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Commodities Briefing - Archive | November, 2013

Investing in commodities: Rust-proof

Posted on 29 November 2013 by VRS  |  Email |Print

Grain silos, oil pipelines and copper smelters are not exactly glamorous. Yet for a glorious couple of years up until mid-2008, commodities were all the rage. China was booming, and supplies of everything from soyabeans to iron ore were failing to keep pace, prompting a giddy leap in prices.
Financial engineers minted all manner of products tied to these movements. Not only were commodities on a roll, their patter went; they also provided a crucial hedge for any diversified portfolio, since they did not move in tandem with other assets………………………………………..Full Article: Source

Canadian Commodity Index declines along with oil and gas prices

Posted on 29 November 2013 by VRS  |  Email |Print

For a third month in a row, commodity prices have fallen in Canada, according to the latest Scotiabank Price Index. It shows prices were down by 3.8 per cent, with the Oil and Gas Sub-Index leading the decline down 8 1/2 percentage points in October.
Patricia Mohr, an economist with Scotiabank, said the main reasons for the decline are lower oil prices and a buildup of light oil in the United States. She also noted transporting product has been a problem, as Albertans are getting around $26 less per barrel than the world market, but she said railways are starting to pick up the slack………………………………………..Full Article: Source

This commodity the next big trade in energy stocks?

Posted on 29 November 2013 by VRS  |  Email |Print

In many cases, companies in transformative industries can, at times, offer significant value—and natural gas is no exception. At this time, I see a large amount of potential upside in this commodity. While there has been a lot of hype around electric vehicles and other alternative energy sources, I believe natural gas will play an increasingly larger role in our economy.
There are several reasons why I believe this, including the fact that the fossil fuel is quite abundant in North America; it burns clean, so it’s better for the environment than coal or oil; and it’s relatively affordable………………………………………..Full Article: Source

Venezuela’s oil minister: OPEC must accommodate Iran supply

Posted on 29 November 2013 by VRS  |  Email |Print

Members of the Organization of the Petroleum Exporting Countries will have to accommodate any additional oil supply into the market in light of the recent easing of economic sanctions on Iran without changes to the cartel’s overall production ceiling, Venezuela Oil Minister Rafael Ramirez said Thursday.
Mr. Ramirez said how Iranian crude is absorbed into the market will feature highly in discussions next week when OPEC members gather. Venezuela will push to maintain the group’s 30-million-barrels-a-day quota, the minister said………………………………………..Full Article: Source

OPEC exports to increase on refinery demand, Oil Movements says

Posted on 29 November 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will bolster crude shipments through to mid-December, driven by Iraq and as refiners come out of maintenance, according to tanker tracker Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will raise sailings by 700,000 barrels a day, or 3 percent, to 24.05 million barrels in the four weeks to Dec. 14, the researcher said today in a report. That compares with 23.35 million in the period to Nov. 16. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

China would replace US as world’s largest oil importer

Posted on 29 November 2013 by VRS  |  Email |Print

Energy-hungry China would replace the US as the world’s largest oil importer by the 2020s followed by India, according to a report that said emerging economies are poised to claim most of the global energy supplies.
China, world’s second largest economy, will be the main contributor to the increase in global energy use over the coming decade, after that India will replace it as the world’s biggest driving force for energy demand in the 2020s, International Energy Agency (IEA) said……………………………………….Full Article: Source

IEA says oil markets sufficiently supplied despite Libya strife

Posted on 29 November 2013 by VRS  |  Email |Print

International Energy Agency head Maria van der Hoeven said on Thursday oil markets are sufficiently supplied even with the prospect of dwindling crude output from Libya, where armed militias continue blockading oilfields and ports.
Van der Hoeven was speaking to reporters in Tokyo, responding to a question on the strife in Libya. Libyan crude exports were running at 1 million barrels per day until summer, when protests and strikes escalated, pulling down output to a fraction of that………………………………………..Full Article: Source

