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Commodities Briefing - Archive | October, 2009

Opalesque Exclusive: Commodity and energy investors would be wise to follow best practice - AccountAbility 21

Posted on 30 October 2009 by VRS  |  Email |Print

By Benedicte Gravrand, Opalesque London: Stern warnings about climate change and the development debate started off yesterday’s Jetfin conference on commodities and energy in Geneva. The message was clear: irresponsible investing has no future.

Simon Zadek, M.D. of AccountAbility 21, a global organisation that promotes accountability innovations for sustainable development, had an alarming outlook on climate - if nothing is done: in 20-30 years, he said, some of Europe will be semi-arid, there won’t be any ice-caps any more, tens of millions of people will travel from Southern Europe towards the North… “We’re facing meltdown.” And yet he does not believe much will come out of the forthcoming Climate Deal conference in Copenhagen.

According to Zadec, the only way forward is low carbon economy (or low carbon growth). As far as investment opportunities are concerned in this area, global revenue from climate-related business is now around $540bn, and is predicted to reach $2tn by 2020.

Low carbon investments are our future, he noted. A climate deal will be done, for better or for worse. Carbon will be priced one way or another - and investors increasingly understand this.

“If sustainability and the commodities you invest in are not intertwined,” he warned, “then the investments will not yield much as the time goes on.”

He likened some speculations to the AA analogy, the “elephant in the bedroom,” i.e. an enormous problem in business models. His view is uncompromising: “You will be brought to deal with it.” Here is an opportunity for businesses to lead, to see the types of speculations that can be destructive from those that are not, and to shape the rules that mark out the difference between good and bad practice.

A fund manager commented later that day that speculation is not to blame; rather it is the system that encourages speculation that is responsible.

Investors should pay attention to the development debate, said Daniel Day-Robinson, commodities affairs officer at UNCTAD, an organisation that promotes the development-friendly integration of developing countries into the world economy. He also predicted that the decoupling argument, which was premature last year, is timely now: “if we accept BRIC’s economic interests, then it is clear that some decoupling will occur.”

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Commodities demand to rebound 2010: BHP

Posted on 30 October 2009 by VRS  |  Email |Print

From Brisbanetimes.com.au: Resources giant BHP Billiton Ltd expects underlying demand for its commodities to rebound in the middle of 2010.

Outgoing chairman Don Argus and chief executive Marius Kloppers delivered the forecast to shareholders at BHP’s annual general meeting in London on Thursday and said the company remained cashed up and on the lookout for acquisitions……………………….Full Article: Source

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OECD ‘holds key to commodity prices’

Posted on 30 October 2009 by VRS  |  Email |Print

From Independent: BHP Billiton’s chief executive sounded a cautionary note at the group’s annual general meeting yesterday, saying that it will be the middle of next year before the world’s biggest mining group would know if demand for commodities had stabilised.
Marius Kloppers said Chinese demand had largely accounted for the growth in commodity prices in the last six months, but while Chinese stockpiling was largely complete, he said, growth in 2010 depended on demand from OECD countries……………………….Full Article: Source

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Commodities top asset pick in global poll

Posted on 30 October 2009 by VRS  |  Email |Print

From Bloomberg: Commodities have displaced stocks as the investment that will offer the best opportunity for profit during the next year, according to a global poll of Bloomberg terminal users.

The CHART OF THE DAY shows Bloomberg users’ estimates of which asset class will offer the highest returns and the lowest, comparing this week’s poll to a previous one in July, when stocks were the top pick……………………….Full Article: Source

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Equity-based commodities: Better than futures?

Posted on 30 October 2009 by VRS  |  Email |Print

From Indexunivese.com: Equities-based commodities products are emerging from the dark corner of the commodities ETF space.

