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Commodities Briefing - Archive | May, 2011

Goldman’s oil-trade reversal: Puzzle for investors

Posted on 27 May 2011 by VRS  |  Email |Print

You know, a guy could get suspicious. Goldman Sachs reversed its commodity stance this week, particularly on oil and copper, a mere six weeks after reporting the huge headwinds of demand destruction, declining China growth and moderating Middle East and North Africa strife.
From setting a Brent crude target of $105 dollars, the London commodity team led by Jeff Currie has reversed course and set three-, six- and 12-month targets on crude of $115, $120 and $130 respectively……………………………………….Full Article: Source

OPEC to boost exports 1.6pct on western demand

Posted on 27 May 2011 by VRS  |  Email |Print

OPEC will raise exports by 1.6 percent through to the middle of June as refiners in the U.S. and Europe boost operating rates to meet summer demand for gasoline, according to tanker-tracker Oil Movements.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of global supplies, will ship 23.11 million barrels a day in the four weeks to June 11, up from 22.74 million barrels a day in the period to May 14, the consultant said today in a report……………………………………….Full Article: Source

Copper, coal to lead three-year commodity rally, Standard Chartered says

Posted on 27 May 2011 by VRS  |  Email |Print

Copper, gold, iron ore and coal will lead a rally in commodities over the next two to three years as demand for raw materials from China and India outpaces supplies, according to Standard Chartered Plc.
“There is a lag between the supply and the demand and that’s going to drive these commodities higher over the next three years,” Ashish Mittal, the bank’s global head of commodity sales, said in an interview in Mumbai. “During the global financial crisis a lot of investments got postponed.”………………………………………Full Article: Source

HSBC expects glitter in gold market

Posted on 27 May 2011 by VRS  |  Email |Print

HSBC Holdings PLC, Europe’s biggest bank, said that it’s bullish about the gold market despite price fluctuations earlier this month. The bank predicts concerns over geopolitical risks, loose monetary policy and a fiscal deficit in the United States, are likely to rekindle a rally in gold price.
HSBC expects the gold price to average a high of $1,525 an ounce this year, up from an earlier forecast of $1,450. The forecast for 2012 has been raised to $1,500 an ounce from $1,300……………………………………….Full Article: Source

Chinese gold imports surging - and still growing

Posted on 27 May 2011 by VRS  |  Email |Print

Chinese demand for gold bars and coins as private investments could push bullion imports above 400 tonnes in 2011, leading global consultancy GFMS said on Friday.
Increased appetite for silver investment products too, combined with a forecast 16 percent annual growth in industrial demand, means China’s total silver consumption could outstrip domestic supply this year, said Philip Kalpwijk, executive chairman of GFMS……………………………………….Full Article: Source

EU says yes to gold bullion collateral

Posted on 27 May 2011 by VRS  |  Email |Print

Precious metal prices moved higher yesterday, with Comex gold for delivery in May moving up by 0.2%, or $3.40, to $1,526.60 per troy ounce. Silver was an even stronger performer, with the May Comex silver contract moving 4.2% higher to settle at $37.640 – a $1.519 gain.
The commodity sector was helped by a lackluster showing from the US dollar, which seems to have stalled following its gains in recent weeks……………………………………….Full Article: Source

Are the exchanges manipulating the silver market?

Posted on 27 May 2011 by VRS  |  Email |Print

During the recent climb and collapse in silver prices various commodity exchanges increased margin requirements repeatedly. Supporters applauded the move and said exchanges should have acted sooner, while opponents cried market manipulation. As a result the overall margin issue has become somewhat politicized. At MalHess Analytics we don’t do politics, but we do like looking at numbers.
Futures margin requirements exist because the exchanges guarantee all trades, so they want market participants to put up collateral against future losses……………………………………….Full Article: Source

What differentiates investment in more explosive silver from gold?

