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Commodity maket rally ’still in early stages’

Posted on 15 June 2016 by VRS  |  Email |Print

The commodities rally is still in its early stages, leading commentator David Hightower told the Agrimoney Investment Forum, flagging the growing demand for ags from emerging market countries. “We are much closer to the bottom for commodity prices than to a high,” Mr Hightower, founder of the influential Chicago-based Hightower Report said.
“If you think you have missed the commodities move – think again.” He highlighted that even now - after commodities prices have risen by 12.3% this year, as measured by the Bcom index – they remain well below historic highs………………………………………..Full Article: Source

Charting the lowest interest rates in 5,000 years, worst commodity returns in 80 years

Posted on 15 June 2016 by VRS  |  Email |Print

Looking to dazzle friends and family at the next summer barbecue? Well, drop this little fact on them: global interest rates are at their lowest in 5,000 years. Not only that, you can tell the acquaintance who brags about his gold bars in the bank vault that returns on commodities are the worst since 1933. Sounds crazy you may say, but that’s just the kind of history Bank of America Merrill Lynch rolled out in the third edition of “Longest Pictures” note.
The assembly of more than 100 charts illustrates the long-term history of returns, volatility, valuation and ownership of financial assets. Pushing aside the mindblowers listed above, they also found corporate bond returns have never been higher going all the way back to 1915………………………………………..Full Article: Source

Gold Prices: 3 Reasons Gold Prices Could Be About to Skyrocket

Posted on 15 June 2016 by VRS  |  Email |Print

Gold prices are up by more than 20% year-to-date, but the gain for gold bullion could be just getting started. There are three events that every gold investor should pay attention to, because they have the ability to cause a super spike in gold prices.
On June 23, Britain will be voting on whether the country should leave the European Union (EU) or stay. As it stands, it looks like the “Leave the EU” movement is surging. According to the Opinium Poll, commissioned by the Brexit-backing think tank Bruges Group, 52% of the respondents said they would prefer to leave the EU………………………………………..Full Article: Source

Fluctuating Commodities: How They Impact Businesses and What You Can Do

Posted on 14 June 2016 by VRS  |  Email |Print

The volatility of the commodities market can be extremely difficult to manage as a company. The cost of goods can fluctuate immensely, which can be devastating to those predicting profits. This can also eat away at profit margins slowly and a smaller company can quickly become unprofitable.
Most people do not realize the impacts that commodities have on everyday life. The prices of good we buy or ship are impacted on a daily basis along with the jobs that we have. The following are some ways to deal with fluctuating commodities in order to secure a business………………………………………..Full Article: Source

How Is Volatility and Market Sentiment Impacting Gold?

Posted on 14 June 2016 by VRS  |  Email |Print

According to the latest figures out by BlackRock, global investors have dived into gold and gold-based exchange-traded funds since the beginning of 2016. On the basis of the reports, gold-tracking funds attracted almost $5.4 billion in the month of May, which drastically outpaced the investments in other asset class like corporate bonds and real estate.
These two stand as competitors for gold funds. These two sector funds together attracted only $4.7 billion. Now that could be a major victory for gold, or could we say that haven demands have helped………………………………………..Full Article: Source

Why the Oil Price Rally Might Falter

Posted on 13 June 2016 by VRS  |  Email |Print

Last year’s oil price rally ran out of steam in early May after 112 days. This year’s has already lasted longer (140 days so far) and prices have risen further, but there are worries that, it, too, may be running ahead of market fundamentals. While prices seem unlikely to collapse again, there are good reasons to expect a pause in their upward march.
Crude prices have nearly doubled from the lows reached in mid-January. Brent rose above $50 a barrel last Monday and stayed there all week. West Texas Intermediate crude narrowly failed to do the same after breaking through the psychological barrier on Tuesday………………………………………..Full Article: Source

