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Commodities Briefing - Archive | November, 2011

Commodity trends: Raw material stocks are outperforming

Posted on 30 November 2011 by VRS  |  Email |Print

Commodities are beating equities for a fifth consecutive year, reports Bloomberg, a sign that developing countries are sustaining the growth that drove up prices nearly fourfold in a decade.
While most indexes have been doing poorly due to concerns of a global economic slowdown, the Standard & Poor’s GSCI Index of 24 commodities climbed 2% this year. This is considerably better than the last time there was a recession and raw material prices fell 43%……………………………………….Full Article: Source

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Speculators beat SocGen warning on commodities

Posted on 30 November 2011 by VRS  |  Email |Print

Societe Generale warned investors against betting on commodities in 2012 even as data showed speculators’ sentiment already faded, with their positioning on many crops among the most bearish in recent history.
SocGen asset allocation specialists recommended investors take an underweight position on commodities, including agricultural ones, heading into 2012, warning of the threat to demand posted by economic slowdowns………………………………………..Full Article: Source

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Commodities stage rally despite slower growth

Posted on 30 November 2011 by VRS  |  Email |Print

Commodities prices staged a surprising rally this week as investors opted to see the silver lining in the gathering economic clouds.
Strong retail figures in the U.S. over Thanksgiving weekend and fresh optimism that politicians would find a way to stabilize the situation in the euro-zone helped underpin the rally as investors looked to consolidate their positions following a sharp sell off last week………………………………………..Full Article: Source

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Commods traders Gartman, Fisher debut risk index

Posted on 30 November 2011 by VRS  |  Email |Print

Veteran traders Dennis Gartman and Mark Fisher launched the first ever cross-asset “risk” index on Tuesday, offering traders an easy gauge for tracking the increasingly correlated ebbs and flows of global market sentiment.
The index, calculated by Dow Jones Indexes, involves long weightings in typically “riskier” assets like commodities and stocks that total 150 percent, offset by 50 percent short positions in safety plays like Treasuries and the Yen………………………………………..Full Article: Source

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Jim Rogers says he’s `long’ commodities, currencies (Video)

Posted on 30 November 2011 by VRS  |  Email |Print

Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy. Rogers also discusses Europe’s sovereign debt crisis, Federal Reserve monetary policy and the U.S. economy. He speaks from Singapore with Susan Li on Bloomberg Television’s “First Up.”.………………………………………Full Article: Source

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Gold shares cheapest since 2002 are ’coiled spring’ for rally: Commodities

Posted on 30 November 2011 by VRS  |  Email |Print

Gold mining stocks are trading at their cheapest level in at least nine years even as the industry’s profits are estimated to almost double this year and bullion trades close to its historic high.
The benchmark NYSE Arca Gold BUGS Index (HUI) that includes Barrick Gold Corp. (ABX), Newmont Mining Corp. (NEM) and AngloGold Ashanti Ltd. ended last week at 17 times earnings, the lowest since at least November 2002 and below a five-year average of 37 times………………………………………..Full Article: Source

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The people vs gold - a global battleground

Posted on 30 November 2011 by VRS  |  Email |Print

More and more it seems that local populations, perhaps stirred-up by often misleading information from environmental activists, are protesting - sometimes violently - against the establishment of significant gold mining operations in their areas.
For example, in Peru, there is an ongoing protest by the citizens of Cajamarca against the development of the Newmont/Buenaventura $3.4 billion Minas Conga gold mine while in Europe’s Balkan region the citizens of the town of Krumovgrad in Bulgaria are currently conducting a campaign against the development of an open pit gold mine by Dundee Precious Metals………………………………………..Full Article: Source

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Gold may hit $2025 in 2012 and $2280 in 2013

Posted on 30 November 2011 by VRS  |  Email |Print

The growing demand for Gold bars and coins reflects safe haven demand, while exchange-traded fund buying in November has recorded inflows, said Anne-Laure Tremblay, precious metals strategist at BNP Paribas.
According to Tremblay, the sell-off in gold holdings may have occurred in the over-the-counter market, which is dominated by institutional participants. The decline in exposure to gold may be linked to large-scale, cross-asset liquidation. Notably, gold holdings may have been sold to meet losses elsewhere and added that selling in indexes may have also resulted in price falls………………………………………..Full Article: Source

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Will central banks’ hidden gold demand boost gold prices?

