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3 things every gold investor should know

Posted on 03 March 2014 by VRS  |  Email |Print

Gold mining companies still have a long way to go to recover from the significant falls of 2013. Newcrest Mining Limited shares for example are still down 50% on 12 months ago, while shares in Kingsgate Consolidated Limited and Silver Lake Resources Limited are down 65% and 72% respectively.
However before jumping in and buying shares in gold miners, here are three things every gold investor should know:……………………………………….Full Article: Source

The need for commodities is ‘as solid as a rock’

Posted on 28 February 2014 by VRS  |  Email |Print

While the head of the International Council on Mining and Metals doesn’t believe anyone will see the big run up in metals we did a few years ago, the miners should be optimistic about the economy. “While there are not fantastic times ahead, there are very positive signals in the world economy,” said Dr. Anthony Hodge.
“The growth projections for China are solid at 7% to 7.5%, although we may see a shrinkage in the early part of 2014, but it’s almost guaranteed that it will pop back up and China will meet those targets………………………………………..Full Article: Source

Have commodities entered a new bull market phase?

Posted on 27 February 2014 by VRS  |  Email |Print

So far, 2014 has been the “year of the dog!” What do I mean by this? Year-to-date, the best performing assets were the “Dogs of the past 3-years.” I shared this theme a few weeks ago, which reflected the Dogs and what assets are doing well this year.
As you might know already, the majority of the Dogs of the past 3-years are commodities, with many doing well this year. Most would agree that commodities in general have been in a bear market over the past few years. So does the rally mean the bear market is over?……………………………………….Full Article: Source

Three warning signs from higher gold prices

Posted on 27 February 2014 by VRS  |  Email |Print

It is not often the financial markets reach a consensus. No one can agree whether the euro zone is now fixed or just getting ready for another crisis. Nor on whether the end of quantitative easing will crash the markets, or signal a return to normal growth. Or indeed on whether China is about to implode messily, or will power forward to dominate the coming century.
But at the start of this year there was one idea that everyone could sign up to. Gold was toast. The price had been declining all through 2013, and was going to keep on going down………………………………………..Full Article: Source

Should I invest in commodities?

Posted on 26 February 2014 by VRS  |  Email |Print

You’ve got stocks, bonds, ETFs and cash in your portfolio - but what about commodities? Do they belong alongside your other investments, and if so, how much money should you allocate to them?
This can be a very confusing question, especially for inexperienced or young investors. Some might also believe that you have to trade risky futures contracts just to invest in commodities. However, there are actually a wide range of available investment options available, making it much easier………………………………………..Full Article: Source

Global Advisors’ Masters looks ahead to commodity rebound

Posted on 26 February 2014 by VRS  |  Email |Print

Daniel Masters, the former head of energy trading at JP Morgan and co-founder of hedge fund Global Advisors, has seen his share of ups and downs.
In 1999, Daniel Masters left his job as global head of energy trading at JP Morgan. Oil markets were in a slump, and commodities had lost favour at the bank, which was trying to ride the internet boom and refashion itself as a technology powerhouse. Masters took an unusual step: he launched a commodity-focused hedge fund, Jersey-based Global Advisors………………………………………..Full Article: Source

The real reason precious metals will keep climbing

Posted on 26 February 2014 by VRS  |  Email |Print

The financial news media, seeing gold rally to its highest level in months, explains the surge as safe-haven demand in a slowing global economic recovery. As my British friends say, “Bolllocks.” I’m always amazed how uninformed financial reporters can be about the markets they cover. Many even seem to miss the news in their own publications!
The reason gold moved above the key $1,300 resistance level is the quickly fading U.S. dollar rally. Emerging-market fears drove the greenback higher for a few weeks, and now that fear is subsiding………………………………………..Full Article: Source

Look for gold to consolidate in coming months: Pierre Lassonde

Posted on 25 February 2014 by VRS  |  Email |Print

After gold’s strong price move at the start of the year, Pierre Lassonde, chairman of Franco-Nevada Corp. (FNV), looks for the yellow metal consolidate maybe $50 on each side of $1,350 an ounce in the coming months.
Lassonde was the keynote speaker at Gold Stock Analyst Investor Day over the weekend in Fort Lauderdale, Fla., put on by widely followed gold stock analyst John Doody………………………………………..Full Article: Source

‘Track gold miners’ stocks to predict price trends’

