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Commodities Briefing - Archive | August, 2012

Now is the time to buy commodities

Posted on 31 August 2012 by VRS  |  Email |Print

You don’t want to find yourself investing at the wrong end of the commodity cycle. If you invest at the top, it’s a long way before the crash back to earth.
You can still lose heavily even if you invest after the sector has slumped, because prices can go deep underground. I’ve learned that lesson the hard way………………………………………..Full Article: Source

Pimco, the quiet giant among commodity investors: Kemp

Posted on 31 August 2012 by VRS  |  Email |Print

Pimco is well-known as the world’s largest bond fund. But how many people realise it is also the largest investor in commodities, with a portfolio dwarfing the more high-profile pension funds? And according to one of the most widely used databases, Pimco’s flagship fund has been the most successful general commodity fund over the last decade.
With more than $21 billion invested in Pimco’s main Commodity Real Return Strategy Fund at the end of June, and another $4.7 billion in the newer Commodity Plus Fund, the California-based investment manager’s holdings are far larger than public pension funds……………………………………….Full Article: Source

Scotiabank commodities price index falls slightly in July after big June drop

Posted on 31 August 2012 by VRS  |  Email |Print

Scotiabank economist Patricia Mohr says only pipeline expansion to the B.C. coast will ease the massive price discrimination faced by western Canadian oil producers.
Mohr, a commodity markets specialist, made the observation Thursday in a commentary accompanying the bank’s monthly commodity price index. Scotiabank’s All Items Index declined 0.4 per cent month over month in July, though the pace of decline slowed from June’s sharp four per cent drop………………………………………..Full Article: Source

Commodities edge lower but wait for Bernanke

Posted on 31 August 2012 by VRS  |  Email |Print

Commodities continue to hover near familiar technical barriers as traders wait for Friday’s much-anticipated speech from Fed Chairman Ben Bernanke at the Jackson Hole symposium. Traders hope the central bank chief will signal the intention of launching a third round of quantitative easing (QE3).
Crude oil and gold took an initial step lower, the former undermined as Hurricane Isaac seemingly left Gulf refining capacity effectively unscathed and the latter pressured as a firmer tone in the Fed’s Beige Book survey undermined stimulus bets. Significant follow-through seems unlikely for now however, with investors waiting for Bernanke’s remarks to commit to a directional bias………………………………………..Full Article: Source

Plunging commodity prices no deterrent to Chinese investors

Posted on 31 August 2012 by VRS  |  Email |Print

China’s appetite for investing in Australia’s resources sector is unlikely to be diminished by the recent plunge in commodity prices, which could be used to its advantage, according to one of the nation’s largest law firms.
Speaking ahead of Freehills’ release of its annual public mergers and acquisitions report next week, M&A partner Simon Reed said that given China’s long-term focus and improving success rate in takeovers, the nation might strike now to take advantage of deflated asset prices………………………………………..Full Article: Source

OPEC output rises, Iran decline bottoms out

Posted on 31 August 2012 by VRS  |  Email |Print

OPEC crude oil output rose in August as Iranian shipments climbed slightly from its lowest in more than two decades and because of higher exports from Angola and Nigeria, a Reuters survey showed on Thursday.
Supply from the 12-member Organization of the Petroleum Exporting Countries averaged 31.53 million barrels per day (bpd), up from 31.30 million bpd in July, the survey of sources at oil companies, OPEC officials and analysts found………………………………………..Full Article: Source

Where is oil heading?