Posted on 30 November 2011 by VRS  |  Email |Print

The release of last week’s IMF statistics for October revealed a continuation of central bank appetite for Gold with net purchases of just over 20 tonnes. A number of existing buyers, such as Russia, added to holdings (a sizeable 19.5 tonnes), said Barclays Capital in a research note.
According to Barclays, data to October shows Russia has increased reserves by 82 tonnes so far in 2011, compared to 139.6 tonnes last year. Russian central bank First Deputy Chairman Alexei Ulyukayev has said, “We have been implementing a programme of raising the share of gold in the reserves for several years… we are acquiring huge volumes… we are not planning to step away from this path”………………………………………..Full Article: Source

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Do your research before buying silver or gold bullion

Posted on 30 November 2011 by VRS  |  Email |Print

When buying gold bullion, yоu nееd to search оr pick a dealer thаt іs well established. There аrе sоmе gold dealers оr mints thаt havе excellent feedback records goіng wаy back. So trу to pick one thаt has a good reputation.
When you buy gold bars, bear in mind what iѕ thе purpose of buying it. Some people buy thеm for thеir collection and ѕomе buy them, hold it fоr а сertaіn time thеn whеn gold prices increases, sell it. This sеcоnd group аre thе real investors………………………………………..Full Article: Source

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World aluminium inventories drop down in October 2011

Posted on 30 November 2011 by VRS  |  Email |Print

World reported Aluminium inventories declined to 2.43 million tons in October 2011. International Aluminium Institute data showed that the total reported inventories were down by 4% from 2.54 million tons in the month of September 2011.
Inventories drawdown was noted in North America, Africa and Europe whereas South America, Asia and Oceania noted a rise in the inventory levels………………………………………..Full Article: Source

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Oil roars back to $100, but does anybody care?

Posted on 30 November 2011 by VRS  |  Email |Print

Oil price volatility is back, and so are calls for investigations into what’s driving it. Taxpayers have paid for countless similar probes for decades, without a single conclusive result.
Before this decade, it was unheard of for crude oil prices to jump a few dollars a day unless the U.S. was under a trade embargo or about to go to war. And even then, the outright price of oil was hardly prohibitive (recall that for the entire month leading up to the Iraq war in March 2003, oil did not cross $38 a barrel, let alone $100)………………………………………..Full Article: Source

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Chances Increase for OPEC Output Cut

Posted on 30 November 2011 by VRS  |  Email |Print

Senior members of the Organization of Petroleum Exporting Countries informed that the oil cartel will likely decide to cut oil output at its December 14 meeting in Vienna.
Reuters reported last week that industry observers said a cut in output was unlikely to find support among the Persian Gulf Arab OPEC members while oil prices remain well above $100 a barrel, but Iraq joined Iran, Venezuela and many others who have all called for a decrease in production quotas. Iraq’s Oil Minister Abdul-Kareem Luaibi said the organization should cut. ……………………………………….Full Article: Source

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Is OPEC planning to curb oil production?

