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Commodities Briefing - Archive | December, 2011

How Goldman Sachs sees 2012

Posted on 23 December 2011 by VRS  |  Email |Print

Wall Street investment bank Goldman Sachs, which is also one of the world’s biggest commodity trading firms, has issued its predictions for 2012 as markets brace themselves for a new year slump.
Goldman’s clients – which range from vast businesses to governments and wealthy individuals – are being advised to prepare for a rollercoaster ride in the first half of the year, but that a gradual recovery should take hold from the summer………………………………………..Full Article: Source

2012 will be a difficult year for commodities

Posted on 23 December 2011 by VRS  |  Email |Print

The boom in commodity prices over the last decade has been bad news for Britain’s infrastructure. As China builds up its cities, the rise in metals prices has tempted thieves in the West to start tearing down our own.
Everything from church roofs to copper railway cabling has been targeted. Theft from the railways in London rose 70% last year. Energy firms report 700 thefts a week from substations and pylons, reports the London Evening Standard. Six people died last year trying to steal live cables………………………………………..Full Article: Source

Season to be jolly? With 2012 outlook, unlikely

Posted on 23 December 2011 by VRS  |  Email |Print

It is the season to be jolly and it is also the season for ‘outlook’ views on what the New Year will bring, and that is unlikely to make anyone jolly. There are many possible binary outcomes in 2012 that could move markets and commodities erratically, so the only certainty appears to be ongoing volatile price swings.
Continuing European angst and the reality of hardship and deleveraging are the most likely outcomes in 2012. A slowing China will also likely push commodity prices lower in the first half of the year………………………………………..Full Article: Source

Copper and oil best bets for 2012, report says

Posted on 23 December 2011 by VRS  |  Email |Print

Commodities investors should place their bets on oil and copper in 2012 while keeping an eye on other base metals and unconventional oil and gas plays, according to Scotiabank’s commodity price index outlook.
Patricia Mohr, vice-president, economics and commodity market specialist at the bank, said rising oil prices will impact companies, investors and consumers in Atlantic Canada. “The oil story is certainly very important for Newfoundland but also there are a lot of consumers that pay for home heating oil and gasoline,” she said………………………………………..Full Article: Source

A soft start awaits Asia commodities in new year

Posted on 23 December 2011 by VRS  |  Email |Print

It’s nearing the end of the year and it’s probably one most commodity investors would prefer to forget but next year’s prospects are firmly rooted in what happened in 2011.
Much of the commentary in 2011 has been about whether China can achieve the soft economic landing, and therefore continue to be the engine of commodity demand that drives many bullish forecasts………………………………………..Full Article: Source

Commodities buzz: Chinese planned to keep import tariffs low in 2012

Posted on 23 December 2011 by VRS  |  Email |Print

Chinese government said it would keep tariffs low next year for commodities in wide-ranging fields to boost domestic consumption offsetting the impact of falling external demand.
Ministry of Finance, the State Council’s tariff committee has finalized next year’s tariff scheme, lowering the duties for 730-odd imported commodities to an average of 4.4%, which more than halves the rate enjoyed by Most Favored Nation status under World Trade Organization rules………………………………………..Full Article: Source

Mongolia spending risks commodities bust: IMF

Posted on 23 December 2011 by VRS  |  Email |Print

Mongolia’s economy, which grew 20.8 percent last quarter, risks contraction along with a global downturn in commodity prices partly due to a surge in state spending, according to the International Monetary Fund.
Government spending jumped 50 percent in real terms to 6.3 trillion tugrik ($4.6 billion) this year, pushing inflation in the $8.4-billion-economy to 14 percent, Steven Bennett, IMF’s head of Mongolia coverage, said……………………………………….Full Article: Source

Energy prices predictions for 2012

Posted on 23 December 2011 by VRS  |  Email |Print

Energy prices have soared during 2011, and while some analysts forecast they could fall slightly in 2012, there is no guarantee any savings will be passed on to customers.
The oil price has rarely fallen below $100 a barrel since the Arab Spring threatened supplies at the start of 2011. Libya is now nearly back at full-scale production post-war, which some suggest could increase global supply and theoretically lead to price falls……………………………………….Full Article: Source

