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Commodities Briefing - Archive | November, 2010

Europe debt crisis unlikely to halt commodities, Barclays says

Posted on 30 November 2010 by VRS  |  Email |Print

From Bloomberg: Europe’s sovereign-debt crisis poses little threat to rising commodity prices unless the situation deteriorates, Barclays Capital said. “The southern European sovereign-debt crisis would have to take a severe turn for the worse to derail a commodity-price uptrend,” analysts Kevin Norrish and Roxana Mohammadian Molina said.
“The latest events repeat a pattern seen several times this year where commodities fell prey to macroeconomic and financial market problems left over from the credit crisis, only to recover robustly.”………………………………………Full Article: Source

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What Ireland’s bailout means for commodities

Posted on 30 November 2010 by VRS  |  Email |Print

From Wyattresearch.com: Ireland will never be able to afford to pay back the debt it owes. Its debt problems are but a microcosm of much of the rest of the western world. What is playing out in Ireland today will one day soon play out here across the pond in the United States.
So we should pay close attention, because for reasons I will reveal below, the scenario is hugely bullish for commodities of nearly every stripe. To sum up Ireland’s problems, it recently received a bailout from its chums in the European Union so that the country would avoid default on the many and sundry debt obligations already under its belt……………………………………….Full Article: Source

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Jim Rogers: Invest in commodities now

Posted on 30 November 2010 by VRS  |  Email |Print

From Commodityonline.com: Should you invest in commodities if there is war between South and North Korea? Will your commodities investment pay rich dividends if there is no war between the Korean countries? Global commodities guru and ace investment expert Jim Rogers says commodities are the best place you should put your money, even if there is a war or not in Korea.
Rogers, who is presently the chairman of Rogers Holdings, said: “In my view, the thing to invest in is commodities because if there is going to be war, it is always good for commodities and if there is no war, then commodities will rally like everything else.”………………………………………Full Article: Source

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Gold price: From Diwali to the Chinese New Year

Posted on 30 November 2010 by VRS  |  Email |Print

From Resourceinvestor.com: Surging demand from China, the world’s second-largest gold buyer, is changing seasonal patterns in gold price trends for investors everywhere. At this current pace, private Chinese demand may overtake India’s by 2014 (if not sooner), giving the world’s two most populous nations two ounces of gold in every five sold worldwide that year. But already, this further eastwards shift is showing in global gold prices.
Coinciding with the post-harvest wedding and festival season, Indian demand typically peaks with Diwali (the Hindu “festival of lights”) in early November……………………………………….Full Article: Source

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How has gold been faring in non-dollar terms - and where next?

Posted on 30 November 2010 by VRS  |  Email |Print

From Mineweb.co.za: The price is of course always subject to fluctuation and correction, and quite possibly some sizeable moves, but for now at least any such correction is likely to find the physical buyers coming out in droves and giving the price some support. For the longer, term, however, much higher prices will depend on the weight of money coming in from the investor and there will come a point when inflationary interest rate expectations.
We must all know that gold hit record levels in dollar terms in early November and that since then it has staged a sharp and much-needed correction. In fact as we approach December, gold looks very close to completing a head-and-shoulders formation and that puts it at risk of dropping by another hundred dollars. ………………………………………Full Article: Source

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Silver falls tracking weak base metals

Posted on 30 November 2010 by VRS  |  Email |Print

From Commodityonline.com: Silver prices ended lower tracking weakness in base metal prices. Silver prices also traded lower due to heavy offloading by stockists and speculators tracking global weakness. Silver is closing this week at 40855.
The metal officially remains in a bull trend with the three month trend line in at 39200. This week the metal failed at 42200 before reversing back into the range. Considering the recent range of 39000 to 43000, we should see further consolidation……………………………………….Full Article: Source

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GFMS: Copper undersupplied through 2013

Posted on 30 November 2010 by VRS  |  Email |Print

From Commodities-now.com: The tightness that has emerged in the copper market is the last few months is expected to remain in place for much of the next three years, fuelling a rally through a series of all time highs and a peak well above $11,000/tonne in 2013. These are the principal conclusions of the November edition of GFMS’ Quarterly Three-Year Copper Forecast, which the consultancy published last week.
The report suggests that the noteworthy deficits the market has seen recently will push the overall market balance for this year into negative territory. The positive backdrop for the red metal is expected to be briefly disturbed by an economic slowdown in the first half of 2011, for which GFMS forecast a brief return to a modest surplus……………………………………….Full Article: Source