Asia holds power balance in global energy market: IEA

Posted on 29 November 2013 by VRS  |  Email |Print

Asia’s surging energy use means it has leverage to demand cheaper prices and holds the balance of power in the global market, the head of the International Energy Agency (IEA) said Thursday.
Executive director Maria van der Hoeven said China’s growing appetite for new energy sources will drive up demand over the coming decade, replaced by a rising India in the 2020s and fast-developing Southeast Asian nations after that. “These developments together make Asia the unrivalled centre of global oil trade as the region draws in rising shares of available crude oil,” she told a news briefing in Tokyo, part of a roadshow to promote the agency’s annual report………………………………………..Full Article: Source

‘Now is a very good time to buy’ – Ron Paul on gold

Posted on 29 November 2013 by VRS  |  Email |Print

Ron Paul gave gold bugs a reason to smile this week, reiterating his confidence in the precious metal’s store of value. “It may well have seen the bottom as far as I’m concerned,” Paul said. “And I think if anybody has a need to hold more gold, now is a very good time to buy.”
When asked about his preferred investments, the former politician said precious metals and properties are a safe bet – things you can “see and feel.”……………………………………….Full Article: Source

Gold: Brief pause, or final bottom?

Posted on 29 November 2013 by VRS  |  Email |Print

Something may have changed Monday in the gold market. For one I think gold probably formed a minor daily cycle bottom. But what I’m really talking about is the complete recovery from another middle of the night attack. For most of the last year these late night attacks have worked wonders for sending gold crashing through technical levels and triggering stops. Yesterday however it simply didn’t work for the first time.
It’s been my opinion for months now that the forces behind these take downs were trying to push gold back down to the 2008 C-wave top at $1030. At which point I expected they would flip sides and go long for the bubble phase of the bull market. After watching gold fight off the manipulation yesterday I’m starting to wonder if gold has been pushed as far as it’s going to go………………………………………..Full Article: Source

HKEx plans to launch new commodities futures in 2H 2014-company official

Posted on 29 November 2013 by VRS  |  Email |Print

Hong Kong Exchanges and Clearing (HKEx) plans to launch new commodities futures contracts in the second half of next year, an official said on Wednesday. The new contracts HKEx is targeting include iron ore and coking coal, and are designed to feed off the region’s strong physical trade flows as the exchange aims to boost volumes and attract new members, the company official said.
“We do plan to start listing futures products in Hong Kong, probably in the second half of next year,” Romnesh Lamba, co-head of the global markets division, said at a conference………………………………………..Full Article: Source

BSE launches currency derivatives trading platform

Posted on 29 November 2013 by VRS  |  Email |Print

Country’s premier stock exchange BSE today became the fourth bourse in the country to have a platform for trading in currency and interest rate derivatives. BSE will now allow the rupee pair trading in dollar, euro, pound and the yen on the new currency derivatives segment.
To begin with, currency options trade will be on dollar-rupee contracts, which will be without charges for the first six moths. With this the BSE becomes the fourth stock exchange in the currency derivatives segment after the NSE, MCX-SX and United Stock Exchange………………………………………..Full Article: Source

Yen, commodity currencies feel the heat in thin month-end trade

Posted on 29 November 2013 by VRS  |  Email |Print

The yen languished at fresh lows against the euro and dollar early in Asia on Thursday on track for one of its worst monthly performance this year, while sterling climbed on more evidence of a stronger economic recovery at home.
Commodity bloc currencies, grouping the Australian, New Zealand and Canadian dollars, also fell heavily against the greenback after investors latched onto U.S. data showing an improving jobs market and more cheerful consumers………………………………………..Full Article: Source

Nine bitcoin alternatives for future currency investments

Posted on 29 November 2013 by VRS  |  Email |Print

Bitcoin’s rapid rise in value and profile has spawned over 60 different ‘altcoin’ digital peer-to-peer currencies. Bitcoin’s recent meteoric rise in value to over $1,000 has shone the spotlight on alternative currencies, but bitcoin is not the only new digital currency vying for relevancy in 2013.
Like bitcoins most of these currencies are mined by computers solving hard mathematical problems. The “coins” do not exist physically, of course, as the currencies are virtual existing only as computer files………………………………………..Full Article: Source

