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Commodities Briefing - Archive | October, 2012

Gas golden age darkens in Europe on U.S. coal: Energy Markets

Posted on 31 October 2012 by VRS  |  Email |Print

Europe is missing out on the natural gas boom that is transforming energy use in the U.S. and Asia, instead burning cheaper, dirtier coal imported from America. Global gas consumption may rise 19 percent by 2017 from 2010 levels as demand surges in Asia and the U.S. while Europe’s usage drops 1.6 percent, according to the International Energy Agency.
Increasing coal-fired generation in Europe has cut gas demand by 3 billion cubic feet a day, according to Sanford C. Bernstein & Co., about 7 percent of consumption. The IEA last year predicted a golden age for the fuel with new exports from America to Australia………………………………………..Full Article: Source

Opec income seen at all-time high in 2012

Posted on 31 October 2012 by VRS  |  Email |Print

Strong oil prices will ally with high production to boost OPEC’s crude export earnings to an all-time high of more than $one trillion in 2012 after breaking a historical record in 2011, according to official US figures The income will boost the cumulative15-year oil export earnings of the 12-nation Organization of Petroleum Exporting Countries to a whopping $6.7 trillion since 1998.
More than half the income has been achieved during 2008-2012 when oil prices were at their highest level and the organization was pumping at nearly capacity………………………………………..Full Article: Source

SG bearish on crude oil, product price in Q4

Posted on 31 October 2012 by VRS  |  Email |Print

The prices of crude oil and products is set to drift lower through the fourth quarter and the first half of next year, as the fiscal headwinds in Europe and the US will weigh on the global economy leading to weaker demand, according to Societe Generale.
“For (the) near term, we are actually bearish on energy (prices), particularly oil and products, as the demand growth is moderate and the supply is sufficient right now,” Jeremy Friesen, commodity strategist at Societe Generale Corporate and Investment Banking, told a press conference on Tuesday………………………………………..Full Article: Source

Gold caught between global rise, dipping dollar

Posted on 31 October 2012 by VRS  |  Email |Print

Gold is likely to rule steady on Wednesday, caught between rising prices of the yellow metal in the global market and a drop in the dollar value. Festival buying, on the other hand, will cap any likely fall in the precious metal.
Any drop in the dollar will make imports cheaper and exports costly. Gold opened higher in Singapore at $ 1,711.09 an ounce but the dollar fell against the euro in the aftermath of Hurricane Sandy lashing New York………………………………………..Full Article: Source

Bullion bull Giustra is still bullish

Posted on 31 October 2012 by VRS  |  Email |Print

Despite having publicly declared his bullishness on gold when it was trading below $300, Frank Giustra is still bullish on gold at the present levels. In case you do not know who Frank Giustra is, he comes with extraordinary credentials. Precious metals investors need to listen when he speaks.
Frank Giustra founded Lionsgate Films, but more important to precious metals investors he is the genius behind numerous resource companies—most notably Wheaton River Minerals, Silver Wheaton, Petro Rubiales and Urasia Energy. In 2002, he moved heavily into gold and published, “A Tarnished Dollar Will Put the Shine on Gold.” Today, gold remains the largest investment in his portfolio………………………………………..Full Article: Source

Asian physical gold demand improving: Analysts

Posted on 31 October 2012 by VRS  |  Email |Print

Asian physical gold demand is showing signs of life, said analysts. According to UBS, the physical demand is looking somewhat rejuvenated of late, but it’s not a consistent trend. The volumes last week of around 36.2 metric tons were the highest turnover since late September.
According to Barclays Capital, Our flows to India indicated some days of strong demand last week, but continue to lack consistency. The key thing to watch for in India is if hefty levels are sustained, especially now that we are in the traditionally busy wedding season, or if demand remains erratic, as has been the case for most of the year. That the rupee is weakening as the week starts will act as an obstacle………………………………………..Full Article: Source

Silver prices set to rise in 2013 thanks to China

Posted on 31 October 2012 by VRS  |  Email |Print

Investors in China are seeking out silver as an alternative value investment with the economy cooling for a seventh quarter. Research from Beijing Antaike notes that demand for silver is set to jump as much as 10% in 2013, with investors seeking to preserve their wealth.
Consumption may climb to 7,700 metric tonnes after gaining 6-8% in 2012, Shi Heqing, an analyst at Beijing Antaike, told Bloomberg recently. Even for China, this would be a record level. China is the world’s second biggest user of the metal………………………………………..Full Article: Source