Posted on 30 November 2011 by VRS  |  Email |Print

OPEC has been divided on the issue of cutting down oil production. But with members increasingly voicing that output be curbed, the possibility of a cutdown in production cannot be ruled out.
Venezuela repeated its call for output cuts with oil minister Rafael Ramirez saying “There were a group of OPEC countries who unilaterally raised their production, so we are not going to talk about any change in production until everyone returns to the levels of production last agreed”……………………………………….Full Article: Source

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Opec supply hits three-year high on Libya return

Posted on 30 November 2011 by VRS  |  Email |Print

Opec oil output has risen in November to a three-year high due to increased supplies from Angola and a further recovery in Libya’s production, a Reuters survey found on Tuesday.
Supply from all 12 members of the Organisation of the Petroleum Exporting Countries is expected to average 30.27 million barrels per day (bpd) this month, up from a revised 29.81 million bpd in October, the survey of sources at oil companies, Opec officials and analysts found………………………………………..Full Article: Source

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IEA urges international efforts to address global energy challenges

Posted on 30 November 2011 by VRS  |  Email |Print

There is an urgent need for governments to define objectives and implement necessary policies to address global energy challenges, said International Energy Agency (IEA) chief economist Fatih Birol here Monday.
The recently-released World Energy Outlook 2011 showed that in the climate change mitigation scenarios, four-fifths of the total energy-related carbon dioxide emissions permissible by 2035 are already “locked-in” by our existing power plants, factories, and other infrastructures………………………………………..Full Article: Source

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IEA: Nuclear energy will continue to play key role in global power production

Posted on 30 November 2011 by VRS  |  Email |Print

Nuclear energy will continue to play a key role in global electricity production despite the Fukushima Daiichi Nuclear Power Plant accident, shows a recent report by the International Energy Agency (IEA).
“Nuclear’s share of electricity generation will remain between 10.3% and 19.8% - by 2035,” said Dr. Fatih Birol, IEA Chief Economist during a seminar hosted jointly by the International Atomic Energy Agency (IAEA) and IEA last week. The seminar included presentations on the IEA’s recently released annual World Energy Outlook and the IAEA’s nuclear projections published as Reference Data Series 1………………………………………..Full Article: Source

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India: Commodity bourses, market bodies oppose uniform stamp duty

Posted on 30 November 2011 by VRS  |  Email |Print

In a strong opposition to a proposed uniform stamp duty on all derivative trades, a host of commodity exchanges and market associations have asked the government to withdraw the proposal.
The country’s five leading commexes, including MCX and NCDEX, as also over two dozen commodity market associations, have written to the Finance Ministry against the proposed move to impose a uniform duty of 0.003% on all derivative trades, including in commodities, equity and electricity………………………………………..Full Article: Source

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Currency hedge funds’ miserable year extends in October

Posted on 30 November 2011 by VRS  |  Email |Print

Hedge funds are continuing to get hammered on currency trading as a tumultuous 2011 winds down, according to a widely followed performance index.
Currency-focused hedge funds dropped 1.33% in October, according to Parker Global Strategies, which invests in such funds, bringing losses over the last 12 months to over 3%. The funds lagged the nearly 6% gain in the Standard & Poor’s 500-stock index over the same period………………………………………..Full Article: Source

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Currency wars: Euro descending, but what of gold?

Posted on 30 November 2011 by VRS  |  Email |Print

Jim Rickards’ new book, ‘Currency Wars’, has been getting plenty of attention recently as its launch has seen it rocket up the best sellers lists, and not just in the financial and economic world. Jim has also had an interesting spat with Nouriel Roubini recently on Twitter, which still seems to be rumbling on.
The title of Jim’s book seems to be rather prescient at this time as we look across the Eurozone and watch the markets generally. Jim advises that we are in the middle of the third great currency war, we find his arguments compelling, and the release of his book is perhaps timely………………………………………..Full Article: Source

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Explaining the euro currency crisis

Posted on 30 November 2011 by VRS  |  Email |Print

A fundamental understanding of the euro debt crisis can be appreciated better if its historical background is told. Then, the euro is examined as an economic experiment in institution-building.
“Euro currency is a stage of the European economic integration process.” As the European economic market progressed towards greater integration, the desirability of a single, stable currency among the European countries became a much desired objective………………………………………..Full Article: Source

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Economists assess carbon trading models