Global oil supply, demand balanced in 2012, if OPEC output stays steady: IEEJ

Posted on 23 December 2011 by VRS  |  Email |Print

Global supply and demand of crude oil is expected to be balanced in 2012 if OPEC’s oil production stays at the current level of 30 million b/d, the Institute of Energy Economic Japan said Thursday.
World oil demand will grow by 1 million-1.1 million b/d to 90.1 million b/d, while total oil production is seen to rise 500,000-600,000 b/d to 90 million b/d with higher production from non-OPEC countries, such as the US and Russia, IEEJ said………………………………………..Full Article: Source

OPEC exports rise to 9-month high on Libya, Oil Movements says

Posted on 23 December 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will boost crude supplies to the highest level in nine months as Libya continues to restore production, according to tanker-tracker Oil Movements.
OPEC will ship 23.63 million barrels a day in the four weeks to Jan. 7, up from the 23.23 million barrels shipped daily in the month to Dec. 10, the Halifax, England-based researcher said today in an e-mailed report. Libya is exporting about 500,000 barrels a day, according to the company………………………………………..Full Article: Source

Oil to set record in 2012 as U.S. dodges slump: Energy Markets

Posted on 23 December 2011 by VRS  |  Email |Print

Crude oil may rise for a fourth year to a record average price in 2012 as demand in emerging markets increases and the U.S. avoids a recession.
West Texas Intermediate oil on the New York Mercantile Exchange will reach an average of $100 a barrel in 2012, based on the median of 27 analyst estimates compiled by Bloomberg, topping the all-time high of $99.75 set in 2008. The U.S. benchmark is on course to average $95 a barrel this year………………………………………..Full Article: Source

Barratt says oil prices may be `under pressure’ in 2012 (Video)

Posted on 23 December 2011 by VRS  |  Email |Print

Jonathan Barratt, managing director of Commodity Broking Services Pty, talks about the outlook for gold, palladium and oil prices in 2012. He speaks from Sydney with Linzie Janis on Bloomberg Television’s “First Look.”.………………………………………Full Article: Source

Analysts see gold retesting all-time highs in 2012

Posted on 23 December 2011 by VRS  |  Email |Print

Gold prices took a beating in late 2011, but many experts think the path in 2012 is still paved with higher prices. Gold had a wild 2011, starting the year at $1,412 (U.S.) an ounce, hitting a low right out of the gate of $1,314 and then rallying to an intra-day high of $1,923 an ounce.
The past few months have not been kind for gold. The precious metal tanked 13 per cent in September and 8 per cent in just three days last week as a strong dollar hammered prices………………………………………..Full Article: Source

Dropping gold, a wise decision for investors now

Posted on 23 December 2011 by VRS  |  Email |Print

Barclays Capital is making relatively few changes to their trading portfolio in December, but one major adjustment is closing out their long-standing position - long gold.
“This is a short-term tactical move rather than signifying any change in our medium-term positive view on Gold prices, which we think will regain upward momentum once the European debt crisis is stabilised and market participants once again become concerned about inflation risk,” said Barclays………………………………………..Full Article: Source

2012 outlook for gold: Positive fundamentals remain and crucial diversification

Posted on 23 December 2011 by VRS  |  Email |Print

With just a few trading days left in 2011, we can take stock of gold’s performance vis-à-vis other assets. Gold is 13.7% higher in USD, 12% higher in GBP and 14.4% higher in EUR. Gains were seen in all fiat currencies and even stronger performing fiat currencies such as the CNY (yuan) and JPY (+9% and +8.75% respectively).
Stock markets globally had a torrid year with the S&P500 down 1.3%, the FTSE down 8% and the CAC and DAX down 19% and 15% respectively. Asian stock markets also fell with the Nikkei down 17%, the Hang Seng 20% and the Shanghai SE down 22%………………………………………..Full Article: Source