Posted on 31 August 2012 by VRS  |  Email |Print

Oil prices surged as hurricane Isaac gained traction in the Gulf of Mexico. Some experts even warned of disasters greater than those imagined: stirring up oil from the legendary BP oil spill. But then the prices slipped as the supplies climbed and the Isaac threat faded.
Overall the global oil consumption has remained particularly stymied during two thirds of the year, predominantly because of stalled European Union with US and China as runner ups in the slowdown………………………………………..Full Article: Source

Barclays’ brent crude oil forecast for 2013 is $125/bl; $180/bl by 2020

Posted on 31 August 2012 by VRS  |  Email |Print

The key difference Barclays sees between oil and most other energy markets is supply, where the challenge is replacing declining oil production. Demand, by contrast, responds to economic weakness to similar degrees across the energy spectrum.
And with 3Q12 looking as if it will see a very significant tightening of the oil market, Barclays’ key Global Energy Outlook recommendation is to stay leveraged to oil and to oil-biased equities and credits………………………………………..Full Article: Source

Brent steady above $112 ahead of Bernanke speech, set for 2nd monthly gain

Posted on 31 August 2012 by VRS  |  Email |Print

Brent crude futures were steady above $112 per barrel on Friday, on track to post a second straight monthly gain as investors awaited a speech by U.S. Federal Reserve Chairman Ben Bernanke for hints of more monetary easing that could stoke oil demand.
Investors will look for any hint of a third round of quantitative easing from Bernanke’s speech in Jackson Hole, Wyoming, due later Friday, with more stimulus expected to weigh on the U.S. dollar and boost dollar-denominated oil………………………………………..Full Article: Source

Any joy for the coal sector?

Posted on 31 August 2012 by VRS  |  Email |Print

The demand for coal in the US largely comes from its use in electricity generation. The calculation is simple. As long as the shale investment boom is in place and natural gas prices are falling, then coal will be pressured.
Throw in emissions regulations (coal is known as the dirty fuel) and you have the perfect recipe for declining demand. That much is known, but how best to monitor developments?……………………………………….Full Article: Source

Gold price jump means QE3 is coming, say resources experts

Posted on 31 August 2012 by VRS  |  Email |Print

The gold price jumped this week in what has been seen by top resources managers as a market endorsement of the US Federal Reserve announcing a third round of quantitative easing on Friday.
In the week ahead of Fed chairman Ben Bernanke’s address at the meeting of central bankers at Jackson Hole, Wyoming, the price of gold hit a four-month high when it rose to $1,676 per ounce on Monday………………………………………..Full Article: Source

Gold price projection – for 2013

Posted on 31 August 2012 by VRS  |  Email |Print

An objective and reasonable estimate for the price of gold at the next intermediate peak (estimating 2013 – Quarter 2) is $2250 to $2550 per ounce (current price is about $1,650). This is not a prediction based on wishful thinking and hope, but a best estimate based on rational analysis of data back to 1975.
The actual price for gold at its next peak could be higher or lower, and the peak might be earlier or later, but this price range and approximate time is, by this analysis, the most probable………………………………………..Full Article: Source

How big is gold’s QE premium?

Posted on 31 August 2012 by VRS  |  Email |Print

When the Fed’s Jackson Hole meeting concluded two years ago, it was with the announcement of QE2 by Fed Chairman, Ben Bernanke. And, judging by the performance of the yellow metal over the last few days, there is a hope on the part of many that something similar might be announced at the end of this week’s meeting.
As UBS’s Edel Tully wrote yesterday, “The metal’s QE premium is very real, and we question how much more can be expected before Friday. Gold is currently trading where some would have estimated after a Jackson Hole symposium which offered some QE crumbs.”……………………………………….Full Article: Source

David Morgan bullish on gold and silver - saw ‘bottom’ in May

Posted on 31 August 2012 by VRS  |  Email |Print

My outlook is bullish on the metals both short and long term. I think that the bottom is in for the mining equities as well as for the metals themselves. More and more people will realize that there’s really no way out of this debt-based monetary system, whether it is about the U.S. reserve currency, the Eurozone or anywhere else on the planet that uses a fiat currency.
There’s a problem here and it can’t be resolved. We’re going to see more pressures to the commodity sector in general, particularly the precious metals………………………………………..Full Article: Source

Australian mining investment lost steam in 2Q

Posted on 31 August 2012 by VRS  |  Email |Print

Australia’s mining investment boom was losing steam in the second quarter of 2012, even before a sharp pullback in commodity prices that has seen a number of high-profile mining projects shelved in recent weeks.
A survey of capital spending published by the Australian Bureau of Statistics on Thursday showed miners scaled back investment plans in the second quarter, with investment forecast to rise by 41% over the year to June 2013, down from a first quarter estimate of 44%. Total business investment rose by a seasonally-adjusted 3.4% in the second quarter, less than half the 7.7% rise recorded in the first quarter………………………………………..Full Article: Source

Why commodities are looking at a new bull run?

