The global macro environment in the first quarter of this year has been a “tug of war” between attractive economic momentum and reasonable evaluations versus a growing list of risks such as oil prices, European sovereign credits and natural disasters. On a global basis, risk assets such as equities and commodities have continued to perform well as the economic momentum trumped the growing concerns.

Geographically, we saw Asian stocks and developed markets (DM) start the year with healthy performance. As the double-dip fears eased and the recovery strengthen in the developed markets investors became more willing to accept equity risks………………………………………Full Article: Source

Given the specter of inflation and the need to rebuild Japan in the wake of the quake and tsunami, investors are going wild over commodities these days. And that interest is leading many average retail investors to ask the question: What’s the best way to hop on this train?

For some, the best way to take advantage of these trends is to buy single-commodity exchange-traded funds or exchange-traded notes, from which there are plenty to choose……………………………………..Full Article: Source

Following the crash of 2008, the broad commodities space went on an upward tear. Since the end of February 2009, the Dow Jones UBS Commodity Index gained 59.3%. During the same period, investor interest in the space has increased dramatically as assets to (non-equity-based) commodity-focused exchange-traded products increased by nearly 278%.
In a historical context, a broadly based commodities position has been found, within a well-diversified portfolio, to provide the benefits of inflationary hedging and diversification away from the correlation of traditional asset classes………………………………………Full Article: Source

Why would anyone pay more for precious metals than they’re worth? That’s the mystery confronting investors looking at several closed-end bullion funds that now change hands well above the market value of the assets they hold.
Unlike mutual funds or exchange-traded funds, closed-end funds issue only a limited number of shares (hence the “closed-end” label). Because their share price is determined by investors’ enthusiasm, rather than being tied to the value of the underlying assets, it’s not unusual for closed-end funds that invest in stocks or bonds to stray from their NAV………………………………………Full Article: Source

Commodity prices are currently surging. We have heard about oil prices and precious metals, but commodities are up broadly as the following charts show (click on each to enlarge). The question I have in looking at them is this: Are prices peaking?

First, a word on commodity indexes. There are different indexes we can use to look at commodities. Many use the Commodity Research Board (CRB) Index, but that can be misleading because the CRB is heavily-weighted to energy………………………………………Full Article: Source

Investors remain bullish on commodities with more than half increasing their commodity allocation over the next 12 months, according to Barclays Capital’s annual survey of institutional investors.

The survey, which was conducted as the Japanese nuclear crisis and Middle East unrest unfolded, revealed that 85 percent of investors expect flows to be at or above last year’s levels and almost half are seeking returns of over 10 percent………………………………………Full Article: Source

Crude oil prices are volatile right now, amid crosscurrents, conflicting fundamentals, and dealing with “the unknown.” For crude futures, this is currently the normal environment in which we traders attempt to determine the future price of oil. One could easily make a bullish case or a bearish case for crude oil prices , each certainly with profound investment ramifications. But which is the more compelling argument now?

The bull case is centered around crude oil supply. There is only so much supply available to the world on a daily basis in the “perfect” scenario; currently about 86 to 87 million barrels per day………………………………………Full Article: Source

The International Energy Agency has said it expects OPEC’s oil export revenues to hit one trillion dollars this year, that is 710 billion euros. IEA Chief Economist Fatih Birol said in an interview with the Financial Times the one trillion dollar figure is based on crude prices staying above $100 a barrel.

The IEA, which monitors energy for the world’s richest countries, said the total amount of oil exported by OPEC this year will be slightly lower than in 2008 when it received 990 billion dollars. Lower crude prices pulled its revenue down to 571 billion dollars in 2009. In 2010 it was 750 billion dollars………………………………………Full Article: Source

The volatility switch has flipped in the energy sector, creating opportunities for investors ready to buy at increasingly attractive entry points. With gasoline approaching $4 a gallon at the pump, and crude oil $100-plus a barrel, most U.S. investors would be wise to hedge that rise with an overweight position in energy.

Jeff Saut, chief investment strategist at Raymond James, has been overweight energy for most of the last decade and says higher prices are here to stay………………………………………Full Article: Source

Russia’s Federal Atomic Energy Agency (Rosatom) and Kazakhstan’s uranium producer Kazatomprom signed a memorandum of intent to cooperate in the production and sales of rare earth metals, the market for which is squeezed by Chinese export restrictions, Sergei Kiriyenko, head of Russia’s Federal Atomic Energy Agency (Rosatom), said on Wednesday.