Silver investors prefer to wait it out

Posted on 23 December 2011 by VRS  |  Email |Print

After hitting record highs in May this year, silver prices have since fallen significantly and, a number of analysts remain fairly bearish. Several factors that are weighing on gold are weighing on silver too, these analysts say, adding that volatile price movements in the white metal have made investors skittish, with a large section preferring to stay on the sidelines and wait it out.
“In just two weeks post traversing the all-time high, silver slipped to $32.5 an ounce and gave investors the first jolt. From the low in May, silver managed to climb to $44.25 an ounce in August but could not sustain the heights for a long time…………………………………………Full Article: Source

Precious metals on the verge of a big move

Posted on 23 December 2011 by VRS  |  Email |Print

The past few months have been tough for those holding precious metals stocks, PM futures contracts or physical bullion. With silver trading down 41%, precious metals stocks down 30% and gold 15%. It has people scratching their head.
The question everyone keeps asking is when can I buy gold and silver? Unfortunately there is not a simple answer. With what is unfolding across the pond and the bullish outlook for the US Dollar index the next move is a coin toss………………………………………..Full Article: Source

Base metals to trade lower in 2012: Fitch Ratings

Posted on 23 December 2011 by VRS  |  Email |Print

Fitch Ratings’ expects lower earnings in 2012 at base metals operations on lower prices and continued cost headwinds. Constrained recovery in developed markets and slower growth in emerging markets will weigh on volumes and prices in 2012 when compared with the first half of 2011.
Consensus expectations are for prices to be range bound at above current low levels but below 2011 peak levels. Fitch believes there can be significant volatility around these levels as a result of speculative demand, currency and the small size of the markets………………………………………..Full Article: Source

Copper traders most bullish in two months on demand outlook: Commodities

Posted on 23 December 2011 by VRS  |  Email |Print

Copper traders are the most bullish since October as global inventories at a two-year low add to signs that demand is improving.
Sixteen of 28 analysts surveyed by Bloomberg expect the metal to advance next week, the first positive outlook in three weeks and the highest proportion since Oct. 14. Global copper stockpiles monitored by exchanges in London, Shanghai and New York fell 23 percent since March and this month were at the lowest level since October 2009, Bloomberg data show………………………………………..Full Article: Source

5 worst performing commodity ETPs of 2011

Posted on 23 December 2011 by VRS  |  Email |Print

Statistics show that the vast majority of commodity investors come away actually losing money; this was especially true for 2011. This year was a rough one on commodities as global instability created volatile trading, resulting in most of this asset class losing money.
But of course with big losers comes a great opportunity to buy in while a fund is still cheap. Though, it may also be that you simply want to stay away from some of these bad-performing funds to protect yourself from more losses. Whatever may be the case, we outline the five worst performing commodity ETPs of 2011………………………………………..Full Article: Source

Top 7 emerging currency ETFs

Posted on 23 December 2011 by VRS  |  Email |Print

Our goal is to help investors identify and perhaps utilize emerging market currency ETFs. As emerging economies have developed and become significant players on the global stage, their currencies have gained more recognition.
Many have been featured in so-called “carry trades” whereby investors in low yielding currencies play the higher yield spread in these currencies. This activity has waxed and waned with dramatic results given uncertain economic activity and higher volatility in emerging market currencies………………………………………..Full Article: Source

Top 10 precious metals ETFs

Posted on 23 December 2011 by VRS  |  Email |Print

With inflation pressures either rising or falling and with the dollar in decline, it’s important to have portfolio exposure to precious metals. Why? Currency debasement and paper money in general have recently been disrespected, making them an essential part of any portfolio.
Easy monetary policies which began in 2008 have hurt the value of the dollar. Since most commodities are priced in dollars this puts upward pressure on prices which becomes inflationary. We’ve cobbled together some good precious metals ETFs and ETNs where repetitive choices may exist but leave it to investors to pick the ones that suit them best………………………………………..Full Article: Source

Ten worst ETF performers of 2011

Posted on 23 December 2011 by VRS  |  Email |Print

Odds are that 2011 is a year many investors will be eager to forget. Ongoing uncertainty over Europe, combined with a frustrating employment situation stateside and even weakness among emerging markets has put many core asset classes in the red for the year. Most equity ETFs have struggled on the year, with major benchmarks having given back any gains that were generated in the early parts of the year.
Any declines in value is always tough to swallow, but the pain obviously increases with the magnitude of the loss. Unfortunately for some, a rather large chunk of the ETF universe has experienced big declines in 2011; through December 19, more than 350 non-leveraged ETPs had lost 10% of more year-to-date……………………………………….Full Article: Source