Posted on 25 February 2014 by VRS  |  Email |Print

Want to know where gold prices are headed? It might make sense to track the stocks of gold mining companies. In the recent past, these have served as good indicators, says CLSA’s Chief Equity Strategist Christopher Wood.
“The action in gold mining stocks is serving as a useful lead indicator for the price of bullion, with Newcrest Mining, for example, up 30 per cent year-to-date. Gold mining stocks were certainly a lead indicator for the decline in gold prices last year,” Wood said in his periodic ‘Greed and Fear’ report, released earlier this month………………………………………..Full Article: Source

Commodities ‘great place to be’

Posted on 24 February 2014 by VRS  |  Email |Print

The economy would benefit from a long-term rise in world commodity prices, driven by the rising middle classes of the world, Goldman Sachs president Gary Cohn said. “You are a commodity-rich nation which is becoming even more richer with all the LNG you are investing in,” said Mr Cohn, who is visiting Australia for the G20 meeting in Sydney.
“You have abundant supply of iron ore, coal and LNG. Not only is Australia a consumer of resources but you are a huge exporter, so you have this double leverage to the commodity cycle.”……………………………………….Full Article: Source

Gold has paused at a key hurdle

Posted on 24 February 2014 by VRS  |  Email |Print

The yellow metal is gaining momentum, creating anxiety among gold bears. Gold closed at $1,324 an ounce on Friday, advancing 0.4 per cent for the week. With this, the metal has gained 10 per cent this year, trumping other asset classes such as equity. Among other precious metals, silver was up 1.3 per cent (at $21.79/ounce) and platinum gained marginally (at $1,429/ounce) last week.
Bullion prices were up despite indications from the US Fed’s January meeting minutes that they will continue to taper. The market chose to ignore weak economic readings as it saw them as a fallout of bad weather………………………………………..Full Article: Source

When do you see buying gold again?

Posted on 24 February 2014 by VRS  |  Email |Print

Arjuna Mahendran, the chief investment officer, Emirates NBD: “My five- to 10-year view on gold is it will probably settle close to $1,100 to $1,150 an ounce. At that time I will start buying. But I won’t buy for the long term at this point.
“At this point I can trade it. I can buy at $1,200 and run up to $1,400 and then sell. I will be buying and selling within that band of $1,200-$1,400, but for the long term I will wait till it falls down to $1,100, which it will once when the Fed really gets into the earnest mode of tapering, which will happen by the middle of the year or so. Then the gold prices will come down to $1,100 to $1,150………………………………………..Full Article: Source

3 reasons why the gold bubble did not burst in 2013

Posted on 24 February 2014 by VRS  |  Email |Print

The title of the article is a bit deceiving because since we use the word “bubble”, it suggests that gold’s price is in a bubble and is apt to burst in the future - which we currently do not think is the case.
In fact the only reason why we chose this title is because we wanted to respond to an article that a financial blogger, Mr. John Maxfield, wrote titled creatively enough 2 Reasons the Gold Bubble Burst in 2013 - we thought we would raise the stakes a bit and choose three reasons why gold certainly did not burst in 2013………………………………………..Full Article: Source

Some commodities deserve attention

Posted on 20 February 2014 by VRS  |  Email |Print

After falling during the past three years, the Dow Jones-UBS Commodities Index has rebounded 5.6 percent so far this year. And analysts say now is a good time to look at select commodities.
“The approach we’re taking is to selectively invest on a limited basis in parts of the market where supply and demand dynamics are looking more favorable,” Stephen Jury, global head of currencies and commodities at J.P. Morgan Private Bank, told The Wall Street Journal………………………………………..Full Article: Source

Many analysts sceptical of rally in gold

Posted on 19 February 2014 by VRS  |  Email |Print

Upbeat data on economy-wide lending in China out over the weekend gave metals prices a boost. Dubai gold futures rose by 0.9% to the 1,331.30/oz. mark. Despite recent decent gains Bloomberg cited the two most accurate forecasters for the price of gold over the last two years, Societe Generale’s Robin Bahr and Justin Smirk, at Westpac Banking Corp, as calling for the recent rally to fizzle out over the coming year.
While past performance is no guarantee of future returns, those predictions were in line with similar analysis out over the last few weeks from Credit Suisse or Goldman Sachs, but not with those from Capital Economics, for example………………………………………..Full Article: Source