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Metals look for more cues from Europe, dollar

Posted on 30 November 2010 by VRS  |  Email |Print

From Resourceinvestor.com: Gold shrugged off gains in the US dollar last week to rise, though the metal lost a bit of momentum on Friday. Tensions in Korea and European contagion fears have led to general safe haven buying in the metal, but as we pointed out last week, perhaps the biggest supporting factor for gold has been the explosive gains in silver. As silver fell notably on Friday, gold followed suit.
Just a few months ago we would have said unequivocally that gold is the driver of the precious metals complex, but that is not necessarily the case any longer. To the extent investment capital continues to flow so dramatically into silver, we would expect it to have a significant pull on the much larger gold market……………………………………….Full Article: Source

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Coal is standout commodity due to Indian and Chinese demand

Posted on 30 November 2010 by VRS  |  Email |Print

From Proactiveinvestors.com.au: In what has been something of a recurring pattern this year, commodity markets in recent weeks have again been hit by broader financial and economic worries. But as Barclays Capital notes, this time it has come when the commodities sector is being boosted by both a second round of quantitative easing (QE2) and strong underlying commodity demand trends and US economic indicators.
This leads Barclays to suggest the re-emergence of sovereign debt issues in Europe would have to take a severe turn for the worse to upset the current commodity price uptrend……………………………………….Full Article: Source

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Deloitte: Middle East set to become major player in the global mining and metals industry

Posted on 30 November 2010 by VRS  |  Email |Print

The Middle East is set to become a big player in the metals and mining industry in terms of production and investment opportunity, according to a new report by Deloitte, Forging a new path: Opportunities for Latin American metals and mining companies to consider in the Asia-Pacific region.
The emerging economies in the Middle East are taking advantage of the income provided by oil to invest in the steel industry, not only as a means to supply the domestic infrastructure and construction demands, but also as a way to diversify national economies and make them less dependent on oil……………………………………….Full Press Release: Source

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Oil market more balanced than any time in five years: Kuwait

Posted on 30 November 2010 by VRS  |  Email |Print

From AFP: The international oil market is more balanced than at any time in half a decade and crude prices are likely to remain relatively stable, a top Kuwaiti oil executive said on Monday.
“From an economic standpoint, the oil market today is more balanced than at any time over the past five years,” CEO of Kuwait Petroleum Corp. (KPC), the national oil conglomerate, Faruk al-Zanki told a two-day conference……………………………………….Full Article: Source

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OPEC oil supply falls slightly in November -survey

Posted on 30 November 2010 by VRS  |  Email |Print

From Reuters: OPEC reduced supplies of crude oil a little in November as damage to a pipeline disrupted Nigerian exports and several other oil producers trimmed deliveries, a Reuters survey showed on Monday.
Supply from the 11 members of the Organization of the Petroleum Exporting Countries with output targets, all except Iraq, has averaged 26.70 million barrels per day (bpd) this month, down from 26.79 million bpd in October, according to the survey of oil companies, OPEC officials and analysts……………………………………….Full Article: Source

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Bullish oil bets may drop as traders take profits, Barclays says

Posted on 30 November 2010 by VRS  |  Email |Print

From Bloomberg: Traders betting on rising oil prices may close their positions through the end of the year as crude’s decline from almost $90 a barrel prompts them to sell contracts, Barclays Capital said.
While investors may continue to liquidate bets, U.S. demand is likely to prevent that from causing prices to drop as much as they did in August amid a similar sell-off, according to a report today by Kevin Norrish and Roxana Mohammadian Molina, London-based analysts at Barclays……………………………………….Full Article: Source

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Oil prices up after Ireland bailout deal

