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Gold will bottom in 2014 before record-making rebound - Pecora

Posted on 02 April 2014 by VRS  |  Email |Print

Gold prices will bottom in 2014 before returning to a record within five years as weaker equities spur demand for a haven and physical buying from Asia strengthens, according to asset manager Pecora Capital LLC.
Bullion may drop to about $1,160 an ounce this year as the dollar advances as much as 5 percent, Boca Raton, Florida-based Pecora said. U.S. stocks that reached an all-time high last month are overvalued and will probably retreat when the Federal Reserve ends stimulus. In that scenario, gold could initially slide as money flows toward cash investments, before rebounding, it said………………………….Full Article: Source

BlackRock’s Raw: Where will the gold price go in 2014?

Posted on 02 April 2014 by VRS  |  Email |Print

Following last year’s dramatic gold sell-off BlackRock World Mining trust co-manager Catherine Raw is expecting a volatile but ultimately more stable gold price in the year ahead.
Speaking at the Fund Strategy Investment Summit in Pennyhill Park, Raw highlighted a number of crucial changes that have created greater stabilisation for the gold price since last year………………………….Full Article: Source

Gold prices fall to lowest level in seven weeks

Posted on 02 April 2014 by VRS  |  Email |Print

Gold prices sank to their lowest level in seven weeks Monday, as investors continued to discount the possibility that the conflict in Ukraine would intensify. Gold for June delivery, the most actively traded contract, closed down $10.50, or 0.8%, at $1283.80. It was the lowest close for the precious metal since Feb 11.
Prices for gold are down more than more than 7% since March 14, as it became clear that the West would limit its response to Russia’s annexation of Crimea to a series of narrowly-targeted sanctions…………………………Full Article: Source

Nickel prices to average $16,000 per ton in 2014, $17500 in 2015

Posted on 02 April 2014 by VRS  |  Email |Print

Natixis has forecasted $16,000 per ton for nickel in 2014 and risin to $17500 per ton in 2015 on Indonesia export ban on nickel ore and possible fall in supples. However, the market has substantial surplus in 2014 thus weakening the prospects of a bullish trend emerging.
The decision by Indonesian authorities, on 12 January, to ban exports of low-grade ore came as a major shock to the nickel market. Since then, as the market has digested the full implications of this move, nickel prices have rallied sharply, increasing to a high of over $16,000/tonne in March. …………………………Full Article: Source

Zinc prices to average $2185 per ton in 2014, $2450 in 2015

Posted on 02 April 2014 by VRS  |  Email |Print

Zinc prices will average $2,185 per ton in 2014, rising to $2,450 per ton in 2015 as the market progressively acts to ration near-term demand for the metal, as well as incentivising mining companies to increase investment in new mines over the coming years.
Zinc entered 2014 with some of the best fundamentals among the base metals. Exchange stockpiles declined by 380,000 tonnes last year, reflecting both an improvement in demand for zinc as well as constrained supply. International miners are struggling to raise zinc output against a backdrop of investment cutbacks and zinc mine closures. …………………………Full Article: Source

A U.S.-Saudi move to lower oil prices?

Posted on 28 March 2014 by VRS  |  Email |Print

Could the U.S. unleash a flood of oil from the strategic petroleum reserve that would drive down prices in order to punish Russia? While the idea has been kicked around over the last few weeks – most recently by George Soros – it has also been dismissed as not a serious option.
Some say the impact of an oil sale, if it actually succeeded in lower prices, would be temporary. Saudi Arabia could cut back on production to keep oil prices at their current levels. Others decried the idea as contrary to the objective of the SPR, which has been setup to be used only in cases of emergency………………………………Full Article: Source

What does that have to do with the price of gold?

Posted on 28 March 2014 by VRS  |  Email |Print

Earlier this month the price of gold hit a six-month high of $US1370 an ounce, buoyed by investors and civil unrest in Ukraine. So what does a foreign conflict have to do with the price of gold?
To those outside the gold industry it might seem strange that geopolitical uncertainty in Crimea might mean good things for your average gold miner in Kalgoorlie-Boulder. But, for one of the world’s oldest currencies, civil unrest is just one of many seemingly random factors to affect its price………………………………Full Article: Source