“Our estimates show there are good opportunities to take rather an influential share on the rare earth metals market,” Kiriyenko said………………………………………Full Article: Source

It was on a dark and stormy night in 1752 when Ben Franklin took his kite out to snag lightning from the sky and prove that it’s a stream of electrified air. It led to his invention of the lightning rod as a means to protect people, buildings and ships against this dangerous force of nature. Ben’s experiment took courage. It also took appreciation of what he was dealing with and wisdom enough to do it safely. In short, he was prepared-and his preparation paid off.

Fast-forward 259 years. Rick Rule, the widely known and well-respected founder of Global Resource Investments (GRI), tells investors that such qualities will serve them well over the next year or two, as markets become ever more turbulent………………………………………Full Article: Source

Here is a simple question for you: which would you rather buy right now, gold or silver? Gold has incredible amounts of emotional baggage attached to it, while silver is in a different league - at least for the moment. This video will show you two indicators that can help you capture either market when and if the upward trend decides to resume.
With all of the world’s troubles, there are plenty of reasons why one would think that both of these markets should be much higher. The question is, why aren’t they? I think that the video you’re about to watch will help answer some of those questions………………………………………Full Article: Source

Portugal’s prime minister has resigned, a new political regime looks imminent in Libya and Japan’s coastline seems to have shifted as much as four metres to the east.

But, while the world has changed dramatically in the last few months, it seems for many commentators, the foundations underlying the continued growth in gold prices over the last decade have not………………………………………Full Article: Source

After seemingly losing interest in 2010, investors have resumed pouring money into commodity ETFs in 2011. Both broad-based basket funds and resource specific products have grown as these products have come back into style.

Precious metals have without a doubt been the hottest corner of the commodity ETF market, as investors have embraced the exchange-traded structure as an efficient means of accessing an asset class that has the potential to act as both an inflation hedge and a safe haven………………………………………Full Article: Source

Commodity mutual funds have performed better than their equity peers in the past few months thanks to rising commodity prices. However, most of the funds are global in nature and has provided up to 18% returns in the past six months even as equity funds lagged behind.

Most of the mutual funds in this sector invest in commodity stocks that have benefitted in recent times due to surge in commodity prices. This includes the likes of Monsanto, Posco, Tata Steel, Exxon Mobil, Arcelor Mittal or Rio Tinto………………………………………Full Article: Source

Multi Commodity Exchange (MCX) is set to file the draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) by Friday, an official of India’s largest commodity exchange has said.

The Jignesh Shah-promoted MCX is reportedly planning to get the exchange listed. This is its second attempt after the initial plan was postponed in 2008 following adverse market conditions. “In all likelihood, we will file the DRHP by March 31,” the official said………………………………………Full Article: Source

India’s commodity futures trading volumes have surged fast enough to increase the profitability of the commodity exchanges, but is that enough to attract instituitional interest in the bourses? Not necessarily.

Both Multi-Commodity Exchange of India (MCX), India’s largest bourse and National Commodity Exchange of India (NMCE), India’s first national level electronic bourse to commence trading in 2003, have been given more time to comply with a legal directive to bring down anchor investor stakes to 26% of the paid up capital………………………………………Full Article: Source

The Canadian dollar is firmer Wednesday morning and is approaching the multi-year highs touched earlier this month as commodity currencies in general strengthen. The U.S. dollar is at C$0.9704 from C$0.9747 late Tuesday, according to data provider CQG. It dipped to a low at C$0.9685, its lowest level since March 10, in earlier trading.

Traders said the move was supported by buying of the Canadian dollar against Japanese yen. The Canadian unit reached a session high of Y85.80, its highest level since July 2010………………………………………Full Article: Source

In Beijing China made a major step towards greater emissions reduction by conducting the first transaction under its own domestic “Panda Standard” for carbon trading.

Franshion Properties, a leading Chinese real estate developer, bought 17,000 tons of carbon credit on the Beijing Environmental Exchange. Sources said the deal was worth about $150,000; funds which will go into a project for planting thousands of hectares of carbon-absorbing bamboo in the province of Yunnan………………………………………Full Article: Source

Commodity prices have started to shake off the negative impact of Japan’s tragedy as reconstruction efforts get underway, according to a Scotiabank Report.