Posted on 27 May 2011 by VRS  |  Email |Print

The silver market is still reeling from its fall from $50 to $34 over a very short time. The move was driven by at least one investor selling around 1,000 tonnes of silver over a two week period. Silver had climbed quickly from around $25.
The charts supported a rise to $29, but as silver went higher, it climbed out of technical range into new territory. All the time thereafter it was vulnerable to a selloff back to support around that level……………………………………….Full Article: Source

Investor uses ETF options to bet on decline in silver prices

Posted on 27 May 2011 by VRS  |  Email |Print

An investor bet today that the iShares Silver Trust (SLV) exchange-traded fund will decline, using options with a strike price 17 percent below current levels, while wagering it won’t drop below $25 a share by July.
More than 222,000 puts changed hands on the ETF at 12:30 p.m., with the July $25 bearish contracts the most-active in the U.S. today after more than 100,000 traded at 9:54 a.m. in New York, according to Bloomberg data……………………………………….Full Article: Source

China companies get green light for rare earth exchange

Posted on 27 May 2011 by VRS  |  Email |Print

China’s biggest rare earth producer, Baotou Steel Rare Earth (Group) Hi Tech , has won local government approval to start an exchange to trade the increasingly lucrative metals used in many high-tech goods, state media reported on Friday.
The regional government of Inner Mongolia, where the Shanghai-listed company’s mining and processing operations are based, gave the “green light to the establishment of a rare earth exchange in the city of Baotou,”………………………………………Full Article: Source

Low metal recycling threatens green economy: UN report

Posted on 27 May 2011 by VRS  |  Email |Print

Too much metal is being thrown away when it could be recycled, wasting an opportunity to save energy and risking shortages in materials used for new green technologies, a UN report warned Thursday.
In a landmark study, the first to outline the extent to which metals are collected, the UN Environment Programme (UNEP) found that less than one third of about 60 metals studied are recycled to any significant degree……………………………………….Full Article: Source

Water: Opportunities exist with forgotten commodity

Posted on 27 May 2011 by VRS  |  Email |Print

For those living in developed nations, water is not often thought of as scarce. However in several countries such as China, India, Brazil and most of the frontier markets in the Middle East and Africa, water shortages are a severe problem.
The ocean may cover two-thirds of the world’s surface, but only 1% of the world’s water supply can be used as either drinking water or irrigation. Population growth in China, India and Africa has strained water supplies to break-point levels. Over 31 countries have some form of water stress, and 25 more are expected to join these ranks by 2030……………………………………….Full Article: Source

Global economy to grow 4.2pct in 2011, says OECD

Posted on 26 May 2011 by VRS  |  Email |Print

Angel GurriaThe global economy is projected to expand by 4.2 per cent this year, but rising oil and commodity prices and European debt crisis could hurt the overall recovery, according to Paris-based think-tank OECD.
The expected growth of the world economy is much lower than the 4.9 per cent rate achieved in 2010.
In its semi-annual economic outlook released today, the Organisation for Economic Cooperation and Development (OECD) said the global recovery is becoming self-sustained and more broad-based……………………………………….Full Article: Source

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Commodity prices yet to peak, says RBA

Posted on 26 May 2011 by VRS  |  Email |Print

Ric BattellinoThe commodity prices boom fuelling Australia’s economy is being driven by a strengthening global economy and is likely to continue for some time, a central bank official says.
Reserve Bank of Australia (RBA) deputy governor Ric Battellino on Thursday dismissed any notion of a commodity price “bubble”. “The word bubble is a very emotive term,” Mr Battellino told the 2011 Annual Stockbrokers conference……………………………………….Full Article: Source

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BOE Sentance: Commodities could rise further

Posted on 26 May 2011 by VRS  |  Email |Print

Outgoing Bank of England Monetary Policy Committee member Andrew Sentance has said that the MPC cannot ignore rises in commodity prices and warned that last week’s correction in crude prices was probably just a blip on an upward trend.
In his last speech as an external member of the MPC, Sentance told an audience in Jersey that high commodity prices could feed into wage bartering and price-setting and hinted that the MPC should move to increase the value of sterling to combat imported inflation……………………………………….Full Article: Source

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Fed chief’s comments bullish for commodities

Posted on 26 May 2011 by VRS  |  Email |Print

Precious metal and commodity prices moved higher in trading yesterday, on the back of Goldman Sach’s bullish pronouncements on crude oil and dovish comments from a senior US Federal Reserve official.
As per normal whenever commodities come back into vogue among the world’s traders, silver had a particularly strong day – the silver price on the May Comex contract settling up by $1.22 (3.5%) at $36.121 per troy ounce. The May gold contract moved up by $7.90 (0.5%), settling at $1,523.20……………………………………….Full Article: Source

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India’s Birla Group bets on commodities to fire growth

