Fri, Aug 1, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Commentaries more

Is the Fed Cornered? Here’s What Gold’s Price Says

Posted on 01 August 2014 by VRS  |  Email |Print

Step away from monetary-policy details and you’ll see that the Fed is in a conundrum. Economic data is improving. Policy is still ultra-loose. How does the Federal Reserve get from post-crisis mode to something more conventional?
Judging by the attached chart, the gold-price reaction to this morning’s 8:30 a.m. economic data suggests the question is top of mind for at least some traders. If it weren’t, gold’s price might be expected to be on the rise amid Thursday’s tone of worry. Dow futures are falling 118 points. Argentina is on the brink of default. European markets fell by a good 1% nearly across the board………………………………………..Full Article: Source

Investors not enthused by improving health of Commodities: Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

A Barclays report says the current year witnessed an improvement in the health of commodities but investors have continued to withdraw assets from commodity investments on a quarterly basis. The slow pace at which institutional investors are able to take and implement the kind of long-term investment decisions and make allocations to commodities is the major reason for this trend. But the situation is expected to improve gradually, the report said.
The report maintains key recommendations as: long crude oil; short gold (due to weak fundamentals); and long nickel – the base metal with the best short-term fundamentals and a sector likely to benefit from better global growth in this quarter………………………………………..Full Article: Source

Hold some gold. Better safe than sorry

Posted on 31 July 2014 by VRS  |  Email |Print

The one sided drivel which passes for objective news reporting in the West never ceases to amaze me. On Ukraine, and in particular on the shooting down of Malaysian airlines flight MH17, the western media seem to promote one agenda, and one agenda only, without any recognition at all that there might be an alternative argument viewed from the ‘other side’.
Now whether it is proven that the anti-Russian rhetoric thus encompassed is correct or not surely a wholly impartial news organisation should at least recognise that there could perhaps be another side to the story………………………………………..Full Article: Source

Energy Economist: The amount of oil the world uses, seen through different eyes

Posted on 30 July 2014 by VRS  |  Email |Print

How much oil does the world consume? You’d think this would be a fairly straightforward question, given its economic importance to the world economy, and indeed answers are not hard to find. The problem is those answers differ significantly. Even with the development of the Joint Organisations Data Initiative–an evolving beast designed to bring improved transparency to oil markets–oil market data remains messy, inaccurate and opaque.
For 2013, a year which by now should be transitioning from estimate to a matter of historical record, OPEC puts world demand at 90.00 million b/d, the International Energy Agency at 91.40 million b/d and the US Energy Information Administration at 90.49 million b/d. The difference is large in absolute terms–1.4 million b/d between the IEA and OPEC–but small if viewed in percentage terms, about 1.5% of the total market………………………………………..Full Article: Source

We’re Ready to Profit in the Coming Gold Price Correction—Are You?

Posted on 30 July 2014 by VRS  |  Email |Print

Sometimes I see an important economic or geopolitical event in screaming headlines and think: “That’s bullish for gold.” Or: “That’s bad news for copper.” But then metals prices move in the opposite direction from the one I was expecting. Doug Casey always tells us not to worry about the short-term fluctuations, but it’s still frustrating, and I find myself wondering why the price moved the way it did.
As investors we’re all affected by surges and sell-offs in the investments that we own, so I want to understand. Take gold, for example. Oftentimes we find that it seems to tease us with a nice run-up, only to give a big chunk of the gains back the next week. And so it goes, up and down………………………………………….Full Article: Source

Forecasts for higher oil prices misjudge the shale boom: Kemp

Posted on 29 July 2014 by VRS  |  Email |Print

“The world of energy may have changed forever,” according to Professor James Hamilton of the University of California. “Hundred dollar oil is here to stay.” Hamilton, who is one of the most respected economists writing about oil, made his bold prediction in a paper on “The Changing Face of World Oil Markets”, published on July 20.
“Old hands in the oil patch may view recent developments as a continuation of the same old story, wondering if the high prices of the last decade will prove another transient cycle with which technological advances will eventually catch up,” he wrote. “But there have been dramatic changes over the last decade that could mark a major turning point.”……………………………………….Full Article: Source

Should you jump on the silver bandwagon?