World grain demand, output may continue to rise in 2013-14

Posted on 29 November 2013 by VRS  |  Email |Print

Global food grain production in the year 2013-14 is expected to be higher, healthy and is likely to put pressure on commodity futures in the international market. Output of corn, rice and others is expected to go up in the current year, experts say.
World cereal production (including rice in milled equivalent) is expected to increase by 8% in 2013, to 2498 mn tons. This forecast is almost 10 mn tonnes higher than forecast in October, mostly reflecting upward adjustments to production estimates in Canada, China, EU, the United States and Ukraine, said Food and Agriculture Organization in its latest monthly FAO Cereal Supply and Demand Brief………………………………………..Full Article: Source

Beijing starts carbon trading scheme as China clamps down on emissions

Posted on 29 November 2013 by VRS  |  Email |Print

Capital joins Shenzhen and Shanghai, with Guangdong province set to open scheme that will become world’s second largest. Beijing on Thursday became the third Chinese city to launch a carbon trading scheme to regulate soaring CO2 emissions from its main power generators and manufacturers, with first trades reported to have gone through at 50 yuan ($8.20) per permit.
The capital followed newly established markets in Shenzhen and Shanghai, with Guangdong province set to open one in December that will be the second-biggest in the world after the European Union………………………………………..Full Article: Source

Will China’s carbon market fare well

Posted on 29 November 2013 by VRS  |  Email |Print

Chinese authorities are quickly establishing carbon trading markets across the country. Beijing launched its carbon emissions trading today, making it China’s third market for compulsory carbon trading.
City officials say an initial 490 companies have been included in the scheme. The targeted companies account for 40 percent of the city’s total emissions. The capital city’s move follows similar measures announced in other regions of the country………………………………………..Full Article: Source

How to profit from the commodities ‘bounce’

Posted on 28 November 2013 by VRS  |  Email |Print

The unloved commodities sector is the next big contrarian play for stock market investors. For the first time in two years of persistent underperformance, natural resource equities are showing signs of life.
These bombed out stocks have dramatically lagged, showing characteristics seen in Japanese and European equities prior to their recent re-ratings. Since the trough on June 25, the JPM Natural Resources Fund is up 18pc. Cyclical sectors in general have started to do better than defensive parts of the equity market as the improving economy signals recovery………………………………………..Full Article: Source

Why oil prices will rise despite Iran deal — Saudi Arabia

Posted on 28 November 2013 by VRS  |  Email |Print

Why is Brent crude rallying in the face of a new Iran nuclear deal? Two words might explain it: Saudi Arabia. No one was more upset, save for the Israelis, by the recent agreement between the Iranians and the U.S. than Saudi Arabia, the Iranians natural enemy in the Middle East.
By the number of visits that Secretary of State John Kerry made to the Kingdom and the appearance of Saudi sovereign investor Prince AlWaleed here in the U.S., it was clear that the message that the Saudis were sending to the U.S. government went unheeded: the U.S. inked a 6-month agreement relieving much of the financial pressures built up by sanctions over the last 3 years………………………………………..Full Article: Source

Opec to keep oil supply target steady next week: Survey

Posted on 28 November 2013 by VRS  |  Email |Print

Opec will keep its crude production limit unchanged next week as it anticipates demand in line with its current target, and as members struggle to agree on their individual share of the total, according to a Bloomberg survey.
The Organisation of Petroleum Exporting Countries will reaffirm their collective limit of 30 million barrels a day, first set two years ago, when its 12 members gather in Vienna on December 4, 22 of 24 analysts and traders polled this week by Bloomberg News predicted. The group expects demand for its crude to average 29.6 million barrels a day in 2014………………………………………..Full Article: Source

Global oil supply ready to grow: Morgan Stanley

Posted on 28 November 2013 by VRS  |  Email |Print

Well, this would be good news for the global economy if it bears out. The potential for an expanding global crude oil supply is “greater than at any point in recent memory, leaving the outlook for oil prices skewed to the downside over the next few years.”
That’s according to Morgan Stanley commodity strategists Adam Longson and Alan Lee, who this morning forecast Brent crude oil’s price to average $103 a barrel during 2014 before falling to $98 during 2015. Over this period, non-OPEC crude growth should “far outpace demand,” they write:……………………………………….Full Article: Source