Posted on 31 August 2012 by VRS  |  Email |Print

Last week, the S&P Goldman Sachs Commodity Index (GSCI) closed up 21 percent from its June low. Since a 20 percent move is the accepted milestone for measuring bull and bear markets … this puts the popular index of raw materials in fresh bull market territory.
Commodity bulls rejoice! After all, the recent gains follow a brutal bear market decline of 21.9 percent from March through June. And it’s been a broad based move for materials led mainly by agricultural commodities and energy. But even long dormant precious metals have finally perked up with gold and silver both joining the upside move last week………………………………………..Full Article: Source

QE3 and the looming currency war

Posted on 31 August 2012 by VRS  |  Email |Print

First, let’s get this straight: The U.S. Federal Reserve’s Open Market Committee is composed of some very smart, sensible people. But…for all the unreasonable accusations that are sometimes leveled at Chairman Ben Bernanke and his colleagues, there is one good reason to complain about the FOMC’s detachment from the world.
It stems from the fact that the Fed’s mandate extends no further than U.S. borders. The committee members are under no legal obligation to consider the impact of their actions on foreign countries. And yet their decisions inevitably have a sweeping, disruptive influence on global money markets and, by extension, on the world economy………………………………………..Full Article: Source

Nigeria introduces new currencies

Posted on 31 August 2012 by VRS  |  Email |Print

Early next year Nigeria will introduce a 5,000 Naira bill, worth just over $30, and introduce coins to the economy. Officials say the move will save the country millions of dollars but some analysts say the larger bills will increase corruption.
Modern countries need coins, says the Central Bank of Nigeria. The bank is revamping its currency to keep up with the times. Director of Corporate Communications, Ugo Okoroafor says Nigeria is moving into a new era………………………………………..Full Article: Source

ASEAN to contribute to firm global rice prices

Posted on 31 August 2012 by VRS  |  Email |Print

ASEAN countries are expected to present a steady rice production pattern and this will result in firm global rice prices, stated Asian Development Bank (ADB) in its news release on Thursday in Thailand.
The bank added that ASEAN rice producers will play a key role in the stability of the international rice market by meeting growing demand. Also current production estimates by ADB suggest that overall prices will remain stable and rising output in ASEAN countries would help stabilise prices in international market………………………………………..Full Article: Source

Investors’ fingers crossed that commodities cycle regains momentum

Posted on 30 August 2012 by VRS  |  Email |Print

A peak in the mining boom and an uncompetitive exchange rate have hampered Australia’s share market versus global benchmarks this year. However, the ‘commodities super cycle’, fuelled by China’s urbanisation and industrialisation, could reassert itself as a force on the Australian market if central banks take action to support global economic growth.
This in turn will underpin the Australian economy and the broader Australian share market. Music to the ears of investors but risks remain………………………………………..Full Article: Source

Commodity prices could get halved in the next two years

Posted on 30 August 2012 by VRS  |  Email |Print

For the past two years, as regular readers know, I have been bearish on hard commodities. Prices may have dropped substantially from their peaks during this time, but I don’t think the bear market is over. I think we still have a very long way to go.
There are four reasons why I expect prices to drop a lot more. First, during the last decade commodity producers were caught by surprise by the surge in demand. Their belated response was to ramp up production dramatically, but since there is a long lead-time between intention and supply, for the next several years we will continue to experience rapid growth in supply………………………………………..Full Article: Source

What are China’s leading economic indicators telling investors?