Gold is sending a warning signal: Bouroudjian

Posted on 10 June 2016 by VRS  |  Email |Print

The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said. That “red flag” is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks.
“It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,” the co-founder and director of UCX said……………………………………….Full Article: Source

Silver Acting Like ‘Gold on Steroids’ as Assets Near Record High

Posted on 10 June 2016 by VRS  |  Email |Print

For all the concerns whether the rally in precious metals will last, investors are close to making the biggest bet ever on silver. Silver funds have taken in a wave of new cash this year and assets are approaching an all-time high. Prices are up 25 percent in 2016, tracking a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.
“We’re still seeing big chunks of managed money coming into the silver market,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “Inflows from our clients match those at the all-time highs of early 2011.”……………………………………….Full Article: Source

Commodities: The bear market is over

Posted on 08 June 2016 by VRS  |  Email |Print

Following five years of devastatingly poor returns in the market, sentiment towards commodities is at rock bottom - but it’s starting to turn following the surge in the prices of a wide variety of products since the beginning of the year.
The biggest price gains, in percentage terms, occur at the beginning of a bull market. And the best (lowest risk) time to buy anything is when the consensus expectation is turning from bearish to bullish, as is happening now in commodities. Now is the time for investors to focus on this unloved asset class………………………………………..Full Article: Source

Gold appetite in May was the strongest in over 3 years

Posted on 08 June 2016 by VRS  |  Email |Print

Buyers took advantage of gold’s price volatility to boost their holdings in May, according to data from BullionVault. The increase in buying lifted a key measure of gold investment to its highest level in roughly three years, BullionVault’s report, released on Tuesday, shows.
The Gold Investor Index, run by internet-based metals exchange operator BullionVault, jumped to 55.8 in May—its highest level since April 2013. It stood at 53.5 in April………………………………………..Full Article: Source

BMO: Gold ‘Pullbacks Should Be Viewed As Buying Opportunities’

Posted on 08 June 2016 by VRS  |  Email |Print

BMO Capital Markets remains upbeat on gold for the second half of 2016, commenting that “pullbacks should be viewed as buying opportunities.” The market’s focus will be expectations for Federal Reserve rate hikes, analysts say.
No hike is good for gold, while a hike would hurt the yellow metal. However, a rate increase may hold back gold only for a little while. “Then the markets don’t believe there is actually sufficient economic strength for the next hike. Good for gold,” BMO says. “The underlying driver for our positive view on gold prices remains safe-haven demand in an uncertain global economic environment………………………………………..Full Article: Source

4 Reasons Commodities Will Push Higher

Posted on 07 June 2016 by VRS  |  Email |Print

The bear turns bull. Here’s reason one the commodity bull will remain strong: markets overshoot. Reason two is that global interest rates remain low. Reason three lies in the economics of commodities. Reason four lies in the explosive population growth vs. finite raw materials.
Commodity markets are cyclical in nature. Each raw material market has its individual characteristics. So many factors contribute to whether the price of a commodity moves higher or lower. While commodity production is often a localized affair, consumption is ubiquitous………………………………………..Full Article: Source

Has a commodities bull market taken hold?

Posted on 03 June 2016 by VRS  |  Email |Print

Every asset class has its time in the sun and periods where nobody wants to touch it with a barge pole. In the case of commodities, it is increasingly looking like it has moved from the latter to the former. Taking a selection of commodities linked indices shows a clear upward trajectory has taken hold over the past three months.
Given the notoriously fickle and volatile nature of investing in commodities though, investors should rightly give more careful consideration to jumping on the bandwagon than they may do in the case of other asset classes………………………………………..Full Article: Source

OPEC Is Dead, Long Live OPEC!

