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Commodities Briefing - Category | Investment more

Time to buy gold to hedge against ‘excessive’ market rally?

Posted on 13 November 2013 by VRS  |  Email |Print

Investors have started to return to gold as a hedge against any potential disruption to the continued rally in world equity markets.
Gold has fallen significantly over the course of 2013, dropping from $1,675.35 an ounce at the start of the year to a low point of $1,200 towards the end of June. The price has recovered slightly since then to reach around $1,280 today………………………………………..Full Article: Source

Saudi Arabia to target agro-investments abroad

Posted on 11 November 2013 by VRS  |  Email |Print

Saad Khalil, director of King Abdullah’s Initiative for Saudi Agricultural Investment Abroad, recently revealed that 35 countries have been targeted for agro-investment so far. Khalil said investments are available in these countries to produce basic and strategic commodities for food security for both the Kingdom and target countries.
“We still don’t have accurate information as to whether there has been growth or decline in the volumes of agro-investment abroad,” he added………………………………………..Full Article: Source

China’s big moment—here are the commodities set to benefit

Posted on 08 November 2013 by VRS  |  Email |Print

Investors are keeping a keen eye on China this week as the world’s second-biggest economy gears up for its Third Plenum of the Communist Party. The summit of China’s leaders is expected to deliver some of the biggest reforms for the country in 35 years.
China is the one of the world’s biggest producers and consumers for a range of commodities. In ranks number one in the steel and coal industry, according to the World Coal Association, as well as in iron ore, according to the U.S. Geological Survey. The Copper Development Association state it’s the world’s second biggest producer of copper, behind Chile. Commodities are a big deal for the biggest population on the planet, and prices have risen in the last 10 years with China the underlying driver of this “super-cycle”………………………………………..Full Article: Source

Opec says $7.5 trillion investment needed in energy

Posted on 08 November 2013 by VRS  |  Email |Print

Opec upgrades oil demand forecasts on expectation of 380 million new cars on China’s roads by 2035 and says world needs to invest nearly $8 trillion on new energy facilities. Petrol prices are unlikely to fall significantly anytime soon based on the latest long-term projections for the global oil market released by the Organization of Petroleum Exporting Countries (Opec).
The group of 12 major producing nations estimates that meeting increases in world oil demand through to 2035 will require $7.5 trillion (£4.6 trillion) worth of investment into building new infrastructure such as production plants, refineries and pipelines………………………………………..Full Article: Source

Is now the time for investors to get back into commodities?

Posted on 06 November 2013 by VRS  |  Email |Print

Commodities are and always will be a cyclical market, asserts Chris Berry of House Mountain Partners. That’s why he’s not sweating disappointing stock performance and flat pricing environments. But the self-described long-term bull on energy materials has big plans on how to play growth in the developing world, and he insists that now is the time for investors to position themselves ahead of an upswing.
I believe we’re at the bottom of the cycle for the commodities. It’s been a rough 18 to 24 months for the juniors, but the worst is likely behind us. That said, I don’t think we have turned the corner yet toward a new growth cycle………………………………………..Full Article: Source

Commodity investment goes back to fundamentals

Posted on 06 November 2013 by VRS  |  Email |Print

The past year has not been a good one for commodity investment. Passive commodity indexes have delivered disappointing returns, while a number of high-profile commodity hedge funds have been forced to close. What is the outlook for investor interest in commodities?
It’s been a tough year for commodity investment. The broad gains in commodity markets seen during recent years – dubbed the commodity ’super cycle’ – seem to have come to an end, and investors have been left holding the bag. Strategies that produced results during the boom years have increasingly failed to find the same returns, and market participants say the mood of investors towards commodities has noticeably changed………………………………………..Full Article: Source

A hardscrabble year for commodity funds

Posted on 05 November 2013 by VRS  |  Email |Print

How commodity funds have stacked up in the past six months. We screened for the 15 best-performing funds for the six months ended Sept. 30. The U.S. dollar, segregated and duplicate versions of funds were excluded, along with funds closed to new investors.
These funds invest first and foremost in physical commodities, or use derivatives to increase exposure to this sector. Only one fund managed a positive return in the period as the commodities sector continues to get pummelled from all sides………………………………………..Full Article: Source