Viet Nam: Commodities exchange on the way

Posted on 23 December 2011 by VRS  |  Email |Print

Derivative exchange, considered a new investment channel for local business in the gloomy economy, will take a leap in the domestic commodity market next year. Nguyen Duy Phuong, director of the Viet Nam Commodities Exchange (VNX), made the above statement at a conference held in the capital on Tuesday.
At the event, entitled “Viet Nam’s Economy 2011 and Prospects for 2012 - Opportunities for Commodities Exchange”, Phuong estimated that the number of VNX accounts would surge from the current 1,385, worth VND7 trillion (US$333.3 million), to roughly 5,500 accounts worth VND18.6 trillion ($885.7 million) next year………………………………………..Full Article: Source

Analysts upbeat about Sing dollar in 2012

Posted on 23 December 2011 by VRS  |  Email |Print

Asian currencies are expected to trend stronger in 2012. Analysts also expect the Singapore dollar to be the star performer among the Asian units. After a roller coaster ride against the US dollar this year, the Singapore dollar is poised to move higher but at a slower pace in 2012, said currency experts.
After hitting mid-year highs of 1.20 against the US dollar, the Singapore unit has since tapered off to 1.29………………………………………..Full Article: Source

EU law to impose carbon cost on all airlines

Posted on 23 December 2011 by VRS  |  Email |Print

Europe’s highest court gave unreserved backing on Wednesday to a European Union (EU) law to charge airlines for carbon emissions on flights to and from Europe, a decision likely to escalate tension with trading partners, especially the United States.
The court ruled against a group of US airlines that had challenged a law requiring that all airlines flying to and from airports in the European Union will have to buy permits under the EU’s emissions trading scheme from Jan 1. The initial cost is expected to be minimal but would rise to an estimated 9 billion euros ($11.8 billion) by the end of 2020………………………………………..Full Article: Source

NZ bans industrial gas offsets from CO2 trade scheme

Posted on 23 December 2011 by VRS  |  Email |Print

New Zealand will ban the use of U.N.-backed industrial gas offsets to stop any distortion to its carbon trading scheme and bring it into line with programs in Europe and Australia, the government said on Thursday.
Climate change minister Nick Smith said offsets from projects that destroy potent greenhouse gases hydrofluorocarbon-23 (HFC-23) and nitrous oxide (N2O) would be banned from Dec 23 unless emitters had already entered into binding forward purchase agreements……………………………………….Full Article: Source

Commodities deliver flat returns in 2011: Scotiabank

Posted on 22 December 2011 by VRS  |  Email |Print

Patricia MohrPrices for key Canadian commodities will likely end the year only slightly above where they started, Scotiabank reported Wednesday in releasing its Commodity Price Index.
Despite that flat reading, the year did have its star performers, in the form of sulphur - the No. 1 commodity for the second year running, having gained 43.1 per cent in 2011 - as well as coking coal, which climbed 36.4 per cent, potash, up 31.9 per cent, hogs, up 26.9 per cent and cattle, up 21.5 per cent………………………………………..Full Article: Source

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Burnt this year, funds wary of commodities in 2012

Posted on 22 December 2011 by VRS  |  Email |Print

Charlie MorrisNew Year rallies have become so commonplace for commodities that fund managers have almost come to expect them. Not this year.
Commodities indexes, metals and many other raw materials have seen big losses in 2011 and many investors say the prospect of another year of slack global growth is likely to keep them in cash and other safe havens for some time to come………………………………………..Full Article: Source

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Commodities and emerging markets ‘good for 2012′

Posted on 22 December 2011 by VRS  |  Email |Print

Commodities and the emerging markets have been highlighted as good places to invest in the coming year by BNY Mellon Asset Management. The two sectors are offering pockets of opportunities for investors during the coming 12 months, with the BNY Mellon Investment Outlook for 2012 highlighting the best options for investors.
The outlook is a compendium of distinctive views from BNY Mellon Asset Management’s specialist boutiques across asset classes and regions. The outlook notes that developed market challenges such as the eurozone crisis and the U.S. budget deficit continue to cast a cloud over the investment horizon. However, astute investors may be able to take advantage of market dislocations and trends that are beginning to develop (Press Release)

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2012 commodity index rebalancing - Will it have any impact?