Posted on 29 July 2014 by VRS  |  Email |Print

After rising nearly 12% from its June lows, silver has been garnering some attention lately, leaving many investors wondering whether they should raise their allocations to the precious metal. Russ explains why now probably isn’t the best time to allocate more to either silver or gold.
After rising nearly 12% from its June lows, silver (SLV) has been garnering some attention in recent weeks, as investors and market watchers look for something to get excited about amid the broader market’s low volatility and slow grind higher. It’s no wonder, then, that many are asking whether it’s time to jump on the silver bandwagon………………………………………..Full Article: Source

Stephanie Flanders: Now is the time to invest in commodity stocks

Posted on 25 July 2014 by VRS  |  Email |Print

Stephanie Flanders, chief market strategist at JP Morgan Asset Management, believes that now is the time for investors to back commodity companies. She commented that while ‘it is too early’ to call the bottom of the commodity cycle, commodity stocks should still play an increasing role in investors’ portfolios because of the diversification they offer.
Flanders noted that 2014 has seen strong returns for commodities, with the Bloomberg/UBS Commodity Index having returned 7.1 per cent so far this year………………………………………..Full Article: Source

Gold: If The Worst Is Over, What’s Next?

Posted on 24 July 2014 by VRS  |  Email |Print

1. A number of top bank economists have turned bullish on gold in the past few months. That’s helping to boost confidence amongst thousands of Western gold community investors.
2. Scotiabank and HSBC have lead the way on that front, and now top metals strategist Mike Widmer at Merrill Lynch has thrown his weight behind the bulls as well………………………………………..Full Article: Source

Commodity markets rattled by Ukraine airplane disaster

Posted on 21 July 2014 by VRS  |  Email |Print

Global commodity markets were gripped this week by the Malaysian air crash, which has dramatically raised tensions between Russia — a key producer of many raw materials — and the West. The doomed Malaysia Airlines MH17 flight, which crashed killing 298 people on Thursday, was “likely downed” by a surface-to-air missile fired from separatist-held eastern Ukraine, a US envoy said on Friday.
Investor sentiment was already hit by broadened US sanctions on Russian energy, defence and financial firms to punish what Washington charges are violations of Ukraine´s sovereignty.”If Russia turns out to have played any part in (Thursday´s) shooting down of a passenger plane over east Ukraine, there is a risk of sanctions being further tightened,” Commerzbank analysts said in a research note………………………………………..Full Article: Source

Do Or Die Time For Commodities

Posted on 17 July 2014 by VRS  |  Email |Print

It’s do or die time for commodities. In classic Stage Analysis what we’re seeing right now is a retest of a Stage 1 base that formed over multiple months in 2013. Commodities then broke out of that base in early 2014 but are now retesting the base which is typical in a Stage 2 uptrend.
This retest is kind of a mixed bag in my opinion, because agricultural commodities are acting extremely weak and putting in new lows. Energy is looking weak too. Precious and base metals are probably the strongest portions of the commodities complex currently. Which is interesting because they lagged at the beginning of the year and now they are leading………………………………………..Full Article: Source

Gold is still looking good – but watch this price level closely

Posted on 17 July 2014 by VRS  |  Email |Print

Just before New York’s opening bell on Monday somebody dumped 14,000 gold contracts onto the market. That’s 1.4 million ounces (a contract is 100 ounces), or $1.8bn worth – around a 65th of annual global production.
And it followed a 6,000-contract dump earlier in the day as markets opened in Europe. Is somebody trying to get the price down? Gold ended last week at $1,340 an ounce. Then, on Monday afternoon, it touched $1,302. That near-$40, 2.5% drop was its biggest daily plunge since December 2013 – the nadir (so far at least) of gold’s bear market………………………………………..Full Article: Source

Goldman thrives as commods rivals melt away

Posted on 16 July 2014 by VRS  |  Email |Print

Goldman Sachs’ commodities business, known for its muscular trading operation, is rapidly expanding in a plainer and less politically charged area even as listless markets and increased regulation force rivals to beat a retreat. Commodity finance is among the fastest-growing segments of Goldman’s commodities business, the bank’s executives said.
“The financing side of the equation has gone from being a sort of appendage to being a really major organ for us,” Greg Agran, Goldman’s global co-head of commodities trading, said. “When we think about growth going forward over the next few years, I actually think the commodity finance business is one of the areas we are most excited about”………………………………………..Full Article: Source

Is There A Silver Conspiracy?

