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Commodities Briefing - Archive | August, 2013

Autumn might see gold trading down before rebounding

Posted on 28 August 2013 by VRS  |  Email |Print

One hallmark of a successful trader is knowing the time frame on which he or she is trading. In this respect, the long-term investor has it easier than the trader. There’s a certain peace of mind that an investor may find in buying a fund or issue that appears to have growth potential, and then sitting back and waiting for the investment to incubate. A trader has to approach the market with a different mindset.
The trader’s advantage, though, is that good trades will cover far more price movement than an investor can ever hope to see. However, it’s crucial to keep one’s trading practices consistent with the time frame………………………………………..Full Article: Source

Why silver prices will double

Posted on 28 August 2013 by VRS  |  Email |Print

As gold bullion prices declined in the period from April to June of this year, so did silver prices. And just like gold bullion, the bullish case for the white metal’s prices continues to build.
Demand for the white precious metal is not just robust; it is rising. The chart below compares sales of silver coins at the U.S. Mint in the months of January to July of 2012 and 2013………………………………………..Full Article: Source

Two things copper price bulls are choosing to ignore

Posted on 28 August 2013 by VRS  |  Email |Print

Copper price is losing touch with huge supply growth and cost of production. Spot copper prices are up nearly 10% since hitting near two-year lows lows at the end of July.
Sentiment in the industry has been buoyed by better economic news from China which accounts from more than 40% of global demand, a stronger US recovery and what appears to be the beginnings of a real turnaround in Europe………………………………………..Full Article: Source

3 metal ETFs to buy on the commodity upswing

Posted on 28 August 2013 by VRS  |  Email |Print

Commodities have shown extreme weakness this year while many other sectors have held up quite well. However, recent trends in the space have been encouraging, as most commodities have rebounded from their lows or are even moving higher.
This is especially true with the industrial metals that have attracted investor interest in the past couple of weeks, leading to huge inflows. China, the major driver of industrial metals, is showing signs of stabilizing with strong trade data leading many to feel more bullish on the space………………………………………..Full Article: Source

A double for popular gold miners ETF? Maybe

Posted on 28 August 2013 by VRS  |  Email |Print

The Market Vectors Gold Miners ETF is already in the midst of a run that would make any other ETF envious. After bottoming in early July, GDX has surged 29.6% since July 5.
Not only has GDX been soaring, investors have been pouring significant amounts of capital into the ETF. On August 20, Street One Financial’s Paul Weisbruch said “Recent inflows to GDX have raised its asset base now to $5.6 billion, despite poor performance in both the trailing one year and trailing five year periods.” At the start of trading Monday, GDX had $7.4 billion in assets under management………………………………………..Full Article: Source

London Metal Exchange gets new CEO

Posted on 28 August 2013 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd. said Tuesday it had appointed Garry Jones as the new chief executive of the London Metal Exchange, the venerable industrial metals bourse it acquired last year, which has been embroiled in a series of price-manipulation lawsuits.
Mr. Jones, a derivatives-market veteran who most recently led the rival NYSE Liffe commodities exchange, is expected to help lead the LME’s push into more lucrative commodities trading even as the 136-year-old institution battles accusations that it turned a blind eye to metal hoarding at exchange-registered warehouses aimed at pushing prices higher………………………………………..Full Article: Source

FMC tightens rules for commodity bourse CEOs

Posted on 28 August 2013 by VRS  |  Email |Print

Tightening its noose around commodity exchanges in the aftermath of NSEL fisaco, the Forward Markets Commission (FMC) today issued a circular making CEOs more accountable to their board and the sector regulator.
FMC asked Managing Directors and/or CEOs of the commodity exchanges to furnish by September 2 if they were keeping their boards informed about the material developments and asked if expenditure incurred by them was approved by their boards………………………………………..Full Article: Source

The rupee is where? Currency collapse confounds India Inc

Posted on 28 August 2013 by VRS  |  Email |Print

Indian companies such as Whirlpool of India Ltd say they can’t plan more than a couple of months out as a fast-falling rupee currency drives up the cost of imports, forcing them to raise prices even as consumer spending crumbles.
The timing is particularly tough for consumer companies that were counting on India’s September-to-December holiday season to spur sales. India’s consumers, whose spending helped see the country through the global financial crisis in 2008, are closing their wallets, squeezing companies from carmakers to shampoo sellers………………………………………..Full Article: Source