Posted on 30 November 2011 by VRS  |  Email |Print

Farmers who commit to soil carbon sequestration could be liable for payments if they fail to get results, under one carbon trading model being trialled in NSW. Economists are working with farmers to determine the scope and practicalities of two soil carbon trading models.
NSW Department of Primary Industries economist Jason Crean says it’s the first government-funded soil carbon sequestration project in Australia………………………………………..Full Article: Source

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Commodity prices will remain high and volatile for the next 20 years: McKinsey

Posted on 29 November 2011 by VRS  |  Email |Print

Just looking at a new article from global consultants McKinsey about the state of world commodities and the outlook looks bleak, to say the least. “Our research shows that during the past eight years alone, (commodity prices) have undone the decline of the previous century, rising to levels not seen since the early 1900s,” according to McKinsey.
“In addition, volatility is now greater than at any time since the oil-shocked 1970s because commodity prices increasingly move in lockstep. Our analysis suggests that they will remain high and volatile for at least the next 20 years if current trends hold—barring a major macroeconomic shock—as global resource markets oscillate in response to surging global demand and inelastic supplies.”……………………………………….Full Article: Source

Speculators cut holdings to lowest since July 2009: Commodities

Posted on 29 November 2011 by VRS  |  Email |Print

Nelson LouieSpeculators decreased wagers on rising commodity prices to the lowest since July 2009 amid concern that Europe’s inability to contain its debt crisis will crimp demand for raw materials as global growth slows.
Money managers cut combined net-long positions across 18 U.S. futures and options by 25 percent to 562,508 contracts in the week ended Nov. 22, Commodity Futures Trading Commission data show. That’s the biggest decline in eight weeks and the lowest since July 14, 2009. Corn wagers tumbled 25 percent, the most since June 2010, and bets on lower copper prices doubled………………………………………..Full Article: Source

Companies freeze commodity hedging as Europe teeters

Posted on 29 November 2011 by VRS  |  Email |Print

It’s been a tough few months for companies that use derivatives to hedge their commodity costs. A collapse in industrial metal prices handed major paper losses to firms like Ford. The massive dislocation in crude oil benchmarks hit United Continental hard.
And now, with deepening despair over the European economy and ever-present fears of a US slow-down, many companies that would normally be locking in their costs have retreated to the sidelines this month, market sources say……………………………………….Full Article: Source

Commodities rise most in four weeks as Europe moves on bailout

Posted on 29 November 2011 by VRS  |  Email |Print

Commodities climbed the most in four weeks as European policy makers took steps to stem the region’s debt crisis, and U.S. retail sales surged.
The Standard & Poor’s GSCI index of 24 raw materials rose 1.4 percent to settle at 644.84 at 3:47 p.m. New York time, the biggest gain since Oct. 27. Nineteen commodities climbed, led by metals and energy. The gauge dropped 4.5 percent in the previous two weeks as rising borrowing costs deepened concern that Europe would fail to contain its fiscal turmoil……………………………………….Full Article: Source

Fallacy of gold and primacy of silver

Posted on 29 November 2011 by VRS  |  Email |Print

The decade long flight of wealth from fiat currencies and naked stocks, to gold, as a safe haven to guard against economic chaos and worldwide depression, is a curious aberration of market speculation.
Considering the vast amount of information available to those wealthy enough to be able to own gold, and the history of Gold and Silver as money to be used for purchasing consumables; one wonders why companies, banks, and persons of wealth, along with their financial advisors, are so poorly informed about the impracticality of owning gold as a potential emergency money for individuals and businesses; especially considering the current very distorted relative value of gold to silver………………………………………..Full Article: Source

Commodities: A golden outlook

Posted on 29 November 2011 by VRS  |  Email |Print

Ten-year bull run is expected to continue. $2,000/ounce could be the price of gold by the end of 2011. Precious metal investment company Arteus Capital expects gold prices to rise after a correction of almost $300 in September. According to Arteus, the price of gold could reach $2,000 an ounce by the end of this year.
Prices started 2011 just above $1,400 an ounce and exceeded the $1,900 mark for the first time ever in August. ……………………………………….Full Article: Source