Posted on 30 November 2010 by VRS  |  Email |Print

From Smh.com.au: Oil prices rose on Monday after the European Union agreed on a bailout plan for Ireland, which offset some concern that a financial crisis could surface in Portugal and Spain.
Benchmark crude for January delivery was up $1.84 to $US85.60 a barrel in mid-afternoon trading on the New York Mercantile Exchange. In London, Brent crude added 68 cents to $US86.24 a barrel on the ICE Futures exchange……………………………………….Full Article: Source

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Hedge funds raise gas bets to four-month high

Posted on 30 November 2010 by VRS  |  Email |Print

From Bloomberg: Hedge funds increased bullish bets on natural gas to the highest level in four months on speculation that lower-than-normal temperatures will bolster heating demand and trigger withdrawals from record stockpiles.
The funds and other large speculators increased so-called net-long positions, or wagers on rising prices, by 50 percent in the seven days ended Nov. 23, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report……………………………………….Full Article: Source

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Copenhagen’s failure adds $1 trillion to climate goal cost: IEA

Posted on 30 November 2010 by VRS  |  Email |Print

From Platts: Failure to reach a binding post-Kyoto agreement on emissions reduction in Copenhagen means it will cost $1 trillion more than was estimated last year to cut CO2 emissions enough to keep the world’s temperature from rising more than two degrees Celsius, the International Energy Agency said in its World Energy Outlook 2010 report released Monday.
The “modest” pledges made in Copenhagen for emissions cuts “undoubtedly make it less likely that the two-degree goal will actually be achieved. Reaching that goal would require a phenomenal policy push by governments around the world,” the report said……………………………………….Full Article: Source

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EU to unveil new carbon emissions scheme

Posted on 30 November 2010 by VRS  |  Email |Print

From Oilprice.com: The European Commission said on Monday a proposal to limit the use of some carbon credits from industrial gas projects in its emissions trading scheme might be unveiled during a United Nations climate summit in Mexico next week. The European Union Emissions Trading Scheme is the largest multi-national emissions trading scheme in the world.
The trading Scheme currently covers more than 10,000 installations with a net heat excess of 20 MW in the energy and industrial sectors which are collectively responsible for close to half of the EU’s emissions of CO2 and 40% of its total greenhouse gas emissions……………………………………….Full Article: Source

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Have commodity ETFs topped out?

Posted on 30 November 2010 by VRS  |  Email |Print

From Seekingalpha.com: For the larger part of this year, commodity ETFs were soaring. Then recently, they had their wings clipped. Was the correction the beginning of the end, or a pause for breath for more?
In the recent correction, commodities fell an average of about 8%. We think that given the fundamentals and the fact that commodities remain above their long-term trend lines, a case can be made that the commodities rally isn’t cooling……………………………………….Full Article: Source

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US commodity funds files for 3 new ETFs

Posted on 30 November 2010 by VRS  |  Email |Print

From Indexuniverse.com: United States Commodity Funds, deepening its indexing relationship with SummerHaven Investment Management, filed with securities regulators to register three new contango-controlling ETFs, one based on a mix of precious and industrial metals, one based on copper and the other based on agricultural products.
The new offerings build on its United States Commodity Index Fund, an ETF launched in summer. ………………………………………Full Article: Source

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Expensive rollovers dilute commodity ETFs

Posted on 30 November 2010 by VRS  |  Email |Print

From Sovereignsociety.com: The ongoing bull market in raw materials continues to drain the total returns generated by some ETFs, or exchange-traded-funds, tied to the complex.
Increasingly, the most cost-efficient way to participate in commodities is to buy and hold natural resource equities, not the underlying commodity future; though commodity futures provide a higher degree of correlation to the secular trend underway since 2002, contango is causing all sorts of price distortions and diluting the returns of some products……………………………………….Full Article: Source

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Better ways for the CFTC to protect investors

Posted on 30 November 2010 by VRS  |  Email |Print

From Washingtonpost.com: The Commodity Futures Trading Commission (CFTC) is poised to become a leading example of how financial regulators should protect markets and the public. We are undertaking a massive effort to modernize our regulatory scheme, including incorporating advances in technology to help us ensure efficient and competitive markets.
It only makes sense that we take stock of which processes and programs help us meet our mission and which do not, and whether there are better options……………………………………….Full Article: Source

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Does the Euro have a future?