Gold slips below $1,300, likely to stutter short term

Posted on 28 March 2014 by VRS  |  Email |Print

As tensions ease on Russia/Ukraine, the gold price has suffered falling briefly below $1300 an ounce overnight and then again a little more heavily in European trade this morning. Russia now appears to have managed to annex Crimea without any sanctions of serious consequence being raised against it and President Putin has played the diplomat by cutting out some of the competitive sanction rhetoric.
There seems to be little doubt that the West – and Europe in particular – has no stomach for a serious economic fight given that tit for tat sanctions might be more of a problem for those European states dependent on Russian gas for 30% of their supplies than they would be for Russia itself………………………………Full Article: Source

Gold holds steady near $1,300

Posted on 28 March 2014 by VRS  |  Email |Print

Gold held steady just above $1,300 on Thursday as the metal’s safe-haven appeal was boosted by weaker equities, but gains were limited by a second day of outflows from gold funds.
Spot gold was flat at $1,302.96 an ounce by 0721 GMT. Asian markets were in skittish mood on Thursday following a soft finish on Wall Street and amid simmering tensions over Ukraine………………………………Full Article: Source

Gold extends losses as haven demand wanes

Posted on 28 March 2014 by VRS  |  Email |Print

Gold prices sank to a six-week low on Thursday as signs of improving U.S. economic growth and easing concerns about Ukraine sapped investor interest in the haven asset. Gold for April delivery, the most active contract, fell $8.70, or 0.7%, to $1,294.70 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold’s lowest settlement price since Feb. 11, when futures closed at $1,295 an ounce.
Gold had rallied over the first two months of 2014 as investors sought to protect their wealth from risks such as a slowing U.S. economy, turbulence in emerging markets, and a political crisis in Ukraine. Gold is considered by some traders as a safer investment than currencies or Treasury bonds, because the precious metal’s value isn’t tied to a government or country………………………………Full Article: Source

Agricultural commodities prices rocket

Posted on 27 March 2014 by VRS  |  Email |Print

Agricultural commodities have been strong performers since the start of the year. Good for the speculators, but does it does raise wider concerns that a global economic revival might end up being squeezed.
Analysts cite demand from China as being a major driver of agricultural prices. But fears the Crimean crisis could end up restricting Ukrainian grain exports have also sent them shooting higher. If supply constrictions are the primary driver, higher prices could yet dent global economic revival as consumers forced to pay more for food have less money to pay for other goods…………………………………Full Article: Source

Are we trying to fight Russia through commodity prices?

Posted on 27 March 2014 by VRS  |  Email |Print

Although Russia has shown its might through hosting the Winter Olympics, followed by its annexation of Crimea, it’s still in a precarious position because of its reliance on taxes collected from the oil and natural gas industry.
The country receives over half of its revenue from oil taxes, and the country needs Brent crude prices of over $110 to balance its budget this year. In the face of Russian aggression, is the United States subtly pressuring Russia by threatening to flood the crude oil market, leading to falling prices? Additionally, is this week’s conditionally authorized approval of Jordan Cove LNG facility to non-Free Trade Agreement countries another warning shot to Russia?………………………………..Full Article: Source

Barclays raises 2014 gold price forecast, cites performance so far

Posted on 27 March 2014 by VRS  |  Email |Print

Barclays raised its 2014 gold forecast to $1,250 per ounce from $1,205 on Wednesday, saying the change comes after taking into account gold’s year-to-date performance.
The bank maintained it has not altered its overall view on the yellow metal and believed gold’s next move will be lower as the macro background that could accelerate prices sustainably has not changed though investor sentiment has stabilised. It forecast gold prices at $1,150 for 2015…………………………………Full Article: Source

Gold to stay above last December’s lows in 2014: CPM Group

Posted on 27 March 2014 by VRS  |  Email |Print

Average annual gold prices are expected to remain steady and stay above the lows seen at the end of 2013, said CPM Group Tuesday. The New York-based consultancy released its annual gold yearbook at Bloomberg’s headquarters during an event fittingly called, An Evening On Gold which featured a panel of gold experts. The yearbook is considered one of the industry’s most coveted staples for forecasting the metal.
Findings from CPM Group’s Gold Yearbook show gold prices averaged $1,409.43 an ounce in 2013, down 15.6% from the average gold price of $1,670.15 an ounce in 2012. This was the first annual average decline for the yellow metal in more than a decade…………………………………Full Article: Source

Will gas prices keep rising?