Gold heading to $1,400 this year: US Global’s CEO (Video)

Posted on 19 February 2014 by VRS  |  Email |Print

Kitco News speaks with US Global Investors’ CEO Frank Holmes about gold’s price movements last week and where he expects the yellow metal is headed. “Now with gold going above the 200-day, there’s a sentiment of relief and it is positive,” he says.
However, Holmes says that this does not mean investors are ‘runaway bullish’ on gold just yet. Holmes is optimistic about gold’s direction, stating that one of the major headwinds for the metal last year will probably soften in 2014………………………………………..Full Article: Source

Top two gold forecasters remain bearish after 2014 rally

Posted on 18 February 2014 by VRS  |  Email |Print

The two most-accurate gold forecasters are holding to their bearish forecasts for 2014 even after the metal posted its best start to a year since 1983. Futures rose 9.7 percent in 2014 through Feb. 14, rebounding from the biggest annual drop in three decades, and reached a three-month high.
Holdings in exchange-traded products backed by bullion increased by 3.2 metric tons last week, the most since December 2012, after slumping 869.1 tons last year when prices slid 28 percent………………………………………..Full Article: Source

Are commodities safe yet?

Posted on 17 February 2014 by VRS  |  Email |Print

After watching commodities take a beating over the past three years, investors may want to consider carefully treading back into the sector, financial advisers say. The average U.S. commodity-focused mutual fund and exchange-traded fund has gained 2.2% in 2014 through Thursday, according to Chicago-based investment-research firm Morningstar. Meanwhile, blue-chip stocks, as represented by shares of the SPDR S&P 500 ETF Trust, are down 0.91% over that period.
“Commodities still need to be approached with caution,” says Stephen Jury, global head of currencies and commodities at J.P. Morgan Private Bank in New York, which oversees $977 billion. “They’re not ready for another bull run.”……………………………………….Full Article: Source

Why are commodities rallying despite China fears?

Posted on 14 February 2014 by VRS  |  Email |Print

Societe Generale’s Cross Asset Research published their monthly Commodity Compass on Tuesday of this week. SG analyst Mark Keenan and Head of Commodity Research Michael Haigh suggest that the current turmoil in emerging markets is not likely to influence commodities price unduly.
They argue that commodity prices are in general tracking economic growth, and as long as China’s economy stays on track, commodity prices should be stable with an upward bias in 2014………………………………………..Full Article: Source

The economics of shale oil: Saudi America

Posted on 14 February 2014 by VRS  |  Email |Print

The benefits of shale oil are bigger than many Americans realise. Policy has yet to catch up. Until the early 1970s, America was the world’s largest oil producer and the Texas Railroad Commission stabilised world prices by dictating how much the state’s producers could pump.
When Arab states slapped an oil embargo on Israel’s Western allies after the six-day war in 1967, Texas cushioned the blow by allowing a massive production boost………………………………………..Full Article: Source

Commodities investing down but not out, Masters says

Posted on 13 February 2014 by VRS  |  Email |Print

Despite the current lack of enthusiasm for commodity investing, veteran oil trader Daniel Masters sees light at the end of the tunnel. Masters, co-founder and portfolio manager at Global Advisors, a Jersey-based hedge fund focusing on commodities, acknowledges that commodity funds have fallen on hard times recently, but argues that the market will soon hit bottom and savvy investors will return.
“In the very, very short term, we maintain an active participation in the commodity business, but we understand and we reflect the current apathy about commodities,” says Masters, a former head of JP Morgan’s global energy trading business………………………………………..Full Article: Source

Gold price aims for sixth straight gain — new trend afoot?

Posted on 13 February 2014 by VRS  |  Email |Print

Is last year’s slump in the gold price over and done? Here’s one interesting sign: The world’s biggest gold exchange-traded fund today has slightly more investors this morning than it did at the New Year.
Add it to the fact that gold just posted its first string of five consecutive gains since August 2012 and you’ve got some unmistakable short-term momentum. Not that every analyst is convinced it’s a new uptrend………………………………………..Full Article: Source

Indian and Chinese demand to keep bullion prices stable

Posted on 11 February 2014 by VRS  |  Email |Print

Traders and experts speaking at the Global Commodity Conference in Dubai on Sunday said that 2014 may see some upside swings in gold prices with markets potentially remaining volatile through the year.
Speaking at a panel discussion, industry players and analysts said despite the higher import duties introduced by India, a key market for physical gold and large scale liquidation of paper gold (ETFs) in the West, gold demand has strong support from People’s Bank of China which is adding bullion as reserve and consumption demand from India………………………………………..Full Article: Source