Posted on 30 November 2010 by VRS  |  Email |Print

From Money: It’s not just scaremongering: the euro is in real danger of failing or being broken up into separate currencies. Two down, 14 to go. Ireland and Greece have been bailed out by European taxpayers - and Portugal looks like it could be the next of the 16 eurozone members to topple.
And while Portugal is a casualty the rest of Europe can afford, the next in line - Spain - is too big to bail out (it’s bigger than the first three combined). Beyond that, pundits are already talking of Belgium, Italy and even France running into trouble………………………………………Full Article: Source

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Investors turn dim on currencies of Poland, Hungary

Posted on 30 November 2010 by VRS  |  Email |Print

From WSJ: Currencies in emerging Europe came under pressure Monday as news of the €85 billion ($112.6 billion) bailout package for Ireland weighed on sentiment amid growing concerns that other peripheral member states may also need external assistance.
The Polish zloty hit a four-month low against the euro, while the Hungarian forint also weakened as financial markets continued to fret about contagion to other fiscally weak euro-zone members, namely Portugal and Spain……………………………………….Full Article: Source

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Sugar: Where does SGG go next?

Posted on 30 November 2010 by VRS  |  Email |Print

From Hardassetsinvestor.com: Global supplies of sugar are projected to lag worldwide demand this year for the third year running. According to a new report by Czarnikow Group, a London-based sugar and biofuel broker, the supply/demand deficit could run as high as 2.8 million metric tons from September 2010 to September 2011.
Of course, when you consider that total supply for 2010/11 is expected to rise to 168.4 million tons from last year’s 157.4 million, that deficit doesn’t seem like a huge gap. And generally, if sugar becomes too expensive to use, end-consumers can just switch to cheaper sweeteners, like corn-based syrups……………………………………….Full Article: Source

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Talk of $100 oil returns as options jump most in 3 months

Posted on 29 November 2010 by VRS  |  Email |Print

From Bloomberg: Oil’s return to $100 has become the biggest bet in the crude options market. The price of options to buy December 2011 futures at $100 a barrel jumped 14 percent on Nov. 24, the largest one-day gain in three months, according to data compiled by Bloomberg.
So-called open interest for the contract has risen 51 percent this year to 45,424 lots, the highest for any crude option on the New York Mercantile Exchange…………………………………….Full Article: Source

In the pipeline: Demand pushes oil prices up

Posted on 29 November 2010 by VRS  |  Email |Print

From Gulfnews.com: It seems that the party is continuing in the oil market in November as, on average, it is the forth consecutive month for prices to maintain their upward movement. The price of the Opec basket of crudes (OBC) continued for the whole month over $80 (Dh293) per barrel to the extent that some analysts are suggesting a new range to emerge and that this level may become a floor.

The average for the month so far for the OBC is $82.78 per barrel and the maximum level of $85.81 per barrel was reached on November 11, the highest level since two years…………………………………….Full Article: Source

The rise in the gold price isn’t about gold itself

Posted on 29 November 2010 by VRS  |  Email |Print

From Mineweb.com: Since 2000, the gold price has risen from $300 to $1,400 an ounce. There are several more important reasons than its being ‘just a commodity.’ The strongest driving force behind gold’s rise in the past four years has been investment demand.
As a commodity, it doesn’t tarnish, it’s a great conductor, and makes good looking jewelry. But these reasons are not the reasons why people invest in gold……………………………………Full Article: Source

Gold output continues rise in Sept Qtr

Posted on 29 November 2010 by VRS  |  Email |Print

From Tradingroom.com.au: Gold produced in Australia remained near record levels in the September quarter as two West Australian mines poured their first gold. A survey by Melbourne-based Surbiton Associates showed gold output was 2.2 million ounces in the three months to September 30, a 22 per cent increase on the the same quarter in 2009.

Quarterly production of 67 tonnes was down one third of a tonne on the June quarter, when gold production rose to its highest level in six-and-a-half years…………………………………….Full Article: Source

High prices fuel miners’ gold rush

Posted on 29 November 2010 by VRS  |  Email |Print

From Theage.com.au: Gold’s sustained price strength is fuelling a resurgence in production. Thanks to strong gold prices and rising production, the annual value of production by the Australian industry has soared to more than $12.4 billion, based on spot prices and actual September production.