Posted on 02 June 2016 by VRS  |  Email |Print

Reports of OPEC’s death have been greatly exaggerated, as many observers mistake inaction for impotence. Throughout the history of the organization, it has been strong, weak, active and passive, but arguably the third-most successful cartel in the past century. (Diamonds are first, the Seven Sisters under the Achnacarry the second.)
Since the rise of OPEC power in the early 1970s, the oil price has remained above the long-term historical level, something all but unheard of for commodities. (Well, sugar in the U.S., where a handful of producers have the political clout to maintain import quotas. Maybe peanuts and tobacco, and well, you get the idea.)……………………………………….Full Article: Source

Be careful wishing for a higher oil price

Posted on 02 June 2016 by VRS  |  Email |Print

Financial markets are happier with oil at $50, but further advances will pose problems. Financial markets have been breathing more easily since late January, when the oil price began a rebound that last week took it beyond the $50 a barrel mark for the first time since November.
Financial conditions in the US are looser, emerging markets are perkier and US energy stocks have staged a recovery so sharp they are now the S&P 500’s third-best performing sector this year………………………………………..Full Article: Source

Calling All Gold Bugs - Look Out Below

Posted on 02 June 2016 by VRS  |  Email |Print

Nothing mysterious about buying or selling gold. Gold bugs aren’t smarter than you or me. Many wax fanatical, and fanatics tap out in financial markets because of inflexibility. As long as they don’t close out positions they’re OK. Right? No, wrong.
Why shoulder a cross of gold? Figuring out Alibaba’s numbers is tough enough. I’m short gold as a conceptual hedge against my contemporary art collection and what is considered luxury real estate in the Big Apple AAPL -1.37%, Hudson Valley and Palm Beach………………………………………..Full Article: Source

Gold: What Is It Good For? Absolute Value Or Absolutely Nothing?

Posted on 01 June 2016 by VRS  |  Email |Print

Gold bullion is up 15% so far in 2016. This rise is particularly interesting when you consider that the derivatives of gold, such as gold and silver mining companies, have bounced off of even deeper lows than the metals far more aggressively.
For instance, the NYSE ARCA Gold Bugs Index, a representation of the mining companies, is up over 80% YTD. Conversations about gold often resemble an argument about religion with the believers and the non-believers rarely seeing eye to eye. Typically, the believers are so adamant that the non-believers are left with only one conclusion: being long gold is similar to joining a cult………………………………………..Full Article: Source

Gold fears the Fed: Julius Baer

Posted on 01 June 2016 by VRS  |  Email |Print

Gold prices have come under renewed pressure as the probability of a summer rate hike in the U.S. has risen of late, according to an analyst from Swiss private bank Julius Baer. “A rebounding dollar and cooling futures market sentiment have pushed gold prices towards $1,200 per ounce,” Carsten Menke, commodities research analyst at Julius Baer said in a note Tuesday.
“We maintain a neutral view on gold but believe that investors should continue to consider it as insurance to their portfolios against the backdrop of prevailing economic and financial market risks.”……………………………………….Full Article: Source

The Price of Silver Will Head Lower Before Rising Again in 2016

Posted on 01 June 2016 by VRS  |  Email |Print

The silver price correction I’ve been cautioning readers to expect is finally upon us, as the price of silver has not been able to escape the broader sell-off in precious metals recently. Silver peaked right along with gold prices in late April and has followed a similar decline ever since. As expected, the U.S. Dollar Index (DXY) bottomed right around the same time.
Then, silver prices consolidated between $17 and $17.50 until mid-May. The DXY had already been rebounding, and then it got a second wind and kept climbing higher………………………………………..Full Article: Source

Two Lessons on China and Commodities From Legendary Investor Jim Rogers

Posted on 01 June 2016 by VRS  |  Email |Print

Investor Jim Rogers’ comments from years past are still valid in today’s markets. Maybe not tomorrow, but eventually, China will devalue its currency. And prices for uranium and coal and other undervalued commodities will recover. That’s because, in the end, markets always win.
That’s the application of some of the sage advice from the books of legendary investor Jim Rogers. Rogers co-founded the Quantum Fund, one of the world’s most successful hedge funds, in the early 1970’s. He quit full-time investing in 1980 after generating returns of 4,200% over 10 years………………………………………..Full Article: Source