Posted on 16 July 2014 by VRS  |  Email |Print

It’s now going on close to 30 years since I first discovered that silver was manipulated by excessive and concentrated short selling on the COMEX. I remember the exact moment like it occurred yesterday. It’s hard to believe I was in my 30’s when this started.
As I’ve explained previously, I was looking for an answer to Izzy Friedman’s question as to how and why silver prices remained so low when the market was in a supply/demand deficit………………………………………..Full Article: Source

What Wall Street Is Saying Gold Prices Will Do in the Second Half of 2014

Posted on 14 July 2014 by VRS  |  Email |Print

We here at TheStreet don’t claim to know where the gold price is headed tomorrow or next week, but we talk enough to the Wall Street pros to give you a sense of which direction the yellow metal is trending. The first half of 2014 was surprisingly strong for gold.
We say “surprisingly” because gold is coming off its worst full-year performance in more than three decades after a market crash in April 2013 fueled a 30% drop. But a drop of more than 9.5% from January through June of 2014 left many retail investors to wonder if the rise was a sign that $1,900 gold — where the market topped out in September 2011 after a decade-long bull run — was soon to return………………………………………..Full Article: Source

Gold And Commodities Outlook: Follow The Yellow Brick Road

Posted on 10 July 2014 by VRS  |  Email |Print

Over the years we’ve gravitated towards tracking the nuances in the precious metals sector, because they can be great leading indicators of some of the broader changes in the macro climate.
In 2011, we kept a close eye on silver and the silver:gold ratio, as it shot up its parabolic peak and exhausted in the indiscriminate risk blow-off that culminated at the end of April of that year. In 2012, we followed the sector lower as it made a tradable low at the end of Q2, but warned of the comparative differences between QE II and QE III that participants were drawing with the precious metals and commodity markets………………………………………..Full Article: Source

When and Why Do Gold Prices Plummet?

Posted on 08 July 2014 by VRS  |  Email |Print

The supply of gold is largely static from one period to the next. Gold mines are large and plentiful, but almost the entirety of what they produce is dross. As technology improves, ore with ever-lowering concentrations of gold becomes economically feasible. Ore that contains as little as one part of gold per 300,000 is worth mining.
Discard all the billions of tons of worthless ground rock, and it’s been estimated that all the gold ever mined would fit on a football field, piled less than 10 feet high. The gold mined each year adds less than the thickness of a coat of paint to the total……………………………………..Full Article: Source

Palladium prices hit 13-year highs as demand increases

Posted on 07 July 2014 by VRS  |  Email |Print

Palladium prices hit 13-year highs on Friday, driven by expectations that South African supply will remain constrained after a lengthy strike and that demand from Chinese and US carmakers will improve. Spot palladium hit a high of $865 an ounce, its highest since February 2001, and was up 0.9 per cent at $862.25 an ounce.
Holdings of palladium-backed exchange-traded funds - popular investment vehicles which issue securities backed by physical metal - have risen to a record 2.55 million ounces this week, suggesting investors’ appetite for the metal is firm………………………………………..Full Article: Source

Have Metals Finally Bottomed?