New offerings are flaring up with the promise of solving―or at least dodging―the issues that plague their derivatives-based cousins……………………….Full Article: Source

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Commodities, stocks set for bounce

Posted on 30 October 2009 by VRS  |  Email |Print

From Thestreet.com: Commodities and stocks look ready for a rally or at least a relief bounce. The market is down more than 5%, and the normal pullback this year has been 4%. Using technical analysis and intermarket analysis we can see that the market is reaching extreme lows. This usually means we are only a couple of days away from a rally.
I work with several market technicians who analyze the market in different ways. We share our work in order to gain maximum insight on broad-market moves. We analyze momentum cycles, magnetic cycles, volatility levels, support & resistance levels and volume……………………….Full Article: Source

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Opalesque Exclusive: Galena to take a bullish position on crude next year

Posted on 30 October 2009 by VRS  |  Email |Print

By Benedicte Gravrand, Opalesque London: Energy markets, specifically crude oil, the deepest and most liquid of all the commodity sectors, are heavily affected by geo-politics, said Claude Lixi, fund manager at Galena Asset Management, a commodity fund house which is part of the global trading group Trafigura. He also reminded his audience, at yesterday’s Jetfin conference on commodities and energy in Geneva, that OPEC produces about 43% and non-OPEC 57% of global production.

The oil market as it stands today saw a decline in demand of 1.7mmb/d (million barrels per day) or 2% during the global recession. While non-OPEC supply grew by 1.1mmb/d, OPEC applied supply cuts, its spare capacity increasing by 2.3mmb/d to 3.7mmb/d. Since the start of the year demand for oil was on average of 84.1 vs. a supply of 84.7.

Lixi expects world oil demand to come back to previous levels (although with a different regional split), and non-OPEC supply growth should slow significantly.

“In conclusion we should go back on drawing oil stocks by the second half of 2010,” he said. Oil prices went from $37 in March to $82 last week, but oil producing countries may still try to hike prices, he added.

WTI crude oil plunged -2.6% to $77.46; Brent Crude (ICE) was down $0.21 at $75.65 this morning, and Light Crude (Nymex) down $0.16 at $77.16.

Among the bearish arguments for the oil market are political and regulatory pressure, high oil stocks and subdued demand. Oil is a cheap energy source - but we need high oil prices to give us the incentive to look at alternative energy, he said.

Bullish arguments include geo-politics, good economic indicators, lower dollar, inflation fears and investor appetite for new asset classes.

“In 2010, I believe we have to be bullish because a lot of new investors will come in and a lot are afraid of inflation,” he concluded.

See this week’s Opalesque Exclusive: Galena multi-strat fund up 92% YTD, manager sees risk of weakening global economic growth if West does not catch up with booming China here.

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No boom time for Big Oil, but production up again

Posted on 30 October 2009 by VRS  |  Email |Print

From AP: Oil companies have begun to pump more petroleum and bring in more profits as they recover from an otherwise miserable year. None of the world’s biggest producers, however, see a quick return to boom times of last year.

America’s thirst for fossil fuels dropped considerably during the recession and it hasn’t come close to recovering fully. Throughout most of 2009, storage houses have been crammed with oil and gas……………………….Full Article: Source

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OPEC ready to increase oil extraction quotas at $100 per barrel

Posted on 30 October 2009 by VRS  |  Email |Print

From Kt.kz: The Organization of the Petroleum Exporting Countries (OPEC) will raise quotas on extraction of oil at the meeting in December if the price of oil increases up to $100 per barrel.
OPEC President, Jose Botelho de Vasconcelos, informed, the agency reports citing an information-analytical portal Neft Rossii……………………….Full Article: Source

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Three ways to profit from rising oil prices

Posted on 30 October 2009 by VRS  |  Email |Print

From Peacefmonline.com: Crude oil is knocking on the door of $80 a barrel. That’s not what experts have been expecting. At the start of the year, when oil prices were below $40, these experts predicted prices would stay there, or even decline a bit.

But the truth is, an explosion in the world money supply, particularly in China, has fueled oil-intensive growth and caused crude prices to reverse their decline of late 2008. This trend is likely to last for at least the next several months. So how should investors play it?………………………Full Article: Source

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Chinese firms to invest in US renewable energy

Posted on 30 October 2009 by VRS  |  Email |Print

From Chinadaily.com.cn: Chinese and US firms Thursday signed an agreement to develop a 600 mW wind farm in Texas, the largest Chinese investment in US renewable energy.

The US Renewable Energy Group (US-REG) and Cielo Wind Power LP said that they will work with China’s Shenyang Power Group (SPG) on the project, which was expected to cost $1.5 billion……………………….Full Article: Source

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Japan and Singapore move towards carbon trading

Posted on 30 October 2009 by VRS  |  Email |Print

From Risk.net: Japan and Singapore both announced steps towards establishing domestic markets for carbon trading this week.