Posted on 30 August 2012 by VRS  |  Email |Print

The Chinese economy has been slowing for some time as part of a controlled economic soft-landing initiated by the Chinese government, which was becoming increasingly concerned by a growing property bubble and spiraling inflation.
Price inflation for agricultural products and basic food stuffs was a major concern because the average Chinese consumer, with a low average wage, is particularly price sensitive to consumer staples………………………………………..Full Article: Source

Forecasting commodity prices for 2016

Posted on 30 August 2012 by VRS  |  Email |Print

Independent operator CRU Group (formally the Commodities Research Unit) regularlyanalyses the markets of over 75 commodities across the mining, metal and fertiliser sectors. The Group has recently updated its 2016 price forecasts across 24 markets including steel raw materials, base metals and fertilisers. Percentage movements are marked from a base of June quarter average prices.
CRU warns that in the case of forecasts suggesting higher prices by 2016, the implication is not for a steady increase, and vice versa on the downside. Volatility will clearly come into play, so readers should view percentage price movements as representing at 2016rather than up/down to 2016……………………………………….Full Article: Source

Recent commodity downturn just a blip - Jim Rogers

Posted on 30 August 2012 by VRS  |  Email |Print

The commodity super cycle still has legs, says renowned investor, Jim Rogers, as supplies remain constrained. Asked on Mineweb.com’s Gold Weekly podcast if the recent slowdown in many metal prices and a number of high profile comments about the end of the bull market, Rogers said, “this is nothing more than a blip. The bull market will continue until a lot of supply comes on stream and the problems since 2008 ensure not a lot of supply is coming on stream.”
Rogers said, usually after eight or nine years of a bull market, companies begin to bring new sources of supply online. But, this time around, those that were beginning to think about new supply in 2008 were hit by the financial crisis and many such plans were shelved………………………………………..Full Article: Source

Oil reserves could be tapped if prices stay above $100 a barrel

Posted on 30 August 2012 by VRS  |  Email |Print

Emergency oil reserves across the world could be tapped if prices remain above $100 a barrel over the next two months, according to Treasury sources. World leaders have become increasingly concerned about the toll to economic growth dealt by the 20pc spike in oil prices over the past three months.
In June, Brent crude was trading at about $90 a barrel but has since soared back above $110 – threatening another bout in inflation that could derail recovery hopes in the UK as well as elsewhere………………………………………..Full Article: Source

Oil-market moves cast doubt on a Goldman call

Posted on 30 August 2012 by VRS  |  Email |Print

Goldman Sachs Group Inc. is standing by its forecast that the gap between U.S. and European crude-oil prices will narrow, but some investors say lower output from the North Sea and Iran could lead the Wall Street bank to miss its mark.
Goldman is one of Wall Street’s largest commodity dealers and its forecasts carry weight in the market. In April, it predicted that the difference in price between Brent crude, relative to which a majority of the world’s oil is priced, and West Texas Intermediate, the U.S. benchmark, would shrink by more than half to $5 a barrel by the end of the year………………………………………..Full Article: Source

G7 urges oil supply boost, says ready to call for IEA action

Posted on 30 August 2012 by VRS  |  Email |Print

Finance ministers from the Group of Seven major industrialized economies late Tuesday voiced concern about high oil prices and called on oil-producing countries to boost output. In a short statement, the G7 ministers also hinted at the possibility of calling on the International Energy Agency to tap emergency oil stockpiles to ensure the market remains well supplied.
“We remain vigilant of the risks to the global economy. In this context and mindful of the substantial risks posed by elevated oil prices, we are monitoring the situation in oil markets closely,” the finance ministers said in the statement………………………………………..Full Article: Source

September will be a critical month for gold investors

Posted on 30 August 2012 by VRS  |  Email |Print

Gold and the external risky markets adopted a more cautious tone before Bernanke’s speech on Aug. 31 at the annual gathering of central bankers and finance ministers at Jackson Hole. Global economic data appear weak.
The US Conference Board’s Confidence Index fell 4.8 points in August to 60.6 which is the biggest drop in 10 months. However, house prices in the 20 cities in the US showed the first yearly gain in June since two years ago. Japan has recently cut its country’s growth forecast due to rising risks in several countries as well as the financial markets………………………………………..Full Article: Source