Gold will not fall below $1,200/oz for long – Commerzbank

Posted on 31 May 2016 by VRS  |  Email |Print

There is the short-term potential for the gold price to fall below $1,200 per troy ounce due to the high level of speculative interest and renewed Fed rate hike speculation, said Commerzbank . But the price is not expected to fall lastingly below this threshold because such a price level is likely to be viewed by investors as an attractive opportunity to buy, it said.
“What is more, lower prices should cause physical buying interest to pick up in Asia, as the consumer restraint exercised there in recent months has generated pent-up demand,” it added. At present, there is also little to suggest that the interest in gold ETFs might wane abruptly or even switch to selling, it noted………………………………………..Full Article: Source

Are commodities signaling a Lehman-sized meltdown? Japan’s Abe thinks so

Posted on 27 May 2016 by VRS  |  Email |Print

Only hours after Brent oil prices shot past $50-a-barrel for the first time in months, Japanese Prime Minister Shinzo Abe warned that the past few difficult years for commodities in general could be a red flag for another global financial crisis. Abe made the comments while hosting a meeting of the Group of Seven leaders on Thursday in Ise-Shima, Japan, according to a report from Reuters.
Abe showed his fellow leaders data charting a 55% drop in global commodity prices between June 2014 and January 2016. He said that’s similar to how much prices fell between July 2008 to February 2009 after Lehman Bros. went bankrupt and triggered a global financial crisis………………………………………..Full Article: Source

Should you start hoarding gold? Some say China’s gold ambitions mean you should keep some stashed at home

Posted on 27 May 2016 by VRS  |  Email |Print

China’s decision to buy its second gold storage vault in London last week was another step towards total dominance of the market. The vault is in a secret location and was bought by Chinese state-owned bank ICBC Standard Bank from Barclays. It could store $90bn of gold at today’s prices, and follows the purchase of a lease on another vault in the capital earlier this year from Deutsche Bank.
London has been a hub for metals investment for hundreds of years, but times have changed and the big banks are pulling back from trading them. Now China is pushing into the gold market in a big way. The reasons why are unclear, and gold continues to spawn more conspiracy theories than the moon landing, but what is known is that China has been amassing the yellow metal at a rapid pace over the last decade………………………………………..Full Article: Source

Platinum and Palladium: Are They Following the Fall in Gold?

Posted on 27 May 2016 by VRS  |  Email |Print

Platinum and palladium are exclusively used in emission-curbing autocatalysts. Those demands impact the price direction for these metals. Platinum has increased approximately 13% year-to-date. Palladium, however, has erased its losses from 2015 and now has a year-to-date loss of 2.7%.
The last month has adversely impacted palladium, which fell about 9.8%. Platinum fell a marginal 0.14%. The beginning of the year remained slow for palladium. This is likely due to industrial metals rather than precious metals. The volatility in palladium is close to 31%, while platinum’s volatility is around 23%. Palladium is the most volatile among the four precious metals………………………………………..Full Article: Source

China Wants to Set Prices for the World’s Commodities

Posted on 26 May 2016 by VRS  |  Email |Print

China has put the world’s traditional financial centers on notice that it wants to develop its raw material markets as hubs for setting prices, seeking to marry the country’s commercial heft with a much greater say in determining how much commodities cost.
“We’re facing a chance of a lifetime to become a global pricing center for commodities,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange’s annual conference in the city on Wednesday. “On the way to realize this goal, we’ll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent.”……………………………………….Full Article: Source