Posted on 22 December 2011 by VRS  |  Email |Print

In January 2012 the world’s two most followed commodity benchmarks, the DJ-UBS All Commodities Index and the S&P GSCI Index, will go through their annual rebalancing. The impact on investor flows across underlying commodity futures can be quite significant as the 2012 rebalancing has an added twist, with Brent crude oil being added to the Dow Jones-UBS Commodity Index for the first time and WTI oil seeing its weight reduced.
According to ETF Securities, theoretically, any potential impact should already be digested and reflected in the underlying commodity futures prices………………………………………..Full Article: Source

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Reasons why silver, gold, platinum looks bullish in 2012: BofAML

Posted on 22 December 2011 by VRS  |  Email |Print

Silver and Gold will likely suffer a setback this month but eventually prices may be hitting $34 and $2,000/oz respectively in 2012. Meanwhile, Platinum is likely to touch 1500/oz, said a report from Bank of America Merrill Lynch (BofAML).
Given the deteriorating outlook for global growth, BofAML is cautious on adding commodity risk. However, an upcoming recession in Europe has increased the likelihood of additional easing from the Fed, the European Central Bank and the Bank of Japan. It has also pushed back market expectations for the timing of the first interest rate hikes across Developed Markets central banks………………………………………..Full Article: Source

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Most miners see $2,000 gold next year

Posted on 22 December 2011 by VRS  |  Email |Print

Majority among gold miners see the precious metal to hit $2000 at some where next year,according to a PricewaterhouseCoopers survey. The survey said miners are raising dividends and looking for takeover deals with expectations the price of gold will head even higher next year.
John Gravelle, the Canadian mining leader at PwC, says the shares of gold companies haven’t increased as much as the price of gold, so they’re facing increased competition for investors’ dollars………………………………………..Full Article: Source

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2012 outlook for gold – Positive fundamentals remain and crucial diversification

Posted on 22 December 2011 by VRS  |  Email |Print

With just a few trading days left in 2011, we can take stock of gold’s performance vis-à-vis other assets. Gold is 13.7% higher in USD, 12% higher in GBP and 14.4% higher in EUR. Gains were seen in all fiat currencies and even stronger performing fiat currencies such as the CNY (yuan) and JPY (+9% and +8.75% respectively).
While gold reached record nominal highs at $1,915/oz in August, it is important to continually emphasize that gold remains well below the real high, adjusted for inflation, in 1980 of $2,500/oz………………………………………..Full Article: Source

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Why silver could be the hottest commodity of 2012

Posted on 22 December 2011 by VRS  |  Email |Print

If you’re around my age, then you probably remember exactly where you were when you heard the news in November 1963 that President Kennedy had been shot. The first lunar landing in July 1969 is another such time marker for my generation, as is Sept. 11, 2001.
Jan. 21, 1980, on the other hand, is probably notable only to the extreme financial market aficionados among us. That’s the day the price of silver peaked at an intraday high of a record $50.35 per ounce, or about $140 an ounce in today’s (inflation-adjusted) dollars — more than four times the current price………………………………………..Full Article: Source

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Copper looks bright for investors

Posted on 22 December 2011 by VRS  |  Email |Print

The top picks for investors going into 2012 should be oil and copper, a commodity price expert said Wednesday. Both commodities will remain strong throughout the New Year, said Patricia Mohr, vice-president, economics and commodity market specialist at Scotiabank.
Demand is growing for copper, which is mined in B.C. by several companies. Copper is used in motor vehicles, power generation, equipment and household appliances like TVs and refrigerators. The emerging markets, particularly China, are driving demand, and Mohr expects that to remain strong as China further eases its monetary policy, a move that she expects soon………………………………………..Full Article: Source