The Tokyo Stock Exchange (TSE) and the Tokyo Commodity Exchange (Tocom) are to partner in the formation of an emissions trading exchange. Both parties have already signed a memorandum of understanding (MOU) on comprehensive mutual co-operation in January 2008……………………….Full Article: Source

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China set to become new carbon trading hub

Posted on 30 October 2009 by VRS  |  Email |Print

From Commodityonline.com: China is likely to become the hub of carbon trade in the Asia-Pacific region surpassing Australia, according to experts at the CarbonExpo Australasia conference which ended here.

They said Australia is yet to pass climate change laws to be a potential contender for the spot and different states in the country competing against each other to be the hub, rather than working together……………………….Full Article: Source

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Gold bulls steel nerves as risk aversion kicks in

Posted on 30 October 2009 by VRS  |  Email |Print

From Dow Jones: Gold bulls will need to further steel their nerves Thursday as broader financial-market attitudes toward risk turn increasingly averse, leaving the precious metal on the back foot.

Spot prices are at $1,033 a troy ounce, slightly up from three-week lows around $1,025.70/oz, with the decline having started Wednesday as the dollar rallied and oil and other commodity prices fell……………………….Full Article: Source

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US gold rises toward $1,050 on economic optimism

Posted on 30 October 2009 by VRS  |  Email |Print

From Reuters: New York gold futures rose toward $1,050 an ounce on Thursday, ending 1.6 percent higher as the dollar dropped against the euro and as Wall Street rallied after data showed that the U.S. economy grew for the first time in more than a year.

December gold GCZ9 settled up $16.60, or 1.6 percent, at $1,047.10 an ounce on the COMEX division of NYMEX……………………….Full Article: Source

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Gold prices may rise to US$38,500 per kg soon

Posted on 30 October 2009 by VRS  |  Email |Print

From Thestar.com.my: The gold and jewellery business in the country may further lose its shine as the price of gold is expected to continue its advance, further hitting a business reeling from the economic slowdown, industry players said.

Domestic sales of gold and jewellery products have dropped by 40% to 50% since the global economic recession started last October, although gold prices have yet to peak……………………….Full Article: Source

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High gold prices boost mining companies

Posted on 30 October 2009 by VRS  |  Email |Print

From Montrealgazette.com: The world’s two biggest gold mining companies shone in the third quarter as bullion prices went over $1,000 U.S. an ounce, but Canada’s Barrick Gold Corp., the leader, took a $5.7 billion U.S. non-cash accounting charge to cover its exit from price hedging.

Barrick produced 1.9 million ounces of gold in the quarter and is on track for about 7.4 million ounces for all of 2009. Average realized price in the quarter was $971 U.S. an ounce and its cash cost of production was $456 U.S. an ounce,………………………Full Article: Source

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Platinum demand recovering slowly, deficit expected in 2011

Posted on 30 October 2009 by VRS  |  Email |Print

From Miningweekly.com: Platinum demand levels were gradually improving and a slow firming in the platinum price could be seen, but no quick rebound was expected, Lonmin CEO Ian Farmer said last week.

Farmer told Mining Weekly that the worst was behind the platinum industry and that there was a gradually improving trend in demand for the precious metal……………………….Full Article: Source

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Investors turn from hedge funds to ETFs

Posted on 30 October 2009 by VRS  |  Email |Print

From Financierworldwide.com: As an increasing number of investors eschew hedge funds, Wall Street is trying to attract them back to exchange-traded funds (ETFs), according to a Reuters report, citing several experts on the matter.

Indeed, Andrew Lo, director of MIT’s Laboratory for Financial Engineering, told Reuters that the potential for hedge fund to be illiquid and unpredictable was an important lesson he had learnt from the financial crisis……………………….Full Article: Source

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Commodity ETFs avoid regulatory hassles

Posted on 30 October 2009 by VRS  |  Email |Print

From Thestreet.com: In an effort to avoid the regulatory uncertainty plaguing many popular futures-based commodity funds, Jefferies has continued to expand its equity-based commodity ETFs with two new fund offerings.
The Jefferies TR/J CRB Global Agriculture Equity Index Fund and the Jefferies TR/J CRB Global Industrial Metals Equity Index Fund began trading yesterday, following in the footsteps of Jefferies’ first commodity ETF, the Jefferies TR/J CRB Global Commodity Equity Index Fund. (New Commodity ETF Skirts Limits) ………………………Full Article: Source

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Commodity ETFs: A few ways to get exposure

Posted on 30 October 2009 by VRS  |  Email |Print

From Etftrends.com: Commodities and their exchange traded funds (ETFs) have become exceptionally popular with investors and for good reason, they provide protection as well as diversification.