Gold – Bullish combination could prevail

Posted on 25 May 2016 by VRS  |  Email |Print

Gold rallied 16 percent in the first three months of 2016 after falling about 10 percent in 2015. Factors in the rise included higher risk aversion, downward revisions to the Fed’s tightening cycle and brighter sentiment across commodities.
While we expect gold to strengthen further and range between $1,180 and $1,325 in the second quarter because these positive drivers may endure, we expect downward pressure to re-emerge later in 2016 stemming from a stronger dollar and rising US real interest rates………………………………………..Full Article: Source

Jim Rickards makes the case for gold at $10,000 US an ounce

Posted on 24 May 2016 by VRS  |  Email |Print

Gold is often seen as a safe investment in times of economic uncertainty, and prominent investors, such as George Soros, are placing big bets on the precious metal. Gold prices of have been surging lately and gold stocks are among the top performers in 2016.
In his new book The New Case for Gold, Wall Street veteran Jim Rickards explains why he expects the current world monetary regime to fail and why he sees bullion heading to $10,000 US an ounce. The current increase in the dollar price of gold reflects the decline of the U.S. dollar, Rickards said during a recent interview with Peter Armstrong, host of The Exchange on CBC News Network………………………………………..Full Article: Source

Avoid gold until Fed moves: Gartman

Posted on 24 May 2016 by VRS  |  Email |Print

Owning the metal in dollars will be for the brave until the US central bank pulls the interest rate trigger, the respected US investor says. Those trading gold should probably do it in something other than dollars while the theme of higher US rates plays out.
That’s the view of Dennis Gartman, US investment guru and publisher of The Gartman Letter. “If you have to trade gold, stay on the sidelines in terms of US dollars,” he says on Monday. While owning gold in non- dollar terms, particularly in yen and euros, he feels a rising dollar will continue to put a ceiling on gains………………………………………..Full Article: Source

When’s it safe to buy gold? After the Fed hikes, Gartman says

Posted on 23 May 2016 by VRS  |  Email |Print

Something strange is happening right now in the gold market, and it has commodities investor Dennis Gartman erring on the side of caution. Gold ended Friday with its biggest weekly drop in two months, and its third straight week of losses. Conversely, the dollar saw its third straight week of gains following comments from New York Federal Reserve President William Dudley.
The central banker indicated that markets were underestimating the likelihood of an interest rate increase in June or July. The backdrop suggests investors may be positioning themselves for higher rates—a possibility not lost on Gartman, who has taken note of some interesting movements in the yellow metal………………………………………..Full Article: Source

Will oil at $50/barrel worry India?

Posted on 20 May 2016 by VRS  |  Email |Print

While oil that plunged below $30 a few months ago helped India contain inflation and shrink its trade deficit, a rebound to $50 has other advantages for the world’s fastest-growing importer of crude. More cash for fuel exporters could boost global growth, lure commodity-dependent sovereign wealth funds back to emerging markets and increase demand for Indian-made goods, including petroleum products.
“The environment might be better rather than worse for India,” said Sonal Varma, an economist at Nomura Holdings in Mumbai. Oil at “$60, $65, $70 — that’s when the problem starts, but right now I think it’s fine.”……………………………………….Full Article: Source

Gold Prices: One Big Reason Why $2,000 Gold Could Be Possible

Posted on 19 May 2016 by VRS  |  Email |Print

Something just happened in the gold market that suggests gold prices are severely undervalued. Don’t expect to read this in the mainstream financial publications. Gold buyers are increasing in numbers.
You see, in 2013, when the precious metal’s prices were plummeting (for all the wrong reasons as I see it), the mainstream media told investors that buyers would be running from gold. Big investment companies said gold prices would fall further. They were all wrong………………………………………..Full Article: Source

Why Silver Prices Fluctuate

Posted on 19 May 2016 by VRS  |  Email |Print

Silver prices have been very bullish in 2016. They have risen a very healthy 20% year to date, despite short-term pullbacks in late April and early May. The five-year silver bear market of 2010-2015 appears to be over.
But run-ups and pullbacks both cause investor concern. How far up is up? Why are silver prices so strong? Are pullbacks harbingers of long-term declines? Why do the prices fluctuate, either up or down? We’ll answer these silver price questions for you today – let’s take a look………………………………………….Full Article: Source