The butterfly effect (And how it relates to commodities)

Posted on 11 February 2014 by VRS  |  Email |Print

“It has been said that something as small as the flutter of a butterfly’s wings can ultimately cause a typhoon halfway around the world.” – Author unknown. The year 1952 was when “A Sound of Thunder” by Ray Bradbury was first published. The most re-published science fiction short story of all time told the story of a hunter, Eckels.
We follow Eckels as he travels back in time to a prehistoric safari and slays a Tyrannosaurus Rex, ignoring warnings of the possible catastrophic effects that changing the past could hold. Upon his return, Eckels notices a variety of changes around him and he finds a crushed butterfly on the bottom of his boot, the apparent cause of these transformations………………………………………..Full Article: Source

T. Boone Pickens: OPEC probably can’t flood market with oil

Posted on 05 February 2014 by VRS  |  Email |Print

When I took issue with part of T. Boone Pickens’ stance on OPEC, stating that his ideas were dangerous to domestic oil producers, I wasn’t expecting to get a direct response from Pickens himself.
However, the co-founder of Clean Energy Fuels, owner of private investment company BP Capital, and hardcore advocate of wind and natural gas through his Pickens Plan, reached out to to offer specific thoughts and feedback. While I walked away from the conversation with essentially the same — if a little more moderated — opinion, Pickens’ insight is certainly worthy of sharing with readers………………………………………..Full Article: Source

Buy while the price of gold is still supressed - Levenstein

Posted on 05 February 2014 by VRS  |  Email |Print

As gold prices continue to hover around the $1240 an ounce level, demand for the physical metal remains extremely robust especially demand from China. Yet, despite reports of strong demand, prices still seem to be taking the lead from traders reacting to announcements from central banks, particularly the US Federal Reserve and certain non-related economic news.
After gaining for most of the month, the price of gold notched up its first weekly drop in six due to further signs of U.S. economic growth, concerns over the U.S. Federal Reserve’s withdrawal of monetary stimulus and a slump in Chinese demand………………………………………..Full Article: Source

Gold finds major support from bullish double bottom

Posted on 05 February 2014 by VRS  |  Email |Print

A double bottom developing on gold charts suggests a possible rally for the precious metal which is underpinned by major support near its three-year low at $1,180 an ounce, analysts said on Friday.
The formation, which has two troughs at about the same level, is particularly reliable for chartists because it reflects investors’ psychology by pinpointing the critical level where heavy selling has exhausted twice. The pattern, which resembles the letter “W”, connects the two lows on June 28 and Dec. 31 both near $1,180, with a peak in the middle at $1,433 an ounce on Aug. 28. ……………………………………….Full Article: Source

INTL FCStone: Gold likely to ‘do well’ in February; PGMs ‘vulnerable’

Posted on 05 February 2014 by VRS  |  Email |Print

Gold may fare well in February but platinum group metals could be “vulnerable,” says INTL FCStone in a monthly outlook. “We think gold will likely continue to do well over the course of February, as we do not think that the correction in the equity markets is over just yet,” the firm says.
“Once the dust settles and equities start to stabilize, we could see a renewed assault on the precious metal, but this will likely not take place until later in the month. Platinum and palladium look somewhat vulnerable to us given that they do not seem to be responding to the ongoing South African mine strikes. In fact, once these actions are over — the various sides have resumed negotiations this week — both complexes could sell off some more from here.” For gold, the firm sees a February range of $1,210 to $1,285 an ounce………………………………………..Full Article: Source

Gold could test $1,320 on employment data - iiTrader (Video)

Posted on 04 February 2014 by VRS  |  Email |Print

Kitco News speaks with iiTrader’s Bill Baruch about gold’s rally on Monday as ISM Manufacturing Data was released. Gold futures jumped by more than $20 an ounce and the stock market dropped following the release of disappointing data by the Institute of Supply Management.
“Looking over at the equity market, not only has volatility pick up this morning, it picked up all year,” Baruch says. “Gold is becoming a safe-haven as investors flock to the metal.” Baruch also comments on the looming debt ceiling issue, which is expected to reach headlines later this week. “I’m not too concerned for the debt ceiling this Friday, what I’m really looking at is jobs data,” he says………………………………………..Full Article: Source