As economies around the globe start to recover, the demand for commodities, such as crude oil, gasoline, steel and timber will follow……………………….Full Article: Source

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UBS launches new commodity ETN

Posted on 30 October 2009 by VRS  |  Email |Print

From Etfdb.com: UBS, under its E-TRACS brand, launched a new exchange-traded note (ETN) yesterday that offers exposure to the DJ-UBS Commodity Index Total Return.
This benchmark is designed to provide diversified commodity exposure based on the economic significance of each commodity……………………….Full Article: Source

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CIC adjusts its global investment portfolio to commodities over inflation fears

Posted on 30 October 2009 by VRS  |  Email |Print

From Chinastakes.com: Worrying about growing medium and long-term inflationary pressure in the global economy, China’s sovereign wealth fund, China Investment Corporation (CIC), is adjusting its global investment portfolio with bulk commodities such as energy, minerals and real estate as hedging instruments, as well as investments in infrastructure.
Since July, CIC has announced four overseas investments in energy and mining companies, attracting worldwide attention……………………….Full Article: Source

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Singapore Mercantile Exchange successfully completes go-live testing

Posted on 30 October 2009 by VRS  |  Email |Print

From Mondovisione.com: Taking the next big step towards its launch, the Singapore Mercantile Exchange has successfully completed the testing of its electronic trading platform, risk management and clearing & settlement systems.
The Exchange received overwhelming support from the industry which included participation from clearing members, broking houses, high frequency traders, and independent software vendors. The Go-Live testing was conducted over four days from October 20 to October 23, 2009……………………….Full Article: Source

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Central Africa’s commodity exchange up soon

Posted on 30 October 2009 by VRS  |  Email |Print

From Allafrica.com: The information vacuum cocoa and coffee farmers in particular and commodity producers in general have been facing to get their produce marketed at reasonable prices may soon be filled following the announcement of the imminent creation of a Commodity Exchange for the Central African sub-region.
Experts, among whom are commodity producers, cooperatives, processors, traders, distributors and purchasers, began meeting at the Yaounde Mont Febe hotel yesterday in a three-day workshop to set the base for the effective takeoff of a structure that would promote commodity marketing activities in the sub region……………………….Full Article: Source

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Tokyo SE and Tokyo Commodity Exchange joint venture for emissions trading

Posted on 30 October 2009 by VRS  |  Email |Print

From Mondovisione.com: On October 29, 2009, Tokyo Stock Exchange Group, Inc. (TSE Group) and Tokyo Commodity Exchange, Inc. (TOCOM) reached an agreement to establish a joint venture in the future.
The objective of the new company will be to set up an emissions trading exchange, in order to contribute to the reduction of greenhouse gases and facilitate emissions trading. Both parties had already signed a Memorandum of Understanding (MOU) on comprehensive mutual cooperation in January 2008……………………….Full Article: Source

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Trading systems for commodity trading

Posted on 30 October 2009 by VRS  |  Email |Print

From Marketoracle.co.uk: There are countless criteria used by commodity, stock and forex traders. A discretionary commodity trader might seek out markets that in his or her mind that look like they are starting to move ( trend).
A SP trader might short the SP 500 when the moon is full or some astrological incident ( Yes I have heard things like this). A systematic trader might look for a break out …or a a moving average crossover depending on their time frame……………………….Full Article: Source

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Opalesque Exclusive: De-correlated agricultural market is good for diversification but not for long-only investing - BlueGold, Dreyfus

Posted on 30 October 2009 by VRS  |  Email |Print

By Benedicte Gravrand, Opalesque London: It is important to remember that the agriculture market (ags) is much smaller than the energy and other commodities markets, said Olivier Pairault, portfolio manager at the Swiss offices of BlueGold Capital management at yesterday’s Jetfin conference on commodities and energy in Geneva. And the other important thing to remember is that it is best to look at the micro trends when dealing with this market - rather than the macro ones.