Global energy markets stand to gain as Japan turns to imported liquefied natural gas (LNG) and crude oil to offset the shortfall in its nuclear capacity, the report said……………………………………..Full Article: Source

OPEC would be concerned by any rise in oil prices to $120 a barrel and would then consider whether it needed to hold an emergency meeting, an OPEC delegate said on Tuesday.

At present, however, all members of the Organization of the Petroleum Exporting Countries believe the oil market is well supplied despite the loss of Libyan crude and see no need for a meeting before its next scheduled gathering on June 8……………………………………..Full Article: Source

The price of crude oil today is about the same as it was on September 28, 2008. The price for West Texas Intermediate (WTI) crude oil back then was $107 a barrel and it is about $105 per barrel today. The average price at the pump was $2.57 a gallon then compared with the average $3.58 per gallon for regular unleaded gasoline today.
The reasons for the difference in the pricing of gasoline is exactly the opposite of why they were back on September 28, 2008, a time when the US economy went into a tailspin, with fuel prices decreasing faster than crude oil prices……………………………………..Full Article: Source

Eurozone weakness revolving around doubts raised over Portuguese debt, coupled with some better economic pointers on the recovery in the U.S. economy led to dollar strength vs the Euro on Monday and, coupled with profit taking after last week’s new high led to a sharpish fall in the gold price in dollars as a result.

Indeed gold is not alone in being adversely affected pricewise, silver and platinum group metals initially moved down even more steeply in percentage terms, while oil and base metals prices all also declined by greater or similar percentages……………………………………..Full Article: Source

Mother nature, one could say, is the ultimate asset allocator over a long enough time span. Going by that notion, silver is very undervalued versus gold.
Silver is about 16 times as plentiful in the earth’s crust as gold, according to John Stephenson, author of the “The Little Book of Commodity Investing.”…………………………………….Full Article: Source

Projecting prices of precious metals is a difficult and likely futile task. Gold bugs seem to insist there’s always room for further appreciation, while others proclaim that gold has been in a 6,000-year bubble.

The truth is probably somewhere in between, but discovering the worth of a precious metal based on some intrinsic valuation of it is virtually impossible. There are no future interest or dividend payments to project and discount, so we have to rely on the madness of humans……………………………………..Full Article: Source

A GFMS report for the Silver Institute predicts a bullish picture for the future of industrial silver demand with a record high of 665.9 million ounces in 2015.

The GFMS study, The Future of Silver Industrial Demand, made public Monday, also forecast the annual average silver price to continue to rise this year, “driven in large part by further inflows of investment demand, and supported by additional growth in fabrication demand.”…………………………………….Full Article: Source

On Thursday, March 24th, gold hit another record high of $1448.60 an ounce as it attempted to breach the $1450 an ounce level for the first time in the history of the yellow metal. Since then the price has pulled back slightly and as to be expected, once again, investors are asking if the price is too high, and if gold is in a bubble.

When this bull market in gold began in 2000, the price was $250 an ounce. At the time, practically every main stream analyst saw no value in gold and advised clients to stay well away from this metal. It was referred to as a barbaric relic that no one wanted and besides who on earth would want to invest in something that did not pay a dividend?…………………………………….Full Article: Source

Insatiable Chinese demand has sent the prices of commodities such as iron ore and copper to historic highs; now the Middle Kingdom is helping to drive the gold price ever higher as local investors look for a hedge against soaring inflation and the rising risks to the global economy.

China is the largest gold producer but requires so much of the precious metal (in addition to what it already mines) that it imported more than 209 tonnes during the first 10 months of last year……………………………………..Full Article: Source

Gold is not an investment asset alone. The medicinal, mechanical and industrial uses of gold have been written about plenty of times. Now a new research says gold has magnetic properties.