Brazil and China scramble for agricultural influence in Africa

Posted on 28 August 2013 by VRS  |  Email |Print

Agriculture is central to Chinese and Brazilian development efforts – how trailblazing are their methods? China and Brazil have identified agriculture as central to their development efforts in Africa, confident in the belief that they can make valuable contributions based on their own agricultural success.
China trumpets its ability to feed 20% of the world’s population on roughly 10% of the world’s arable land, while Brazil can boast of agribusiness-led commercial production of soya bean and ethanol as well as its promotion of smaller-scale farming………………………………………..Full Article: Source

China power sector emissions ‘to peak in 2027′ – report

Posted on 28 August 2013 by VRS  |  Email |Print

Bloomberg New Energy Finance says renewable energy will make up half of new Chinese power capacity in coming years. Greenhouse gas emissions from China’s energy industry are likely to peak in 2027 as renewable energy and gas play an increasingly dominant role in the country’s energy mix.
That is the conclusion of a major new report from Bloomberg New Energy Finance (BNEF) that predicts renewables, including large-scale hydroelectric projects, will contribute more than half of new capacity through to 2030 as the country’s total power generation more than doubles……………………………………….Full Article: Source

Macro hedge funds turn negative on commodities and emerging markets

Posted on 27 August 2013 by VRS  |  Email |Print

Macro hedge funds have aggressively reduced their commodities position to a net short for the first time since June according to the latest research from Bank of America Merrill Lynch. Macro funds have instead opted to increase their exposure to the S&P500 and NASDAQ. Data also shows that both long short & market neutral strategies have disinflationary expectations.
The investible Hedge Fund Composite Index was down 0.57% for the month, as of Aug 21, compared to a -3.6% return for the S&P 500 index. In terms of strategies, Convertible arbitrage performed the best, up 0.16% while Equity Long Short performed the worst, falling 0.93%. Market Neutral funds decreased market exposure to 9% net long from 15% net long. Equity Long/Short also reduced market exposure to 34% from 42% net long; slightly below the 35-40% benchmark level………………………………………..Full Article: Source

The best way to profit from the commodity bust

Posted on 27 August 2013 by VRS  |  Email |Print

What happens to a forest after a forest fire? More often than not, it grows back even healthier than before. Trees damaged in a fire typically die within two years, and dead vegetation falls to the ground. The remaining snags provide a habitat for wildlife and eventually fall to the forest floor, becoming a long-term source of nutrients. It’s a process of creative destruction.
Financial markets can behave the same way. They can crash and burn, clearing out irrational excess in order to build a foundation of sustainable growth. Two prime examples: the tech bubble of the late 1990s and the so-called commodities supercycle………………………………………..Full Article: Source

Saudis offer Russia secret oil deal if it drops Syria

Posted on 27 August 2013 by VRS  |  Email |Print

Saudi Arabia has secretly offered Russia a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime in Syria.
The revelations come amid high tension in the Middle East, with US, British, and French warships poised for missile strikes against Syria, and Iran threatening to retaliate. The strategic jitters pushed Brent crude prices to a five-month high of $US112 a barrel………………………………………..Full Article: Source

Oil firms see profit increase under new pricing mechanism

Posted on 27 August 2013 by VRS  |  Email |Print

China’s three largest oil refiners reported a year-on-year profit increase for the first half, which was mainly due to the introduction of a new fuel pricing mechanism in March that allows them to set prices that are closer to international rates, analysts said Monday.
Sinopec Corp on Monday reported a first-half net profit of 29.4 billion yuan ($4.81 billion), up 24.1 percent year-on-year. PetroChina said Thursday that its first-half net profit grew 5.6 percent year-on-year to 65.52 billion yuan, the highest profit among the three firms………………………………………..Full Article: Source

