls. It’s that allure of a rapid rise that continues to draw investors in with hopes of making a mint on higher prices.
However, given that prices can change on a dime, it’s a warning to investors to stick with the companies that can survive the deepest of drops because as history shows those drops are sudden. With that, here are the five companies built to last, making them the best stocks to invest in commodities………………………………………..Full Article: Source

Is there a huge investing opportunity in the oil markets?

Posted on 01 July 2015 by VRS  |  Email |Print

A rare occurrence now happening on oil markets might be a huge opportunity for investors who play it right, says Tim Pickering, president and chief investment officer at Auspice Capital Advisors Ltd.
Pickering said Canadian crude prices are currently in “backwardation,” which means the future price is expected to be lower than the spot price, but every other crude oil market in the world is in contango, meaning the future price is expected to be higher than the spot. “For long-term investors in oil, this is a positive thing because it means they will not lose money as the market rolls over time,” he said in a commentary to clients………………………………………..Full Article: Source

With Greek Uncertainty, Investors Seek Safety in Gold and Bitcoin

Posted on 01 July 2015 by VRS  |  Email |Print

As Greece descends into financial crisis, its citizens and investors globally are turning to hedges old and new. European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say.
As the situation in Europe grows more precarious, the price of both have risen in recent weeks as concerns have grown about the threat to banks in Greece and the risk that turmoil could spread to other countries in the eurozone and elsewhere………………………………………..Full Article: Source

25 Lessons on Commodity Investing

Posted on 26 June 2015 by VRS  |  Email |Print

Commodities can be very powerful investments but they also come with their fair share of risk. In recent years, investors and advisors have begun to adopt commodities into portfolios, as many have seen the benefits of adding these low-correlated assets to a group of holdings.
The launch of a robust lineup of exchange-traded products that utilize both physical commodities and commodity futures contracts has brought commodities to the masses; they’re no longer reserved for the largest and most sophisticated investors………………………………………..Full Article: Source

Oil investors betting on crude hitting $82 per barrel

Posted on 23 June 2015 by VRS  |  Email |Print

European hedge fund believes market for crude is oversold as demand picks up. Investors are beginning to bet on a sharp rebound in the oil price by the end of the year, on the back of rising demand and a slowdown in US production.
Insch Capital Management, a Swiss hedge fund, is predicting that prices will be trading at about $82 per barrel by the beginning of next year, and already claims the market is oversold. The Lugano-based fund says it plans to ramp up investments in the sector in preparation for an expected 50pc uptick in the price of crude by 2016………………………………………..Full Article: Source

Will Chinese Investors Rotate to Gold?

Posted on 23 June 2015 by VRS  |  Email |Print

Gold traders are the most bullish in a month on the prospect of slower U.S. interest rate increases. Gold saw a second weekly advance after efforts to secure a Greek bailout faltered and the Federal Reserve signaled a more dovish stance on interest rate increases. Shanghai Gold Exchange withdrawal volume in the week to June 12 came in at a strong 46.2 metric tonnes.
The Bank of China will become the first Chinese bank to join the auction process that sets gold prices in the London market. The bank, along with seven other lenders, will start participating in the twice-daily electronic auction. The addition of a Chinese bank is another sign that China is increasing its influence in gold and currency markets worldwide………………………………………..Full Article: Source

Speculators Retreat From Oil as OPEC Oversupply Crowds Out Shale

Posted on 22 June 2015 by VRS  |  Email |Print

Hedge funds reduced both bullish and bearish bets on oil for a fourth week as rising OPEC output was met with forecasts for a contraction in U.S. supply. Money managers trimmed their short wagers in West Texas Intermediate oil by 4.3 percent and long bets by 0.2 percent, leading to a 0.8 percent gain in the net-long position, U.S. Commodity Futures Trading Commission data for the seven days ended June 16 show.
Trading in futures is falling as WTI swings in a $5 range, the narrowest in 19 months. The Organization of Petroleum Exporting Countries pumped the most oil last month since October 2012, while the U.S. government says output will start falling from this month………………………………………..Full Article: Source

Chinese investments in Australian resources lowest in decade

Posted on 22 June 2015 by VRS  |  Email |Print

China’s appetite for Australian mining assets has fallen to its ­lowest level in almost a decade, setting a difficult backdrop for Fortescue Metals Group and its efforts to sell a minority stake in its Pilbara iron ore assets.
An analysis by The Weekend Australian of Bloomberg data has found that the number and value of Chinese acquisitions and ­investments in Australia’s resources sector is on track to record its lowest levels since 2007. With just weeks remaining in the 2015 financial year, the data shows only nine Chinese investments in Australian Securities Exchange-listed mining and exploration companies so far this year………………………………………..Full Article: Source

Low oil price hits $200 billion in mega-projects

Posted on 18 June 2015 by VRS  |  Email |Print

Deepwater oil projects and complex gas facilities worth around $200 billion have been cancelled or put on hold worldwide in recent months due to the sharp drop in oil prices over the past year, consultancy Ernst and Young said on Tuesday. Further project cuts and delays are likely as the industry braces for an extended period of lower oil prices as a result of a supply glut.
“The mind set in the industry at the moment is that prices are unlikely to be bouncing up materially in the near term,” the consultancy’s Andy Brogan said in a presentation. “There is an expectation that volatility is with us for a reasonable period of time to come and companies need to cope with that.”……………………………………….Full Article: Source

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