Posted on 07 July 2014 by VRS  |  Email |Print

I completely understand that you might think I am crazy for trying to call a bottom in the metals and mining sector. I probably am. Furthermore, I understand the “China slowdown” mindset very well. After all, the interesting fact has been how strong Chinese growth has been and how the country hasn’t experienced one simple recession yet (similar to Australia, where we have not had a technical recession in over 20 years).
Quite an amazing feat to be honest, but eventually we will have a mean reversion (in both countries). Personally, I have been expecting the negative surprise and even a potential recession to occur since late 2010. I rightfully warned my business partners against expanding the mining exploration company back in those days………………………………………..Full Article: Source

Now is the time to buy gold – Nichols

Posted on 04 July 2014 by VRS  |  Email |Print

One of the problems facing the potential gold investor who may see the longer term future of the precious metal as being decidedly positive, is when to actually step in and buy bullion, bullion related securities or gold stocks. Respected New York gold analyst, Jeff Nichols, feels that the time may well be now.
Nichols recommends holding a proportion (perhaps 5-10%) of one’s investment portfolio in physical gold, thus providing a variety of benefits – portfolio appreciation, diversification, reduced portfolio volatility, risk reduction, inflation protection, and more. Given that Nichols describes himself as not being a ‘gold-bug’ he does reckon to be ‘super-bullish’ on gold’s longer term prospects………………………………………..Full Article: Source

Gold rush: Is it really worth investing in?

Posted on 03 July 2014 by VRS  |  Email |Print

Gold is generally seen as a safe haven during periods of high inflation. As inflation increases, the value of money decreases and the prices of all goods increase. People prefer to hold gold instead of cash during these periods as gold acts as a retainer of value for them.
Traditional theory states that prices of real assets such as gold does not change permanently in times of high inflation but changes proportionately with the rate of inflation………………………………………..Full Article: Source

Silver Short Squeeze Presents New Opportunity

Posted on 27 June 2014 by VRS  |  Email |Print

A short squeeze in the silver market is pushing prices profoundly higher, the consequence of which could be felt for years. All told, the month of June has witnessed silver rise by over 12%. But the truly aggressive price action began exactly a week ago – with a single-day move from $19.81 to nearly $21.
Short squeezes occur when short sellers close their positions with a heightened sense of purpose and haste. Such behavior can cause prices to move sharply higher. That is, since closing a short position requires one to buy shares………………………………………..Full Article: Source

Blame the media for gold’s decline: Marc Faber

Posted on 18 June 2014 by VRS  |  Email |Print

Investors who favor gold have provided many reasons for gold’s nearly 30 percent decline in 2013 and overall demolition since it hit $1,934 in September 2011. But on CNBC’s “Futures Now,” noted investor Marc Faber provided an especially interesting one.
Investors are shunning gold “because the media doesn’t like gold,” Faber said by phone Tuesday from Thailand. “Nobody at CNBC owns gold. Nobody at Bloomberg owns gold. Gold is being constantly talked down by the media, and Fed officials, and economists, who also don’t own any gold. They’re all stocked up in equities.”……………………………………….Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Is Silver Set Up For A Huge Short Squeeze?

Posted on 13 June 2014 by VRS  |  Email |Print

An interesting and rare set-up has developed in the Comex silver futures Commitment of Traders weekly position report (COT report). This is a report issued by the CFTC (Commodity Futures Trading Commission) which shows the long/short futures positions for various categories of traders.
The position report issued last Friday for Comex silver futures traders shows extreme positioning for both the “commercial” and “managed money” segments. In addition, there are signs of possible supply/demand stress for physical silver in China. As I will detail below, both indicators are indicative of a possible short squeeze developing in silver………………………………………..Full Article: Source

Gold Much Harder Sell, Palladium Looking Strong (Video)

Posted on 13 June 2014 by VRS  |  Email |Print

Which precious metal will most likely prevail this coming year? Palladium says Philip Newman, director of Metals Focus, to Kitco News at the IPMI Conference. “I think, in terms of palladium, the underlying supply-demand picture is very strong from a price point of view,” he says. “I think we’ll see gold and silver struggle relative to the PGMs.”
Newman says gold and silver prices will most likely remain range-bound for the next few months and even into early next year. “This year, we’re not seeing mass liquidations, that is really behind us, but at the same time we’re not seeing a great deal of net new demand from the investment community coming in.” ……………………………………….Full Article: Source

A Bear-Raid on Gold – Is that about to happen?