America’s worry should now be oil prices, not tapering

Posted on 27 August 2013 by VRS  |  Email |Print

Right now, the market is caught up in this whole idea of the Federal Reserve tapering its bond-buying program and when they will do it … September or December. Keep in mind, that even if the Fed institutes tapering, it’s still going to be printing money. They’re not stopping what they’re doing.
In other words, it’s like me driving a car at 70 mph and I ease my foot off the gas pedal to where I’m only doing 55 mph. I’ve still got my foot on the accelerator and I haven’t tapped the brakes yet………………………………………..Full Article: Source

High crude price ‘hurts’ Iran exports: Oil minister

Posted on 27 August 2013 by VRS  |  Email |Print

Iran’s oil exports are being hurt by current high prices that make it more economical for rivals like the United States to produce more costly oil, Iran’s new energy minister said in an interview published by his ministry’s website on Saturday.
A week into the job, returning oil minister Bijan Zanganeh, who previously filled the post under the reformist president Mohammad Khatami, told oil ministry news service Shana that current prices of over $106 a barrel were a worry. His comments represent a shift in stance from those of Iran’s previous oil minister who repeatedly said he wanted oil prices to remain above $100 and played down the impact of sanctions on exports………………………………………..Full Article: Source

Iran to approach big international oil firms for talk

Posted on 27 August 2013 by VRS  |  Email |Print

Iran’s new administration is set to invite international companies for talks as it looks to mitigate the effects of Western sanctions that have damaged the country’s energy sector, a senior oil ministry official in charge of international affairs was reported as saying Monday.
“Given the establishment of the new government and the positions taken by the President [Hassan Rowhani], our approach towards the international arena has majorly changed,” Mansour Moazami, caretaker deputy minister for international and commercial affairs, was quoted as saying by oil ministry news service Shana………………………………………..Full Article: Source

How to convince Wall Street to invest in energy efficiency

Posted on 27 August 2013 by VRS  |  Email |Print

US policymakers have long struggled with the challenge of unlocking cheap capital for energy efficiency projects. Can California make it happen? In the depths of the Great Recession three years ago, California’s chief fiscal officer John Chiang gathered his deputies and posed a question: “Is there any way we can put capital on the ground in California to put people back to work in ways that would make sense for the long term?”
After some debate, they settled on what they called “the holy grail” – energy efficiency. Retrofit projects would employ many of the 100,000 construction workers looking for work and put money into the pockets of the state’s cash-strapped residents. But the policymakers soon hit a snag: they realized that to scale up a statewide program, they would need money – lots of it………………………………………..Full Article: Source

Junior gold miners up on gold price bounce

Posted on 27 August 2013 by VRS  |  Email |Print

A glimmer of light has emerged in the much-maligned gold exploration sector, with three Perth juniors yesterday banking much-needed share price gains. Gold Road Resources was joined by Bullabulling Gold and Azumah Resources as it recorded some positive movements for shareholders, who have watched gold values slide since April.
Driving yesterday’s rebound was an improving gold price, which hit a 2½-month high yesterday, closing at $US1396 an ounce. The improvement in the Australian dollar gold price is even more pronounced, courtesy of the domestic currency’s decline, to value bullion at a five-month high of $1546/oz………………………………………..Full Article: Source

Should you invest in gold? Case for buying the yellow metal remains strong

Posted on 27 August 2013 by VRS  |  Email |Print

The sharp depreciation in the rupee and the desperate measures taken by the Reserve Bank of India (RBI) to curtail its fall have ravaged NehaKohli’s investment portfolio. The equity and debt funds in the portfolio of this Delhi-based research associate have declined in value.
However, there is some relief from gold, which has rallied smartly in these difficult times. “I was sceptical, but my financial planner persuaded me to invest in gold ETFs a few months ago,” she says gratefully. Her investment in gold has appreciated nearly 15%………………………………………..Full Article: Source

What’s in the cards for silver?