Gold prices may hit Rs.32,000/ 10 gm by Diwali: Kothari

Posted on 30 August 2012 by VRS  |  Email |Print

Gold prices have been consolidating since the beginning of the year as the market is waiting for the US Federal Reserve to undertake a third round of quantitative easing.
Investors expect the central bank to announce stimulus measures at its meeting in September to boost the fragile economic recovery. “In such a scenario, we could see gold touching a price over 32,000 rupees per 10 gm, may be by Diwali (Indian Festival)……………………………………….Full Article: Source

The gold standard gets another look

Posted on 30 August 2012 by VRS  |  Email |Print

As Republicans convene in Tampa to nominate Mitt Romney and hammer out their party platform, one of the planks that could attract the most attention is the Party’s official position on the gold standard. As it is now being considered, the platform stops short of recommending a return to the gold standard, but does advocate a commission to consider the possibility.
However, judging by the reaction with which many Republicans have greeted the idea, one would think that the platform might as well have called for the return of slavery………………………………………..Full Article: Source

China copper demand said to expand at slowest pace in 15 years

Posted on 30 August 2012 by VRS  |  Email |Print

Copper consumption in China, the world’s biggest user, is expected to expand this year at the slowest rate since 1997 as economic growth cools, according to Beijing Antaike Information Development Co.
Usage may increase 5 percent to about 7.7 million metric tons supported by demand from the power industry, Yang Changhua, who’s studied the market for more than a decade, said in a phone interview from Beijing. “It could turn out to be even lower, and we’re not optimistic about next year,” Yang said………………………………………..Full Article: Source

3 interesting commodity ETFs launching soon

Posted on 30 August 2012 by VRS  |  Email |Print

The world of commodity investing was cracked wide open by the introduction of exchange traded funds. ETFs democratized an asset class that was once reserved for active traders who understood the nuances of direct futures and options investing, leaving many on the sidelines.
But now that the commodity ETF world has taken off, investors of all levels have the opportunity to play these hard assets like never before. What’s more, the commodity ETF universe is still expanding, bringing new options for investors to make a play. Below, we outline three interesting commodity funds that have been filed for, but have yet to launch………………………………………..Full Article: Source

ETF tools every investor needs

Posted on 30 August 2012 by VRS  |  Email |Print

With more than 1,400 exchange-traded products now available, financial advisors and retail investors have at their fingertips an unprecedented array of tools for building long-term portfolios, establishing tactical tilts, and exploiting short-term imbalances between various asset classes.
With that luxury of choice comes some potential challenges; there are now multiple options for many investment objectives–sometimes more than a dozen ETFs that seek to fulfill generally similar missions. ……………………………………….Full Article: Source

G3 currencies mark time ahead of Fed gathering

Posted on 30 August 2012 by VRS  |  Email |Print

The euro started Asian trade in familiar ranges on Thursday as key risk events including the Jackson Hole meeting of central bankers loomed, but investors continued to give commodity currencies a wide berth.
Traders are speculating the Federal Reserve will embark on more policy stimulus at its Sept. 12-13 meeting with bets Fed Chairman Ben Bernanke would hint at further easing on Friday at a gathering of global central bankers in Jackson Hole, Wyoming………………………………………..Full Article: Source

Australia joins EU carbon emissions market

Posted on 30 August 2012 by VRS  |  Email |Print

Australia plans to link its carbon trading scheme with the EU’s, enabling firms to use European permits from mid-2015 to emit carbon dioxide (CO2).
The EU’s carbon market is the world’s largest and the deal is being seen as a significant step towards cutting greenhouse gas emissions globally. The aim is to have the Australian and EU schemes fully linked from July 2018………………………………………..Full Article: Source

How long will dairy commodity price surge last?