Investors turn to new multi-strategy commodity funds

Posted on 05 November 2013 by VRS  |  Email |Print

Sophisticated commodity funds that switch between different strategies in pursuit of performance are gaining favour with investors, who have lost patience with single-strategy products. Commodity investors complain they are paying active management fees for returns that are essentially no better than the market as a whole - or “beta” in investment management parlance.
Mark Higgins, managing director of UK-based financial group 1Oak Capital, said some commodity hedge funds persisted for too long with non-performing strategies and have had to close or have suffered large drawdowns as a result………………………………………..Full Article: Source

Cut investment risk: Stay away from gold

Posted on 05 November 2013 by VRS  |  Email |Print

While the price of gold itself is down about 22% this year, gold mining stocks have performed much worse, some down 50%. Gold miners spent a lot of money in the 2000s buying assets to improve gold production, but with slumping gold prices, these companies are now just trying to survive.
Investors who are considering buying gold or gold stocks should be very careful. Gold can be a higher-risk play than investing in stocks. If the U.S. economy continues to grow and inflation remains tame, gold prices may remain flat for a while………………………………………..Full Article: Source

Commodities get the investor cold shoulder

Posted on 04 November 2013 by VRS  |  Email |Print

Going short gold was the top commodity investment pick for the next 12 months by two top-ranked analysts at the recent World Commodities Week conference in London. There is nothing wrong with this view as there are solid reasons to believe the precious metal may decline further, such as the likely scaling back of quantitative easing in the US and a generally more positive global economic outlook.
But it struck me that if the best investment in the near term is to be short something that has already shed 21 per cent of its value so far this year, this is a sad reflection of the overall state of the market for commodities………………………………………..Full Article: Source

Investors see opportunity as miners seek alternative finance

Posted on 01 November 2013 by VRS  |  Email |Print

From fund giant BlackRock to activist shareholder Julian Treger, mining investors seeking predictable returns and better cash flows are stepping into mine finance.
Mine developers often face funding gaps because of a shortage of bank finance and lacklustre public markets. This has left alternative sources of financing - royalty deals, stake sales or debt that converts into shares - accounting for an increasingly significant proportion…………………….Full Article: Source

Investors tap metals as gateway to China

Posted on 01 November 2013 by VRS  |  Email |Print

Investors seeking exposure to good news about China’s economy are striking where it’s hot—in iron-ore and copper markets. Long considered to be one of the most direct ways to bet on Chinese economic growth, prices of these industrial commodities have risen in recent months amid a flurry of positive signals out of the world’s second-biggest economy.
These indicators have dovetailed with a ramp-up of Chinese demand for the commodities. China’s imports of iron ore soared to a record 74.6 million metric tons in September, according to the latest available data from China’s General Administration of Customs. That has pushed prices up nearly 20% since May, to about $131 a ton, according to data provider the Steel Index…………………….Full Article: Source

A beginner’s guide to investing in commodities

Posted on 01 November 2013 by VRS  |  Email |Print

Commodities are physical assets and include metals such as gold, silver and copper, oil and gas, and so-called ‘soft’ commodities such as wheat, sugar and cocoa beans. ‘Commodities are often referred to as the “fifth” asset class, after the conventional investment asset classes of cash, fixed interest securities, equities and property,’ says Martin Bamford, managing director of IFA Informed Choice.
The sector has little correlation with the stock market and currencies, which means if equity markets fall, then the price of commodities won’t necessarily plummet. Bamford adds: ‘They tend to behave differently from these conventional asset classes, which means they can be very useful for the purposes of diversification within an investment portfolio.’……………………Full Article: Source

Water as a commodity: can investors boost access to this critical resource?