Posted on 27 August 2013 by VRS  |  Email |Print

In January myself and other commentators felt confident enough about silver that we all wrote about how 2013 would be silver’s year. It was a hard sell even then, the price had climbed to $33 at the beginning of December 2012 to then just above $29. But that drop seems like nothing compared to the fall to $18.61/oz we saw at the end of June.
Why is it down by so much? At the beginning of the year top analysts were predicting the price to climb 29% in 2013. Their optimism was not surprising, and it is even less so today. Compared to gold the environment appears pretty welcoming to the precious metal………………………………………..Full Article: Source

40 questions every long-term precious metals investor must answer

Posted on 27 August 2013 by VRS  |  Email |Print

Invariably, as the price of silver and gold begins moving higher, more investors will be drawn in to the mostly paper precious metals market. Most of these buyers will be looking only at the price and could therefore be setting themselves up for a substantial disappointment. Many will simply take their losses and exit the market feeling scorned, perhaps never to return.
Those who see few alternatives, or who perhaps actually take delivery of physical metal will be faced with a steep learning curve that will hopefully be overcome by necessity at the least, and curiosity at best………………………………………..Full Article: Source

Asian demand should stabilize precious metals

Posted on 27 August 2013 by VRS  |  Email |Print

Since the beginning of July, we have seen a steady push higher in gold prices and one of the central market questions at this stage is whether or not these moves mark a short term correction in the latest downtrend or a true reversal that can be supported with fundamental arguments.
At the very least, we can say that there is a number of opposing factors that should be taken into consideration, and that the backdrop is not entirely negative. But valuations in the SPDR S&P 500 Trust ETF (SPY) are still lower by nearly 16% even with these latest rallies, so the broader picture shows that there is still a lot of ground to make up before we can say that the bear run seen in the early parts of the year has been overcome………………………………………..Full Article: Source

Speculators buy up precious, base metals futures, options - CFTC

Posted on 27 August 2013 by VRS  |  Email |Print

Speculators returned as buyers in all precious and base metals futures and options traded on the Comex division of the New York Mercantile Exchange and the Nymex, according to U.S. government data, spurred in part by a rise in prices.
For the week ended Aug. 20, speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report added to their gold and silver net-long positions for the third week in a row, while funds continue to amass bullish positions in platinum group metals. Speculators added to the newly established copper net-long position in the disaggregated report and are now nearly flat in the legacy report………………………………………..Full Article: Source

It’s copper’s turn to shine

Posted on 27 August 2013 by VRS  |  Email |Print

Like the oversold iron ore and gold sectors before it, copper has provided fleet-of-foot traders spectacular share price gains in the past couple of months.
Sold off strongly in the first six months of the year for good reason (the copper price tanked 16 per cent to a low of $US3.02 a pound on June 24), copper stocks have since been putting on some big gains in response to a price recovery to about $US3.37 a pound, more if the impact of the fall in the Aussie dollar is factored in………………………………………..Full Article: Source

Consider shorting copper above $7,200 per tonne - Barclays

Posted on 27 August 2013 by VRS  |  Email |Print

Recent copper price strength can largely be attributed to pipeline restocking, strong demand from the US power sector and tight scrap supplies Barclays says. But, the bank cautions against too much optimism.
Writing in its latest Metals Magnifier note, the bank says that while the rally has come amid positive sentiment around Chinese demand, “recent big price increases in the base metals have been less a reflection of new bullish positions being established on signs of economic stabilisation in China and more a symptom of extreme short positioning when sentiment was overly bearish………………………………………..Full Article: Source

Time to bet on the steel ETF

Posted on 27 August 2013 by VRS  |  Email |Print

The U.S. equity market continues its uptrend on the back of signs of recovery in the global economy. Now commodities are also showing a comeback after a steep fall earlier this year, and have caught investor attention in the past few weeks. This is especially true in the commodity producer segment like steel.
These producers usually act as leveraged plays on the underlying commodities. So when commodities are rising, these firms are truly the winners………………………………………..Full Article: Source

NSE sells over 2 per cent stake in Multi Commodity Exchange

Posted on 27 August 2013 by VRS  |  Email |Print

The National Stock Exchange (NSE) has sold an over 2 per cent stake in Multi Commodity Exchange (MCX) in small tranches over past few weeks, even as speculations are rife about a potential buyout of the country’s largest commodity bourse by some rival entity or private investors.
As per MCX’s latest shareholding disclosure, top stock exchange NSE held 12.5 lakh shares, or a 2.45 per cent stake, in the commodity exchange as on June 30, 2012. Out of this, the NSE is believed to have sold more than 12 lakh shares and is left with only a few thousand shares, as it did not see any further value proposition in this long-held investment, sources said………………………………………..Full Article: Source

