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Commodities Briefing - Archive | October, 2011

Funds adding to bullish bets fueling biggest rally since 2009: Commodities

Posted on 31 October 2011 by VRS  |  Email |Print

Jeffrey ShermanSpeculators boosted wagers on higher commodity prices by the most since August as improving prospects for growth in the U.S. and Europe sent prices toward their biggest rally in more than two years.
Money managers boosted combined net-long positions across 18 U.S. futures and options by 13 percent to 831,421 contracts in the week ended Oct. 25, Commodity Futures Trading Commission data show. The Standard & Poor’s GSCI Index of 24 raw materials has jumped 10 percent in October, on track for the biggest gain since May 2009………………………………………..Full Article: Source

India: Is it time for commodity portfolio management services?

Posted on 31 October 2011 by VRS  |  Email |Print

Naveen Mathur15% is the fall that the Indian market has witnessed over the past year, with the AUMs of equity funds and ETFs falling by 0.62% in September this year. It’s to deal with such uncertainties that investors are looking for alternative investment options, such as commodities, which are currently witnessing a rally.
In fact, the AUM for gold ETFs increased by 7.9% in September. Does this mean that portfolio management services (PMS) for commodities have become inevitable?……………………………………….Full Article: Source

Commodity relief rally – will it stick?

Posted on 31 October 2011 by VRS  |  Email |Print

The news from Europe that its leaders (after two years of turmoil) finally delivered what looks like a useful set of tools to bring the crisis, if not to an end then at least under some sort of control triggered huge rallies across riskier assets.
The S&P 500 erased all of its 2011 losses and is now on course for the best monthly performance since 1974. Commodities meanwhile also took another major step away from the lows seen last month with the Reuters Jeffries CRB index surging by 5.5 per cent and almost moving into positive territory for the year………………………………………..Full Article: Source

High oil prices will derail economic growth -Tanaka

Posted on 31 October 2011 by VRS  |  Email |Print

Oil prices above $100 per barrel could contribute to an economic slowdown similar to the 2008 financial crisis, Nobuo Tanaka, former executive director for the International Energy Agency (IEA), said on Monday.
Brent crude LCOc1 prices, which have dropped more than 14 percent from a high of $127.02 touched in April, fell 95 cents to $108.96 a barrel by 0303 GMT. But prices now are currently three times higher from a low of $36.20 hit during the financial meltdown in 2008………………………………………..Full Article: Source

Oil prices slip; G20 meeting eyed

Posted on 31 October 2011 by VRS  |  Email |Print

Oil prices fell on Monday, with traders cautious ahead of the Group of 20 leaders’ meeting later this week that will focus largely on the European debt crisis.
Euro zone leaders reached a deal last week to recapitalize their banks, strengthen the euro zone rescue fund and impose hefty losses on holders of Greek debt, and the market was looking for more positive news out of the euro zone to provide a floor for prices………………………………………..Full Article: Source

Iran sees no need for emergency OPEC meeting - ISNA

Posted on 31 October 2011 by VRS  |  Email |Print

Current OPEC president Iran does not envisage holding an emergency meeting of the oil producers’ group ahead of a scheduled one in December, Iran’s OPEC Governor Mohammad Ali Khatibi was quoted as saying by the student news agency ISNA on Sunday.
“I find it improbable to have an OPEC emergency meeting because there is no emergency matter and the market is balanced,” he was quoted as saying………………………………………..Full Article: Source

Lessons from Saudi Arabia on managing the oil and gas sector

Posted on 31 October 2011 by VRS  |  Email |Print

Saudi Arabia is the leading country in oil production, reserves, exports, and refining capacity. It possesses a quarter of the world’s reserves, more than 20 per cent of the world’s oil market share, undiscovered estimated at 200 billion barrels. Its proven are 264 billion barrels and over 100 billion barrels probable and possible reserves.
The kingdom’s method is consistent with reputable agencies like the Society of Petroleum Engineers and the American Society of Petroleum Geologists………………………………………..Full Article: Source