Posted on 26 March 2014 by VRS  |  Email |Print

Recent rises in the price of crude oil have also driven gasoline prices higher, to around $3.50 per gallon currently. Despite the recent rally, gas prices might actually be in for a decline in the coming months. Don’t blame OPEC this time…
OPEC’s policy to maintain its quota at 30 million barrels per day has driven oil prices higher in the past. But in recent months OPEC’s production has increased, mainly due to the slow recovery of Libya’s oil production and the sharp rise in Iraq’s production. Moreover, OPEC’s current oil production is higher than the agreed upon quota: As of February, output reached 31.4 million barrels per day. If OPEC continues to increase its production, this trend could push oil prices lower……………………………….Full Article: Source

Gold prices to consolidate lower in 2014: CPM Group

Posted on 26 March 2014 by VRS  |  Email |Print

Despite a strong start to 2014, gold prices are likely to consolidate lower due to longer-term investors’ price sensitivity and shorter-term investors’ concerns about US Federal Reserve monetary policy, analysts from the New York-based research firm CPM Group said Tuesday.
“CPM Group does not expect gold prices to decline significantly from current levels, but neither does it expect a sharp increase in prices over 2014 and 2015,” analysts said in the group’s Gold Yearbook 2014, which was released Tuesday. In 2014, gold prices are expected to average $1,256.77/oz, down 10.8% from the $1,409.52/oz last year, CPM analysts said in the report……………………………….Full Article: Source

Gold hitting $9,000 and $50,000 – Are these legitimate forecasts for gold prices?

Posted on 26 March 2014 by VRS  |  Email |Print

After a disappointing 2013, gold has started off the year doing quite well, despite finishing at a one-month low during the Monday trading session. Nevertheless, some Wall Street traders and contrarian investors see gold hitting new highs in the near future.
One forecast that has been making headlines was made by James Rickards, portfolio manager at West Shore Funds, in which he suggested the yellow metal could rise anywhere from $7,000 to $9,000 within the next three to five years……………………………….Full Article: Source

Oil bound for cheaper price era

Posted on 24 March 2014 by VRS  |  Email |Print

Oil prices are in for a slide. With growing global conventional and non-conventional output and slowing consumption growth, lower oil prices seem a certainty. China has been the constant, the sole star performer in the global economic stage, all these recent years. But things seems to be changing there too.
Trend growth is slowing down and markets have been shaken up by the actions of the People’s Bank of China, endeavouring to tame a virulent credit boom. In the first two months of 2014, industrial confidence and output indices, retail sales, fixed asset investment and credit creation, all were weaker than anticipated………………………………………..Full Article: Source

Palladium hits $800/oz

Posted on 24 March 2014 by VRS  |  Email |Print

Palladium futures touched $800 an ounce Friday on news that two physically backed exchange-traded funds will launch in South Africa next week, creating expectations for increased demand for the metal.
This comes when the market is already worried about constrained supplies due to the combination of a strike in the South African mining sector and potential for sanctions against leading producer Russia, traders and analysts said………………………………………..Full Article: Source

How to play the rising cost of commodities

Posted on 21 March 2014 by VRS  |  Email |Print

Scientists have uncovered evidence of the Big Bang and “cosmic inflation” in recent experiments at the South Pole. But the average American doesn’t have to be an astrophysicist to find proof of cosmic inflation. All they have to do is look at their grocery budget.
Food prices are soaring, as ugly weather in California and South America wreaks havoc on harvests. If you’ve been watching the fast-moving commodity markets lately and you’re looking to get a piece of the action in agriculture — or if you’re just an investor looking to hedge your portfolio against the volatility — thankfully there are many ways to play these recent trends. And most of them fit comfortably in the typical brokerage account or IRA………………………………………..Full Article: Source

How bad are analysts at forecasting commodity prices? Really bad

Posted on 21 March 2014 by VRS  |  Email |Print

Over the last ten years, consensus has been the best at forecasting prices for aluminium, zinc and nickel and the worst at forecasting copper, iron ore, gold and silver. The average error over a 1 year time frame for aluminium has been 4%, and over a 2 year period 5%. For Zinc this is 2% and 4%, Nickel 5% and 3%.
By contrast, the error on the copper forecast has averaged -7% and -19% and iron ore -8% and -21% for 1 and 2 year horizons, respectively. This suggests that a counter consensus view on aluminium, zinc and nickel prices is unlikely to be the correct course of action, while it for copper and iron ore one has to be contrarian to stand any chance of being right………………………………………..Full Article: Source

Why the world oil prices should be high and stable

Posted on 21 March 2014 by VRS  |  Email |Print

After a decade of volatile prices, the past three years saw an unusual period of stability in the oil market, with a barrel of crude oil averaging $110 each year. However, forecasts for 2014 predict a decline to an average of $105, on the basis of expanding supply and a weaker-than-expected demand.
A combination of geopolitical events in Syria, Libya and Nigeria have prevented oversupply despite the expanding entry of US shale oil into the market. The price has remained high thus far, but how long can prices stay above $100?……………………………………….Full Article: Source

Oil and gas: At what price?