Corn, soy jump most in more than year as heat hurts crops

Posted on 27 August 2013 by VRS  |  Email |Print

Corn jumped the most in 14 months and soybean futures rallied the most since 2011 as hot, dry Midwest weather threatens to erode crop yields in the U.S., the world’s biggest grower. Wheat also advanced.
Temperatures will average as much as 14 degrees Fahrenheit above normal during the next 10 days, with little rain expected in the Midwest, T-Storm Weather LLC said in a note to clients today. July and August will be the driest since 1936 in Iowa, Illinois and Indiana………………………………………..Full Article: Source

Support grows for single currency

Posted on 27 August 2013 by VRS  |  Email |Print

The euro edged lower against the dollar on Monday as investors took profits from recent gains on signs support for the single currency was gaining momentum. Having climbed 0.4 per cent last week, outperforming against a broadly stronger dollar, the euro gave back 0.1 per cent to $1.3373 on Monday.
Data from the Commodity Futures Trading Commission on the trading positions of institutional investors, however, showed confidence in the euro had built to such an extent over the last five weeks, that net long positions – the number of investors betting on further gains minus those betting on losses – had risen to the highest levels since May 2011………………………………………..Full Article: Source

Regulators, Bitcoin group discuss digital currency

Posted on 27 August 2013 by VRS  |  Email |Print

U.S. regulators and law enforcement agencies met on Monday with an advocacy group for Bitcoin, a digital currency that has been under fire for its purported role in facilitating anonymous money transfers.
Jennifer Shasky-Calvery, director of the Financial Crimes Enforcement Network (FinCEN), said her unit hosted a presentation by members of the Bitcoin Foundation, an advocacy group of Bitcoin-related businesses………………………………………..Full Article: Source

Brazil struggles as its currency goes soft

Posted on 27 August 2013 by VRS  |  Email |Print

Two short years ago, Brazil had a terrible problem with its currency – it was far too strong. Local factories, unable to compete with Chinese imports made cheaper by the real’s appreciation, were closing their doors. Fernando Pimentel, the trade minister and a close adviser to President Dilma Rousseff, declared that “Brazil has joined the team of countries with strong currencies” and urged industries to adapt to the new reality.
Now, as global investors shed assets in emerging markets worldwide, Brazil’s problem has abruptly turned upside-down………………………………………..Full Article: Source

No clear benefit for Hong Kong from mainland China’s carbon trading scheme

Posted on 27 August 2013 by VRS  |  Email |Print

Buses, lorries and ships: Hong Kong can do much to control these sources of its local pollution problem. But it has limited influence over the other significant source of its poor air quality: smog from mainland China. Thus, many Hongkongers have reason to be happy - in theory, at least - that Shenzhen and Guangdong are at the forefront of China’s fledgling efforts to limit carbon emissions.
Seven cities and provinces around China are starting trial carbon-trading schemes. Shenzhen launched its pilot in June; Guangdong and other locations (including Beijing and Shanghai) are due to begin their own pilots later this year. Rationing permits to pollute and then letting companies trade them depending on their needs, at market prices, ought to spur carbon-emissions cuts………………………………………..Full Article: Source

Commodities: Bumper crop expectations make corn the biggest loser as oil rises

Posted on 26 August 2013 by VRS  |  Email |Print

Fears of a slowdown in China, combined with expectations that the US will start to exit stimulus measures, have prompted investors to dump the asset class. Miners have been slashing capital expenditure as a dash for growth over the past few years resulted in a glut of supply. Even copper, which has one of the tightest supply-and-demand balances of any metal, is expected to see a significant surplus this year and next.
There have been pockets of strength, however, particularly in energy markets. This is because of supply disruptions in the Middle East and speculators betting on an economic recovery in the US………………………………………..Full Article: Source

Five China charts that look bullish for commodities

Posted on 26 August 2013 by VRS  |  Email |Print

Over the past few months, investors have seen better economic data coming out of Europe. Consumer confidence in the continent has been rising, manufacturing data is improving and the fiscal situation is on the mend. Now, China appears to be strengthening as well, which could signal better times ahead – U.S. Global Investors.
Below are five charts that I believe look bullish for China and commodities. While not meant to be comprehensive, they do point to areas where investors might want to pay close attention………………………………………..Full Article: Source