Gold price going to $4,500: Here’s why - Alf Field

Posted on 29 November 2011 by VRS  |  Email |Print

The Elliott Wave Theory (EW) gives superb results in predicting the gold price. While it is a complicated system with many difficult rules which I explain in simple terms, I have determined that once this present correction in gold has been completed it should undergo the largest and strongest wave in the entire gold bull market.
The target for this wave should be around $4,500 with only two 13% corrections on the way. So said Alf Field in his 6,500 word speech that he came out of retirement to give at the recent Sydney Gold Symposium……………………………………….Full Article: Source

All that glistens is nowadays Gold

Posted on 29 November 2011 by VRS  |  Email |Print

As the financial tidal wave threatens to swamp Europe, investors are becoming less risk averse looking for a safe haven in precious commodities.
­Gold has been growing steady for almost 5 years. Experts believe the continuing threat to global economies could benefit gold prices. Edel Tully from UBS says “Gold reflects emotions, the fear about the current economic climate and fear about what lies ahead,” Tully adds that “people should be more proactive and be prepared to take profits” as a volatile era for gold will continue with “the average price for the metal reaching 2075 dollars per ounce in the next year.”……………………………………….Full Article: Source

Are the days of gold as collateral getting closer?

Posted on 29 November 2011 by VRS  |  Email |Print

Gold Forecaster has for years now pointed to gold’s coming monetary role as collateral. We have never believed that a return to the Gold Standard was feasible in the form it was used in last century. We have never believed it would return as day-to-day money. We have always seen its return tied into its use on a global basis, most likely between governments, as we saw under the Bretton Woods system after the Second World War.
We have always pointed to a time when it would return to a key monetary position in the global financial system………………………………………..Full Article: Source

India’s silver imports set to slide

Posted on 29 November 2011 by VRS  |  Email |Print

Silver is not generating any interest from buyers in India at the moment, despite the small fall in price. In Mumbai, it fell 3.88% on Saturday to settle at $1,063.39 a kilo as compared to $1,106.34 two weeks ago. On Monday, silver was down further in early trade, quoting at $1,010.99.
Traders insist that investors and consumers will only reappear in the market if the price falls below a certain benchmark price in India………………………………………..Full Article: Source

Fund managers double net short in copper

Posted on 29 November 2011 by VRS  |  Email |Print

Fund managers continued their bearish streak in Comex copper futures and options for a tenth week, data released Monday by the Commodity Futures Trading Commission show.
Speculative traders such as hedge funds and managed money funds cut 1,639 long positions, or bets on higher prices, and added 2,601 short positions, or bets on lower prices, in the week ended Nov. 22………………………………………..Full Article: Source

European metal markets rally as wider market mood lifts

Posted on 29 November 2011 by VRS  |  Email |Print

The metal markets are rebounding in a commodity-wide rally Monday as risk sentiment picks up and the euro strengthens. Both spot gold and the London Metal Exchange’s flagship three-month copper contract have posted one-week highs, with gold rallying 2.3% to $1,720.77 a troy ounce and copper peaking at $7,480 a metric ton, up 3.5% on Friday’s close.
The metals rose as equity markets and the euro began the week on a strong footing, helped by softening Italian bond yields, reports of a new credit facility by the International Monetary Fund and a strong start to the U.S. retail sales season, known as Black Friday………………………………………..Full Article: Source

IEA head concerned about tight oil market, but encouraged by Libya

Posted on 29 November 2011 by VRS  |  Email |Print

International Energy Agency Director Maria van der Hoeven said Monday that tight oil supplies continue to threaten the global economy, even as Libyan production returns quicker than some expected.
Van der Hoeven, during an interview in Washington, said the rebuilding of Libya’s petroleum sector “looks as if it’s going quite fast. This of course is very interesting and reassuring.”……………………………………….Full Article: Source