Posted on 11 June 2014 by VRS  |  Email |Print

After some considerable selling of gold from the SPDR gold Exchange Traded Fund in the preceding months, early in 2013, Goldman Sachs came out with a warning that the gold price was going to fall and fall heavily. It did after Goldman Sachs and JP Morgan Chase helped it down with a bear-raid. Thereafter, selling from the SPDR fund persisted throughout 2013.
But it became clear that this selling of physical gold provided an opportunity to ‘short gold’. Goldman Sachs along with JP Morgan Chase and their clients, followed through on their forecast and around mid-April 2013 plus/minus 400 tonnes of gold was dumped onto the market knocking the gold price down by $200 within a fortnight………………………………………..Full Article: Source

Gold’s key fundamental driver

Posted on 09 June 2014 by VRS  |  Email |Print

Barry Ritholtz is out with another article spelling more doom for the precious metals sector and the gold bugs. The self-proclaimed “Gold Agnostic” penned a 2,500 word missive in January which followed a blog post amid the spring 2013 collapse titled “What are Gold’s Fundamentals.”
For the record, Ritholtz’s calls on the markets and gold have been very good. He was bullish during most of the 2001-2011 advance and sold out prior to the 2013 breakdown. But while the anti-gold bug mainstream eat up his gold analysis like a lap dog, we have to mention some errors and a startling omission of gold’s key driving force………………………………………..Full Article: Source

Gold Rallies While Commodities Hold Declines After ECB

Posted on 06 June 2014 by VRS  |  Email |Print

Gold climbed the most in three weeks as commodities held declines, heading for the longest losing streak since January, after the European Central Bank unveiled measures to spur the economy and fight deflation.
The Standard & Poor’s GSCI gauge of 24 raw materials fell 0.4 percent for a fifth day of declines, lead by soybeans and wheat. Gold rallied as much as 1.1 percent to $1,257.73 an ounce in London, the biggest gain since May 14, as some traders closed bets on falling prices. Copper also fell………………………………………..Full Article: Source

Why Silver Miners Aren’t Worth Investors’ Time

Posted on 06 June 2014 by VRS  |  Email |Print

When Thomas Jefferson or whoever the final draftsman of the Declaration of Independence actually was (John Adams, Ben Franklin, Robert Livingston, and Roger Sherman all participated) penned the words, “Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes,” he very well might have been talking about intermarket analyses.
Here is a truth I hold to be self-evident: Markets with an inverse relationship extending back for more than two decades should not shift to a direct relationship without a compelling reason………………………………………..Full Article: Source

Why I (Still) Hate Gold

Posted on 03 June 2014 by VRS  |  Email |Print

The yellow metal has a mystique. But when all is said and done, it is just another commodity. Let me put my prejudices on the table: I loathe gold. Not as jewelry but as an investment. In fact, I loathe all commodities. The main reason is that many years ago I fell under the spell of an exceptionally smart and likable economist named Julian Simon.
In 1980, Simon proposed a wager with Stanford biologist Paul Ehrlich, author of The Population Bomb, a popular book that asserted that because of global population growth, demand for natural resources would soon outstrip supply………………………………………..Full Article: Source

India: Demand for hard commodities may rise on infra ramp up

Posted on 02 June 2014 by VRS  |  Email |Print

Riding on the wave of ache din and expecting the Narendra Modi government to wave a magic wand that can yield miraculous results, most investors, industrialists as well as those in the service sector believe this to be the turnaround story of the decade.
Joining the bandwagon, HSBC Global Research in a research report titled ‘Commodities and India’ says if all goes well, India’s commodity demand will receive significant support in the coming years if the country’s infrastructure investment ramps up. The new government is expected to prioritise infrastructure development, which is the key source of demand for hard commodities, it adds…………………………………….Full Article: Source