Posted on 26 May 2011 by VRS  |  Email |Print

It had all the makings of Aditya Birla group’s fourth acquisition in five months in commodities. Until Australian miner Whitehaven scrapped a plan to sell the business as attractive valuations weren’t coming its way.
But it didn’t take too long for chairman Kumar Mangalam Birla to spot another opportunity for inorganic growth in the business of coal mines. The $30-billion metals-to-telecom conglomerate is one among three Indian business groups to be shortlisted for a second round of bidding for the coal mines of Bandanna Energy in Australia……………………………………….Full Article: Source

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Time to buy commodities

Posted on 26 May 2011 by VRS  |  Email |Print

LTN say’s Buy Commodities… Shayne and I believe that the risk-reward now favors going Long commodities, as economic is likely enough to tighten Key supply constrained markets in 2-H of this year, leading to higher prices from here.
I suggest buying Crude Oil, Copper and Zinc and I see Brent Light Crude Oil gaining about 18% from here. . Standard & Poor’s GSCI index of 24 raw materials climbed 0.6% as of 2:35 pm in Tokyo, after yesterday 1.7% decline……………………………………….Full Article: Source

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Commodities IPOs face uncertain market

Posted on 26 May 2011 by VRS  |  Email |Print

Resourcehouse Ltd., the Australian coal and iron ore miner that is currently raising up to US$3.6 billion in its fourth attempt at an initial public offering in Hong Kong, is delaying its listing in the city by a day, a person familiar with the situation said Wednesday.
It wasn’t immediately clear why the timetable for the sale was extended. But the decision comes as shares in commodities giant Glencore International PLC closed 2.5% lower on their Hong Kong debut, after trading almost 1% from the IPO price in London on Tuesday……………………………………….Full Article: Source

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Crude oil rises, despite inventory build

Posted on 26 May 2011 by VRS  |  Email |Print

The U.S. Department of Energy reported this morning that in the week ending May 20, 2011, U.S. crude oil inventories increased by 0.6 million barrels, while gasoline inventories increased by 3.8 million barrels, distillate inventories decreased by 2 million barrels and total petroleum inventories increased by 6.8 million barrels.
Crude oil prices rallied after the report, with Brent nearing $115/barrel, while WTI briefly surpassed $101/barrel. But recent price action does not seem related to these inventory movements……………………………………….Full Article: Source

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Iran says OPEC will help cover supply shortage

Posted on 26 May 2011 by VRS  |  Email |Print

Iran’s OPEC governor acknowledged on Wednesday that there was a shortage of supply in the global oil market, saying OPEC was acting to balance the market and would continue to do so.
“OPEC is trying to compensate part of the shortage of supply of crude and create a balance in the market and in the future OPEC will continue to do its onerous duty which is to create balance in the market,” Mohammad Ali Khatibi was quoted as saying by the semi-official Mehr news agency……………………………………….Full Article: Source

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Commodities rally sends crude oil above $101

Posted on 26 May 2011 by VRS  |  Email |Print

Commodities climbed for a second day, and gains in energy and metal producers helped the U.S. equity market snap a three-day slump, amid speculation recent price declines were excessive as demand improves. Five-year Treasuries rose as a $35 billion sale drew the strongest demand since 1994.
The Standard & Poor’s GSCI Index of commodities rallied 1.7 percent at 4:18 p.m. in New York. The S&P 500 increased 0.3 percent to 1,320.47, rebounding from a one-month low……………………………………….Full Article: Source

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Copper ends strong as tight supply focus returns

Posted on 26 May 2011 by VRS  |  Email |Print

Copper climbed more than 2 percent on Wednesday, on buying spurred by recent bullish investment bank outlooks amid mounting evidence of a production short-fall this year.
Macquarie Bank’s removal of its short-term sell in copper a week ago and Goldman Sachs’ recommended long position this week seem to back what many long-term bulls have been betting on — that supply growth in 2011 will fall well short of rising global demand……………………………………….Full Article: Source

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Goldman Sachs call helps metals prices

Posted on 26 May 2011 by VRS  |  Email |Print

Last month Goldman Sachs became much more pessimistic in regard to commodity prices, and advised investors to take profits. However, yesterday the US bank revised its outlook for some important commodities upwards again – notably crude oil, zinc and copper. Commodity prices have risen in response, as have the shares of oil, gold and base metal producers.
Goldman bases its revised outlook on its expectations of increases in global growth. In its view, rising global demand for important commodities could lead to supply bottlenecks in the second half of 2011, which will likely result in higher prices………………………………………Full Article: Source