Posted on 21 March 2014 by VRS  |  Email |Print

Regional power shifts and how they affect the supplies of gas and oil central to 21st Century life. It keeps the lights on, our transport systems running and businesses on track - without it modern life would simply not function.
Energy is at the centre of our lives and - as recent events have shown a key influence in the cause and consequences of conflicts around the globe………………………………………..Full Article: Source

IEA warns on US gas price

Posted on 21 March 2014 by VRS  |  Email |Print

The International Energy Agency’s gas expert has warned United States natural gas prices could rise by more than 50 per cent and they would still stack up well against Australian exports. IEA senior gas analyst Anne-Sophie Corbeau spoke in Sydney yesterday where she acknowledged Australia is still on track to become the largest LNG supplier in the world by the end of the decade.
However, according to media reports, Ms Corbeau also said North America is best placed for new investment in the sector………………………………………..Full Article: Source

Why world oil prices should be high and stable

Posted on 20 March 2014 by VRS  |  Email |Print

After a decade of volatile prices, the past three years saw an unusual period of stability in the oil market, with a barrel of crude oil averaging $110 each year. However, forecasts for 2014 predict a decline to an average of $105, on the basis of expanding supply and a weaker-than-expected demand.
A combination of geopolitical events in Syria, Libya and Nigeria have prevented oversupply despite the expanding entry of US shale oil into the market. The price has remained high thus far, but how long can prices stay above $100?……………………………………….Full Article: Source

Ukraine crisis as likely to result in lower as higher oil prices

Posted on 20 March 2014 by VRS  |  Email |Print

Concerns about potential disruption to Russian energy exports initially caused oil and natural gas prices to rise as the crisis in Ukraine unfolded, and they may yet do so again. But global energy prices could eventually end up lower than otherwise if tensions escalate, according to Julian Jessop Chief Global Economist at Capital Economics.
Indeed, the balance of power increasingly favours the West over Russia in the energy sector, just as it long has in finance. In short, Russia is of course a major producer and exporter of both oil and natural gas. Russia exports more than 7 million barrels per day (bpd) of oil and oil products (fuel oil and diesel), representing around 8% of global consumption………………………………………..Full Article: Source

Gold tipped to hit $1,400 on Russia fears and ETF buying

Posted on 20 March 2014 by VRS  |  Email |Print

German bank says that turmoil in Ukraine and a return of ETFs will push gold prices even higher in 2014. Gold prices will hit $1,400 (£842) an ounce by the end of the year in a dramatic turnaround in sentiment among investors buying the precious metal, according to Commerzbank.
The German bank said it has been “surprised by the early timing and scale of the upward movement” in the price of gold, which has risen 15pc this year………………………………………..Full Article: Source

Commerzbank sees temporary gold pullback, then upswing to $1,400 avg. in 4Q

Posted on 20 March 2014 by VRS  |  Email |Print

Gold is likely to give up some of its recent gains but then recover again into year end, averaging $1,400 an ounce in the fourth quarter, Commerzbank said in a forecast released Wednesday. Silver is seen averaging $24 in the final three months of the year. Other fourth-quarter forecasts included platinum, $1,600; and palladium, $825.
Spot gold rose to just above $1,392 an ounce early this week and was up some 15% for the year to date, the bank said. The metal also was up around 13% in euro terms……………………………………….Full Article: Source

Technical breakout in gold, $1500 in reach

Posted on 20 March 2014 by VRS  |  Email |Print

Gold is staging a breakout of a powerful technical pattern that will bring $1500/oz. into reach. Buying pressure has been building for physical gold. Price action is reflecting stronger bullish sentiment and a continuation of the long term bull trend, which dates back to 2009. Technical indicators show that gold is now poised for another strong move to the upside.
We know that gold trades differently than other commodities and differently than stocks. Some successful investors, such as Warren Buffet, steer clear of gold because it’s value cannot be easily calculated by some discounted cash flow or other quantitative method………………………………………..Full Article: Source