The recently discovered magnetic properties of gold nanoparticles are the subject of the lead article in the new issue of the journal, Gold Bulletin. The paper, “Unexpected magnetism in gold nanostructures: Making gold even more attractive,” by Professor Simon Trudel, University of Calgary, explains the cause of the unexpected magnetism in gold and explores how these properties could lead to potential applications in catalysis, medicine and data storage……………………………………..Full Article: Source

BNP Paribas is retaining its average gold-price forecasts of $1,500 for 2011 and $1,600 for 2012. Demand from emerging markets, particularly Asia, remained strong in the first quarter, but interest from developed economies was more subdued, BNP says.
Safe-haven demand rose with the political upheaval in the Middle East-North Africa and due to events in Japan, says the report from Anne-Laure Tremblay……………………………………..Full Article: Source

Copper will lead a rally in base metals this year as increased consumption in China reduces inventories and higher prices encourage stockpiling, according to researcher Brook Hunt, a Wood Mackenzie company.

“Fundamentally, the market’s tight,” Julian Kettle, head of metals research, said in an interview in Singapore, predicting that cash copper may average $9,700 per ton this year compared with $7,543 in 2010. Kettle also backed nickel and lead……………………………………..Full Article: Source

Exchange-traded funds (ETFs), which have attracted a lot of investor attention globally, are also beginning to take off in India. An ETF is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities or bonds. Most ETFs track an index. They can be bought and sold through the trading day, like any stock.
In the past 14 months, the average assets under management (AAUM) in ETFs have almost doubled and the number of folios more than doubled……………………………………..Full Article: Source

Last week, Barclays (BCS) announced the launch of the Barclays Capital Commodities Index. The BCI index aims to be a benchmark that invests on a diversified portfolio of commodities ranging from energy to grains and oilseeds, and even livestock. Soon after this announcement, the investment bank also announced the results of the institutional investors’ annual survey on commodities.
According to Kevin Norrish, managing director of Barclays Capital commodities research, there is a consensus on higher commodity prices:…………………………………….Full Article: Source

A new Australian energy-and-commodities exchange is the latest player hoping to lure trade away from venues in Chicago and London toward fast-growing Asian-Pacific economies.

But Financial & Energy Exchange’s bet that Australia’s resource bonanza will buoy its newest commodities exchange when it goes live this year is unlikely to change the landscape of energy trading globally……………………………………..Full Article: Source

The global, coordinated selloff of the Japanese yen bolstered commodity currencies in U.S. trading Tuesday. One of the primary beneficiaries of the yen suppression Tuesday was the Australian dollar — via the carry trade. The Australian dollar was 1.2% stronger at 84.615 yen and 0.2% firmer at $1.02666.
CurrencyShares Australian Dollar Trust was up 0.1% to $103……………………………………..Full Article: Source

Thomson Reuters Point Carbon will be available for comment following the publication, by the European Commission, of the European Union’s verified emissions data for its emissions trading scheme (EU ETS) in 2010, via its Community Independent Transaction Log ( CITL).
The data is due to be published on 1 April. Thomson Reuters Point Carbon will be available for comment as soon as the data is released and a media advisory will be issued then. Thomson Reuters Point Carbon is the leading provider of market intelligence, news, analysis, forecasting and advisory services for the energy and environmental markets……………………………………..Full Article: Source

Climate change adviser Ross Garnaut says China is experimenting with carbon trading in large cities as it knows that’s the cheapest way to reduce emissions.
The economist held talks on Monday with the man responsible for China’s climate change policies,Xie Zhenhua, in advance of ministerial-level meetings……………………………………..Full Article: Source

Shippers may be required to limit their carbon emissions, possibly through participation in carbon markets, under proposals being considered by the European Union.

The EU is crafting tools to limit emissions from maritime transport because the International Maritime Organization (IMO) has been unable to agree on such measures for over a decade, Bloomberg said……………………………………..Full Article: Source

Conflict in the Middle East helped push the oil price to new peaks last week and rising demand from emerging markets for a wide range of commodities – ranging from “softs” such as foods to other forms of energy – have also propelled valuations upwards.

But how can individual investors gain access to these asset classes and is it too late to pop some in your individual savings account (Isa) or self-invested personal pension (Sipp)?……………………………………Full Article: Source

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Reconstruction in Japan following this month’s earthquake and tsunami is likely to boost prices for lumber, plywood, steel and other building materials, a leading Canadian bank said Monday.