Gold is meant for political protection, not financial protection

Posted on 31 October 2011 by VRS  |  Email |Print

Gold prices have fallen from $1923 to $1500 levels before climbing back to $1740 levels this week which goes to show that Gold prices can fall and rise just as any other commodity. With gold what the investor gets is not financial protection but political protection, according to Bengt Saelensminde, a business economist and contributor to the Money Week.
According to him gold is a misunderstood asset and is often portrayed as a safety play and also wrongly considered a great diversifier of investor portfolio. Gold’s prices drifted in the eighties and nineties despite no visible movements in inflation………………………………………..Full Article: Source

Gold not always a good investment

Posted on 31 October 2011 by VRS  |  Email |Print

It’s easy to be tempted by gold, as it has soared in recent years, approaching $1,900 per ounce before dropping back near $1,600. (It was around $300 a decade ago.) Given the volatility of stocks and bonds, many investors assume that gold is a smarter investment.
If you want to buy gold, you have several options. You might invest in gold stocks or gold mutual funds, but these can be rather volatile, too. You might buy into gold accounts at bullion banks, which require large minimum investments, or gold certificates and pool accounts, which don’t. Gold coins or bars might be tempting, but you’ll need a safe place to store them………………………………………..Full Article: Source

Gold investment accounts revisited

Posted on 31 October 2011 by VRS  |  Email |Print

Want to invest in gold but deterred by the risks and hassle of keeping physical gold bars? Then gold investment accounts, which allow you to buy and sell gold and keep track of your transactions through a passbook, may be for you.
When Personal Money reviewed gold investment accounts in June last year, they were only available at three banks — Kuwait Finance House, Public Bank and Maybank………………………………………..Full Article: Source

China’s gold industry: Facts and figures

Posted on 31 October 2011 by VRS  |  Email |Print

China is the world’s largest gold producer, and likely to overtake India as the world’s biggest consumer in the next three to four years, on robust demand in jewellery and investment.
Here are some facts about China’s gold industry and market: OFFICIAL RESERVES: 1,054 tonnes, last reported in April 2009. The Shanghai Gold Exchange is the flagship gold market in China. The exchange also trades silver and platinum………………………………………..Full Article: Source

Gold expected to continue to advance this year and next - but beware H2 2013

Posted on 31 October 2011 by VRS  |  Email |Print

Gold prices have had a spectacular run up from their historic lows in the early years of the last decade. In April 2001 gold prices were hovering around 220 - 250 USD/ounce. With the slowing of central bank selling of their gold reserves and the forward delivery costs of gold changing dramatically, the pressures that had been weighing on gold for almost 10 years were lifted and a 10 year run up in prices started.
Some gold analysts are now claiming that the long secular bear market has ended and a bull market has returned. Others are wondering if gold prices have the wherewithal to rise further and if not, is the current stage of gold prices signaling a bubble?……………………………………….Full Article: Source

Gold steady as investors shift focus to G20

Posted on 31 October 2011 by VRS  |  Email |Print

Spot gold prices held steady on Monday, after staging its biggest weekly rise in two months on a plan to contain the euro zone’s debt crisis, while investors are awaiting a key Group of 20 meeting later this week for further trading cues.
Spot gold edged up 0.1 percent to $1,741.34 an ounce by 0033 GMT, headed for a monthly gain of more than 7 percent, after dropping nearly 11 percent in the previous month. ……………………………………….Full Article: Source

Barclays: Chinese silver imports decline 39pct y/y; exports tumble 44pct y/y

Posted on 31 October 2011 by VRS  |  Email |Print

The Chinese September trade data for precious metals were mixed with a continued recovery in PGM imports and a sustained decline in Silver appetite, said Barclays Capital in a reserch note.
Silver imports in China fell by 39% y/y and 16% m/m to 264.7 tonnes, the lowest level since February, while silver exports declined by 44% y/y to 83.5 tonnes, keeping China a net importer of the metal for two consecutive years on a monthly basis………………………………………..Full Article: Source