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Iron ore deals contribute nearly 40pct of global metals M&A during 1Q–PwC

Posted on 26 May 2011 by VRS  |  Email |Print

With stronger balance sheets, improved credit availability and stabilizing metal prices, PwC Tuesday forecast the recovery in global metals M&A is expected to continue for this balance of this year.
Iron ore targets were the primary driver of global metals M&A activity during the first quarter of 2011, contributing almost 40% of the deals worth a total of $5.1 billion, a significant increase over full-year 2010 when iron ore represented only 20% of total deals……………………………………….Full Article: Source

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Precious metals outlook turns clouded

Posted on 26 May 2011 by VRS  |  Email |Print

Gold prices have taken out resistance at $1519.55, the 50% Fibonacci retracement of the drop from the May 2 high. From here, the bulls aim to challenge resistance at the 5/11 high ($1526.60), a barrier reinforced by the 61.8% Fib at $1533.12.
Broadly speaking, anything shy of a daily close above the latter threshold keeps the overall structure of the ascending triangle carved out over the past three weeks intact, pointing to bearish continuation. If a bullish breakout does materialize however, the 76.4% Fib at $1549.91 will stand as the last barrier before a run at the 5/2 swing high at $1577.05………………………………………Full Article: Source

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Gold may hit US$1,600 an ounce as currencies fall

Posted on 26 May 2011 by VRS  |  Email |Print

Gold experts say the precious metal could rise to US$1,600 an ounce this year as investors seek refuge from a flagging global economy and weakening major currencies.
Tanarat Pasawongse, the managing director of Hua Seng Heng Gold Futures Co, predicts the price will soon test $1,525 an ounce with a high of $1,600 for the year……………………………………….Full Article: Source

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Scrap silver market to boom in 2011

Posted on 26 May 2011 by VRS  |  Email |Print

In the wake of rising silver prices, scrap silver processing and recycling industry is shining these days. Scrap silver processing industry is indeed booming after the recent spike in prices of the white metal to record $50 levels.
Scrap silver is indeed serious business for the industry. At one end, investors and speculators are stockpiling a growing share of global supply via new silver exchange-traded funds and bullion coins. And at the other end traders and consumers have been busily recycling anything and everything which has got some speck of silver in it……………………………………….Full Article: Source

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What differentiates investment in more explosive silver from gold?

Posted on 26 May 2011 by VRS  |  Email |Print

The silver market is still reeling from its fall from $50 to $34 over a very short time. The move was driven by at least one investor selling around 1,000 tonnes of silver over a two week period. Silver had climbed quickly from around $25.
The charts supported a rise to $29, but as silver went higher, it climbed out of technical range into new territory. All the time thereafter it was vulnerable to a selloff back to support around that level……………………………………….Full Article: Source

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Gold fund and Gold ETF, which is better?

Posted on 26 May 2011 by VRS  |  Email |Print

Irrespective of age and risk-profile, one should have at least 10% allocation to gold. Gold is a precious metal and will always remain in short supply. If you are planning to invest in gold and looking for the best ways, here we will discuss the ways and conclude.
These days gold as an asset class is famous rather than holding it in physical form. The main advantage of holding gold online is there is no scope for theft and depreciation……………………………………….Full Article: Source

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Investors desert exchange-traded agriculture funds

Posted on 26 May 2011 by VRS  |  Email |Print

Investors in exchange traded products have deserted agricultural commodities at a pace not seen since at least 2009 this month, but the exodus may be reversible.
The net outflow from farm commodity exchange traded products (ETPs) has already reached $600m for May, shrinking the total invested in the asset class to $7.8bn, Societe Generale said……………………………………….Full Article: Source

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India: More retail investors venture into commodities

Posted on 26 May 2011 by VRS  |  Email |Print

It’s not quite a mass stampede into pork bellies, but retail investors in India are increasingly venturing into the commodities markets, buoyed by a surge in prices that has outstripped returns from stocks.
While the growth has the potential to be explosive, trade in commodities comes with a warning—policy flip-flops that can be injurious to your financial health……………………………………….Full Article: Source

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Volatile currencies leave big hedge funds licking wounds

Posted on 26 May 2011 by VRS  |  Email |Print

For some of the world’s biggest hedge funds, gyrating currencies have so far made 2011 a frustrating year. So-called macroeconomics funds, which make wagers on currencies and global economic events, were down 0.8% on average in the year to May 19, according to hedge-fund research firm HFR, with a 3.1% loss this month.
And “systematic” macro funds that use computer programs to jump on market trends have given up 4.5% since Dec. 31. By contrast, hedge funds in general have returned 1.7%. Investors who bought U.S. blue-chip stocks instead of hedge funds have gained about 7%……………………………………….Full Article: Source