Platinum demand to rise 50pct in India

Posted on 31 October 2012 by VRS  |  Email |Print

Growing popularity and awareness among consumers are set to drive platinum demand by 50% in India for the next couple of years. Moreso, aspiring customers’ desire for a change from the perennial gold with higher possibility of returns on their investment is likely to pull platinum demand in India.
Jewellers believe India’s platinum demand today at around 15 tonnes. But, its popularity is increasing day – by – day as the metal is considered as rare with estimated returns higher than gold. Since, platinum price has been sustainable lower than gold for the last over two years, its price may surpass gold soon which holds higher possibility of returns……………………………………….Full Article: Source

Four ways to play rising food prices with ETFs

Posted on 31 October 2012 by VRS  |  Email |Print

Though global economic growth is still hinged on the crisis in Europe and the sluggish U.S. job markets, rising food prices have become a major concern in the economies the world over. The world food prices including cereals, oilseeds, dairy, meat and sugar are surging to new highs due to the scorching heat and the worst U.S. drought in nearly a half-century.
The bad weather has also resulted in the worst wheat harvest since the late 1980s. In fact, harvest levels of this key crop dropped 14% on average this year further underscoring the issues that this corner of the market is seeing………………………………………..Full Article: Source

Agribusiness ETF for rising global food prices

Posted on 31 October 2012 by VRS  |  Email |Print

Agribusiness exchange traded funds give investors exposure to the constant rise in food consumption, as populations multiply and emerging middle classes can afford to purchase more. Demographic shifts over the next 20 years support the case for the Market Vectors Agribusiness ETF.
“MOO offers a serious way for investors to address these concerns. It provides global exposure to the agriculture industry by investing in companies that sell agricultural equipment, chemicals, and seeds. Agriculture commodity prices have a significant impact on the performance of most agriculture businesses because their customers’ income and demand for inputs, such as tractors and fertilizer, is tied to grain prices,” Alex Bryan for Morningstar wrote………………………………………..Full Article: Source

A deeper look at South Africa’s commodity industry

Posted on 31 October 2012 by VRS  |  Email |Print

South Africa is the largest economy of Africa, and it accounts for almost one-quarter of the continent’s GDP. The path to this status has not been an easy one, however, as the country languished under sanctions in the 1980s tied to the government’s apartheid policies.
While South Africa has a relatively well-developed manufacturing sector by the standards of African economies (and developing economies in general), a meaningful percentage of the country’s economy still revolves around commodities………………………………………..Full Article: Source

Clearing the path for global currency

Posted on 31 October 2012 by VRS  |  Email |Print

A more efficient system should be in place to facilitate the increasingly wide use of the yuan in global transactions, according to a report by SWIFT, the communication platform among international banks.
Global use of the currency has surged. In August the renminbi rose to 14th in the table of payment currencies, up from 35th in October 2010, according to a report by the Society for Worldwide Interbank Financial Telecommunication. Most other currencies remained flat or moved marginally during that period………………………………………..Full Article: Source

Investing in cocoa: The definitive guide

Posted on 31 October 2012 by VRS  |  Email |Print

The commodity cocoa, refers to cocoa beans, which are the dried seeds from the, Theobroma Cacao, or cocoa tree. The tree is native to the Americas, specifically the Southern Hemisphere, and has been a major part of the area’s history, though now the vast majority of the trees exist in West Africa.
In fact, cocoa beans were used as a common currency in many areas prior to the Spanish conquest. Now, cocoa is used all over the world to create chocolate, and other products such as cocoa butter. Many consume cocoa beans because of the benefits associated with them, as they are thought to have positive effects on cardiovascular health among other things. As an investment, cocoa has become a popular commodity for investors looking to cash in on the sweet gains it can provide………………………………………..Full Article: Source

Global business forum warned of ‘carbon bubble’