Platinum, palladium rallying strongly with gold and silver

Posted on 31 October 2011 by VRS  |  Email |Print

US Gold futures have climbed 6.8% this week to $1,747.20 an ounce levels on Friday while Silver futures have climbed 13% to $35.288 thanks to the renewed safe haven status and looming uncertainties over measures to solve the Eurozone debt crisis.
Precious metals as a whole have fared better this week that includes Platinum and palladium. Since they rely more heavily on industrial demand, macroeconomic concerns would not normally be good for the platinum group metals. Both platinum and Palladium showed consistent gains this week, however, with platinum chasing gold, reducing the gap between the two metals to less than $100, according to Bill Hionas of pan American Metals of Miami………………………………………..Full Article: Source

Platinum – Where from here?

Posted on 31 October 2011 by VRS  |  Email |Print

After the sell-off in gold and platinum in 2008, both precious metals rebounded strongly from the October 2008 low by about 100% with platinum leading the way until early August 2011 when gold overtook platinum price. Since then, platinum underperformed gold by about 17% to Oct. 26.
Standard Bank found out platinum may be out of favor as a net speculative position as the percentage of open interest in platinum has declined from about 38% in January to about 20% to October this year, mainly due to increase in short positions. ETF positions have also been flat this year compared to rising positions in the past few years. Platinum supply may also be rising in 2011 and 2012 just when global economies are slowing again………………………………………..Full Article: Source

Barclays: Chinese platinum imports double y/y to 251.8koz

Posted on 31 October 2011 by VRS  |  Email |Print

The Chinese September trade data for precious metals were mixed with a continued recovery in PGM imports mainly led by Platinum and Palladium imports, said Barclays Capital in a briefing.
Imports rose in September with platinum more than doubling y/y to 251.8koz, and were indeed the strongest since April (264koz) this year. Imports as on October 24 have now turned positive and are up 11% y/y which is closing in on the 2Moz mark………………………………………..Full Article: Source

Russian ETFs glide higher with oil, commodities

Posted on 31 October 2011 by VRS  |  Email |Print

Exchange traded funds tracking major commodities producer Russia have been among the top performers in the equity rally from the early-October low. Market Vectors Russia has rallied about 40% from its intraday low earlier this month.
The Russian stock market is following the country’s largest crude oil company higher, as Rosneft reported quarterly profit that rose 10%………………………………………..Full Article: Source

Is a common currency still viable for EA?

Posted on 31 October 2011 by VRS  |  Email |Print

To the East African Community, the European Union has been like an elder sibling: The perfect role model to its regional integration campaign and the embodiment of what it hopes to achieve.
Last year, the EAC Council of Ministers turned to the European Central Bank to conduct a study on the establishment of a Monetary Union which involved designing a draft protocol………………………………………..Full Article: Source

Deutsche Bank takes a lead role in commodities

Posted on 31 October 2011 by VRS  |  Email |Print

Barclays and some heavyweight US investment banks are being outmuscled in the commodities markets by razor-sharp traders from Deutsche Bank who have cemented a leading role among the top players in dealing raw materials.
The German bank reported record-beating performance in commodities trading in the third quarter as it snatched business from rivals despite some of the sharpest falls in prices since the 2008-09 financial crisis………………………………………..Full Article: Source

World’s grain prices depend on more than just wealth

Posted on 31 October 2011 by VRS  |  Email |Print

Indeed, the global population could double by the end of the century, stoking the old Malthusian cry that we will not be able to provide enough to go around. Conventional wisdom tells us that grain price rallies during the past few years have been caused by concerns over a rising population and rising wealth in the developing world.
As people become richer, they eat more meat, and livestock needs significant amounts of grain to fatten up………………………………………..Full Article: Source

Are commodities risk on?