China likely to raise refined oil price: analysts

Posted on 28 November 2013 by VRS  |  Email |Print

China may raise the price of refined oil on Thursday, which would mark the seventh such increase within a year, industry analysts predicted. The upward adjustment of the refined oil price is predicted to be 100 yuan (16 U.S. dollars) per ton, analysts said.
“We expect the upward adjustment of the refined oil price to be 100 yuan per ton, which will raise the retail price of 93-octane gasoline by 0.1 yuan per liter, due to the high level of the moving average of a basket of crude oil prices,” said Li Hong, an analyst………………………………………..Full Article: Source

Rogers commodity index cuts 2014 US crude weighting; adds to natgas

Posted on 28 November 2013 by VRS  |  Email |Print

Rogers International Commodity Index (RICI), managed by veteran investor Jim Rogers, will cut its weighting toward crude oil next year and raise exposure to natural gas, gold and silver, due to what Rogers termed “consumption changes”.
The shift in weightings of the RICI comes amid projections for higher U.S. crude oil supplies in 2014, which some analysts say could further weigh on weakening prices. U.S. natural gas production is also expected to rise next year, although gas prices have been trending higher lately due to cold weather in key consuming regions of the country………………………………………..Full Article: Source

Weak gold prices an opportunity of a lifetime for contrarian investors?

Posted on 28 November 2013 by VRS  |  Email |Print

Given the recent further weakness in the price of gold bullion, should investors be running for the exit doors? Some well-known “gold bugs” have recently turned bearish on the precious metal. But I’m on the opposite side of the spectrum; I see the pullback in gold prices as an opportunity of a lifetime for contrarian investors.
The gold bullion price chart below shows the long-term trend in gold bullion is still intact. Since 2001, the precious metal’s price has marched higher. Note there have been many pullbacks along the way, but in all cases, gold bullion prices recovered and moved higher after their pullback. And I believe we will see gold prices recover again from their current price correction………………………………………..Full Article: Source

Gold: Brief pause, or final bottom?

Posted on 28 November 2013 by VRS  |  Email |Print

Something may have changed Monday in the gold market. For one I think gold probably formed a minor daily cycle bottom. But what I’m really talking about is the complete recovery from another middle of the night attack. For most of the last year these late night attacks have worked wonders for sending gold crashing through technical levels and triggering stops. Yesterday however it simply didn’t work for the first time.
It’s been my opinion for months now that the forces behind these take downs were trying to push gold back down to the 2008 C-wave top at $1030. At which point I expected they would flip sides and go long for the bubble phase of the bull market………………………………………..Full Article: Source

It’s not a waste of time to buy gold

Posted on 28 November 2013 by VRS  |  Email |Print

Gold prices fell the most in more than two months last week mainly due to renewed speculation over the timing of the US Federal Reserve’s (FED) tapering of its monetary stimulus programme. After breaking below certain key support levels, the price of spot gold ended the week with a 3.5% drop to end the week at $1243.70 per ounce.
After dropping below $1300 an ounce, the selling accelerated on Thursday taking gold through the support level at $1,250, which many analysts saw as important for the market to hold. While prices initially managed to hold above $1240 an ounce, traders are eying this level as a break below could signal more technical selling with some analysts even suggesting a dip to the $1,220s as possible as bearish technical charts and little positive news is available to offset the price-negative sentiment in gold………………………………………..Full Article: Source

Gold no slam-dunk sell in China as aunties buy bullion

Posted on 28 November 2013 by VRS  |  Email |Print

Bullion consumption in the world’s second-largest economy will surge 29 percent to a record 1,000 metric tons in 2013, according to the median of 13 estimates from analysts, traders and gold producers in China surveyed by Bloomberg News.
Demand that may ease 2.4 percent in 2014 from this peak still points to purchases greater than any other nation and more than the U.S., Europe and the Middle East combined. China’s demand for jewelry, bars and coins rose 30 percent to 996.3 tons in the 12 months to September, while usage in India gained 24 percent to 977.6 tons, according to the London-based World Gold Council. India was No. 1 for calendar 2012………………………………………..Full Article: Source