Posted on 31 October 2012 by VRS  |  Email |Print

Global business leaders have been warned of a “carbon bubble” that will pop as nations accelerate their move into renewable energy and send the value of coal miners and other fossil fuel industries tumbling.
Paul Gilding, an Australian environmental activist and former head of Greenpeace, told the opening of the World Business Council for Sustainable Development (WBCSD) that Asia was leading a drive into solar and other renewable energy sources that would leave countries dependent on coal exposed………………………………………..Full Article: Source

Clean development mechanism set for revamp as carbon drops

Posted on 31 October 2012 by VRS  |  Email |Print

The Clean Development Mechanism, the United Nations-overseen carbon market beset by record low prices, is set for revamps next year as initial commitments under the Kyoto Protocol expire.
“Everything is on the table” for making the program more effective, Niclas Svenningsen, manager of strategy and policy development at the UN Framework Convention on Climate Change, said today at an emissions conference in Bangkok………………………………………..Full Article: Source

Bullish bets on commodities slide on slowdown fears

Posted on 30 October 2012 by VRS  |  Email |Print

Speculators lowered bullish wagers on commodities for the third straight week, the longest streak since April, as prices erased this year’s gain on mounting concern about slowing economic growth.
Hedge funds cut net-long positions across 18 US futures and options by 0.2% to 1.18 million contracts in the week ended October 23, the lowest since July 24, US Commodity Futures Trading Commission data show. Copper holdings fell the most in seven weeks, and sugar wagers dropped to a one-month low. Bullish bets on gold slumped the most in three months………………………………………..Full Article: Source

Protect against a commodities meltdown

Posted on 30 October 2012 by VRS  |  Email |Print

Booming growth in developing markets, coupled with inflationary money-printing in the U.S. and Europe, helped fuel a bull market in commodities for a dozen years. Today, though, Wall Street is flashing a yellow light: Commodity bugs had better scoot to avoid being squashed by the global slowdown.
“The secular bull market in commodities is done,” says Jeff Weniger, senior investment analyst at Harris Private Bank. “Finished. Kaput.” Don’t let the recent rise in prices for oil (partly caused by unrest in the Middle East) and corn (the drought in the Midwest) fool you………………………………………..Full Article: Source

BlackRock confident in China commodity demand

Posted on 30 October 2012 by VRS  |  Email |Print

China’s appetite for commodities continues to grow and, with the steady recovery in the U.S. economy, should support prices for raw materials such as iron ore and copper, portfolio managers for BlackRock Inc.’s natural resources equity team said Tuesday.
Catherine Raw, co-manager of BlackRock’s BGF World Mining Fund, told reporters in Australia that slower growth in China’s economy still translates into strong commodities demand but that this hasn’t been reflected in share prices for the mining industry. At the same time, the euro zone crisis is currently less of a concern, and the U.S. economy has performed better than some people had expected early in the year, she said………………………………………..Full Article: Source

Commodity prices expected to ease – Capital Economics

Posted on 30 October 2012 by VRS  |  Email |Print

According to Capital Economics, commodity prices are likely to remain under downward pressure in the months ahead. “In particular, by the end of next year we expect the price of Brent crude oil to have dropped back to around $85 per barrel and that of copper to $6,000 per tonne,” says CE.
It also noted that grain prices should continue their recent correction, and that corn and soybeans are dropping; “we expect wheat prices to drop back as well,” was said in a research note. “In summary, higher food price inflation should not be a concern for long.”……………………………………….Full Article: Source

Opec income seen at all-time high in 2012

Posted on 30 October 2012 by VRS  |  Email |Print

Strong oil prices will ally with high production to boost OPEC’s crude export earnings to an all-time high of more than $one trillion in 2012 after breaking a historical record in 2011, according to official US figures The income will boost the cumulative15-year oil export earnings of the 12-nation Organization of Petroleum Exporting Countries to a whopping $6.7 trillion since 1998.
More than half the income has been achieved during 2008-2012 when oil prices were at their highest level and the organization was pumping at nearly capacity………………………………………..Full Article: Source