How to profit from rising gold prices

Posted on 20 March 2014 by VRS  |  Email |Print

Gold’s outperformance almost seems counter-intuitive. After all, one of the biggest arguments that gold bugs have presented is that the Fed’s quantitative easing program is resulting in more fiat money circulating throughout the economy, leading to inflation. Gold is often used as a hedge against inflation.
Therefore, we would expect the price of gold to fall as quantitative easing comes to a close. But, that hasn’t happened. Instead, the fundamentals for the yellow metal have taken over as demand for it has surged. ……………………………………….Full Article: Source

Does gold’s rally have nothing to do with Ukraine crisis?

Posted on 20 March 2014 by VRS  |  Email |Print

The gold price rally is not the result of any geopolitical instability, instead should be considered as the beginning of the next leg of up move, says Peter Schiff, CEO, SEC registered investment advisor Euro Pacific Capital Inc.
According to Schiff, the precious metal is poised for a tremendous rally here on. The sharp decline in prices during 2013 must be treated as part of the ongoing bull market, he added………………………………………..Full Article: Source

Copper awaits further decline on global economic worries

Posted on 19 March 2014 by VRS  |  Email |Print

Copper price fell 13% so far this year due to various macroeconomic worries ranging from Chinese credit tightening concerns, Russia-Ukraine tensions, sluggish Japanese and US economic data that led to overall slide in industrial commodities.
In the last three session over the previous week, copper recorded one of its sharpest fallsof around 9% to settle at $6380 a tonne on the London Metal Exchange (LME) from $7220 a tonne. With this slide, copper hit the lowest level sinceJune 2010. Apparently, its demand is being questioned further as China , the world’s largest consumer, sees exports and inflation contracting at a fasterrate than expected………………………………………..Full Article: Source

Crude oil prices to bounce back in H2 2014 on US recovery: Barclays

Posted on 18 March 2014 by VRS  |  Email |Print

Crude Oil prices are expected to bounce back strongly in second half of 2014 as the US recovery gathers momentum, refineries come out of maintenance and global oil balances tighten once again, according to Barclays Research.
In the short run, oil prices may remain weak but for the Ukraine crisis which could keep the market supported on supply fears. However, there are three strong reasons why globally oil prices may remain elevated, according to Barclays………………………………………..Full Article: Source

Iran’s crude oil prices up in February: OPEC

Posted on 18 March 2014 by VRS  |  Email |Print

Iran sold crude oil at $104.96 per barrel in February, a 7 cent rise compared to January, ISNA reported, citing the Organization of Petroleum Exporting Countries (OPEC).
Iran maintained its crude oil shipments at the highest since the end of 2012 last month amid talks between the country and world powers over its nuclear program, according to the International Energy………………………………………..Full Article: Source

RBCCM sees gold rally ahead - similar to 2005-2008

Posted on 18 March 2014 by VRS  |  Email |Print

Royal Bank of Canada Capital Markets analysts Dan Rollins in Toronto and Jonathan Guy in London have come up with a detailed analysis of the gold market over the next few years comparing it with the big ETF driven gold price rally of 2005-2008.
Over this period, gold doubled in price from $450 to $900, and while the analysts are not putting exact price predictions into their prognostications, nor coming up with a precise timescale, the implication is there in their research that this could lead to a big gold price increase in the medium to long term………………………………………..Full Article: Source

Mitsubishi: Palladium could test $800/oz

Posted on 18 March 2014 by VRS  |  Email |Print

Mitsubishi sees potential for palladium to test the $800-an-ounce level. Nymex palladium futures got above $788 Friday before falling back on profit-taking, the firm says. Support came last week from a 19% year-on-year rise in Japanese passenger car sales, although Mitsubishi adds that this may have been affected by a consumer rush to buy before a rise in the sales tax next month.
Stronger auto sales bode well for palladium since it used for emissions-control systems. “Supported by geopolitical tensions in Ukraine as well as the ongoing South African PGM (platinum-group-metals) mining strike, palladium could make further gains in the coming days, perhaps testing the $800 level,” Mitsubishi says………………………………………..Full Article: Source