Posted on 28 October 2011 by VRS  |  Email |Print

As U.S. stocks extended gains Thursday with the Dow Jones industrial average surging some 300 points, commodities rallied, too, with gold rising 1.5 percent.
“We’re seeing a disconnect from the old relationship of equities down, gold up,” said Rich Ilczyscyn, senior strategist at MF Global, adding funds are allocating money to the gold trade because the precious metal didn’t break the trendline of $1,600 an ounce. “If the $1600 level holds, its relatively low-risk on the big scheme of things to start getting long.”……………………………………….Full Article: Source

Commod funds upbeat on China, but investor zeal wanes

Posted on 28 October 2011 by VRS  |  Email |Print

Senior fund managers remain optimistic about the prospects for Chinese commodity demand and the outlook for crude oil, but investor fervour for commodities is now more tempered compared with the zeal of recent years.
Doubts about the strength of China’s growth prospects have led to weakened investor appetite for commodities over the last quarter amid heightened price volatility, but market watchers expect China to loosen its tight liquidity policy by year-end………………………………………..Full Article: Source

BlackRock sees Chinese commodities markets turning up

Posted on 28 October 2011 by VRS  |  Email |Print

BlackRock Inc, the world’s largest money manager, said its expects a swift recovery in demand for commodities in China once Beijing loosens its reins on borrowing.
“As China takes its foot off the brake in the near future, we should see a recovery in demand from the world’s largest consumer of commodities, as markets there are pretty tight,” BlackRock’s investment chief for natural resources Evy Hambro told Reuters………………………………………..Full Article: Source

Commodities rise to six-week high on European deal, U.S. growth

Posted on 28 October 2011 by VRS  |  Email |Print

Commodities advanced to a six-week high, led by metals and gasoline, after European leaders agreed to expand a rescue fund designed to stem the region’s sovereign debt crisis and as the U.S. economy grew in the third quarter at the fastest pace in a year.
The Standard & Poor’s GSCI Index rose 3 percent to 657.14, the highest level since Sept. 15, as 20 of the 24 commodities tracked by the gauge climbed. Copper, which was poised for a weekly record rally, led the gains. Lead, silver, zinc and crude oil rounded out the top five movers………………………………………..Full Article: Source

Commodities: Not that 1970s show

Posted on 28 October 2011 by VRS  |  Email |Print

Commodities seem to tell a compelling diversification story, academically, anecdotally and intuitively, as investors witness what seems to be permanently elevated prices for such resources such as gold and oil.
Such is the interest that recently Commodity Futures and Exchange Commission commissioner Bart Chilton called the attention to: “a new species of traders, if you will, the ‘Massive Passives.’ They are the likes of pension funds, index funds, hedge funds and mutual funds …who could care less what a pork belly is used for or what a soybean field looks like………………………………………..Full Article: Source

Material matters: Oil the global indicator, thermal coal outlook stable

Posted on 28 October 2011 by VRS  |  Email |Print

In the view of Citi, the oil market at present continues to be torn between current fundamental strength in the market and macroeconomic-pessimism, as well as between current supply and the potential for stronger production from Libya and elsewhere after the upcoming northern winter.
Given firm oil market fundamentals and some slight improvement in the macro environment in the US and China, West Texas Intermediate (WTI) has broken its downward trending channel. The market has moved into backwardation notes Citi, which means prompt prices are higher than deferred prices. There is potential for Brent crude prices to do the same………………………………………..Full Article: Source

Saudi opposition to Iran fades on $100 oil goal: Energy Markets

Posted on 28 October 2011 by VRS  |  Email |Print

Saudi Arabia’s biggest cut in oil output in three years is a sign OPEC’s largest producer is finding common cause with its long-time rival Iran.
The kingdom reduced supply by 400,000 barrels a day, or about 4 percent, last month, Oil Minister Ali al-Naimi said Oct. 8, reversing increases that it started in April, when declining Libyan exports sent North Sea Brent to a 2 1/2-year high. Crude prices have fallen 14 percent since then as the North African nation revived production and the International Energy Agency lowered its forecast for global demand………………………………………..Full Article: Source