There’s no reason to fear a currency war: Narayana Kocherlakota

Posted on 19 May 2016 by VRS  |  Email |Print

The U.S. government seems concerned about what will happen if other big nations push down the value of their currencies against the dollar. Actually, it could be good for the global economy.
Ahead of this week’s meeting of finance ministers from the Group of Seven developed nations, Treasury Secretary Jacob Lew has warned that the U.S.’s counterparts — the three largest euro-area nations plus Canada, Japan and the U.K. — might undermine global growth if they engage in policies that cause their currencies to depreciate against the dollar. In my view, his concerns are misplaced………………………………………..Full Article: Source

Commodity price slump creates opportunities for resource cooperation

Posted on 18 May 2016 by VRS  |  Email |Print

Weaker global commodity prices were creating opportunities for resource-rich nations to find shared solutions, Western Australia’s Mines and Energy Minister Sean L’Estrange said. L’Estrange noted that an agreement announced between iron-ore majors Fortescue Metals and Vale earlier this year, demonstrated how competitors could work together to find innovative solutions to common challenges.
Western Australia’s Fortescue and Brazil’s Vale in March inked a memorandum of understanding under which the two companies would form joint ventures to blend iron-ore products. The new blended product would be developed to suit the long-term needs of Chinese steel customers, and improve the efficiency of the supply chain to the steel industry………………………………………..Full Article: Source

Palladium left out of precious metals rally; investors shy away

Posted on 18 May 2016 by VRS  |  Email |Print

Investor appetite for palladium-backed exchange-traded funds is failing to pick up after a dismal 2015, pointing to another difficult year for the metal despite the prospect of a deepening supply deficit.
Market watchers are predicting the market shortfall for palladium will grow this year as mine output abates and demand from carmakers picks up. However, its prices have lagged the rest of the precious metals complex this year, rising 5 percent versus a 20 percent jump in gold and 17 percent climb in platinum………………………………………..Full Article: Source

The volatile gold play that’s nearly doubled this year

Posted on 17 May 2016 by VRS  |  Email |Print

Can you dig it? This year’s best-performing exchange-traded funds are all gold plays. Among ETFs with more than $500 million in market value, the top dog is triple-leveraged gold miners product (NUGT), with an insane 315 percent rally.
But nipping at its heels is unleveraged gold mining pick (GDXJ), which tracks smaller, or “junior” gold miners, which tend to be more volatile. That ETF is up 98 percent this year, outperforming its bigger brother (GDX), which is also a VanEck Vectors product. What’s incredible is that even after nearly doubling this year, the GDXJ is still down 73 percent over the past five………………………………………..Full Article: Source

In times of commodities turmoil, it pays to be agile

Posted on 16 May 2016 by VRS  |  Email |Print

As the prices of resources plunged, independent commodities trading houses thrived in 2015. The winners had two things in common: They were not focused on upstream concessions, and they showed a knack for adjusting their strategies to market movements.
Low oil prices contributed to a huge profit for Mercuria Energy Group, CEO Marco Dunand said at the FT Commodities Global Summit, hosted by the Financial Times in mid-April. Leaders of other major commodities traders made similar bullish remarks at the gathering in Lausanne, Switzerland……………………………………….Full Article: Source

Oil is not out of the woods yet: BNP Paribas commodities chief

Posted on 13 May 2016 by VRS  |  Email |Print

Recent downgrades to global economic growth forecasts suggest the crude market is not out of the danger zone, Harry Tchilinguirian, global head of commodity markets strategy BNP Paribas, said Thursday.
In its latest oil market report released Thursday, the International Energy Agency said a rebalancing of supply and demand is becoming evident. However, crude stockpiles remain “enormous” and would need time to fall, Neil Atkinson, head of oil industry and markets at the IEA, told CNBC Europe………………………………………..Full Article: Source