So this sector has really followed its own path almost completely unaffected by the credit crunch, in its own macrocosm where fund managers worry more about the weather and the producers than what goes on in the financial markets.

To exemplify the de-correlation of ags to other commodities, Pairault quoted sugar, which was subject to two peaks in the 70s and 80s (coinciding with less “stock to use”). This year and last year, stocks to use went down again. Part of the reason is that India’s production decreased as the government forced prices down, a deal unfavourable to farmers. Also, stocks of sugar in Asia used to be high, leading to low prices, but not any more. “Sugar may move again into surplus by the end of 2010,” he said, “but prices may remain high however.”

Pairault commented that speculators do help this market by giving good price for futures (for producers) and helping the market get more supply - as they don’t take delivery. “Professional long-only investors probably overall lose money in this market,” he commented, “it is unusual that they squeeze it.”

Bluegold Global Fund, a $1.5bn commodity hedge fund incepted in Feb-08, gained 209% last year and is up around 60% so far this year.

Ags offer an excellent diversification, said Francis Featherby, chief analyst at the Swiss offices of Louis Dreyfus Commodities, part of the Louis Dreyfus global group (of around 27,000 staff). They are not correlated, and this can be seen when comparing copper, which is up 105% YTD, to wheat, which is down 23% YTD.

With regards to wheat, 2007-08 had poor crops and high prices; 2008-09 saw more plantations and high harvests, with inventories rising, therefore an over-supply and a fall in prices. “Weather is a dominant factor in agricultural commodities,” Featherby pointed out.

Other problems include potential lack of liquidity, and cost of rolling forward in continuous contango. “A lot of commodities markets are in contango at the moment,” he said.

Contango” describes a situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.

Featherby concluded that the de-correlation of the agricultural market is good but being long-only is not always a good thing.

The one-year old LD Commodities Alpha Fund is up about 9% YTD, with around $400m in AuM. It is the group’s first foray into alternative investments, and it is planning more launches next year, Featherby told Opalesque.

Related article: Dreyfus: Volatility in commodity markets to boost consolidation in agriculture sector
From Reuters.com: … Companies in the sector also tend to diversify their portfolio in volatile times as a way to reduce dependence on a single product and limit the impact price fluctuations could have on the company as a whole, said Serge Schoen, also Dreyfus’ chairman of the board.

“Volatility of commodities have doubled in 20 years … which means more risk and more capital (are needed) to afford this,” Schoen said… full article: Source.

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State funds eye commodities and emerging markets

Posted on 29 October 2009 by VRS  |  Email |Print

From Reuters: Sovereign wealth funds will focus their buying on natural resources and emerging markets in 2010, after picking commodities over financials for most of their $94 billion investments this year, a senior Barclays banker said.

Sovereign funds, managing as estimated $3 trillion (1.8 trillion pounds) in assets, had their fingers burnt in their bold investments in Western banks such as Citigroup and UBS during the early phase of the global crisis………………………Full Article: Source

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Commodities the focus for CIC

Posted on 29 October 2009 by VRS  |  Email |Print

From Thestandard.com.hk: China Investment Corp - the mainland’s sovereign wealth fund - is focusing on buying into commodity companies and property to hedge against inflation.

Chairman Lou Jiwei said yesterday that CIC stepped up investments in the second quarter, spending about US$110 billion (HK$858 billion), more than half of its available funds………………………Full Article: Source

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More evidence speculators are not to blame for commodity moves

Posted on 29 October 2009 by VRS  |  Email |Print

From FT Alphaville: Barclays Capital does a nice job of assessing the latest back-dated release from the CFTC on commodity index trader positions in the CBOT corn market.