Global oil production rises on OPEC output

Posted on 30 October 2012 by VRS  |  Email |Print

The world produced more oil in October as Libya, Iraq and Saudi Arabia pumped more crude and the United States continued to draw more oil from its vast shale reserves, the U.S. Energy.
Information Administration said in a bimonthly report. The report is required by the Iran sanctions law President Barack Obama signed last year, Reuters reported, quoting a copy it obtained ahead of publication. The United States and European Union have applied new sanctions to Iran aimed at slashing oil revenue and pressuring it to stop efforts to enrich uranium to levels that could be used in weapons………………………………………..Full Article: Source

The unreliability of oil price forecasting

Posted on 30 October 2012 by VRS  |  Email |Print

Oil price forecasts are notoriously unreliable, making life difficult for energy market participants attempting to manage their risks. Alexander Osipovich explores the reasons why analysts struggle to predict future prices
Oil analysts face a thankless task. Their forecasts for the price of crude are closely watched by traders, risk managers and the public at large. Yet research shows their predictions are usually inaccurate, and some critics scorn the idea that oil prices can be forecast at all………………………………………..Full Article: Source

Hydropower generation could be doubled by 2050: IEA

Posted on 30 October 2012 by VRS  |  Email |Print

The International Energy Agency has focused its generally bullish outlook for global renewables growth on hydropower this week, with the publication of a report suggesting that global hydroelectricity production could double by 2050, preventing annual emissions of up to 3 billion tonnes of CO2 from fossil-fuel plants.
The report, Technology Roadmap: Hydropower, released on Monday by the IEA and the Ministry of Mines and Energy of the Federative Republic of Brazil, challenges the notion that the world’s hydroelectric resources have peaked, arguing instead that emerging economies – with the right policies in place – have significant potential to generate renewable power from large hydro plants………………………………………..Full Article: Source

Why precious metals will be best safe haven assets

Posted on 30 October 2012 by VRS  |  Email |Print

Suddenly the calm is over and the storm is upon us, at least in the Northeast USA if not yet in financial markets. That said the trouble brewing in those markets looks about to turn into a once-in-100-year storm too.
US political instability is a frightening prospect but that looms large with a very close race for the White House and uncertainty over the composition of the legislature after the elections on Nov. 6. The automatic austerity of the US “fiscal cliff” on Jan. 1 is far from being automatically avoided and markets loathe this sort of uncertainty………………………………………..Full Article: Source

Gold traders bullish as investors’ bullion holdings rise to a record high

Posted on 30 October 2012 by VRS  |  Email |Print

Gold traders are the most bullish in three weeks as investors’ bullion holdings rose to a record on mounting speculation that central banks will add stimulus to bolster economic growth.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral. Investors boosted holdings in exchange-traded products (ETP) to an all-time high of 2,585.1 tonne last week, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds’ bets on a rally are near the biggest in more than a year, according to US Commodity Futures Trading Commission data………………………………………..Full Article: Source

6 ways get your dividends in gold and silver bullion

Posted on 30 October 2012 by VRS  |  Email |Print

Investing for income has become a popular strategy in recent years, as low rate environments and paltry yields have made a steady stream of income a coveted luxury. Similarly, investing in gold and silver has been surging in popularity as the years have gone on.
Investors worried about inflation and a weakening economy have flocked to these precious metals in order to protect their portfolios. But what many investors do not know, is that they can combine these two worlds……………………………………….Full Article: Source

Gold holds near $ 1,710 on global growth concerns

Posted on 30 October 2012 by VRS  |  Email |Print

Gold prices held near $ 1,710 an ounce as concerns over the global growth outlook supported demand for the metal as a store of value, but losses in the broader financial markets kept a lid on gains.
Resilience above $ 1,700 an ounce, a level gold repeatedly tested last week, has reassured buyers who had feared a deeper correction after it fell to a more than six-week low at $ 1,698.39 on Oct. 24, analysts said………………………………………..Full Article: Source

The importance of physical gold demand

Posted on 30 October 2012 by VRS  |  Email |Print

Gold looks to be holding the $1,700 support level fairly well, despite concerns by some that a sharper fall is needed to see investors jump back into the market. Part of the reason for this is the strength seen recently in physical demand, particularly from Asia but, analysts caution that this demand might not be as consistent as it has been historically.
According to UBS’s Precious metals daily note, while physical demand is looking somewhat rejuvenated of late, it’s not a consistent trend………………………………………..Full Article: Source