2016 gold price rally’s all about ETFs, hedge funds

Posted on 13 May 2016 by VRS  |  Email |Print

On Wednesday, gold snapped back some of its recent losses adding nearly $10 in New York in another day of brisk trading. At $1,275 an ounce, gold is up just over 20% since the start of the year. A new study shows the rally – the best start to the year in almost three decades – has been almost entirely driven by investors in physical gold-backed exchange traded funds and large-scale futures speculators like hedge funds.
According the the World Gold Council’s Gold Demand Trends study ETF investors who’ve been stocking up on the metal right out of the gate in 2016 were behind the best ever first quarter for the metal and the second largest quarter on record after Q1 2009………………………………………..Full Article: Source

Gold Bullion Is “Long Term Insurance Policy” – HSBC’s Steel

Posted on 12 May 2016 by VRS  |  Email |Print

Gold bullion is a “long term insurance policy” according to James Steel, chief commodities analyst at HSBC, who spoke with Tom Keene about what’s driving gold markets on “Bloomberg Surveillance” yesterday. In Bloomberg’s “Single Best Chart,” Keene displays inflation adjusted ‘London gold prices’ going back to 1950.
Steel is cautious on gold in the short term but positive in medium and long term and thinks gold will “churn higher.” When asked about whether he has a “message for gold bugs … people who have Krugerrands in their dressing room drawer”, Steel spoke of gold’s portfolio insurance benefits and “the diversification argument is the most powerful … it is an insurance policy”………………………………………..Full Article: Source

A Precious Metals Update: Why Platinum Is A Good Investment

Posted on 12 May 2016 by VRS  |  Email |Print

Tom Cloud provides a precious metal update that includes the distorted economic data as well as his take on the huge short positions against gold and silver. Tom also covers the platinum market and why he believes platinum is a good investment going forward.
I have now sponsored Precious Metals Expert Tom Cloud on the SRSrocco Report because of his extensive 40 years experience in the industry and his upfront honesty in discussing his rates which are some of the lowest in the industry………………………………………..Full Article: Source

Mitsubishi: Macroeconomic Backdrop ‘Positive’ For Precious Metals

Posted on 12 May 2016 by VRS  |  Email |Print

Mitsubishi is upbeat on gold despite the recent pullback, although at the same time wary of a possible correction in the near term. Pressure in the early part of the week was the result from a stronger U.S. dollar, despite Friday’s disappointing U.S. jobs report, plus a comeback in equities, the firm says.
“In our view, the dollar and yield environment should remain supportive of higher gold prices into the medium term and support the uptrend; however, the lack of strong physical demand in Asia right now and perhaps overly bullish investor positioning puts gold in danger of a short-term correction or at least a period of consolidation,” Mitsubishi says………………………………………..Full Article: Source

Should I Ever Invest in Gold?

Posted on 10 May 2016 by VRS  |  Email |Print

There are two schools of thought regarding gold: One camp advocates owning gold as a hedge against inflation, a weakening dollar, and stock market disaster. The other camp, which includes Warren Buffett, argues the yellow metal has no role in a modern portfolio.
“Gold is always an interesting topic to discuss with clients and other advisers,” says Joe Heider, founder of Cirrus Wealth Management in Cleveland. He shares Buffett’s view that your investment dollars are put to better use in other assets. “Gold has no intrinsic value other than for jewelry and some industrial use, and it produces no income,” says Heider………………………………………..Full Article: Source

Commodities recovery is ‘probably a little bit too fast’

Posted on 09 May 2016 by VRS  |  Email |Print

This year’s respite from the commodities rout is a “bit overdone” and investors should watch out for further retracement, the CEO of one of the world’s largest natural resources companies said.
Crude oil prices have largely rallied since mid-January, after a steep and lengthy rout from June 2014 onwards hit commodities across the board. Other commodities such as zinc, copper and iron ore have also pared some losses this year………………………………………..Full Article: Source