Posted on 30 August 2012 by VRS  |  Email |Print

Dairy commodity prices have risen sharply in recent weeks, led by skimmed milk powder (SMP), with world market prices (fob western Europe) in mid-August standing at US$3 000-$3 300/t, up $300-$500/t from the end of June and just short of the average price a year ago ($3 375/t).
It is a similar story across Europe - French SMP spray prices, for example, are now at their highest level since March 2011, while Dutch prices have climbed 16% in the space of a month………………………………………..Full Article: Source

‘Supercycle’ fears hit mining groups

Posted on 29 August 2012 by VRS  |  Email |Print

The mining industry faces a number of negative factors that are squeezing earnings, curtailing cash flows and forcing management teams to make tougher choices.
The backdrop to the lacklustre results is the concern over whether the so-called “supercycle” is drawing to a close after years of surging Chinese demand combining with supply constraints from decades of under-investment to send prices higher for commodities such as copper, coal and iron ore………………………………………..Full Article: Source

Australia mining slowdown hitting economy never down on luck

Posted on 29 August 2012 by VRS  |  Email |Print

 Adam BoytonAustralia, known as the lucky country for its resource abundance and temperate climate, is about to find out how long its latest winning streak will last. BHP Billiton Ltd. (BHP), the world’s biggest miner, last week mothballed projects valued at more than A$50 billion ($52 billion) by Credit Suisse Group AG and Deutsche Bank AG.
At the same time, Australia’s resources minister called the end of a bull run in commodity prices, and the central bank chief predicted the cresting of the investment wave within two years………………………………………..Full Article: Source

Is Australia… in the same boat as Europe?

Posted on 29 August 2012 by VRS  |  Email |Print

That the Australian economy may be in trouble will not be news to FT Alphaville readers. We’ve been warning for a good while that the country is uniquely exposed to the commodity super-cycle, an overvalued currency, a real-estate bubble, not to mention the Chinese slowdown.
Yet what we may have overlooked is the remarkable similarity between Australia’s external finance position and that of the European periphery, a point now being made the analyst team at Variant Perception — a boutique research analysis shop………………………………………..Full Article: Source

Era of ever-rising commodities prices over - MMG

Posted on 29 August 2012 by VRS  |  Email |Print

Chinese mining group MMG on Tuesday said the era of sharply increasing metals prices had passed, but predicted activity in China would pick up after the leadership transition in Beijing.
With concern in Australia rising over the cooling of the mining boom due to a slowdown in China, MMG Chief Executive Andrew Michelmore said growth would continue, but not at the same rates enjoyed over the past several years………………………………………..Full Article: Source

Invest in what China needs to buy: Don Coxe

Posted on 29 August 2012 by VRS  |  Email |Print

For the first 17 centuries of the so-called Christian Era, China and India together generated about 40–50% of global gross domestic product (GDP), due to the sheer size of their populations.
But when they did not participate in the Industrial Revolution, the relatively small number of people living in Europe and North America were able to take over 70% of global GDP. The East stagnated. “Of the new wealth being created in the world, more than half of it is being created by China and India.”……………………………………….Full Article: Source

IEA: Iran outage, high price don’t justify oil release

Posted on 29 August 2012 by VRS  |  Email |Print

The head of the International Energy Agency on Tuesday voiced her strongest opposition yet to a release of emergency oil stocks, risking a rift with the IEA’s most influential member, the United States, over strategic reserves policy.
Maria van der Hoeven, the Dutch executive director of the agency that represents 28 energy importing countries, said higher oil prices alone did not justify a release and world oil markets could cope with the loss of Iranian exports, hit hard by U.S. and European sanctions against Tehran………………………………………..Full Article: Source

OPEC Iran selling oil based on official prices

Posted on 29 August 2012 by VRS  |  Email |Print

Iran’s Governor at the Organization of Petroleum Exporting Countries (OPEC) Mohammad Ali Khatibi said Iran is selling crude oil based on the official prices determined monthly.
He continued that selling oil is going on as usual even to farthest customers of Iran’s oil across the globe. On ways of delivering oil to customers, Khatibi said, “Iran’s oil customers can either deliver oil in their own vessels with their own insurance cover or transport it by using Iran’s oil tankers and insurance.”……………………………………….Full Article: Source