Speculators see gold gaining with wheat on Ukraine: Commodities

Posted on 17 March 2014 by VRS  |  Email |Print

After shunning gold and wheat for most of last year, hedge fund managers are piling back in as the escalating crisis in Ukraine spurs a rebound in the prices of both commodities.
Speculators have the biggest bet on a gold rally since December 2012 and turned bullish on wheat for the first time since November, government data show. Bullion last week reached a six-month high and wheat entered a bull market as Crimea prepared for a referendum. A majority in the disputed vote March 16 chose to leave Ukraine and join Russia, exit polls showed………………………………………..Full Article: Source

Russia/Ukraine escalation could drive gold to $1400 – or higher - short term

Posted on 17 March 2014 by VRS  |  Email |Print

With gold hovering around the $1370 level this morning – a level which has confounded the very bearish bank analyst sector – gold has, as we have noted before, been by far the best asset class to be invested in so far this year, beating even the other precious metals which might seem to have even more going for them.
But the analysts will say that they could not have predicted the flare-up in the Ukraine and the subsequent aggressive moves by Russia which look as though they will see the annexation of Crimea. It seems Ukraine is virtually powerless to do anything about this beyond gleaning Western support which could result in sanctions being imposed on Russia, given its likely intransigence in the matter, with the threat of further escalation overhanging the situation………………………………………..Full Article: Source

Gold prices on the way up

Posted on 17 March 2014 by VRS  |  Email |Print

Gold prices are looking set to crack the $US1400 mark yet again, with surges over the last three weeks leading to a finish of $US1385 per ounce last week. With the Australian dollar sitting at 90 US cents, the Australian gold price has hit $1536.
The new prices come as a relief to gold miners, especially Newcrest Mining Limited, pegged by the pundits to win big in the long term from the rising prices thanks to substantial reserve holdings of the precious commodity………………………………………..Full Article: Source

Copper prices below $5,000 could threaten Zambian mines - minister

Posted on 17 March 2014 by VRS  |  Email |Print

Zambian mines are still operating profitably despite the fall in copper prices but could be threatened if the price dropped below $5,000 per tonne, Mines Minister Christopher Yaluma said on Saturday.
Copper markets have been edgy over slowing Chinese demand and fears that credit upheaval in the world’s second-biggest economy could unwind financing deals using the metal as collateral. Benchmark three-month copper on the London Metal Exchange has been falling steadily since January and sank to a 44-month low of $6,376.25 on Wednesday………………………………………..Full Article: Source

Gold physical demand stays subdued as prices rally

Posted on 14 March 2014 by VRS  |  Email |Print

Gold prices are up about 14% on the year as investors return to commodities and the yellow metal gets a safe-haven bid on geopolitical worries, but one key market participant is largely absent.
Physical buying, particularly out of Asia, has been subdued at best for the past few weeks, as seen by the small premium or occasional discount Shanghai Gold Exchange prices trade versus spot. Additionally, gold-market traders pointed to positive gold forward rates, known as “gofo” rates, or lease rates, which also suggest the physical market isn’t tight………………………………………..Full Article: Source

Gold price hits a six-month high

Posted on 14 March 2014 by VRS  |  Email |Print

The price of gold hit a six-month high overnight of $US1,370 ounce buoyed by investor appetite and civil unrest in Ukraine. Gold has always been considered a safe haven during times of political and civil unrest and the geopolitical uncertainty in Crimea has seen the price steadily rise all week.
But the managing director of gold miner Ramelius Resources, Ian Gordon, believes there are also other factors at play in the price rise. “Events like the unrest in Ukraine do spur on the price of gold, but I don’t know if it’s as important as people say, but it’s in the mix of factors………………………………………..Full Article: Source

Gold could reach 5,000 within a few years - Oliver

Posted on 14 March 2014 by VRS  |  Email |Print

Charles Oliver joined Sprott Asset Management LP in January 2008. He focuses on gold and silver investments as a portfolio manager for the Sprott Gold & Precious Minerals Fund and the Silver Equities Class.
“In 1980, when the gold price peaked at $800, it took 1 ounce of gold to buy the Dow Jones Index. After 1980, financial assets took the lead over hard assets. In 1999, it took 44 ounces of gold to buy the Dow Jones, at a gold price of $250. If gold were to regain the position it held in 1980, we could easily see a 3:1 ratio – gold at $5,000 given the current level of the Dow Jones, or even $15,000 if gold returns to the 1:1 level………………………………………..Full Article: Source