According to the September Australian Gold Quarterly Review, released yesterday by the industry consultant Surbiton Associates, production in the September quarter rose 22 per cent or 12 tonnes from the previous corresponding period to 67 tonnes (2.2 million ounces)…………………………………….Full Article: Source

Aluminium headed for gain

Posted on 29 November 2010 by VRS  |  Email |Print

From Commodityonline.com: Aluminium may gain in the coming months as it is expected to touch $2,700 a tonne next year due to a rise in demand, exchange traded products (ETPs) and falling output in top producer China.

However, experts said excess capacity coupled with the threat of huge inventories flooding back to the market, mean that market bulls may eventually be forced to retreat longer-term…………………………………….Full Article: Source

Copper: How certain is the predicted supply squeeze?

Posted on 29 November 2010 by VRS  |  Email |Print

From Mineweb.co.za: Current consensus wisdom is that copper prices are likely to perform strongly in 2011 as the market faces structural undersupply issues and continuing demand growth mainly from China.

As the VM group writes in its November Metals Monthly publication for ABN AMRO, “Assuming demand from emerging economies continues to grow, and that of the developed world recovers at present rates, then supply-side fundamentals will ultimately determine price performance…………………………………….Full Article: Source

Can America regain the rare earths crown?

Posted on 29 November 2010 by VRS  |  Email |Print

From Altenergystocks.com: With China suddenly cutting back on exports while controlling 95 percent of the world’s production of rare earth elements, the United States and other countries suddenly finds themselves vulnerable. This vulnerability has to do with the stability of the supply of these strategic commodities. Countries from around the world have suddenly woken up to the realization that the future of their high technology industries could be in the hands of one supplier – China.

In the USA, this realization comes at a time when the Obama administration has committed the United States to replacing more than a million gasoline powered cars with hybrid and electric cars by 2015…………………………………….Full Article: Source

Shanghai Stock Exchange to expand ETF trading

Posted on 29 November 2010 by VRS  |  Email |Print

From Peopledaily.com.cn: The Shanghai Stock Exchange (SSE), which marked its 20th anniversary of trading on Friday, is planning to boost the market of Exchange-Traded Funds (ETF), a relatively new breed in China’s securities market, to cater for the growing appetite of Chinese investors.

Zhou Qinye, vice-president of the SSE, recently said that the bourse is planning to introduce more cross-market and cross-border ETF products. It recently signed agreements on index authorization with nine international index companies and five exchanges…………………………………….Full Article: Source

Putin urges creation of Russia-EU currency zone

Posted on 29 November 2010 by VRS  |  Email |Print

From Ruvr.ru: Russian Prime Minister Vladimir Putin said late this week that he did not rule out that Russia and the European Union might be part of a common currency zone. “We need a multi-polar currency world, and we must not rely solely upon the dollar,” he told a Sueddeutsche Zeitung economic forum in Berlin on Friday.

Putin made it plain that he looks to protect Russia from a possible new world credit crunch by notably creating a common currency zone. He pointed the finger at the dollar, which he said added greatly to the 2008 global economic crisis, a meltdown that Putin stressed should prompt the EU to start mulling the creation of a new world reserve currency…………………………………….Full Article: Source

Australia brings forward decision on carbon price

Posted on 29 November 2010 by VRS  |  Email |Print

From Reuters: Australia must legislate next year to put a price on carbon emissions, Prime Minister Julia Gillard said on Monday, pressing the accelerator on her minority Labor government’s deadline for action to combat climate shift.