Global gold prices will depend on India’s import policy: S&P DJI

Posted on 29 May 2014 by VRS  |  Email |Print

Even as the risk appetite in the West is on the rise and US manufacturing activity is gaining momentum, gold prices may take a cue from India’s policy on imports, according to experts at S&P Dow Jones Indices.
The experts at S&P DJI noted that gold as a safe haven investment instrument was slowly losing sheen on account of tapering programme by the US Federal Reserve and improvement in the investment environment. Investors used gold as a store of value in the instances of crisis or inflation to safeguard the real value of the investments………………………………………..Full Article: Source

If Market Can’t Hold $1,220, Gold May Head Towards $1,000: iiTrader (Video)

Posted on 29 May 2014 by VRS  |  Email |Print

Kitco News speaks with iiTrader’s Bill Baruch, following gold’s dip below $1,260 on Wednesday, to see if he thinks the yellow metal is headed lower. “A lot of volume was built in these June options that went off yesterday so we started to see a move ahead of that [on Tuesday] and the market took the downturn,” he says.
“The Ukraine situation seemed to take a step in a positive direction and any safe-haven buying that was found because of that was then coming out of the metal as well.” Baruch says that it is important to keep an eye on the ECB meeting, as well as nonfarm payrolls, next week. He also says that it is important for gold to hold the $1,220 level………………………………………..Full Article: Source

Palladium reaches 3-year high as gold sags

Posted on 29 May 2014 by VRS  |  Email |Print

Palladium rose to the highest since August 2011 after mining companies and the main labor union failed to reach an accord to end a pay strike in South Africa, the second-biggest producer. Gold fell to a 15-week low.
Palladium has risen 12 percent since Jan. 23, when the workers walked out. The country’s new miningminister will talk with the companies after meeting leadership of the Association of Mineworkers and Construction Union yesterday, his department said in a statement on its website………………………………………..Full Article: Source

Here’s the real reason gold is falling

Posted on 28 May 2014 by VRS  |  Email |Print

Are you surprised gold bullion has been weak recently, including a 2% drop today? You shouldn’t be. It’s exactly what contrarian analysts were forecasting at the beginning of this month, given the absence of the high wall of worry that bull markets like to climb.
Unfortunately for gold enthusiasts, the market has no better sentiment today than it did a month ago. Consider the average recommended gold market exposure among a subset of short-term gold market timers, as measured by the Hulbert Gold Newsletter Sentiment Index (or HGNSI). The average currently stands at close to zero — minus 3.3%, to be exact………………………………………..Full Article: Source

Gold steady as US data eyed; platinum group metals rise

Posted on 27 May 2014 by VRS  |  Email |Print

Gold was little changed on Tuesday as investors await U.S. economic data for directional cues, while platinum group metals rose for a second day as labor strikes dragged on in key producer South Africa.
Spot gold was flat at $1,292.40 an ounce by 0027 GMT. The metal has been trading in a tight range in the last few sessions, struggling to get past $1,300. Investors were also eyeing developments in Ukraine, after it launched air strikes and a paratrooper assault against pro-Russian rebels who seized an airport on Monday………………………………………..Full Article: Source

Silver Still Coiling

Posted on 26 May 2014 by VRS  |  Email |Print

As Silver continues to trade in an ever tight range between about 19.10 and 19.90 an ounce, I am sure many would rather watch paint dry than follow this market.
However, the kind of coiling going on right now in the silver market reminds me of prior periods where the bears get exhausted and a major counter-trend rally to the upside develops. We are a long way away from knowing whether or not any rally is the resumption of a new bull market that can take the price of silver to new all time highs………………………………………..Full Article: Source

Commodities in the spotlight as Ukraine crisis cranks up

Posted on 22 May 2014 by VRS  |  Email |Print

Commodities markets reacted violently—a spike and a drop—to the escalation of the conflict in Ukraine because of Russia’s dominant role as a commodities producer, but most of the “Russia commodities” including oil, gas, gold and nickel have returned to their pre-crisis level, indicating that other factors such as the weakening of the Chinese economy are playing a bigger role in the markets at present.
Given the volatility in commodities prices since the beginning of the year and the ever bubbling crisis in the Ukraine, it is no surprise that investors in commodities remain unnerved. Clearly, investment managers are keeping a close eye on the geopolitical morass of the Ukraine crisis, remaining at the ready should any major change occur………………………………………Full Article: Source

Who needs gold really?