Speculators continue to trim bullish exposure to metals-CFTC

Posted on 30 October 2012 by VRS  |  Email |Print

Speculative traders continue to reduce bullish positions in U.S. precious and base metals futures and options, according to U.S. government data released late Friday.
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and speculative non-commercial accounts decreased their net-long positions across the board, for the second week in a row in some cases………………………………………..Full Article: Source

Hedge funds returning to palladium as ETPs retreat

Posted on 30 October 2012 by VRS  |  Email |Print

Hedge funds are siding with analysts predicting decade-high palladium prices even as investors cut holdings in exchange-traded products backed by this year’s worst-performing precious metal.
The funds’ wagers on a rally more than doubled since August as ETP holdings slumped to a seven-month low, data compiled by Bloomberg show. Prices for the metal used mostly in catalytic converters will average $800 an ounce in the third quarter, 34 percent more than now and the highest since 2001, based on the median of 13 analyst estimates………………………………………..Full Article: Source

ETP assets soar

Posted on 30 October 2012 by VRS  |  Email |Print

Assets in commodity ETPs rose to an all-time high of $207bn in Quarter 3 2012 on the back of surging demand for gold ETPs. This came as aggressive moves by the US Fed and the European Central Bank to ease monetary policy increased investor demand for hedges against further currency debasement.
Gold ETP assets rose to a new record of $151bn, an increase of $23bn during the quarter - the largest quarterly rise since Quarter 2 2010. Silver ETPs also saw a large increase in assets, with assets under management in silver ETPs rising $5bn to $20bn………………………………………..Full Article: Source

“Quant” hedge funds headed for worst month since August 2007

Posted on 30 October 2012 by VRS  |  Email |Print

Computer-driven hedge funds are headed for their worst monthly performance since the start of the credit crunch after making losing bets in dozens of markets including bonds, currencies and commodities.
Many of the funds, known as managed futures or commodity trading advisors (CTAs), came into October with “risk on” trades, such as long positions on equities and commodities, and a short position on the U.S. dollar………………………………………..Full Article: Source

EU lawmakers could push more commodities trade to exchanges: ISDA

Posted on 30 October 2012 by VRS  |  Email |Print

The European Parliament’s vote on the EU’s proposed Market in Financial Instruments Directive and Market in Financial Instruments Regulation could restrict choice for investors and push more commodities trade toward exchanges, financial trading association the International Swaps and Derivatives Association warned Monday.
EU lawmakers voted on Friday to back the EU legislation intended to curb speculation in commodity derivatives trading, including the use of position limits, but with several amendments. ISDA said many of these changes were welcome but expressed concern over some……………………………………….Full Article: Source

Banks retreat from commodity derivatives

Posted on 30 October 2012 by VRS  |  Email |Print

Increasing capital requirements and other regulatory constraints are cutting the headcount and risk-taking ability of banks in commodity and energy derivatives. Might this diminished role pave the way for less regulated participants to take their place?
Investment bankers admit they are unlikely objects of sympathy. Since the financial crisis, bankers have been subject to an overwhelming degree of popular criticism, possibly only approaching the level of hatred afforded to arms manufacturers, large pharmaceutical companies and the tobacco industry. In response to the critical public mood, politicians have set in train a variety of regulatory reforms that will make it harder for banks to compete in commodity and energy derivatives………………………………………..Full Article: Source

Scotiabank Commodity Price Index snaps back in September

Posted on 30 October 2012 by VRS  |  Email |Print

After a strong gain in August, Scotiabank’s Commodity Price Index continued to rally in September.
“Easier monetary policy and liquidity injections by the European Central Bank, the Fed and the Bank of Japan boosted investor and business confidence in September,” says Patricia Mohr, vice president, and economics and commodity market Specialist at Scotiabank………………………………………..Full Article: Source

NZ dollar ‘not so over-valued’

Posted on 30 October 2012 by VRS  |  Email |Print

The high New Zealand dollar is hitting some parts of the economy, but it is not necessarily that overblown, with “fair value” at US74c to US76c, according to a report by ASB Bank.
And based on the bank’s view of recovering commodity prices in the coming year, it suggests the currency is likely to stay at about US77c in the near future, according to ASB’s latest quarterly forecasts………………………………………..Full Article: Source