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10 topics to consider in China commodities In 2014

Posted on 30 January 2014 by VRS  |  Email |Print

China has become one of the largest global consumers of commodities, and the Asian giant’s appetite for oil, gas, metals and other commodities is showing little sign of slowing down. Citi Research released a report on the China commodity sector on Monday, and lead analyst Ivan Szpakowski and colleagues laid out “10 areas to watch in China commodities.”
Szpakowski highlights that environmental concerns are in the spotlight in China today, particularly in coal and steel industries, where much stricter regulations took effect in 2013. There is still a lack of leadership from the top Chinese leaders on the issue, but mid-level officials are actively pushing for greater regulation and enforcement of current regulations………………………………………..Full Article: Source

Gold and silver ready to rumble higher?

Posted on 30 January 2014 by VRS  |  Email |Print

I have been writing about the bottoming process of the gold bear cycle since December 4, 2013, and my most recent article on December 26 reiterated that the best time to accumulate gold/silver stocks was in the December and January window. Specifically, this is what I wrote:
“These types of indicators are coming to a pivot point where gold is testing the summer $1,181 lows and may go a bit lower to the $1,090 ranges. At the same time, we see bottoming fifth wave patterns combining with public sentiment, bullish percent indices, and five-year lows in gold stocks. This is how bottoms in bear cycles form, and you are witnessing the makings of a huge bottom between now and early February 2014 if I am right………………………………………..Full Article: Source

Gold and silver will shine again in 2014

Posted on 29 January 2014 by VRS  |  Email |Print

The commodities supercycle of 2000-2008, which produced roughly 20 per cent compound annual returns, was driven by scarcity of supply to meet the demands of emerging nations - notably China. Investment in the mining and extraction industries has now caught up with demand, ironically at a time when the latter is levelling out.
Western markets such as the US and UK are recovering, but they are less commodity-intensive than emerging markets, where the construction of infrastructure has been fast and furious. As a result, prices of base metals such as copper and aluminium have moved sharply lower this year since China’s growth stumbled, and only oil, which is primarily influenced by the geopolitical backdrop, has risen………………………………………..Full Article: Source

The problem with commodities

Posted on 28 January 2014 by VRS  |  Email |Print

The rise of shale gas and fracking has fuelled debate on one area of commodities, but is the commodity sector starting to see the benefit? The recent news that French firm Total will be the first oil major to explore the UK for shale gas caused a debate on the rights and wrongs of fracking, but the long lead times on developing and eventually exploring this type of fuel mean it is not a short-term commodity play.
Not just energy, but the whole of the commodity sector has suffered in the past year, with both oil and gold prices struggling, in spite of the former being expected to benefit from disruptions in the Middle East. The price of Brent Crude oil slipped from its high of $119 a barrel in February 2013 to roughly $107 in January 2014 via a dip as low as $96 in April last year………………………………………..Full Article: Source

Oil price volatility undermines economic growth, says Sir David King

Posted on 28 January 2014 by VRS  |  Email |Print

Report co-authored by the former government chief scientific adviser says fossil fuels damage more than the environment. Governments need to deter oil speculators, set aside reserves of crude oil and take steps urgently to reduce their dependence on fossil fuels in order to escape price volatility that undermines stable economic growth, according to a report co-authored by one of Britain’s top scientists.
The exploitation of shale oil and gas may mitigate damaging price fluctuations in future but it will be terrible news for the environment and is not a longer term solution to the world’s energy needs, said the report co-written by Sir David King, published on Tuesday………………………………………..Full Article: Source

Bullish signs for gold, Yellen at the helm: Chart this! (Video)

Posted on 28 January 2014 by VRS  |  Email |Print

Kitco News speaks with Gary Wagner about gold prices, India’s gold import tax and Wednesday’s FOMC meeting on this edition of “Chart This!” According to Wagner, gold’s rally last Thursday pushed the market above an important resistance line. “That, to me, on a technical basis, is extremely optimistic and extremely bullish in my opinion,” he adds.
Looking at news coming out of India, Wagner says that if the government were to loosen the taxes on gold, it would be another bullish factor for the yellow metal seeing as India is one of the largest purchases of the metal. Finally, Wagner comments on Wednesday’s Fed meeting, where the new chairwoman Janet Yellen will take the helm………………………………………..Full Article: Source

Differences in Gold and Silver price manipulation

Posted on 27 January 2014 by VRS  |  Email |Print

By now, most observers have heard of precious metals price manipulation. As the issue creeps into the mainstream, more and more investors will come to understand it - along with its vast implications.
We’ve covered the mechanisms used to manipulate the metals extensively, but it is important to point out the differences between gold and silver in terms of how they are managed. This is because it provides excellent insight into the relative character of each metal’s unique supply and demand profile………………………………………..Full Article: Source

Will China be more of a positive than a negative for commodities this year?