The CFTC statistics, released on October 20, present disaggregated positions of swap dealers and managed money going back to 2006………………………Full Article: Source

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Investors must now think outside the box with commodities

Posted on 29 October 2009 by VRS  |  Email |Print

From Investmentnews.com: Growing demand for commodities in emerging and developing markets requires a new way of analyzing commodity investment strategies, according to Thomas Samuelson, chief investment officer at Advanced Equities Asset Management.
Samuelson, who views commodities as a separate asset class that is in the midst of a long-term secular bull market cycle, said investors need to look beyond traditional calculations related to U.S. consumption of the raw materials………………………Full Article: Source

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Remarks of commodity regulator chairman at natural gas roundtable

Posted on 29 October 2009 by VRS  |  Email |Print

From Resourceinvestor.com: The crisis eased only through strenuous effort and some considerable good fortune. Now we must ensure that the risks generated by the financial sector are never allowed to push us so close to the brink again.
Some may accuse us of overreacting and overreaching. But the worst financial crisis in 80 years demands the most comprehensive regulatory reform in generations………………………Full Article: Source

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Oil at 2-week low on gasoline stock build

Posted on 29 October 2009 by VRS  |  Email |Print

From WSJ: Crude futures dropped to a two-week low under $78 a barrel Wednesday on an unexpected rise in U.S. gasoline stocks and further strengthening in the dollar.

Light, sweet crude for December delivery settled $2.09, or 2.6%, lower at $77.46 a barrel on the New York Mercantile Exchange. This was the lowest level since the Oct. 14 settlement of $75.18 a barrel. Brent crude on the ICE futures exchange closed $2.06, or 2.6%, lower at $75.86 a barrel………………………Full Article: Source

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Kuwait to raise output on $100 oil price

Posted on 29 October 2009 by VRS  |  Email |Print

From Maktoob.com: OPEC member Kuwait will use its spare crude capacity to raise output if needed to halt oil prices from rallying to $100 a barrel and above, a member of Kuwait’s Supreme Petroleum Council said Wednesday.

“There is a lot of leverage in Kuwait, we are now only producing 2.2 million barrels a day and the capacity is 2.7 million so there’s 500,000 barrels a day idle capacity,” Imad Al Atiqi told Zawya Dow Jones in a telephone interview………………………Full Article: Source

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Experts say carbon trading markets are picking up

Posted on 29 October 2009 by VRS  |  Email |Print

From Channelnewsasia.com: Experts have said that as global financial markets begin to pick up, so are carbon trading markets.

Carbon trading allows countries to buy carbon credits from green initiatives to balance out global carbon emissions………………………Full Article: Source

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Hong Kong, Beijing may become Asia-Pacific carbon trading hubs

Posted on 29 October 2009 by VRS  |  Email |Print

From Bloomberg: Hong Kong or Beijing may become the hub for carbon trading in the Asia-Pacific region within the next three years, with Australia needing to pass climate change laws to be a potential contender.

“I think in another two or three years we will see either Hong Kong or Beijing as the hub,” John Marlow, London-based global head of environmental financial products for Macquarie Bank, told the CarbonExpo Australasia conference on Queensland state’s Gold Coast today………………………Full Article: Source

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Base Metals: China, Japan keep prices at bay

Posted on 29 October 2009 by VRS  |  Email |Print

From Commodityonline.com: Japan will release industrial production figures for September tomorrow. Industrial production is expected to come in at a massive 19.3% below that of last year, but industrial production has turned the corner.
On a m/m basis, industrial production should come in at 1% — the sixth month of positive growth………………………Full Article: Source

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Metal prices zoom despite low demand

Posted on 29 October 2009 by VRS  |  Email |Print

From Business-standard.com: Dollar weakness, temporary supply constraints contribute to the increase. Metal prices have had a good run since July this year largely on the back of stimulus packages across the world, while the real demand is still a quarter or two away.
Steel, aluminium, copper prices have appreciated 11-21 per cent with steel clocking in the lowest………………………Full Article: Source

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Gold to find support at $990

Posted on 29 October 2009 by VRS  |  Email |Print

From Business24-7.ae: A declining gold will find support at $ 990 an ounce in the medium term, said industry analysts said.

The bullion dropped to $1,037 an ounce yesterday and is headed downward as demand-supply equations began to seep into the markets inflated by investors………………………Full Article: Source

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Jewelry demand to return despite higher gold prices

Posted on 29 October 2009 by VRS  |  Email |Print

From WSJ: Gold has confounded expectations by comfortably consolidating above $1,000 an ounce, and traditional buyers in the jewelry market are facing up to the reality that higher prices are here to stay.