OPEC won’t make ‘significant’ output change, Ecuador says

Posted on 29 November 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries may keep oil production quotas near current levels when they meet next month, Ecuador’s Non-Renewable Natural Resources Minister Wilson Pastor said.
“We don’t see a significant change in production,” Pastor, who stepped down last year as OPEC’s president, said in an interview in Santiago. “The price of oil is at the level that OPEC has defended between $80 and $100. This is beneficial for the global economy.”……………………………………….Full Article: Source

OPEC oil price keeps dropping amid European debt crisis

Posted on 29 November 2011 by VRS  |  Email |Print

The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) dropped to 108.05 U.S. dollars a barrel last week, the Vienna-based cartel said Monday.
The downgrade of Portugal’s credit rating, which has increased the concerns about the European debt crisis, became the major factor suppressing the international oil prices last week………………………………………..Full Article: Source

Commodity index up 252pct in last 10 years, hence… deflation?

Posted on 29 November 2011 by VRS  |  Email |Print

A broad index of commodities, as tracked by IndexMundi.com, is up 252% in the last 10 years.
So when Christina Romer says, “the specter of inflation is quickly fading”, as she did on Bloomberg TV recently, it makes one wonder. What is the time period these people are looking at? A week? A month? Only ones when commodities are down?……………………………………….Full Article: Source

Kotak Mahindra sells 11pct in ACE commodity exchange

Posted on 29 November 2011 by VRS  |  Email |Print

Kotak Mahindra Bank, the promoter of Ace Derivatives & Commodity Exchange Ltd., has sold an 11% stake in the exchange to private investors for about 200 million rupees, the Economic Times newspaper reported Monday.
The bank has now brought down its stake in the commodity exchange to 40% from 51% to meet regulatory guidelines, the report said, citing Narayan S.A., president commercial banking and capital markets of the bank. Narayan is also the chairman of the commodity exchange. ……………………………………….Full Article: Source

Will MCX-SX undertaking be enough to soften Sebi’s stance?

Posted on 29 November 2011 by VRS  |  Email |Print

The Bombay high court has reserved its judgement in the MCX Stock Exchange (MCX-SX) case yet again. The exchange had filed a writ petition about a year ago, challenging market regulator Securities and Exchange Board of India’s (Sebi) decision to reject its application to launch new segments such as equity and interest rate derivatives.
After extensive hearings on the matter, the ball is now in Sebi’s court………………………………………..Full Article: Source

What will wake politicians to threat of climate change?

Posted on 29 November 2011 by VRS  |  Email |Print

As ordinary people try to cope with inflation and unemployment, and businesses struggle with higher taxes and falling demand — since consumers are scared to spend — few politicians are looking at life beyond the economic crises.
Anyone concerned about the kind of world their children will face, however, should be worried about the findings of the World Energy Outlook 2011 published recently by the International Energy Agency (IEA). To put it bluntly, the world is heading for disaster of irreparable climate change………………………………………..Full Article: Source

Rio Tinto sees commodities customers turning cautious

Posted on 28 November 2011 by VRS  |  Email |Print

Tom AlbaneseGlobal miner Rio Tinto warned on Monday that further cracks may be emerging in global commodities markets as the economies of Europe and the United States waver, with its customers increasingly cautious on the outlook.

Still, the world’s second largest miner of iron ore and a large producer of copper, coal, aluminium and other industrial staples, said it was able to sell all the commodities it could produce……………………………………….Full Article: Source

Raw materials topping equities with growth intact: Commodities

Posted on 28 November 2011 by VRS  |  Email |Print

James PaulsenCommodities are beating equities for a fifth consecutive year, a sign that demand from developing economies is sustaining global growth that drove prices up almost fourfold in a decade.