Posted on 22 May 2014 by VRS  |  Email |Print

People love to debate, but sadly sometimes it crosses a line and turns argumentative. That’s what is happening right now with the debate over gold. There have been several high-profile articles, most recently in the Wall Street Journal, saying you should eliminate gold as a worthwhile part of your portfolio. Primarily because of this year’s lower price.
Against that idea, many bloggers and private investors, wondering why gold prices have fallen, say that it shouldn’t have dropped. There must be some conspiracy driving down prices when money-printing and our still-weak economy should be driving gold higher………………………………………Full Article: Source

Gold demand in India to rise, Modi seen easing import curbs

Posted on 22 May 2014 by VRS  |  Email |Print

India’s gold demand is likely to pick up in the second half of the year as curbs on bullion imports are expected to be eased by the country’s new government, the World Gold Council (WGC) and other industry officials said on Tuesday.
Gold imports by India, the world’s No. 2 bullion consumer after China, could double from current levels if the restrictions are eased, according to an industry estimate. This would help global prices that slumped 28 percent last year - the first drop in 13 years - partly due to India’s curbs………………………………………Full Article: Source

Palladium Rises to 33-Month High on Supply Concerns

Posted on 22 May 2014 by VRS  |  Email |Print

Palladium futures rose to a 33-month high as South African supply concerns spurred demand for exchange-traded products backed by the metal used in jewelry and pollution-control devices in cars.
In South Africa, the world’s second-biggest producer, workers at the top three mining companies have been on strike since late January, crippling output. Investors boosted their holdings of ETPs to a record 86 metric tons on May 19, data compiled by Bloomberg show. Futures have climbed 16 percent this year………………………………………Full Article: Source

GCC economies must reduce dependence on commodities

Posted on 21 May 2014 by VRS  |  Email |Print

Falling oil prices will pose a challenge to GCC hydrocarbon exporters unless governments step up their diversification efforts and develop more export industries, according to a new report by ICAEW. In its latest quarterly Economic Insight report, produced by its partner, the Centre for Economics and Business Research (Cebr), the accountancy and finance body says expanding competitiveness across a broader range of export industries will require improvements in education, skills and innovation to be successful.
According to Economic Insight: Middle East Q2 2014, GCC economies are now more dependent on commodity exports than they were 10 years ago despite the diversification agenda. Commodities still account for 86.8 per cent of Saudi Arabia’s total goods exports by value and nearly two thirds of the UAE’s. Even Bahrain, with the fewest hydrocarbon resources of any GCC economy, relies on commodity exports for nearly three-quarters of goods exports…………………………………..Full Article: Source

World Gold Council: First-Quarter Demand Holds Steady With Year-Ago Levels At 1,074.5 Tons

Posted on 21 May 2014 by VRS  |  Email |Print

Gold demand in the first quarter was 1,074.5 metric tons, on par with bullion demand the first quarter of last year, the World Gold Council said Tuesday. Compared demand in the first quarter of 2013 of 1,077.2 tons, gold demand in the first quarter of this year was down 0.25%. The WGC said jewelry demand rose 3% because of lower prices versus the first quarter of last year, along with season factors such as Chinese New Year. China saw record first-quarter jewelry demand, the group said.
Investment demand in the first quarter was 282.3 tons in the first quarter, down 2% from the 288.1 tons bought in the first quarter of 2013. The investment demand breakdown shows that exchange-traded fund flows were essentially zero, while bar and coin demand fell 39% from year ago levels, down to 282.5 tons…………………………………..Full Article: Source

Gold ‘Guru’ Gives Long-Term Forecast, Indian Gold Bullion 2.1% Lower

Posted on 19 May 2014 by VRS  |  Email |Print

Jeff Nichols, Managing Director of American Precious Metals Advisors, had a rather sour outlook on gold price trends lately, as all gold prices on the MetalMiner IndX rose over the past day.
“Longer term, Nichols reckons that over the next three to five years the demand from Asia and, also from Central Banks which have been buying gold rather than selling it over the past couple of years, will actually be sufficient to drive the gold price higher regardless,” according to a Mineweb article spotlighting his forecast…………………………………….Full Article: Source