Posted on 31 October 2013 by VRS  |  Email |Print

‘Blue gold’ investors claim to improve access to a vital resource, but critics argue commoditization may out-price the poor. From commodity guru Jim Rogers to the likes of Goldman Sachs, it has become almost cliché to refer to water as “blue gold” – a whole new commodity that can be bought and sold on par with gold, oil and corn.
After all, as demand grows and water infrastructure crumbles, the world is running out of drinkable water. And many believe the problem can only be solved if cash-strapped governments team up with “angel” investors and others in the private sector……………………………….Full Article: Source

Tax-wise commodity investing

Posted on 31 October 2013 by VRS  |  Email |Print

Inflation is tame and commodities are having a ragged year—so now is a great time to buy commodities. No sense buying hard assets when everyone else is.
There’s more than one way to bet on gold, oil and copper. Let’s look at a few, paying particular attention to the costs and tax rules. It gets tricky, since Congress (motto: We keep you entertained) has created no fewer than six tax regimes for commodity investments……………………………….Full Article: Source

Why investors shouldn’t lose interest in gold producers

Posted on 31 October 2013 by VRS  |  Email |Print

The reason behind this is both simple and apparent: gold bullion prices have declined and as a result, gold producers are facing pressures. Pessimism towards gold producers is very high; some are even calling them the worst investment to hold in your portfolio.
Just look at the chart below of the Market Vectors Gold Miners ETF, an exchange-traded fund (ETF) that tracks the performance of well-known gold producers. This ETF has lost more than half of its value since 2012, with a majority of the losses coming in 2013. So why would an investor want to buy this ETF? After all, no one wants to catch a falling knife……………………………….Full Article: Source

Five alternative investments for small investors

Posted on 31 October 2013 by VRS  |  Email |Print

Investors are increasingly turning to alternative investing to supplement the lackluster performance of fixed-income securities and find greater returns than equities. With little or no correlation to other assets, alternative investing also provides diversification in a portfolio since it doesn’t always move in tandem with the stock or bond markets.
However there’s a lack of transparency and risk in alternative investments like private equity and hedge funds. Because of these risks, alternative investments are generally limited to institutional investors, endowments or accredited investors who have earned $200,000 annually for the two most recent years or have at least $1 million in equity excluding the value of their home……………………………….Full Article: Source

Bank of Canada: Don’t count on commodity prices for income growth

Posted on 30 October 2013 by VRS  |  Email |Print

Commodity prices may not rise as much as they have in recent years and should therefore not be relied upon for future income growth, Bank of Canada Deputy Governor Agathe Cote said on Tuesday.
“Going forward, productivity may become more crucial to our financial well-being, since real commodity prices, while expected to remain elevated, may not rise as much as they did in the past decade,” Cote said in the prepared text of a speech on “The Promise of Potential.”……………………………………Full Article: Source

Gold fades from investment picture

Posted on 30 October 2013 by VRS  |  Email |Print

The investor gold rush that propelled the precious metal to a dozen years of annual price gains is on the verge of ending with a whimper. Russia’s central bank in September sold gold for the first time in a year, according to the latest data from the International Monetary Fund. Since the start of 2010, Russia has accounted for 30% of all gold purchases made by central banks that report to the IMF.
Like other emerging-market nations, Russia bought gold to diversify its foreign-exchange reserves. The retrenchment of Russia and others is the latest factor to weigh on gold prices, which are down 19% year to date. The last time gold prices posted an annual loss was 2000…………………………………….Full Article: Source

India: Investment in commodities: Regulated markets are a safe investment option

Posted on 29 October 2013 by VRS  |  Email |Print

For the world financial markets, an exposure in a regulated market has always been the safest investment choice. Though, currently, there are concerns about commodities in the Indian market, these can be addressed by taking a closer look at the scenario. A comparison of the regulated and unregulated marketplace will help us understand how risk can be avoided.
India has come a long way in the commodities space, turning into a stable and structured marketplace. With a well-established commodity futures platform and exchange, the scope of losses due to quality or physical deliveries is negated………………………………………..Full Article: Source

Gold gets short-term fillip on investor interest

Posted on 28 October 2013 by VRS  |  Email |Print

Uncertainties continue to cast a shadow on the global marketplace. Uncertainty of economic growth, uncertainty over monetary policy changes and geopolitical instabilities (albeit abating) continue to confound commodity market participants including investors.
The US Fed may delay tapering for a few more months given the softer payroll expansion and with a still uncertain outlook for fiscal resolution. Obviously, an extension of QE would be welcome news for investors………………………………………..Full Article: Source

Is gold still a safe haven?