While the MSCI All-Country World Index of equities dropped 15 percent this year and yields on Treasuries fell to near- record lows, the Standard & Poor’s GSCI Index of 24 commodities rose 0.7 percent. Goldman Sachs Group Inc. expects commodities to return about 15 percent in the next 12 months. The last time there was a recession, raw-material prices slumped 43 percent……………………………………….Full Article: Source

Commodities: Now is a good time to load up on CARBS

Posted on 28 November 2011 by VRS  |  Email |Print

The CARBS are the major commodity producing countries – Canada, Australia, Russia, Brazil and South Africa – according to a report published last week by Citigroup’s equity strategists. They argue that “CARBS make you strong” and these countries should be considered a distinct asset class in their own right.

Between them the CARBS control commodity assets worth almost $60 trillion (£38.7 trillion) and 29pc of the world’s landmass. They produce between a quarter and a half of most major commodities……………………………………….Full Article: Source

Commodities boom in danger of fizzling out

Posted on 28 November 2011 by VRS  |  Email |Print

A sharp slowdown in commodities revenues generated by leading investment banks between July and September suggests the boom is beginning to subside after a promising first half of the year, according to figures from data provider Coalition.

In the first nine months of 2011, total commodities revenues for the top 10 investment banks, according to Coalition, rose 16% to $5.49bn compared with the same period a year earlier……………………………………….Full Article: Source

Record gold hoard spurs bullish bets from traders: Commodities

Posted on 28 November 2011 by VRS  |  Email |Print

Gold traders are more bullish after investors accumulated the biggest-ever hoard of the metal, with Europe’s deepening debt crisis driving them to protect their wealth with this year’s second-best performing commodity.
Eighteen of 26 surveyed by Bloomberg expect bullion to rise next week. Holdings in exchange-traded products backed by gold reached a record 2,350.8 metric tons on Nov. 23, now valued at $127.6 billion, according to data compiled by Bloomberg. Hedge funds and other speculators increased their net-long position, or bets on higher prices, for four weeks, the longest stretch since March, Commodity Futures Trading Commission data show………………………………………Full Article: Source

Why a gold standard is still a bad idea

Posted on 28 November 2011 by VRS  |  Email |Print

I have always stood firmly against a gold standard, but I remain a long-term commodity bull (yes that includes gold). I believe that while individuals should hold some precious metals or precious metal linked investments in their portfolios as a hedge against asset inflation, a gold standard introduces too many unnecessary rigidities in the system which creates economic volatility.
I came out against a gold standard back in December 2008, and I stand by my previous comments. There are numerous problems with a gold standard, which is another form of fixed exchange rate regime………………………………………Full Article: Source

Gold is winner

Posted on 28 November 2011 by VRS  |  Email |Print

Gold traders are more bullish after investors accumulated the biggest-ever hoard of the precious metal, as a hedge to Europe’s deepening debt crisis. The turmoil in Europe drove investors to protect their wealth with this year’s second-best performing commodity, which is up 19 percent, right behind the 24 percent gain in oil.

Hedge funds increased their long positions in gold, on bets that prices in the short term will go higher, Commodity Futures Trading Commission data shows……………………………………….Full Article: Source

Why are gold and silver falling?

Posted on 28 November 2011 by VRS  |  Email |Print

The euro-zone’s sovereign default risks and the interlinked banking crisis should have spurred gold prices on safe-haven buying. But from the high of $1,921.15/ounce in September, gold price has fallen by 13 per cent as the crisis in Europe escalated.
Silver has also had significant price correction. We explain the reasons for the correction and also what rupee depreciation means to Indian gold and silver investors………………………………………Full Article: Source

Barclays: Gold, platinum, palladium to remain positive, silver to be negative

Posted on 28 November 2011 by VRS  |  Email |Print

Precious metals prices have remained under pressure this week as the dollar has strengthened, equity markets have weakened and economic insecurity has heightened over the US, Europe and China, said Barclays Capital in a briefing.

Gold prices slipped below $1700/oz and although physical demand responded to lower prices it has failed to provide a solid floor as yet. Instead investment demand has strengthened with ETP flows for November to date doubling flows recorded in October and taking total metal held to a new record high, while central bank net buying continues………………………………………Full Article: Source

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