When to buy silver? Prices failing to come back

Posted on 14 March 2014 by VRS  |  Email |Print

It is unquestionable that silver and gold prices share a strong relationship. Like gold, silver is dependent on psychology and the factors that drive psychology, such as inflation and the dollar. However, despite being considered a precious metal, silver also plays a role as an industrial metal.
Like the rest of commodities, silver peaked in 2011, as the dollar pushed commodity prices down. Since then, silver prices have weakened. Despite the upward move that silver made last month, it seems that silver is struggling to overcome previous levels………………………………………..Full Article: Source

Copper bottomed

Posted on 14 March 2014 by VRS  |  Email |Print

Copper has fallen sharply in the last week, reaching its lowest level in nearly four years. The metal is traditionally seen as a barometer of global activity although this very long-term chart (which we ran near the market peak in 2011) doesn’t suggest a great deal of reliability. (To update the price from the graph, it is now around $6,400).
The price was falling for much of the 1990s when the economy was doing very well indeed. Nowadays the copper price may say more about events in China than elsewhere; although that still is useful………………………………………..Full Article: Source

Commodity prices and the China syndrome

Posted on 14 March 2014 by VRS  |  Email |Print

The last month or two has provided a wonderful illustration of why a diversified commodity index is a better investment than an investment in any given commodity. Since mid-February, April Lean Hogs has rallied 23%. Since late January, May Wheat is up 23%. March Coffee is up 80%. Gold is up 9%.
But Crude Oil is 6% off its highs. Copper is 12% off its highs (8% since Thursday). April Nat Gas was up 42% from November through late February, but has lost 10% since then………………………………………..Full Article: Source

Petrol price hike feared as Opec forecasts rising oil demands

Posted on 13 March 2014 by VRS  |  Email |Print

Oil cartel reveals plans to release emergency supplies as Washington announces ‘test’ sale of oil reserves. Fears grew of an increase in petrol prices after Opec raised its forecasts for world oil demand and the US revealed plans to release emergency supplies.
The Middle East-led oil cartel, which controls a third of world oil supply, said it now expected demand to increase during 2014 by 50,000 barrels a day to 1.14m as the world economy slowly picks up speed………………………………………..Full Article: Source

Copper slumps to 44-month low on concern China demand is slowing

Posted on 13 March 2014 by VRS  |  Email |Print

Copper reached a 44-month low in London amid concern demand is weakening in China, the biggest consumer of the metal. Futures traded in Shanghai touched the lowest price since 2009.
The metal slumped this week after figures showed exports from China unexpectedly fell the most since 2009 last month. The nation’s central bank will cut reserve ratios for lenders next quarter amid increased downside risks to the economy, Nomura said in a report. China’s industrial output slowed in February as retail sales sped up, economists said before data tomorrow………………………………………..Full Article: Source

Why miners aren’t panicking about the latest commodity drop

Posted on 13 March 2014 by VRS  |  Email |Print

While steep declines in copper, iron ore and coking coal prices have spooked investors, they are not severe enough to disrupt the mining sector at this stage. The vast majority of projects can generate decent margins at these price levels, according to experts. Though in the case of coal, there has been enough of a drop to make high-cost producers nervous.
Prices for all three commodities have been under pressure throughout 2014, but they plummeted over the last several days due to economic concerns out of China. Manufacturing activity has been weaker than expected, and a bond default by a solar company raised fears of tighter credit conditions. That hit the copper market in particular, as many Chinese companies use the red metal as collateral to raise money………………………………………..Full Article: Source

Financial markets focus on commodity prices

Posted on 13 March 2014 by VRS  |  Email |Print

The price moves are not for the most part very big, but it is beginning to look as if the markets are rolling over. The dollar, yen and Swiss francs are all relatively strong. Equity markets are under pressure. The MSCI Asia Pacific Index and the Emerging Equity Index are off 1.3%-1.5%. Europe bourses are also in the red, with the Dow Jones Stoxx 600 off almost 1%. Core bond yields are lower and the periphery higher.
There is much focus at the moment on the decline of copper, iron ore and crude oil prices. Copper prices continue to plunge. The 5% limit was hit in Shanghai. The four-session (though today) swoon, copper prices have fallen nearly 10%. The break of the $300 level is important as that represents the shelf that extends back to 2011………………………………………..Full Article: Source

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