Posted on 23 January 2014 by VRS  |  Email |Print

It is a long time since China was a positive for commodities markets. For most of the last few years China has blown headwinds at commodities, including concerns about a hard landing, the impact on its metals intensive manufacturing sector of rising costs and soft export markets and the need for structural reform to reduce the economy’s overdependence on investment and infrastructure building, said Barclays in a research note.
The difference this year is that hard landing risks have faded and market participants have lowered their expectations for the pace of Chinese economic expansion………………………………………..Full Article: Source

Falling commodities prices despite QE - What does that mean?

Posted on 23 January 2014 by VRS  |  Email |Print

During QE3, the latest round of the Fed’s quantitative easing, the stock market rose. We all know that. But did you also know that commodities fell?
That’s right: QE3 had zero effect on commodities — or maybe even a negative effect. In fact, an unbiased observer of the trend might conclude that the Fed drove commodity prices down. That, of course, would be heresy to investors who believe that the Fed’s actions have been inflating all financial markets………………………………………..Full Article: Source

Jim Rogers: Gold headed for short-covering rally

Posted on 23 January 2014 by VRS  |  Email |Print

A short-covering rally is in store for gold after its 28 percent drop in 2013, says legendary investor Jim Rogers, chairman of Rogers Holdings.
Already, the precious metal has gained 4 percent this month, with the February Comex contract trading at $1,241 an ounce Wednesday morning. Investors sold gold last year as anticipation that the Federal Reserve would taper its quantitative easing quelled worries about inflation………………………………………..Full Article: Source

ETFs cannot find silver in a gold mine

Posted on 23 January 2014 by VRS  |  Email |Print

Whether Elton John and Bernie Taupin realized it or not, you can find gold in a silver mine even though most silver is produced as a credit to copper and lead/zinc mining and not in dedicated silver mines. But if I ever got into a contest with Sir Elton about things I know that he doesn’t, I would lose badly.
The discussion of gold ETFs and gold prices from last week cited an analysis of silver ETFs from last May. I noted then that silver ETF shares outstanding from funds such as the iShares Silver Trust and the ZKB Silver ETF, among others, had a far different relationship to silver bullion prices than did their golden cousins………………………………………..Full Article: Source

Supply of commodities outweighs demand

Posted on 22 January 2014 by VRS  |  Email |Print

Improvements in global growth are not yet leading to a meaningful increase in demand for commodities, at a time when supply remains ample. As a result, we expect prices to remain capped for now, although the Chinese recovery should gradually support demand for industrial metals. We believe that increasing supply thanks to shale discoveries will weigh on oil prices in the long term, while gold prices still lack an upside catalyst.
Commodity prices have remained under pressure even as the global economy has recovered and the global growth outlook continues to improve. Indeed demand for commodities has not picked up meaningfully, in part because Chinese demand has not sharply rebounded……………………………..Full Article: Source

What’s the safest bet on gold? Ignore the wild predictions

Posted on 22 January 2014 by VRS  |  Email |Print

After enjoying a relentless bull run that lasted 12 consecutive years, gold finally broke in 2013. Having become a darling of the investing world for most of the prior decade, gold’s almost 30% losses hit especially hard, as the precious metal finally saw a correction.
The downward spiral was brought on largely by a massive year for equities, as the S&P 500 saw its best annual return since 1997, prompting many to flee metals markets to try their luck with white-hot equities. Now that gold is sitting around $1,250 per ounce, the wild and crazy predictions for its future are just around the corner……………………………..Full Article: Source