The furore over physical commodity trading

Posted on 26 August 2013 by VRS  |  Email |Print

Despite the agitation over their role, there are valid reasons why banks are involved in physical commodities. In the wake of the financial crisis, opponents of the banking industry are always eager to find new sticks with which to beat the villains of Wall Street. The latest one they have stumbled upon is banks’ participation in physical commodities.
On July 19, the US Federal Reserve Board issued a statement saying it was reviewing a 2003 determination that paved the way for banks to increase their involvement in the transport and storage of physical commodities………………………………………..Full Article: Source

$200 oil prices: Fact or fiction?

Posted on 26 August 2013 by VRS  |  Email |Print

Fact: U.S. oil production this past July was 7.5 million barrels per day. That’s the highest monthly output since 1991. It’s now believed that in the U.S. oil production could exceed imports by October, which would be the first time since 1995.
Production growth is being fueled by places such as the Eagle Ford Shale in Texas, where ConocoPhillips, for example, saw its production skyrocket by 98% in the past year.Despite booming production, oil prices are stubbornly high, and currently well over $100 per barrel. Globally, cracks are being felt in the world oil markets as turmoil in Egypt has oil traders nervous………………………………………..Full Article: Source

Iran doesn’t favor high prices for crude oil: minister

Posted on 26 August 2013 by VRS  |  Email |Print

Iranian Oil Minister Bijan Namdar Zanganeh has said that the country is not in favor of high prices for crude oil, as it will not manage to sell expensive oil in the international market. “Whenever oil price went high, we could not succeed in selling it,” the Mehr News Agency quoted Zanganeh as saying on Saturday.
High oil price can be a challenge for Iran and a welcome opportunity for our rivals, because they can sell crude oil at higher prices, Zanganeh explained………………………………………..Full Article: Source

Within four years, China to consume more oil than U.S.

Posted on 26 August 2013 by VRS  |  Email |Print

The U.S. is on its way out as the world’s No. 1 oil importer, according to energy market researchers at Woods Mackenzie. That coveted (or not so coveted) title will belong to none other than China. As if anyone would be surprised.
According to the report, China will spend $500 billion a year on crude oil imports by 2020. “The price China pays will far outstrip the peak cost ever incurred by the U.S. of $335 billion annually with U.S. import spend falling to only $160 billion annually by 2020,” Wood Mackenzie said in a press release last week………………………………………..Full Article: Source

Hedge fund gold bets at six-month high after rally: Commodities

Posted on 26 August 2013 by VRS  |  Email |Print

Hedge funds and other speculators raised bets on higher gold prices to the most in six months as signs of slowing U.S. growth drove bullion above $1,400 an ounce for the first time since June.
The net-long position increased 29 percent to 73,216 futures and options by Aug. 20, U.S. Commodity Futures Trading Commission data show. Short contracts fell for a second week and to the lowest since Feb. 12. Net-bullish holdings across 18 U.S.-traded commodities jumped 34 percent, the most since July 2010, as wagers on copper and soybeans more than doubled………………………………………..Full Article: Source

Indians continue to chase gold higher despite domestic prices equal to $1,800

Posted on 26 August 2013 by VRS  |  Email |Print

Despite the Indian government’s best efforts to curb citizens of the Asian nation’s appetite for gold and a plummeting rupee, the price of the metal continues to rise inside the country. Gold hit a nine-month high on India’s domestic bullion market over the weekend.
Standard gold of 99.5% purity shot up by Rs630 to change hands at Rs31,790 per 10 gm from Friday’s closing level of Rs 31,160………………………………………..Full Article: Source

Will gold rush past the import duty hike?

Posted on 26 August 2013 by VRS  |  Email |Print

Gold is the corpse of value…” said Goto Dengo, a character in Neal Stephenson’s novel Cryptonomicon. The sentiment strikes a chord with the aam admi as gold price spikes to new highs.
As part of its strategic initiatives to contain the current account deficit, the Government recently hiked customs duty on gold and platinum from 8 per cent to 10 per cent, and on silver from 6 per cent to 10 per cent………………………………………..Full Article: Source

Has gold lost sight of its fundamentals?