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NZ dollar rises as commodities rally

Posted on 26 May 2011 by VRS  |  Email |Print

The New Zealand dollar rose against most major currencies, after commodity prices and equities snapped their recent streak of declines.
Global commodity prices kicked off the relief rally, with the Thompson Reuters Jefferies Index, a measure of 19 hard and soft commodities, gaining 1.6% to 344.44, with oil prices leading the charge……………………………………….Full Article: Source

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Goldman calls bottom of commodity market … six weeks after calling top

Posted on 25 May 2011 by VRS  |  Email |Print

Jeffrey CurrieOil jumps to $111 a barrel after commodities specialist Jeffrey Currie says recent price falls have made oil, copper and zinc more attractive investments. The oil price jumped on Tuesday after Goldman Sachs called the bottom of the commodities market – just six weeks after calling the top.
Commodities prices have fallen by an average of 10% since Goldman commodities specialist Jeffrey Currie declared that in the near term, the rewards of holding raw materials such as oil, copper, platinum and cotton no longer outweighed the risks……………………………………….Full Article: Source

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Commodities rally as Goldman goes long

Posted on 25 May 2011 by VRS  |  Email |Print

Having last month prompted a sell-off in mining shares after calling the top of the commodities boom, Goldman Sachs had the opposite effect on Tuesday after decreeing it was once again time to go long.
Analysts said in April - just as commodities trading giant, Glencore International, was preparing to float - that it was time to take profits in raw materials such as copper. But, this was a short-term view and given the recent slide in commodity prices, Goldman is now turning “more bullish”……………………………………….Full Article: Source

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Commodities go their separate ways

Posted on 25 May 2011 by VRS  |  Email |Print

A rising tide lifted all boats, but the recent fall in commodities prices has been far from uniform. The 10% drop in the S&P Goldman Sachs Commodity Index this month, as of late Tuesday in Europe, masks a wide divergence in underlying prices, with silver off 26% and corn down just 2.8%.
After years of seeing close correlation in commodity prices, investors need to become more discerning……………………………………….Full Article: Source

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Commodities to recover from selling pressure

Posted on 25 May 2011 by VRS  |  Email |Print

The latest sell off in commodities did lead the investors to reconsider the commodity Bull Run owing to the intensity of the selling pressure and the dismal economic picture in the background.
In spite of the selling pressure, firms such as Goldman Sachs, Morgan Stanley and JP Morgan all foresee a recovery and maybe even a rally……………………………………….Full Article: Source

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Commodities rally inspires fragile FTSE recovery

Posted on 25 May 2011 by VRS  |  Email |Print

Britain’s top shares advanced on Tuesday, as a bounceback in commodity stocks helped the index claw back some of the previous session’s sharp falls.
“I think there’s an awful lot of nervousness out there, a lot of unknowns on the road ahead, and it’s going to be pretty rocky,” Martin Dobson, head of trading at Westhouse Securities, said……………………………………….Full Article: Source

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EU’s Barnier eyes commodity speculation controls

Posted on 25 May 2011 by VRS  |  Email |Print

The European Union’s executive will propose powers to cap trading by big investors to control speculation on commodities, the bloc’s official in charge of financial reform said on Tuesday.
Speaking in the European Parliament, Michel Barnier said he wanted new rules to tackle speculation in derivatives, which has been blamed for the spiraling cost of grain and other commodities……………………………………….Full Article: Source

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OPEC unlikely to raise production quotas in June, IEA says

Posted on 25 May 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries is unlikely to increase crude production quotas at its June 8 meeting, said Richard Jones, deputy executive director of the International Energy Agency.
“I would be skeptical,” he said today at a press conference in Brussels. “Knowing OPEC politics, it would be difficult to make a decision in June.”………………………………………Full Article: Source

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PwC: Metals M&A deal value doubles in 1Q 2011 from year ago

Posted on 25 May 2011 by VRS  |  Email |Print

Merger and acquisition activity in metals mining kept on track in the first quarter of 2011, boosted by stronger balance sheets and better credit availability, PwC said in a quarterly report.
There were 26 deals with value greater than $50 million in the metals mining industry in the first quarter of 2011, the same number as last quarter and two more than in the same period of 2010. The 26 deals accounted for $12.9 billion in total deal value, up from $6.3 billion in the same period last year……………………………………….Full Article: Source