Gold is the key to driving silver

Posted on 20 January 2014 by VRS  |  Email |Print

Investors’ interest in silver is starting to rebound after last year’s carnage. As capital prepares to return to this beaten-down asset, many investors are wondering how to game silver price action. Gold is the key. The white metal closely mirrors and amplifies the price action in the yellow one.
Gold is not only silver’s primary driver, but its overwhelmingly dominant one. Gold is critical for timing silver buying and selling. The more years you spend trading precious metals, the more self-evident this truth becomes………………………………………..Full Article: Source

The end of gold and silver market manipulation

Posted on 20 January 2014 by VRS  |  Email |Print

Seasoned and long term investors are familiar with the effects of price suppression. Very few traders can manage the complex positioning required to profit from egregious interference. And the consensus is that it will go on forever, because it has. This very consensus is perhaps the most bullish reason that it simply will not.
Belief Systems: Because it’s gone on for so long, it will therefore continue. In reality, emergency measures are still in effect. The Fed’s recent tapering was mainly symbolical when the intervention is viewed en masse………………………………………..Full Article: Source

Commodity price trends a poor guide for shares

Posted on 17 January 2014 by VRS  |  Email |Print

Commodity prices have been falling while equity prices have been going up. Societe Generale strategist Albert Edwards, the market’s bear-in-chief, thinks this is a warning sign for equity investors, given the strong correlations between the two asset classes in recent years. But is it really?
At a recent presentation, Mr. Edwards highlighted a strong correlation between the performance of global equities and commodities as central banks responded to the financial crisis early phases. In theory, massive amounts of liquidity pumped into the global financial system by quantitative easing and other programs flowed straight into financial assets, boosting prices………………………………………..Full Article: Source

No love for gold in 2014? Here’s how to profit

Posted on 17 January 2014 by VRS  |  Email |Print

Gold ended a 12-year bull run in 2013 after posting the largest annual decline for the metal since 1981. After such a bearish year, traders and investors are beginning to position themselves for what can be an uncertain year for gold futures in 2014. Uncertainty surround the tapering of the Fed’s quantitative easing program could still weigh on gold prices.
With gold futures currently trading around $1,241 analysts at major banks are expecting a sideways to down year for gold. UBS, HSBC, Barclays, Bank of America and Deutsche have all come out with their 2014 forecasts for gold prices, and it seems that they are expecting a lackluster year for gold. The average of the banks forecast says that gold should trade on average round $1,200 an ounce this year………………………………………..Full Article: Source

The only way is up for commodities

Posted on 16 January 2014 by VRS  |  Email |Print

Numerous factors suggest commodity prices are poised for a cyclical recovery this year. First, commodities have underperformed in the past two years, restoring value to most. Also, artificial and temporary distortions keeping prices overextended have recently been eliminated.
The haven premium embedded in precious metals’ prices since the crisis of 2008 was dissolved in the past year, as demonstrated by the price of gold collapsing from almost $1,900 to about $1,200………………………………………..Full Article: Source

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Are commodities and euro stocks due for rally?

Posted on 16 January 2014 by VRS  |  Email |Print

A few years ago, I used to joke that commodities were the new tech. That was back when energy, metals and agricultural products all seemed like they could only head higher. It was a Jim Rogers market, to be sure.
In the past couple of years, many of those hard assets have fallen in value for a variety of reasons, including a slowdown in China. And the conventional stock market was the place to be. But will commodities get their turn to shine again?……………………………………….Full Article: Source

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Commodity super-sad cycle is a pain in the Canadian (Dollar)

Posted on 16 January 2014 by VRS  |  Email |Print

Yes, hard for most people who have ONLY lived through the markets with a strong commodity foundation to believe that the Canadian Dollar was once trading at 1.60/USD. Hockey players sure remember, and they once were paid a premium to play north of the border despite this being the land of hockey royalty (in my view).
Today the Canadian Dollar is off another 50bps and has weakened against the US Dollar almost “3 big figures” since the start of the year………………………………………..Full Article: Source

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Commodities unlikely to find fiends in 2014

Posted on 15 January 2014 by VRS  |  Email |Print

Andy Brunner, investment strategist with Morningstar OBSR, believes that the commodity sector will remain virtually friendless going into 2014. Oversupply has become an increasingly serious issue for a number of commodities, especially industrial metals and, for the two main metals, aluminium and copper, this is expected to undermine pricing through 2014.
The average year-end copper price forecast from the main investment houses we monitor is $6,750/tonne, some 5% below current spot price………………………………………..Full Article: Source

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