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Where analysts see oil prices in 2012

Posted on 22 December 2011 by VRS  |  Email |Print

Brent crude will average $105 (U.S.) a barrel next year, not far below this year’s record high average near $111, a Reuters poll found. A quarter of analysts have reduced their forecasts since a similar poll a month ago because of worries about the impact of the euro zone debt crisis on economic growth.
But respondents think oil will remain expensive because of worries about supplies from producers Iraq and Kazakhstan and the possibility that tighter sanctions could curb Iranian oil sales. Low crude stocks and strong diesel demand also are supporting prices………………………………………..Full Article: Source

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High oil prices boost OPEC’s income to highest in 51 years

Posted on 22 December 2011 by VRS  |  Email |Print

A surge in oil prices and output will likely lift OPEC’s crude export earnings this year to their highest level since the cartel was created 51 years ago, according to projections by a key western energy studies centre.
At $899 billion in 2011, the combined revenue of the 12-nation Organization of Petroleum Exporting Countries will be $249 billion above the 2010 income of around $650 billion and about $381 billion over the 2009 earnings of $518 billion………………………………………..Full Article: Source

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Oil rises as supplies fall most in decade: Commodities at close

Posted on 22 December 2011 by VRS  |  Email |Print

The Standard & Poor’s GSCI gauge of 24 commodities rose 1 percent to close at 640.91 at 3:47 p.m. in New York, led by corn, wheat and cattle. The UBS Bloomberg CMCI index of 26 raw materials climbed 0.6 percent to 1,509.6.
Crude oil rose for the third straight day after weekly U.S. inventories declined the most in a decade. The Energy Department reported supplies fell 10.6 million barrels last week to 323.6 million………………………………………..Full Article: Source

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IEA expects Iraqi oil boom

Posted on 22 December 2011 by VRS  |  Email |Print

Iraq is expected to account for as much as 80 percent of the anticipated production increase from OPEC members, the IEA estimates.
The International Energy Agency in its latest monthly oil report estimates crude oil production from Iraq is on pace to increase 1.87 million barrels per day from 2010-16. This means that by the end of the timeframe, Iraq will produce on average 4.36 million bpd………………………………………..Full Article: Source

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Energy and commodities: 2011 and 2012

Posted on 22 December 2011 by VRS  |  Email |Print

According to data from Kitco, gold started the year around $1,400 per ounce, and is currently trading at just over $1,600 per ounce. Silver, on the other hand, started the year at $30.70 per ounce, and now trades a tad lower in the $29.50-per-ounce range. It was what silver did during the year that made all the headlines.
Back in April, it hit a high of $48.70 per ounce. The scale and speed of the decline after the April high suggested institutional dumping of the metal. Prior to the sell-off, silver was widely viewed as another safe haven (like gold) against money printing………………………………………..Full Article: Source

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More hedging in commodity futures will check speculation: FMC chief

Posted on 22 December 2011 by VRS  |  Email |Print

Speculation, though an integral part of commodity derivative trading, needs to be kept within limits and increasing participation of hedgers would automatically ensure that, said Forward Markets Commission Chairman Mr Ramesh Abhishek.
When the proportion of hedgers in a contract increases sharp speculative swings can be kept within limits. “We have asked exchanges to promote hedging tools available with them to bring in more hedgers on as participants,” Abhishek said………………………………………..Full Article: Source

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Top 10 base metals ETFs

Posted on 22 December 2011 by VRS  |  Email |Print

With inflation pressures waxing and waning many believe it’s important to have portfolio exposure to a basket of commodity ETFs. Why? Commodity markets often feature non-correlated performance with conventional portfolios. Further, given easy money policies which began in 2008 has hurt the value of the dollar.
Since most commodities are priced in dollars, this puts upward pressure on prices which can become inflationary. We’ve cobbled some good choices of commodity tracking ETFs and ETNs where repetitive choices may exist but leave it to investors to pick the ones that suit them best………………………………………..Full Article: Source

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Top 10 established currency ETFs