Scotiabank said in a research note that commodity prices were like to see an increase over the next six to 12 months as Japan recovers from this month’s earthquake and tsunami, and continues to grapple with the crisis at the Fukushima-Daiichi nuclear plant……………………………………..Full Article: Source

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We’ve seen gold and oil prices skyrocketing these past couple of months. We’ve seen food prices spark major uprisings in the Middle East, and new governments are taking shape even as commodities like corn are starting to trade higher again.

The swings in commodity prices may put some investors off. Gold is near all-time highs, but has climbed $35 in the past few days. I’m sure many people are questioning how much higher commodities can get…………………………………….Full Article: Source

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Technical signs are increasingly pointing towards short-term topping potential in most of the major currencies and commodities, according to analysts. Currency analysts predicted that the bull runs seen in gold and oil in the last two weeks showed signs of peaking, and could end in a pull back towards $1,382 for gold and $97 for oil after some corrective selling.

In addition, the immediate outlook for both the euro and pound is bearish, which should prove positive for the dollar in the short-term…………………………………….Full Article: Source

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The Japanese earthquake on March 11 almost took the heat off oil prices that were fed by the continuing turmoil in Libya and some countries in the Middle East.

All other factors in the market are still there but they have taken a secondary role for the time being. Analysis for economic growth, oil supply and demand balances and price expectations that were made before the Japanese disaster are now uncertain and must be reviewed……………………………………..Full Article: Source

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Precious metals were the top-performing investment for the second consecutive year during 2010 with their value soaring by 42% as people sought a safe haven from inflation.

According to Lloyds TSB, it was the fourth time in five years that precious metals topped the tables for the best asset class, as continuing uncertainty over the prospects for the global economy caused investors to flock to gold, silver and platinum…………………………………….Full Article: Source

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A report by the Silver Institute forecasts a healthy outlook for global silver industrial demand, the largest component of annual silver fabrication demand. The report states that industrial uses of silver should rise sharply over the next five years to 666 million troy ounces (Moz) by 2015, representing 60% of total fabrication demand that year – a 36 percent increase over 2010’s figure of 487 Moz.

The report, The Future of Silver Industrial Demand, was produced by the leading precious metals consultancy, GFMS Ltd, on behalf of the Silver Institute. The report assesses the future prospect of total silver industrial demand over the next five years, and where sector growth opportunities are likely to emerge…………………………………….Full Article: Source

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Gold declined for a third day in New York as some investors sold the metal after its rally to a record and on signs the U.S. economy is improving. Silver, platinum and palladium also fell.

The U.S. economy grew at a 3.1 percent annual rate in the fourth quarter, revised up from a 2.8 percent estimate issued last month, data showed March 25. A Federal Reserve official said the central bank may scale back its monetary stimulus…………………………………….Full Article: Source

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Gold prices continued to drop at the bullion market here today due to consistent offloading from stockists on the back of mute local buying interest amid bearish overseas trend. Silver also slumped on heavy profit taking by speculators as well as subdued industrial demand.

In overseas, the precious metals declined on strengthening dollar valuations over late last week’s comments from a Federal Reserve official on reversing easy money policy……………………………………..Full Article: Source

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Physical demand for gold and silver is strong as investors seek protection of wealth against uncertainty in the Middle East. It has already been reported that Col. Gaddafi has been a wise gold investor, preparing for this crisis by hoarding a large amount of the precious metal to fund his military and to hedge against economic sanctions.
Just like he’s been hoarding precious metals, many throughout the Middle East are trying to sell their assets and seek out the shelter of safe havens……………………………………..Full Article: Source

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With over $1 trillion in assets, investors are betting with their wallets that exchange traded funds (or ETFs) are an excellent investing vehicle. Basically, exchange traded funds are baskets of investments – which range from stocks, bonds and even commodities.

But there is confusion about how ETF funds differ from ETN investments. ETN stands for exchange traded note, rather than exchange traded fund…………………………………….Full Article: Source

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In the last few years investors have gained a new awareness of the agriculture investment theme. This sector has benefited from the recent overall lift in commodity prices and from improving diets in many emerging-market nations. The go-to exchange-traded fund for this theme has been the Market Vectors Agribusiness ETF , but that might be changing.
There have been other ETFs that are very similar to MOO, but last week a different kind of agriculture fund made its debut: the IndexIQ Global Agribusiness Small Cap ETF……………………………………Full Article: Source

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