Posted on 28 October 2013 by VRS  |  Email |Print

When asked why we invest in gold the standard answer often involves, ‘because it is a safe haven,’ or, ‘because it is a hedge against financial collapse.’ Often people base these statement on historical examples many hundreds of years old, but what about in recent history? Has gold proved itself in recent years? And when we talk about a safe haven, do we realise that it is not the same as a hedge?
I look at a paper that answers these very questions. As is so often the case in gold investment, the answers to above questions are not clear cut but the overall message remains the same: gold is both a hedge and safe haven………………………………………..Full Article: Source

China is back in vogue with investors

Posted on 28 October 2013 by VRS  |  Email |Print

Investors are turning their focus back to China, after months in which global markets were driven by relentless speculation about the U.S. Federal Reserve’s next move.
Shares are climbing across Asia, and prices for industrial commodities such as copper and iron ore have bounced back amid signs that China’s economy is revving up. The yuan regularly sets record highs against the dollar as cash floods into the country………………………………………..Full Article: Source

Commodities are going back to fundamentals, says Harcourt’s Jeremy Baker

Posted on 25 October 2013 by VRS  |  Email |Print

Jeremy Baker, executive director of commodity investments at Harcourt, sees change taking place as commodities are once again priced on fundamentals. Harcourt is part of the Swiss financial services group Vontobel, which acquired the alternative investments focused business in 2007.
Since then, Harcourt has been offering investors two funds on behalf of Vontobel: the Belvista Commodity fund; and, since 2012, the Belvista Dynamic Commodity fund. Both use the Dow Jones UBS Commodity TR Index (DJ-UBSCI) as a benchmark and aim to be overweight or underweight individual constituent commodities………………………………………..Full Article: Source

Why investing in agriculture makes sense

Posted on 25 October 2013 by VRS  |  Email |Print

Recently, global commodities investor, Jim Rogers made headlines when he recommended agriculture as the best sector for investment. According to him there were many options in agriculture-related sectors including farmland, agriculture stocks, food companies, processing plants and companies that make tools, machines, tractors, fertilizers etc for farming.
Stock markets in India and across the globe have been moving without direction even as equity pundits and analysts continue to give confusing ‘buy’ and ‘sell’ calls on companies and stocks. In India, equity market is largely driven by a handful of star stocks, leaving millions of investors in permanent losses as their mid-cap or small-cap shares have refused to go up………………………………………..Full Article: Source

Plunging prices for soft commodities could signal buying opportunity

Posted on 24 October 2013 by VRS  |  Email |Print

The bust of agricultural commodities over the past couple of years has brought down the cost of betting on the world’s growing need for food and clothing. Since the recession, the so-called soft commodities have been influenced by much more than supply and demand.
Fuelled by speculative trading, prices of food and cotton hit extremes, peaking in 2011 before dropping off almost across the board. But fundamentally, not all that much has changed the outlook for commodities like coffee, cocoa, sugar and cotton………………………………………..Full Article: Source

Commodity trading cap coming: 6 things investors need to know

Posted on 23 October 2013 by VRS  |  Email |Print

Commodities markets are a lot like the Wild West: they’re either unregulated or have poorly defined regulations, offer enormous possibilities for investors and are prone to boom and bust cycles.
One of the top criticisms investors (as well as consumers and politicians) often make with these markets is “price volatility,” and now the governing body of these markets, the Commodity Futures Trading Commission (CFTC), is weighing in with a new rule designed to prevent commodity price swings caused by rampant speculation………………………………………..Full Article: Source

Is short gold really the best commodity investment tip?

Posted on 23 October 2013 by VRS  |  Email |Print

Going short gold was the top commodity investment pick for the next 12 months by two top-ranked analysts at the recent World Commodities Week conference in London. There is nothing wrong with this view as there are solid reasons to believe the precious metal may decline further, such as the likely scaling back of quantitative easing in the United States and a generally more positive global economic outlook.
But it struck me that if the best investment in the near term is to be short something that has already shed 21 percent of its value so far this year, this is a sad reflection of the overall state of the market for commodities………………………………………..Full Article: Source