A silver lining for when currency dies

Posted on 30 October 2012 by VRS  |  Email |Print

The global economy seems to be on a one way path to eventual destruction as interest continues to accumulate on the massive word-wide debt. Budget and trade deficits keep growing, but unfortunately without an engine for real and sustainable growth.
Furthermore, the amount of interest keeps rising, while raising interest rates is not an option like it was to fight the notable inflation of the late 70’s after the Dollar was taken off the gold standard by Nixon earlier in that decade………………………………………..Full Article: Source

Global carbon trading ‘near’

Posted on 30 October 2012 by VRS  |  Email |Print

A global platform for carbon trading may be in place this decade, an official at one of the world’s major environmental think tanks said. China’s emissions trading system, which is likely to be the world’s second-largest carbon market by 2015, may be a major player if it is connected to the proposed world system, said Andrew Steer, president of the World Resources Institute.
The institute in Washington is a non-partisan organization that promotes policies to protect the global environment………………………………………..Full Article: Source

Carbon trading group weathers political storms

Posted on 30 October 2012 by VRS  |  Email |Print

Policy uncertainty around the longevity of carbon-reduction policies hasn’t prevented carbon trading firm CO2 Group from notching its eighth consecutive year of growth. Net earnings for the year to September 30 more than tripled to $4.9 million from a year earlier, with sales surging 81 per cent to $64 million, the company reported.
Andrew Grant, CO2’s chief executive, said the company had diversified its operations to limit fall-out from policy changes, such as the federal opposition’s pledge to eliminate a price on carbon if it wins power………………………………………..Full Article: Source

Speculators reduce wagers as annual advance erased: Commodities

Posted on 29 October 2012 by VRS  |  Email |Print

Speculators lowered bullish wagers on commodities for the third straight week, the longest streak since April, as prices erased this year’s gain on mounting concern about slowing economic growth.
Hedge funds cut net-long positions across 18 U.S. futures and options by 0.2 percent to 1.18 million contracts in the week ended Oct. 23, the lowest since July 24, U.S. Commodity Futures Trading Commission data show. Copper holdings fell the most in seven weeks, and sugar wagers dropped to a one-month low. Bullish bets on gold slumped the most in three months………………………………………..Full Article: Source

Everyone’s bailing on commodities: ‘Into the abyss’?

Posted on 29 October 2012 by VRS  |  Email |Print

Commodities prices have been in freefall in recent weeks—a victim of money fleeing risk assets, technical resistance and Federal Reserve actions that finally seem to have lost their impact.
The commodity story is part of a larger narrative in which investors have become increasingly cautious as 2012 winds to a close, pulling money from the markets and causing drops across most investments other than bonds. The looming fiscal disaster in Washington coupled with the seesaw presidential election and the European debt crisis have been persistent thorns for investors………………………………………..Full Article: Source

Major acquisitions in global grain trading

Posted on 29 October 2012 by VRS  |  Email |Print

A consolidation is underway in global grain trading as the major players position themselves for an expected surge in demand for food commodities, particularly in Asia. The following are some of the key moves during the last couple of years:
OCTOBER 2012 - Archer Daniels Midland bids $2.8 billion for Australia’s GrainCorp in a deal that could give it a platform to supply Asia. MAY 2012 - Japanese trading house Marubeni Corp. agreed to buy U.S. grain merchant Gavilon for $5.6 billion including about $2 billion in debt. The deal positioned Japan’s top grains trader to benefit from China’s booming demand for imported corn from the world’s biggest supplier………………………………………..Full Article: Source

Putin is the new global shah of oil

Posted on 29 October 2012 by VRS  |  Email |Print

Exxon Mobil (XOM) is no longer the world’s number-one oil producer. As of Friday, that title belongs to Putin Oil Corp - oh, whoops. I mean the title belongs to Rosneft, Russia’s state-controlled oil company.
Rosneft is buying TNK-BP, which is a vertically integrated oil company co-owned by British oil firm BP (BP) and a group of Russian billionaires known as AAR. One of the top-ten privately-owned oil producers in the world, in 2010 TNK-BP churned out 1.74 million barrels of oil equivalent per day from its assets in Russia and Ukraine and processed almost half that amount through its refineries………………………………………..Full Article: Source