Posted on 22 December 2011 by VRS  |  Email |Print

Confidence is what gives currencies their credibility. The U.S. dollar went off the gold standard with the Bretton Woods’s agreement during the Nixon administration since more dollars were being printed than there was gold to back them (55% to 22%).
Taking the U.S. off the gold standard with the BW agreement made the dollar the world’s reserve currency. This meant many commodities were priced in dollars. Some currencies were permitted to float freely while others maintained a “currency peg” to the dollar. As of late 2011 the U.S. Dollar is still nearly 70% of foreign reserve holdings………………………………………..Full Article: Source

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Strong dollar rally will crush gold and stocks in 2012 amidst severe deflation

Posted on 22 December 2011 by VRS  |  Email |Print

Last week saw a severe breakdown in the Precious Metals sector that is now viewed as marking the start of a bearmarket, and that means the onset of a deflationary episode that is likely to prove more serious than that we witnessed in 2008, because it will involve countries going bust rather than “just” banks and large corporations as was the case in 2008.
At first glance gold’s 3-year chart still doesn’t look too bad, with its price in the vicinity of a still rising 200-day moving average, but last week it broke below this average for the first time since 2008, which is in itself a serious warning, and ominous developments on the charts for Silver and the Precious Metals stocks indices……………………………………….Full Article: Source

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Deflation, gold and the dollar in the ever ongoing crisis

Posted on 22 December 2011 by VRS  |  Email |Print

So 2012 will mark the fifth anniversary of the global financial crisis. There’s little reason to think it’s reached its end yet. Merry Christmas.
Banking and household leverage in the rich West has barely ticked lower from the credit bubble’s historic peak of 2007. Financial leverage has only been reduced by a fraction, while governments have been stuffed like a French goose with that new debt spurned by the private sector since 2008………………………………………..Full Article: Source

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Lira seen leading world currencies in 2012, reversing slump

Posted on 22 December 2011 by VRS  |  Email |Print

The lira, the second-worst performing currency after South Africa’s rand this year, will lead global gains in the first half of 2012 as Turkey pares its record current-account deficit, according to the median of estimates from more than 20 banks on Bloomberg.
The lira is set to rally 4.4 percent by the end of June for the biggest gain against the dollar among 33 global currencies ranked by Bloomberg, the survey shows. The lira will be the first to benefit from a revival of risk appetite as the European debt crisis is expected to be resolved by March, Benoit Anne, chief emerging-market strategist at Societe Generale SA in London, said in e-mailed comments………………………………………..Full Article: Source

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Iranian currency plunges to record low‎

Posted on 22 December 2011 by VRS  |  Email |Print

Iran’s currency, the rial, tumbled in value to its lowest level ever against the dollar on Tuesday in panic selling caused in part by the country’s increased economic isolation from international sanctions, an unbridled inflation problem and worries that government officials there are ideologically incapable of devising a workable solution.
The rial’s value has been weakening for months, but the traumatic drop on Tuesday reflected what Iranian economists called a new level of economic anxiety in the country, exacerbated by conflicting information coming out of the Tehran hierarchy that reinforced a sense of indecision and confusion………………………………………..Full Article: Source

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Corn crop heading for record to feed 1 bln cows: Commodities

Posted on 22 December 2011 by VRS  |  Email |Print

Farmers will reap a record corn crop for a sixth consecutive season in 2012, slowing a slump in stockpiles of livestock feed as global meat demand approaches a quarter of a billion metric tons.
Production will rise 4.8 percent to 867.5 million metric tons in 2011-12, curbing the drop in inventories to 0.8 percent, the smallest decline in three years, the U.S. Department of Agriculture estimates………………………………………..Full Article: Source

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EU court backs rules to include airlines in carbon market

Posted on 22 December 2011 by VRS  |  Email |Print

The European Union’s top court backed the inclusion of the airline industry in the bloc’s carbon-trading market Wednesday in a decision that is likely to stir up an escalating diplomatic row between the EU and its biggest trading partners.
The widely expected ruling comes as the U.S. and others intensify pressure on the EU to delay the expansion of its emissions trading scheme to airlines on Jan. 1, or scrap it altogether in favor of a new international deal………………………………………..Full Article: Source

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