Physically-backed diamond investment vehicles won’t work

Posted on 23 October 2013 by VRS  |  Email |Print

Diamonds will need to continue to sit on the sidelines, waiting to be called off the bench to perform as a physically-backed investment vehicle.
The irony of what’s keeping diamonds from becoming a physically-backed commodity is that the uniqueness in each diamond is one driving factor that propels the price upwards, and is also what’s holding it back………………………………………..Full Article: Source

Digging for income with commodities investment trusts

Posted on 22 October 2013 by VRS  |  Email |Print

One of the biggest questions in investing right now is can beaten-down mining and investments recover? If they can then investment trusts investing in the sector could be well placed.
The latest edition of our Investment Trust Insider ezine takes a wider look at how investment trusts can generate an income for investors. As part of this we look at investment trusts in the commodities & natural resources sector………………………………………..Full Article: Source

Why Buffett won’t invest in commodity companies

Posted on 22 October 2013 by VRS  |  Email |Print

The Oracle of Omaha has been quoted many times stating that he does not like to invest in companies that rely on commodities as a main source of income. Having said that, this has not stopped him from directing Berkshire’s cash to companies such as ExxonMobil and ConocoPhillips in the past. Of course, Buffett’s Conoco bet led to a $1 billion loss, leading the sage himself to openly admitted that the Conoco investment in particular was a mistake.
So why does Buffett like to stay away from commodity companies? Well, the answer becomes pretty clear we we take a quick look at the erratic earnings of companies that rely on commodities as their main source of income………………………………………..Full Article: Source

Is short gold really the best commodity investment tip?

Posted on 22 October 2013 by VRS  |  Email |Print

Going short gold was the top commodity investment pick for the next 12 months by two top-ranked analysts at the recent World Commodities Week conference in London.
There is nothing wrong with this view as there are solid reasons to believe the precious metal may decline further, such as the likely scaling back of quantitative easing in the United States and a generally more positive global economic outlook………………………………………..Full Article: Source

An exclusive look at commodity investing and trading

Posted on 17 October 2013 by VRS  |  Email |Print

Strong gains in commodity prices since the early 2000s created a growing interest in the asset class. The financial industry responded with many products, including new hedge funds, index funds, commodity-linked fixed income products and exchange-traded funds.
With oil and natural gas making a prominent peak in 2008 and gold hitting a peak in 2011, many took this as a sign that the commodity bull had run its course and expected that we would return to the normal, long-standing trend of commodity price deflation………………………………………..Full Article: Source

Is more pain ahead for gold investors?

Posted on 15 October 2013 by VRS  |  Email |Print

Since the precious metals bubble began almost 10 years ago, the prices of gold and silver have been driven more by fear, greed, and other emotions than by fundamentals or allegedly rational reasons.
Gold pays no dividend and provides no cash flows, actually costs money to own (storage fees and insurance premiums), and is used in relatively very little industry compared to other asset classes such as land, housing, equities, bonds, or even timber. You simply can’t value precious metals the same way you do other investments………………………………………..Full Article: Source

Clean energy heads for second successive annual fall

Posted on 14 October 2013 by VRS  |  Email |Print

Global investment in clean energy was $45.9bn in the third quarter of 2013, down 14% on the second quarter of this year and 20% below the number for Q3 2012, according to the latest data on deals and projects compiled by research company Bloomberg New Energy Finance.
The latest figure makes it almost certain that investment in renewable energy and energy-smart technologies such as smart grid, efficiency, storage and electric vehicles will end this year below 2012’s $281bn - a total that was itself 11% down from the record established in 2011………………………………………..Full Article: Source

Commodity managers warm up to metals as world economy improves

Posted on 11 October 2013 by VRS  |  Email |Print

Base metals are back in favour with commodity managers after a long period in the dog house, reflecting a new enthusiasm for growth-oriented assets as the global economy picks up.
“The key economic regions of the world have either resumed a slight upward trend or have at least put the worst behind them,” said Ronald Wildmann, an adviser to the GFP Long Mining Fund , which returned almost 15 percent in the third quarter. “In China, the hard landing feared by many has not come to pass.”……………………………………….Full Article: Source