Posted on 26 August 2013 by VRS  |  Email |Print

Despite the stronger dollar index yesterday the Comex gold futures prices ended the day slightly higher, silver followed suit.
Many had expected a more negative reaction from gold, following the Fed minutes however elevated demand in Asia as well as geopolitical concerns have meant the price remains supported. It is also likely that tapering has been priced in already………………………………………..Full Article: Source

Aluminum premiums in Japan said to retreat after slump in U.S.

Posted on 26 August 2013 by VRS  |  Email |Print

Aluminum buyers in Japan, Asia’s biggest importer, will probably win their first reduction in three quarters for fees they pay to producers after premiums in the U.S. and Europe slumped, three executives said.
Premiums for the three months starting in October are likely to fall to the lowest level of the year from this quarter’s $249 to $251 a metric ton over the London Metal Exchange cash price, said the executives, representing buyers and sellers. They asked not to be identified because the talks, which begin this week, are private………………………………………..Full Article: Source

Australia’s mining boom ‘not over yet’

Posted on 26 August 2013 by VRS  |  Email |Print

Former Chinese commodities trader Jerry Ren Xiaofeng, who is quietly building a mining empire in the Australian Outback, scoffs at talk the resources boom is over. For him, it has just moved north.
As some mining firms clock up billions of dollars in losses, Ren has secured millions of hectares of exploration rights in Australia’s most remote regions that could soon make him a billionaire, helped by his connections in the world’s biggest consumer of minerals, China………………………………………..Full Article: Source

Where all the ETF sold gold ended up

Posted on 26 August 2013 by VRS  |  Email |Print

Gold bullion holdings in the world’s more than 140 gold-backed ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012. During the first seven months of this year outflows totalled some 670 tonnes with more than 400 tonnes recorded in the second quarter following the spectacular collapse in the price of gold.
After burning a $60 billion hole in gold investors pockets, only in August did the selling stop. Investment bank Macquarie explains in a research note where all that gold has gone adding that ETF gold should be considered as part of the physical market………………………………………..Full Article: Source

Five ETF funds for all markets

Posted on 26 August 2013 by VRS  |  Email |Print

Investors love complexity. They seem attracted, like moths to a flame, to investment funds that are marketed as “designed for this market.” ETFs, on the other hand, often are the market, a simple benchmark.
You see this trend playing out in the selling of “active” exchange-traded funds, also known managed ETFs. These promise a little extra “zing” from active management. Naturally, that extra zing comes at a fee, so it better be a pretty good boost, right?……………………………………….Full Article: Source

Oil ETFs continue to consolidate

Posted on 26 August 2013 by VRS  |  Email |Print

Oil ETFs and Energy ETFs continued to consolidate last week as investors await upcoming Federal Reserve moves. Oil ETFs and Energy ETFs continued to consolidate last week, with the oil spot price losing 1.10% to close at $106.32 per barrel, the United States Oil Fund ETFlosing 1.17%, and the SPDR Sector Select Energy ETF adding .65%.
Investors appear to be waiting for a final Fed decision on easing and tapering come early September, judging by the sideways action of energy ETFs……………………………………….Full Article: Source

Emerging market turmoil, not another Asian currency crisis

Posted on 26 August 2013 by VRS  |  Email |Print

Plunging emerging market currencies on the prospect of US stimulus tapering have stirred memories of the 1997 Asian financial crisis, but analysts doubt a similar catastrophe is in the making.
“There are negative linkages (now) but I don’t think that we are in a repetition of the 1990s crisis,” said Jean Medecin, a member of the investment committee at the Carmignac Gestion asset manager………………………………………..Full Article: Source

South Africa currency getting pummeled by ‘perfect storm’

Posted on 26 August 2013 by VRS  |  Email |Print

South Africa’s currency has been caught in a brutal pincer of dependence on weak European markets, exposure to slowing emerging markets, domestic turmoil and tighter U.S. monetary policy.
The Federal Reserve’s announcement on May 22 that it would eventually roll back stimulus was another gust of wind amid a cyclone for the South African rand. Like other emerging market currencies, the South African unit has had a torrid time of late………………………………………..Full Article: Source

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