As world climate talks got underway in Mexico, Gillard said the government would bring forward by a year a decision on how to price carbon, but left unclear whether a previous 2013 date for actual implementation of any scheme would remain in place…………………………………….Full Article: Source

Markets fall on China, Korea developments

Posted on 29 November 2010 by VRS  |  Email |Print

From Commodityonline.com: Commodity markets fell on speculation that China will increase borrowing costs after the country’s exchanges increased margins to curb speculation. China consumes most commodities in huge quantities including aluminum, zinc, copper, coal and iron ore.
Commodities dropped on speculation that China, the biggest consumer of everything from aluminum to zinc, will increase borrowing costs and after the country’s exchanges increased margins to curb speculation…………………………………….Full Article: Source

Commodity bull market remains healthy

Posted on 29 November 2010 by VRS  |  Email |Print

From Seekingalpha.com: Does the tightening of credit conditions in China spell an end to the bull market in commodities? That is, are we likely to see the price of the average commodity materially lower or higher by mid next year?
Well, for the time being at least, the market’s response to the tightening of credit conditions in China has been somewhat muted and there is no credible evidence that the bull market in commodities is in trouble. In analyzing any market we like to slip underneath the radar. By this, I mean we try to approach markets in a very different way than most…………………………………….Full Article: Source

Commodities holding up remarkably well

Posted on 29 November 2010 by VRS  |  Email |Print

From Seekingalpha.com: Even though the dollar is rebounding as traders react to new risk factors, commodity prices are holding firm. Flights to safety come and go, but the fundamentals still support this asset class.

The CRB total return commodity index has held the key 295 level — the 50-day moving average — throughout the last week and has been on a full-scale technical upswing since late September…………………………………….Full Article: Source

For commodity-futures investors, a tough slog toward justice

Posted on 29 November 2010 by VRS  |  Email |Print

From Nwsource.com: For many investors cheated by brokers and other trading professionals, seeking justice from a federal agency responsible for policing the commodities market has been an exercise in futility. A top official recently sent a stunning message to the public, saying that for decades the deck has been stacked against investors when they try to recover damages through the Commodity Futures Trading Commission (CFTC).

In an unusual farewell statement, George Painter, one of two administrative-law judges who hear investor complaints, said the other judge has long forced investors “to run a hostile procedural gantlet until they lose hope, and either withdraw their complaint or settle for a pittance.”……………………………………Full Article: Source

China takes away the commodity punch bowl

Posted on 26 November 2010 by VRS  |  Email |Print

From WSJ: If commodities bulls have a religious mantra, it is “China giveth.” The risk is it now taketh away. China is struggling to tame an inflationary dragon. Prices, especially for food, are rising strongly, and expectations for future price increases have surged.
Beijing blames U.S. quantitative easing, or QE, for pushing up the price of the commodities that China consumes voraciously. But QE is only part of the story. Chinese money supply surged by the equivalent of 40% of GDP last year, according to Lombard Street Research……………………………………….Full Article: Source

Commodity prices to fall - RBA

Posted on 26 November 2010 by VRS  |  Email |Print

From Brisbanetimes.com.au: Prices of Australia’s key commodities, particularly steel, will decline over the next few years, Reserve Bank of Australia (RBA) governor Glenn Stevens has told a parliamentary committee. Stevens said the strength of global growth thus far, and the pattern of growth in key emerging economies, had had a major effect on Australia’s terms of trade.
“These have returned to, and in fact exceeded, the six-decade highs seen two years ago,” Mr Stevens told the House of Representatives Standing Committee on Economics on Friday……………………………………….Full Article: Source

Baltic index falls, capesize cargo activity slow

Posted on 26 November 2010 by VRS  |  Email |Print

From Reuters: The Baltic Exchange’s main sea freight index .BADI, which tracks rates to ship dry commodities, retreated on Thursday with slower cargo activity weighing on sentiment for the larger capesize vessels.
The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, fell 0.59 percent, or 13 points, to 2,200 points after rising for three days previously. Prior to the move higher it had fallen for 17 straight sessions……………………………………….Full Article: Source

Retail buyers part of gold rally: WGC

Posted on 26 November 2010 by VRS  |  Email |Print

From Kitco News: Stories about gold buyers tend to focus on big names like John Paulson or George Soros, which suggest the little guy is sitting on the sidelines as the yellow metal rallies to all-time highs. That’s not necessarily the case.
The retail investor makes up an estimated 60% to 70% of the SPDR Gold Trust exchange-traded fund, said Jason Toussaint, managing director, U.S. and investment for the World Gold Council. He is also chief executive officer of World Gold Trust Services, the sponsor of SPDR Gold Shares. The shares trade under the ticker symbol GLD……………………………………….Full Article: Source