Investors pulling money from commodities

Posted on 08 October 2013 by VRS  |  Email |Print

After a decade of blistering growth, global commodity prices have generally been declining since 2012, and the financial sector has begun withdrawing its sizable investments from commodities markets, according to a new economic report by Washington, D.C.,-based Worldwatch Institute.
However, the independent research organization’s report finds agricultural goods have fared better than most other commodity classes. Though commodities traded on public exchanges saw a combined 6 percent decrease in prices during 2012, agriculture — helped by limited supplies due to a severe drought — energy and precious metals were the exceptions, making price gains, according to the report………………………………………..Full Article: Source

5 reasons you should invest in precious metals

Posted on 07 October 2013 by VRS  |  Email |Print

A widely accepted best-practice of investing is diversification. In common terms, do not put all of your eggs in one basket. If your investments primarily occupy one area of the market: stocks, bonds, or currency, consider diversifying and including precious metals in your revamped portfolio. Often overlooked, investing in precious metals will strengthen your portfolio in a number of ways.
Precious metals include commodities like gold, silver, platinum, palladium, and copper and can be purchased in a variety of ways, which can help guard your investments against losses………………………………………..Full Article: Source

7 unreliable economic indicators that move markets

Posted on 07 October 2013 by VRS  |  Email |Print

Investors and traders live on weekly and monthly economic reports published by private and public data agencies. With the government shut down, much of the popular economic data — like the closely followed monthly U.S. jobs report — has been delayed.
But maybe we’re better off without some of these reports. The Bank of England keeps a table of which indicators correspond nicely to observed global growth. Air freight and Suez Canal data are useful, but there are plenty of other indicators out there that are just unreliable or overrated………………………………………..Full Article: Source

Are commodities falling out of favour with investors?

Posted on 03 October 2013 by VRS  |  Email |Print

Commodities have been falling out of favour with gold seeing a particular decline in popularity as the price slipped from its 2012 highs, however current macroeconomic conditions may be the trigger to highlight opportunities in the sector.
The situation in Syria has caused a two-fold effect within equities with the oil price spiking higher to roughly $108 (£68) a barrel for WTI Crude oil compared with approximately $90 a barrel at the start of 2013………………………………………..Full Article: Source

The safer way to cash in on a commodities rebound

Posted on 27 September 2013 by VRS  |  Email |Print

Ben Yearsley, head of investment research at Charles Stanley Direct, explains why he’s drawn to the Investec Enhanced Natural Resources fund for his commodities exposure. Commodities are an inherently risky place to put your money. They were one of the “must have” investments a decade ago, but have seemingly been in the “must avoid” category in the last few years.
Most commodities, especially industrial metals such as copper, appear intrinsically linked to the appetite of emerging markets; when China does well, commodities have performed strongly, when China wobbles, commodity prices and related share prices fall sharply. So, what are the prospects today?……………………………………….Full Article: Source

Commodity trading advisors, puzzled by Fed, head for third year of losses

Posted on 27 September 2013 by VRS  |  Email |Print

Long-term trend-following hedge funds are heading for a third straight year of losses unless the commodity and financial markets they trade in settle into a more predictable pattern, which does not seem likely given the Federal Reserve’s mixed signals on the U.S. economic stimulus.
Known generically as “managed futures”, or Commodity Trading Advisors (CTAs), many trend followers were whipsawed in the first half by market gyrations over whether the Fed would cut its bond buying this year. More volatility seems likely; last week, the Fed said it needed more time to decide………………………………………..Full Article: Source

The gold rush for commodities isn’t over yet

Posted on 26 September 2013 by VRS  |  Email |Print

We’ve been here before, haven’t we? Perhaps the clamour of Cassandra-like voices was not so great in 2011 when Spear’s previously wrote about the supposedly imminent demise of the commodities super-cycle, but it was nonetheless already a clamour. The past nine months or so have heard that clamour amplified several times over.
The Financial Times declared that the super-cycle was dead at the end of June, only to declare about ten days later that rumours of its death were greatly exaggerated. Most recently, the Wall Street Journal reported that the broad consensus of analysts and investors has called the end of the super-cycle………………………………………..Full Article: Source