OPEC to boost shipments by most since June, Oil Movements says

Posted on 28 October 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will bolster crude exports by the most since June as refiners in the U.S. and Europe prepare to meet winter demand for heating fuels, tanker-tracker Oil Movements said.
OPEC will ship 22.8 million barrels a day in the four weeks to Nov. 12, a 2 percent increase from the 22.36 million exported in the month to Oct. 15, the Halifax, England-based company said today in a report. The figures exclude Ecuador and Angola………………………………………..Full Article: Source

Gold offers excellent protection as alternative asset

Posted on 28 October 2011 by VRS  |  Email |Print

In the current economic environment, low real yields around the globe incentivise investors to look for additional sources of return, while increased uncertainty and market volatility have increased the importance of risk management, according to a latest update from the World Gold Council (WGC).
A distinct allocation to gold within a portfolio including alternative assets such as private equity, hedge funds, real estate and commodities, can preserve capital and reduce risk without diminishing long-term returns, concludes this latest research from the World Gold Council………………………………………..Full Article: Source

Allocate 3 to 7pct to gold in alternative assets portfolio: WGC

Posted on 28 October 2011 by VRS  |  Email |Print

Capital can be preserved in the current uncertain environment when investors make a distinct allocation to Gold with a portfolio of alternative assets such as private equities, hedge funds, real estate and commodities. This strategy can preserve capital and reduce risk without diminishing long-term returns, according to World Gold Council.
Low real yields around the globe incentivise investors to look for additional sources of return, while increased uncertainty and market volatility have increased the importance of risk management, World Gold Council said in its latest research reprot…………………………………………Full Article: Source

Gold prices to shoot up from $1723.8 to $1,900/oz in 2012

Posted on 28 October 2011 by VRS  |  Email |Print

Commerzbank sees upside potential in Gold and reiterates its forecast of $1,800 an ounce by the end of the year and a further increase to $1,900 next year.
The bank says the underlying factors have not changed in recent weeks. “Real interest rates are low or even negative. The euro-area government debt crisis has not been resolved,” Commerzbank says………………………………………..Full Article: Source

Your gold investment portfolio - gold shares or gold funds?

Posted on 28 October 2011 by VRS  |  Email |Print

In a recent series of articles we have looked at where in the world one invests in a precious metal share and the factors that must be considered. Also, should one invest in a gold fund, holding a spread of gold shares, or in gold shares direct? In this article we look at the two options.
We remind our readers of the prime objective of investing, to “Maximize Total Returns”. This gives us focus when answering this question. Before addressing the issue we are going to ask another question. ……………………………………….Full Article: Source

The resurrection of gold - to resume long upward march

Posted on 28 October 2011 by VRS  |  Email |Print

Gold is coming to life again - and looks poised to move higher in the weeks and months ahead. Having fallen precipitously from its all-time high just over $1,923 an ounce in early September to a recent low near $1,540 in early October, a peak-to-trough correction of some 20 percent, gold has been, of late, range-bound, trading between $1,640 and $1,680.
Having moved to the top of this range and even slightly higher, I sense gold is just now resuming its long march upward, a march that could, before long, carry the price to the $1,850 region and perhaps even to its historic peak of $1,923 by the end of the year………………………………………..Full Article: Source

Is silver bullion a better investment than gold?

Posted on 28 October 2011 by VRS  |  Email |Print

Silver is outperforming іtѕ pricey counterpart this year and lаѕt year аs well. In 2009, silver prices rose 48 percent аnd have аlreаdy risen mоrе thаn 38 percent thіs year, whіlе gold prices аrе uр around 30 percent.
The gold-to-silver ratio, whісh tracks hоw manу ounces оf silver аrе needed tо buy onе ounce of gold, hаѕ gone frоm 66:1 іn January 2010 to about 56:1 in October 2010, аnd thе spread іѕ expected to kеер narrowing………………………………………..Full Article: Source

Platinum undervalued, but could reach $2000 by end 2012

Posted on 28 October 2011 by VRS  |  Email |Print

After the sell-off in Gold and Platinum in 2008, both precious metals rebounded strongly from the October 2008 low by about 100% with platinum leading the way until early August 2011 when gold overtook platinum price.
Since then, platinum underperformed gold by about 17% to 26 October. Standard Bank found out platinum may be out of flavour as the net speculative position as a percentage of open interest in platinum has declined from about 38% in January to about 20% to October this year, mainly due to increase in short positions……………………………………….Full Article: Source