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Global supply deficit tarnishes copper sector M&A activity

Posted on 25 May 2011 by VRS  |  Email |Print

We’re all well aware by now that the world is facing a copper supply deficit. The price of the metal rose 30 percent in 2010. Meanwhile, London Metal Exchange (LME) copper inventories fell 25 percent – below what the world consumes in a single month.
Of course, the usual suspects are to blame: booming growth in the emerging and developing worlds. But the tight supply situation means there are plenty of opportunities for investors……………………………………….Full Article: Source

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Analysts see opportunities opening in copper

Posted on 25 May 2011 by VRS  |  Email |Print

Analysts at Goldman Sachs raised their views on oil and industrial metals on Tuesday, suggesting it’s time to revive long positions in copper.
Supporting fundamental views are “signs that Chinese metal demand has already returned with the SHFE-LME copper arb opening again, exchange inventories declining and the Shanghai copper forward curve moving into backwardation,” the Goldman note added……………………………………….Full Article: Source

OFT considers metals market inquiry

Posted on 25 May 2011 by VRS  |  Email |Print

The Office of Fair Trading is considering an investigation into whether the market for metals trading is anti-competitive after MPs raised concerns that many of the warehouses used in the industry were owned by big commodities traders.
As part of an investigation into strategically important metals, the Commons science and technology committee learned that four large metals traders also ran warehouses, raising fears they could gain an unfair advantage through access to sensitive information about the activities of rival traders……………………………………….Full Article: Source

What happened to the hype about platinum?

Posted on 25 May 2011 by VRS  |  Email |Print

When gold prices were pushing through $1,000 an ounce back in 2009, some folks were looking at other precious metals to see if they could get a better bang for their buck.
Lots of eyes turned to platinum. I wrote a report on platinum back after my trip to South Africa. “White gold” is extremely rare, and yet it’s used in a lot of key industries. In fact, the Department of Defense lists platinum as a strategic precious metal……………………………………….Full Article: Source

Why you should accumulate gold and silver

Posted on 25 May 2011 by VRS  |  Email |Print

During the last few weeks the price of gold has been consolidating between $1475 an ounce and $1525 an ounce. Yet, with all the current turmoil in the financial markets, it seems totally undervalued.
On Monday May 16, the United States hit its $14.3 trillion borrowing limit. Treasury Secretary Timothy Geithner told Congress that issuing $72 billion in bonds and notes would push the deficit to its legal cap and he would have to suspend deposits into federal pension funds to free up room for more borrowing……………………………………….Full Article: Source

Is gold a bad investment?

Posted on 25 May 2011 by VRS  |  Email |Print

Numerous commentaries in the media, both on television and in print, would have us believe that gold is a bad investment. Headlines warning investors to avoid the yellow metal are commonplace.
Examples such as “Five reasons not to own gold,” “Gold is in a bubble,” “Gold as an investment - think again,” “Gold is a bad hedge,” “Gold is a pointless rock,” and “Why gold is a bad investment” can be found with a simple Google search on gold and investment……………………………………….Full Article: Source

Financial market turmoil leaves gold undervalued

Posted on 25 May 2011 by VRS  |  Email |Print

During the last few weeks the price of gold has been consolidating between $1475 an ounce and $1525 an ounce. Yet, with all the current turmoil in the financial markets, it seems totally undervalued.
On Monday May 16, the United States hit its $14.3 trillion borrowing limit. Treasury Secretary Timothy Geithner told Congress that issuing $72 billion in bonds and notes would push the deficit to its legal cap and he would have to suspend deposits into federal pension funds to free up room for more borrowing……………………………………….Full Article: Source

Is silver set for another run-up?

Posted on 25 May 2011 by VRS  |  Email |Print

If you were holding portfolio investments in silver in the first few weeks of May, it didn’t feel like a silver lining. The white metal plunged in price nearly 30 percent in just two weeks of trading - after a spectacular run-up earlier this year.
So, could silver be set for a rebound? First of all, why should there be excitement over silver, the cheaper cousin to gold? Michael Purves, chief market strategist and head of derivatives research at BGC Financial, explains that silver’s price correlates closely with gold, although not with base metals or other commodities……………………………………….Full Article: Source

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