Norway’s Arctic gas may see demand in Europe after 2020-IEA

Posted on 29 October 2012 by VRS  |  Email |Print

A rise in gas demand for power generation in Europe after 2020 may provide a case to extract gas from Norway’s Arctic region, which is so far considered too remote and expensive to compete in the market, an IEA official said.
Norway plans to award oil and gas exploration drilling permits in up to 86 blocks next year, mostly in the Arctic region where exploration is booming after recent large discoveries………………………………………..Full Article: Source

Gold traders bullish as as investors’ bullion holdings rise to a record high

Posted on 29 October 2012 by VRS  |  Email |Print

Gold traders are the most bullish in three weeks as investors’ bullion holdings rose to a record on mounting speculation that central banks will add stimulus to bolster economic growth.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral. Investors boosted holdings in exchange-traded products (ETP) to an all-time high of 2,585.1 tonne last week, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds’ bets on a rally are near the biggest in more than a year, according to US Commodity Futures Trading Commission data………………………………………..Full Article: Source

Gold bubble ‘unlikely at current prices’

Posted on 29 October 2012 by VRS  |  Email |Print

Gold is not in a “bubble” at current prices, says a leading analyst. The precious metal is up 9.7 percent this year. Gold closed on Friday at $1,716/oz on the London Bullion Market, flat over the previous day’s $ 1,715.50/oz.
Commodity prices ended broadly lower on Friday as weakness in corporate earnings reports dimmed the outlook for the US economy. Deutsche Bank AG favors precious metals and is neutral on oil and industrial metals, Michael Lewis, head of commodities research at the bank, was quoted as saying by the Bloomberg news agency at the World Commodities Week conference in London………………………………………..Full Article: Source

Gold surrenders all QE3 gains; looks vulnerable

Posted on 29 October 2012 by VRS  |  Email |Print

Across the broad, global commodity prices eased last week amid flow of weak economic data. No wonder, growth-driven commodities were all affected. Crude oil markets saw prices drift lower most of the time last week. All base metals except zinc were down over the week, while all precious metals lost value except silver.
Grains prices were mixed last week with focus moving away from corn and soyabean to wheat as there was speculation if Ukraine would ban exports. China’s September data were mixed for commodities………………………………………..Full Article: Source

Peter Schiff: Gold headed to $5,000 within 2 years

Posted on 29 October 2012 by VRS  |  Email |Print

Massive global monetary easing and out-of-control government spending will send gold soaring almost threefold in the next two years — to $5,000 an ounce, says Peter Schiff, CEO of Euro Pacific Capital.
“I think gold is going to go up against all currencies,” he tells CNBC. “Central banks around the world are being too loose.” Spot gold slumped to a seven-month low of $1,698.39 Wednesday, but that’s not going to last long, Schiff says………………………………………..Full Article: Source

Will the price of gold be $2,300 in 2014?

Posted on 29 October 2012 by VRS  |  Email |Print

What Will the Price of Gold Be in January 2014? While a lot of us at Casey Research do not like making price predictions, and definitely ones accompanied by a particular date, it is hard to ignore the correlation in between the US monetary base and also the gold price.
That correlation says we’ll see $2,300 gold by January 2014. You will find lots of long-term charts that show a connection in between gold and numerous other types of cash (and credit). Most show that one outperforms till the other catches up. But let’s zero in on our present circumstances, namely the expansion of the US monetary base since the monetary crisis hit in 2008………………………………………..Full Article: Source

Frustration as Gold fails to climb $1800, solace in Central Bank buying: Sharps Pixley

Posted on 29 October 2012 by VRS  |  Email |Print

Gold traders look frustrated at gold failed to climb through the $1800 mark but the market awaits the much bigger event-US Presidential election on November 6 for further developments, Austin Kiddle, Sharps Pixley said in a note.
Even as gold market sentiments remained subdued, news of more Central Bank gave cause for cheer. Brazil added 1.7 tons in September while Turkey added 6.8 tons. Brazil last added gold in December 2008. The buying is expected to continue given the lower prices and currency risks in the developed world………………………………………..Full Article: Source

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