People Rush to Sell Off Gold as Anxious Escalates Over Price Fall

Posted on 16 May 2014 by VRS  |  Email |Print

The escalating anxious that gold prices would fall as the Indian Rupee gains strength against the US Dollar has spiked to sell the domestic gold. As per the market review, Last days, the gold has gained as the jewelers have sold out the past orders for the precious metal.
Mr. Anish Jitendar Jain, director of a Mumbai based scrap gold firm said that the people are rushing to market to sell out their gold ornaments. They have panicked that the gold prices would plunge after the election results………………………………………..Full Article: Source

Gold Is Not Stable After All

Posted on 16 May 2014 by VRS  |  Email |Print

I like gold. My wedding ring is simple but classy. My crowns in my mouth are so good that I forget they are there. The electronic contacts in my computer work just fine. Gold is great. But not as a steady measure of purchasing power, nor as a guaranteed investment.
“Gold has the same purchasing power today that it had in 1913,” I continue to read. So let’s look at the data and see what we can conclude about gold, its stability and purchasing power, and then we’ll turn to gold as an investment………………………………………..Full Article: Source

Appetite for silver at all-time high

Posted on 16 May 2014 by VRS  |  Email |Print

Global physical demand for silver rose 13 per cent in 2013 to an all-time high, driven primarily by a 76 per cent increase in retail investment in bars and coins, coupled with a sturdy recovery in jewellery and silverware fabrication.
Data compiled by a leading New York-based research agency, The Silver Institute, showed total physical demand for silver at a record 1,081 million ounces (Moz) or 30,649 tonnes in 2013, as compared to 954.4 Moz or 27,057 tonnes the previous year………………………………………..Full Article: Source

Silver Shone In 2013: Will It Continue?

Posted on 16 May 2014 by VRS  |  Email |Print

Towards the end of last year we noticed that The Real Asset Company clients were going hell-for-leather for Silver bullion investment. I would guess that during November we sold more silver than gold, in dollar terms. This was interesting given both gold and silver fell and yet there was an almost delayed reaction from silver buyers, who saw a four year lows in the industrial precious metal.
So, it came as no surprise when the Silver Institute yesterday released their World Silver Survey 2014 with the headline ‘Total physical silver demand achieved record level in 2013’. Andrew Leyland, of GFMS was impressed by silver’s performance and said that ‘silver seems to have retained a lot more loyalty than the other precious metals.’……………………………………….Full Article: Source

Where Gold And Industrial Commodities Are Heading

Posted on 16 May 2014 by VRS  |  Email |Print

Shorting gold when it rose to a record $1,895 per ounce on September 6, 2011 would have been a great trade, with the benefit of hindsight. It is down to $1,305 currently, with most of the decline occurring last year after the bulls lost their confidence in the precious metal when it didn’t soar after ECB President Mario Draghi’s whatever-it-takes speech and on the introduction of Abenomics.
A few contrarians I know are turning bullish on gold. They note that both the price of gold and the price of silver seem to be finding support at their 2013 lows. Silver is back at that low. However, it settled at its highest level in a month on Wednesday, buoyed by a report that said physical demand for the metal rose to a record last year………………………………………..Full Article: Source

Goldman Sachs Remains Bearish on Gold

Posted on 15 May 2014 by VRS  |  Email |Print

Goldman Sachs reiterated its bearish view on gold and copper Wednesday, but raised its forecasts for a host of other base metals, saying improved U.S. economic activity will weigh on gold, although the Ukrainian conflict may delay the move of weaker gold prices.
“While we remain bearish on gold, escalating geopolitical tensions in Ukraine have offset stronger U.S. macro data,” Goldman said. The firm said it continues to see gold prices by year-end at $1,050 an ounce. The silver-price forecast remains at $17.50 an ounce………………………………………..Full Article: Source

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31