Copper traders see end to record rally as China demand slows: Commodities

Posted on 28 October 2011 by VRS  |  Email |Print

Copper traders and analysts are forecasting an end to the biggest weekly rally since at least 1986 on concern demand will slow in China while Europe’s lingering financial crisis limits growth.
Eleven of 23 people surveyed by Bloomberg say copper will drop next week, eight predicted a gain, and four said prices will be little changed. The last time respondents were mostly bearish, on Sept. 23, the metal slumped 4.6 percent in the following week………………………………………..Full Article: Source

Silver ETFs gain 5pct on EU deal, economy

Posted on 28 October 2011 by VRS  |  Email |Print

Silver exchange traded funds rose 5% to outperform gold prices Thursday after the European Union cobbled together a deal designed to buy more time to sort out its debt logjam.
Silver ETFs have also received a boost lately from better economic data, as the metal has industrial applications………………………………………..Full Article: Source

Eleven myths on global food and hunger

Posted on 28 October 2011 by VRS  |  Email |Print

There isn’t enough food to feed the world, most of the world’s hungry live in Africa, and it’s mostly a question of droughts and other natural disasters. All of these statements are wrong. But they reflect a common set of misconceptions on hunger. Here are 11 of the most common myths - with the reality they mask.
Myth 1: There isn’t enough food to feed the world. Reality: There is enough food in the world today for everyone to have the nourishment necessary for a healthy and productive life………………………………………..Full Article: Source

Australia one of world’s big carbon emission contributors

Posted on 28 October 2011 by VRS  |  Email |Print

Australia has been found to be a major contributor to the global environment’s rapid deterioration. In a 134-page report entitled “CO2 Emissions From Fuel Combustion,” the International Energy Agency (IEA) said Australia’s coal-related emissions rose to 220.9 million metric tons in 2009 from 73.2 million metric tons in 1970. From 1990 to 2009, the country’s burning coal emissions jumped 61 per cent.
Australia supplies coal to more than 20 countries. In 2009-10, according to data from the Australian Coal Association, Australia’s biggest markets were Japan, China, South Korea, India, Taiwan and Europe………………………………………..Full Article: Source

The next steps on climate change: Getting angry and going right

Posted on 28 October 2011 by VRS  |  Email |Print

Given the broad scientific consensus that climate change is happening, based on data showing that climate change is happening, climate scepticism must be predicated on a belief that the data is flawed. The paper has a look at climate data to date and the methodological limitations that have given rise to what Richard Muller, an astrophysicist, characterise as “legitimate scepticism”.
As the article explains, Dr Muller, being somewhat sceptical himself in the wake of the 2009 “Climategate” scandal, convened the Berkeley Earth Surface Temperature group to examine the data and existing analyses using a methodology designed to incorporate some of the concerns of the legitimate sceptics……………………………………….Full Article: Source

Gold has bubble tendencies - Goldman Sachs

Posted on 27 October 2011 by VRS  |  Email |Print

Gold, unlike other commodity markets, has bubble-like tendencies, the head of commodities research at Goldman Sachs told a conference in London Wednesday. Jeff Currie said the definition of a bubble is excessive price inflation driven by excess demand, a description that often defines gold.
“Gold is the one commodity that does have bubble tendencies,” Currie said. “Gold is physically held–there’s 73 million troy ounces stored against the physical gold exchange-traded funds, a success because it’s easy storage.”……………………………………….Full Article: Source

Curried gold: Is yellow metal a bubble?