It’s an attitude that could remove the last hurdle before gold can resume a rally that appears to have hit a roadblock for now………………………Full Article: Source

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Investment to drive gold price to $2,000-$3,000 or more but only over a few years.

Posted on 29 October 2009 by VRS  |  Email |Print

From Mineweb.com: Gold guru Jeff Nichols, in his latest presentation to a Far Eastern audience at the Gold Outlook Asia conference in Hong Kong last Thursday, made some very pertinent points regarding gold and the U.S. and global economy - the two being very much interlinked.

Some of his particular comments were as follows:……………………..Full Article: Source

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Timing in the gold market is key - Steve Palmer

Posted on 29 October 2009 by VRS  |  Email |Print

From Mineweb.com: Steve Palmer, president and CEO of AlphaNorth Asset Management is expecting the U.S. dollar to rally in the short term and gold to sell off and is forecasting a bit of a pullback in the next month or so followed by another rally before year’s end.
Gold is probably peaking this week if I were to stick my neck out………………………Full Article: Source

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Gold no match to platinum & palladium!

Posted on 29 October 2009 by VRS  |  Email |Print

From Commodityonline.com: An anticipated surge in car sales and concern over supply outlook point to a tighter market balance for the autocatalyst materials will boost platinum group metals and this may help them beat gold as far as returns are cpncerned.

Palladium has made particularly stellar gains, up 75 per cent so far this year against platinum’s 48 per cent and gold’s 20 per cent, amid weak Russian supply and a relatively stronger outlook for US than European car sales………………………Full Article: Source

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Gold ETC slow to take off in Gulf

Posted on 29 October 2009 by VRS  |  Email |Print

From Reuters: The Gulf region’s first gold exchange traded commodity (ETC), a new investment vehicle launched earlier this year, is seeing only modest growth due to regional unfamiliarity with the product.

Grant Collins, senior managing director of the Dubai Commodity Asset Management, said the security was also hampered by a trend for bullion investment in the Middle East to come from individuals rather than institutions or funds………………………Full Article: Source

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Jefferies rolls out two more commodities ETFs

Posted on 29 October 2009 by VRS  |  Email |Print

From Investmentnews.com: Just weeks after launching its first commodities exchange-traded fund, a unit of Jefferies & Co. Inc. today launched two similar ETFs: one focused on agriculture and another on industrial metals.
Like its first commodities ETF, launched Oct. 5, the Jefferies TR/J CRB Global Agriculture Equity Index Fund (CRBA) and the Jefferies TR/J CRB Global Industrial Metals Equity Index Fund (CRBI), from Jefferies Asset Management LLC, are somehwat unusual………………………Full Article: Source

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Is steel ETF a steal?

Posted on 29 October 2009 by VRS  |  Email |Print

From Etfdb.com: The world’s largest steelmaker by volume posted better-than-expected third quarter net income on Wednesday, even though the results were well below year-ago levels as demand for steel continues to be weak.
Luxembourg-based ArcelorMittal reported a net profit of $903 million, crushing analyst estimates for a loss of about $50 million. But a significant portion of the profit was attributable to a one-time tax benefit, and EBITDA came in slightly lower than expected by analysts………………………Full Article: Source

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Is dollar decline boosting commodity prices?

Posted on 29 October 2009 by VRS  |  Email |Print

From Commodityonline.com: The dollar tumbled in September/October amid growing discussions on the future of the US currency’s global role.
We consider ourselves dollar bulls compared to most of the market but there’s no denying there has been a shift in global perceptions recently………………………Full Article: Source

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Coming dollar opportunities

Posted on 29 October 2009 by VRS  |  Email |Print

From Thestreet.com: The dollar as measured by the U.S. Dollar Index has put together an impressive rally over the last few sessions. The appetite for risk has shrunk over the last week after three failed attempts by the S&P 500 to break out above 1100.
Earnings have already been priced into the market, and I don’t see a catalyst now to drive equities and commodities higher………………………Full Article: Source

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U.S. dollar future and a world currency

Posted on 29 October 2009 by VRS  |  Email |Print

From Marketoracle.co.uk: With the USD fluttering around 76 on the US Dollar currency basket index, the USDX it’s a good time to pontificate on its near term future, and longer term future.

Gold’s big rally since 2002 begs a lot of major questions………………………Full Article: Source

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