OPEC Leaves Us Exposed to Oil Shock

Posted on 09 May 2016 by VRS  |  Email |Print

OPEC’s strategy to lock down its share of the oil market comes with a worrying by-product: rising production means the world is less able to cope with a big supply disruption than at any time since the financial crisis.That may not seem a cause for fear when the world’s awash with oil. But it could become much more of a problem once the market re-balances and demand outstrips supply again.
Global spare capacity — defined by the IEA as the volume of oil that can be brought into production within 90 days and sustained for an extended period — stands at 3.44 million barrels per day, according to data compiled by Bloomberg. But much of that may not be available as quickly as you’d hope………………………………………..Full Article: Source

Do not over-allocate to gold

Posted on 09 May 2016 by VRS  |  Email |Print

The past five years have seen gold prices contract from the peaks seen in September 2011. However, in recent months, prices have increased. For the financial year 2016, domestic gold prices rallied about 11%, the bulk of which happened in the first three months of the year—it increased nearly 20% from January till April 2016.
While this recent trend could make you optimistic about the trajectory of gold prices, stop and analyse the objective of allocating funds to gold. Gold is not a productive investment—it does not earn interest, rent or dividends. All you have is the expectation that over a period of time the price of gold will increase………………………………………..Full Article: Source

Investors – and Donald Trump – are loving gold. How long will the rush last?

Posted on 06 May 2016 by VRS  |  Email |Print

The gold price has soared alongside the fortunes of Donald Trump, a big fan of the precious metal. How long can the new gold rush last? Two phenomena that pundits said would almost certainly never happen have taken place this week: Donald Trump clinched the Republican presidential nomination, and the price of gold capped a 15-month rally by soaring above $1,300 an ounce.
Coincidence? Logic would suggest so. But then, this is anything but a logical market environment or presidential electoral cycle. And there are, in fact, several ways in which gold is the ultimate Trumpian investment……………………………………….Full Article: Source

Is the bloom off the commodity rose already?

Posted on 05 May 2016 by VRS  |  Email |Print

With both the S&P/TSX Composite index and the S&P/TSX Venture composite index both down over one per cent in the last two sessions, investors are wondering if the bloom has somehow come off the commodity rose already. The corrective forces are the outcome of negative economic data triggering profit-taking in a market that has soared by nearly 30 per cent since the beginning of 2016, and is no cause for alarm.
This is just natural market movement. A lot of money has been flowing into mining lately. Yesterday alone saw a total of $145 million worth of bought deal and debenture financings flow into junior energy and mining deals………………………………………..Full Article: Source

Commodities - Will The Rally Continue?

Posted on 05 May 2016 by VRS  |  Email |Print

The recent rally in commodity prices has surprised many market participants and has greatly supported the stock market’s rebound. It has also made bulls out of a number of former stock market bears, as one of its side effects was to cause an improvement in market internals. But does the rally actually make sense?
As always, there are arguments both for and against the idea. We will take a look at several of them below. First of all, it is widely held that the “commodity super-cycle” as it used to be called (i.e., the secular bull market that started in 1998) is definitely over………………………………………..Full Article: Source

Gold Has Similar Pattern To 1999; Short-term Pressure Ahead Says Technician

Posted on 05 May 2016 by VRS  |  Email |Print

In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. ‘For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,’ said Wald in an interview with Kitco News.
‘Over the past few weeks, gold has rallied a lot in a short amount of time - in fact it is about 11% above the 200-day moving average along with being overbought and testing some resistance at the 2015 peak at $1,300,’ he explained. ‘It is due for a pause to refresh and with that pause, we can see downside risk, maybe to the March lows of $1,200.’……………………………………….Full Article: Source

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