Posted on 27 October 2011 by VRS  |  Email |Print

Unlike stocks, bonds, or soybeans, gold is an asset you can at least wear. But that’s its big problem according to Jeff Currie, Goldman Sachs’ commodities guru who is otherwise bullish on things like oil and copper.
Physical exchange traded funds hold 73 million troy ounces of gold, Currie said, making them collectively the third largest hoarders behind the euro zone and U.S. central banks………………………………………..Full Article: Source

Low rates will back gold to at least ‘13: Goldman

Posted on 27 October 2011 by VRS  |  Email |Print

Gold prices will be supported at higher levels until real interest rates start to rise, which is 2013 at the earliest, the head of commodities research at Goldman Sachs Group Inc. said Wednesday.
“No-one in this room can accurately predict when real interest rates will start to rise…we see the earliest time as being 2013,” Jeff Currie told a conference in London. “There’s still modest upside for gold, but we’re not jumping up and down pounding the table bulls as we have been in the past.”……………………………………….Full Article: Source

Central Banks buying gold: WGC

Posted on 27 October 2011 by VRS  |  Email |Print

Central banks stopped selling Gold in the past few years and began buying the precious metal, and that trend is likely to continue for some time, according to an official at the World Gold Council.
Natalie Dempster, director of government affairs for the WGC in London, said many central banks, those in Asia and other emerging markets in particular, have been rebalancing their reserve portfolios and will continue to do so. Dempster spoke at the Argyle Executive Forum’s 2011 Investment Leadership Forum here, sponsored by the WGC………………………………………..Full Article: Source

Is gold back? - More upside seen as it probes $1720

Posted on 27 October 2011 by VRS  |  Email |Print

With Europe teetering on a knife edge gold has once again resumed its role as the custodian of safe - and perhaps sane wealth. Gold prices firmed throughout late New York trading yesterday where it breached the $1700 level. The firm tone prevailed during Asian trading hours this morning, when gold traded to a high of around $1720 before easing slightly.
Behind the move higher has been a surge in purchases of gold ETFs as well as ongoing strong demand for physical bars. The ETFs have seen 16.5 tonnes of new gold buying over the last 2 days which is driving the price upwards………………………………………..Full Article: Source

Are gold and silver investing safe-Havens again?

Posted on 27 October 2011 by VRS  |  Email |Print

Over the past month, gold and silver have remained in a trading range. Gold had difficulties breaking through $1,700, while silver lost momentum as it rose near $33. However, recent developments such as Greece deadlocks and US debt worries have once again returned gold and silver to their rightful safe-haven status.
Gold and silver never really lost their safe-haven status per se, but traders were not treating the metals as such. Gold and silver were caught in the tide with equities………………………………………..Full Article: Source

Pig iron’s pain proves boon for nickel miners: Commodities

Posted on 27 October 2011 by VRS  |  Email |Print

Nickel, the second-worst performing metal on the London Metals Exchange in the past six months, is set to rebound as Chinese steelmakers lead a recovery in demand.
Nickel’s 20 percent slump this year has made it cheaper than pig iron, a substitute made from low-grade ore from Indonesia and the Philippines. Nickel, used to strengthen stainless steel in everything from kitchen sinks to aircraft- fuel tanks, may rise 16 percent next year as mills boost purchases, Societe Generale SA said………………………………………..Full Article: Source

Agriculture puts surge after ETF rises most since 2009: Options

Posted on 27 October 2011 by VRS  |  Email |Print

Options traders are snapping up protection against declines in agricultural stocks at the fastest rate in four years, locking in gains after a security that tracks the industry rallied the most since 2009.
Puts to sell the Market Vectors Agribusiness exchange- traded fund outnumber calls 2.1-to-1, the widest gap in almost a year, according to data compiled by Bloomberg. The ratio has jumped from 0.74 on Oct. 14 for the biggest increase since January 2008, the data show………………………………………..Full Article: Source

Surveying the platinum ETFs

Posted on 27 October 2011 by VRS  |  Email |Print

Although gold and silver attract most of the headlines, investors can also choose from among exchange traded funds tracking other precious metals, including platinum.
Platinum can perform differently from gold because it is also an industrial metal used for catalytic converters and automobiles, as well as in jewelry and other luxury items. This opens up its ability to prosper once consumers begin to spend again………………………………………..Full Article: Source

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