Investing in commodities FAQ

Posted on 26 September 2013 by VRS  |  Email |Print

Commodity investments can provide higher returns than alternative investments – but the risks are higher and investors need to be familiar with the different markets. What are commodities? Commodities are tangible investments rather than intangibles like bonds or stocks. The sector splits into four markets.
Energy – like coal, oil or gas. Metals and minerals – like copper, iron ore or nickel. Precious metals – like gold, silver or platinum. Agricultural commodities – like wheat, forestry or fertilizers……………………………………….Full Article: Source

Equities set to keep edge over commodities-analysts

Posted on 25 September 2013 by VRS  |  Email |Print

Investment flows into commodities are improving, but broad sector indexes are unlikely to consistently outperform equities for at least another year, until global growth gathers more momentum, analysts and fund managers say.
Strong commodity gains in August together with a breakdown in correlations between commodities and other asset classes like equities is helping to spark interest from investors. “The view on commodities was pessimistic at best a few months ago. That seems to have changed, especially after August,” David Hemming, portfolio manager in commodities at Hermes, told a recent conference………………………………………..Full Article: Source

Jim Rogers: The 3 most exciting investment opportunities right now

Posted on 24 September 2013 by VRS  |  Email |Print

Commodities guru Jim Rogers lives in Singapore and is a well-known China bull, but the contrarian investor travels all over the world (and has circumnavigated the globe twice). So we asked where he sees exciting economic opportunities for average investors now.
Rogers tells The Daily Ticker there are great opportunities in Africa – he names Angola and Ethiopia specifically. He also is focusing on the South American country of Uruguay. “I said to my wife, ‘let’s move to Angola – we could live like kings,’” Rogers, the author of Street Smarts: Adventures on the Road and in the Markets, tells us in the video above. “She said, ‘you move to Angola; I don’t want to live like a queen in Angola’…but you could!”………………………………….Full Article: Source

Gartman: ‘Agnostic’ on gold, except in yen terms; US energy boom to continue, Japanese quantitative easing is boon for commodities

Posted on 24 September 2013 by VRS  |  Email |Print

Influential investor Dennis Gartman is “agnostic” on gold, given recent market volatility, according to remarks at a New York commodities conference on Monday. Contrary to what gold bugs claim, gold is simply not a safe haven of value, said Gartman, because prices have fluctuated 2 to 3 percent within a single trading day, as has happened often in the past year.
Despite a longtime bearish view on gold, Gartman said he remains bullish on the precious metal but only in Japanese yen terms…………………………………..Full Article: Source

Despite reputation, gold is no safe haven: Gartman

Posted on 24 September 2013 by VRS  |  Email |Print

Buy gold if you like, but don’t think it’s part of building a safety net in your portfolio. That’s the message from Dennis Gartman, the widely followed Gartman Letter author and hedge fund manager, who said Monday that the widely popular yellow metal is also generally misunderstood even by the people who swear by it.
“It’s the dumbest commodity in the history of man,” Gartman said during the IndexUniverse Inside Commodities Conference in New York. “It’s a currency, not a commodity. If it is understood as a currency, it is easier to understand what gold is.”………………………………….Full Article: Source

Copper investors now focus on weak fundamentals after US Fed

Posted on 23 September 2013 by VRS  |  Email |Print

After a statement from US Federal Reserve on its monetary stimulus, now copper investors are eyeing on copper fundamentals which are look weak and are likely to pressurise the base metal prices later this year.
Copper prices recorded a jump than any other base metal last week after a statement from the US Federal Reserve said that it will continue with its existing monetary stimulus till the economy backs to its solid growth path. The statement fuelled short covering in the base metal and caused a significant up-tick………………………………..Full Article: Source

How will tapering affect gold bullion investment?

Posted on 19 September 2013 by VRS  |  Email |Print

Next week the FOMC will meet for one their eight scheduled meetings. It is this particular meeting that has had traders, market commentators and investors almost in frenzy as they try to predict the outcome. It seems everyone is convinced that tapering will go ahead, as of next week, and the gold bears believe that this will signal gold’s demise.
Given the drop in the gold price each time tapering is merely hinted at, one might not be surprised at this prediction. However, as we have learnt since April’s gold price drop, gold investors continue to stock up on gold regardless of what they pay for it. We believe the same will be the case if and when tapering begins………………………………………..Full Article: Source

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