‘Greedy’ OPEC manipulates oil, could swing election: Trump

Posted on 29 August 2012 by VRS  |  Email |Print

Billionaire real estate mogul Donald Trump suggested Tuesday that rising gasoline could alter the terrain of the upcoming U.S. presidential election, as he blasted the Oil and Petroleum Exporting Countries (OPEC) for driving up energy prices.
Trump, a vocal supporter of Republican presidential contender Mitt Romney, told CNBC’s “Squawk Box” that voters are increasingly vulnerable to the ravages of higher gas prices. He put the blame squarely on OPEC’s (learn more) shoulders, and linked the cartel to President Barack Obama………………………………………..Full Article: Source

Iraq: Mission accomplished for big oil?

Posted on 29 August 2012 by VRS  |  Email |Print

In 2011, after nearly nine years of war and occupation, U.S. troops finally left Iraq. In their place, Big Oil is now present in force and the country’s oil output, crippled for decades, is growing again.
Iraq recently reclaimed the number two position in the Organization of the Petroleum Exporting Countries (OPEC), overtaking oil-sanctioned Iran. Now, there’s talk of a new world petroleum glut. So is this finally mission accomplished?……………………………………….Full Article: Source

WTI crude oil may touch $100 per barrel shortly

Posted on 29 August 2012 by VRS  |  Email |Print

The abrupt reversal in crude oil prices since July is a reflection of investor sentiment in global financial markets, and Oil seems destined to reach $100/bbl shortly, according to Mitchell Clark, editor of Penny Stock Detectives.
He expects investor sentiment to take a significant turn for the better. “Some of the strength in oil prices is due to increased tensions in the Middle East,” claims Clark. But noting that there is yet to be a military strike, he notes that “In the absence of war, oil prices are a pretty good gauge on how financial markets feel about the global economy.”……………………………………….Full Article: Source

G7 urges higher oil output, warns on reserves

Posted on 29 August 2012 by VRS  |  Email |Print

Finance ministers of the Group of Seven (G7) most industrialized nations urged oil-producing countries on Tuesday to raise output to ensure the market is well supplied, while warning that the West was ready to tap strategic oil reserves to offset rising prices that could hamper global growth.
“We stand ready to call upon the International Energy Agency (IEA) to take appropriate action to ensure that the market is fully and timely supplied,” the G7 said in a statement. “The current rise in oil prices reflects geopolitical concerns and certain supply disruptions. We encourage oil-producing countries to increase their output to meet demand.”……………………………………….Full Article: Source

Why is yellow metal shining more?

Posted on 29 August 2012 by VRS  |  Email |Print

All that glitters Gold prices have hit an all-time high, resulting in falling imports. HT explains the factors influencing price rise. Why do people invest in gold? Gold is one of the several assets that people invest in. Unlike equities or bank deposits, gold is a physical asset and has been a traditional favourite avenue for parking surplus income.
Why are gold prices rising?Gold is considered to be a safe haven asset. With high inflation and volatile stock markets, gold prices have hit an all-time high. It has risen 35% over the last one year as investors in Europe and the US flock to add more glitter to their investment portfolio rather than park funds in unstable and risky equity markets………………………………………..Full Article: Source

Why platinum is a screaming buy now

Posted on 29 August 2012 by VRS  |  Email |Print

You won’t read about it in the mainstream news, but the South African mining industry is in the fight of its life. That makes one investment a screaming buy.
You see, violent strikes have paralyzed several South African mines this year, including most recently the giant Lonmin platinum mine………………………………………..Full Article: Source

Tin premiums stay put despite LME run-up

Posted on 29 August 2012 by VRS  |  Email |Print

Delivered tin premiums in the US have held steady, although there were pervasive rumors of lower numbers as some suppliers chased limited business, domestic market sources told Metal Bulletin’s sister publication AMM.
Delivered premiums were unchanged at $650-$750 per tonne despite three-month tin prices on the London Metal Exchange rising 10.3% over the course of last week………………………………………..Full Article: Source

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