Gold shows its true metal

Posted on 26 November 2010 by VRS  |  Email |Print

From Atimes.com: The 28-year-long record high in gold price, at $850 per troy ounce, set at the pm fix on January 21, 1980, was broken several times in January and February 2009, hitting a then all-time high of $1,218.25 on December 3, 2009. It was broken again at $1,231.41 on August 19 this year, and again at $1,239.50 on August 25. This reflects the sustained decline in the value of the fiat dollar in gold of constant value.
The actual record high set in 1980 would be $2,387 in 2010 dollars, or 71% higher than it closed on November 9. Gold is a hedge against a weak dollar, not a hedge against inflation……………………………………….Full Article: Source

Gold Bullion a “buy on dips” as Irish crisis tips “ugly contest” from dollar to euro

Posted on 26 November 2010 by VRS  |  Email |Print

From Bullionvault.com: Gold Bullion continued to hold steady above $1370 per ounce for US savers on Thursday, trading at two-week highs vs. the Euro as world stock markets gently extended yesterday’s sharp rally.
Crude oil pushed higher to $84 per barrel. Like gold, Silver Prices held steady, trading around $27.50 per ounce. “Gold caught it breath” on Wednesday, says Swiss refiner MKS’s finance division in a note……………………………………….Full Article: Source

Silver is not the new gold

Posted on 26 November 2010 by VRS  |  Email |Print

From Fool.co.uk: All of a sudden, silver sales are soaring. It started in October when the grey metal hit nominal values not seen in 30 years when the Hunt brothers went broke trying – and failing — to corner the world market.
Latest figures from Thomson Reuters show that silver prices are continuing to rise, so much so they’ve easily out-performed gold in the last month. In the last two years, total investment in silver has jumped from $2.7bn to $4.6bn and is heading for $5bn……………………………………….Full Article: Source

Silver prices strongly supported by investment demand

Posted on 26 November 2010 by VRS  |  Email |Print

From Mineweb.co.za: Since, Bart Chilton, the Commissioner at the CFTC, acknowledged that there has been price manipulation in the silver market, the price of silver has held relatively firm above the $25 an ounce level. However, I believe that the current price action, has little to do to with the commissioner’s statement, and is merely reacting to current market conditions.
And, as far as I am concerned, the main driving force for the rising prices of silver is due to increased investor demand……………………………………….Full Article: Source

China ready for dialogue on rare earths - diplomats

Posted on 26 November 2010 by VRS  |  Email |Print

From Nytimes.com: China may be willing to soften the impact of its cuts in exports of rare earth elements on firms around the world that depend on them to make high-tech and defence products, EU-based diplomats said on Thursday.
China controls more than 95 percent of global rare earth supplies, giving it a stranglehold over a scarce resource used in a range of products from mobile phones to hybrid batteries……………………………………….Full Article: Source

Aluminum leading base metal over next decade: Barclays

Posted on 26 November 2010 by VRS  |  Email |Print

From Kitco News: After the financial crisis, emerging market growth has played a major role in driving global commodity demand with aluminum set to be a large contributor over the next ten years, said Barclays on Thursday.
Over the last decade, aluminum has slowly become a leading base metal used in infrastructure, consumer durables and other industrial uses. Emerging markets, such as China and India have come to rely on the use of aluminum and have ushered the metal in as a necessity; making it a staple in global commodity demand, Barclays said in a research report……………………………………….Full Article: Source

OPEC to raise exports 0.7pct on winter demand, oil movements says

Posted on 26 November 2010 by VRS  |  Email |Print

From Bloomberg: The Organization of Petroleum Exporting Countries will increase crude loadings by 0.7 percent up to the middle of December, according to tanker-tracker Oil Movements, as winter demand peaks in the northern hemisphere.
Shipments will rise to 23.51 million barrels a day in the four weeks to Dec. 11 from 23.34 million barrels in the period to Nov. 13, the consultant said today in a report. It’s the seventh consecutive month-on-month increase, according to the weekly reports. The data exclude Ecuador and Angola……………………………………….Full Article: Source

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