Aluminium slides to lowest price in more than four years

Posted on 28 November 2013 by VRS  |  Email |Print

Aluminium slid to its lowest level in more than four years on Wednesday as speculators piled pressure on a market already weighed down by a global surplus.
Three month aluminium touched a low of $1,748 a tonne, the weakest since July 2009, and closed down 0.9 percent at $1,757. It has been one of the worst performing base metals, with losses of about 15 percent so far this year………………………………………..Full Article: Source

U.S. copper production up 10pct YTD, gold up 6pct - USGS

Posted on 28 November 2013 by VRS  |  Email |Print

U.S. gold mine production increased 6% in August, the U.S. Geological Survey has reported. Meanwhile, year-to-date mined copper output was 10% higher in July of this year that during the same period of last year, according to the USGS.
August production of gold by U.S. mines was 20,700 kilograms (665,520 troy ounces), up 6% from 19,600 kg (630,154 oz) for August 2012. Nevada led August 2013 output with 14,200 kg (456,540 oz) of gold, followed by other states at 2,880 kg (92,594 oz) and Alaska at 2,490 kg (80,055 oz)………………………………………..Full Article: Source

Australia: Commodity forecaster says mining investment boom has peaked and projects have declined

Posted on 28 November 2013 by VRS  |  Email |Print

The Federal Government’s commodities forecaster says the mining investment boom has peaked and the number of major resources projects has fallen. In its latest report, the Bureau of Resources and Energy Economics says Australia is seeing the transition from record mining investment to the mining production phase.
The Bureau says lower commodity prices and rising costs have led to a fall in the number of resources projects compared to six months ago………………………………………..Full Article: Source

Currency ETF outlook

Posted on 28 November 2013 by VRS  |  Email |Print

On a relatively quiet week for stocks with the Thanksgiving holiday, it provides a great opportunity to look at an investment alternative–currency ETFs. Currency ETFs provide traders and investors with an easy way to gain exposure to the currency markets, providing independent opportunities (and risks) which can help diversify portfolios and trades.
Like other investments, currencies change price based on supply and demand, driven by fundamental and technical factors. These four popular currency ETFs currently have compelling technical opportunities………………………………………..Full Article: Source

BSE to launch currency derivative platform on Friday

Posted on 28 November 2013 by VRS  |  Email |Print

Premiere stock exchange BSE will launch its platform for trading in currency derivatives from Friday, making it the fourth bourse in the country to offer such trades.
Other stock exchanges present in the currency futures segment are — National Stock Exchange (NSE), MCX-SX and United Stock Exchange (USE). “Exchange is pleased to inform trading members that it will be launching trading in Currency and Interest Rate Derivatives with effect from Friday, November 29, 2013,” BSE said in a notification………………………………………..Full Article: Source

Short these two commodity currencies: Goldman Sachs

Posted on 28 November 2013 by VRS  |  Email |Print

Goldman Sachs is in the process of releasing its top trade recommendations for 2014, and two of its three released tips include shorting commodity currencies.
On Wednesday, analysts recommended a long bet on the U.S. dollar versus the Canadian dollar, or loonie. A long is a bet that the asset will appreciate, while a short is a bet that the asset will depreciate………………………………………..Full Article: Source

Bitcoin virtual currency breaks $1,000 mark

Posted on 28 November 2013 by VRS  |  Email |Print

The value of a single bitcoin has surpassed $1,000 (£613) for the first time, according to MTGox, one of the virtual currency’s major exchanges. Bitcoin’s value has been rising rapidly since a US Senate committee hearing earlier this month.
Confidence grew after the committee described virtual currencies as a “legitimate financial service”. Bitcoin has become popular in part due to it being difficult to trace transactions………………………………………..Full Article: Source

China set to launch world’s second largest carbon-trading scheme

Posted on 28 November 2013 by VRS  |  Email |Print

China’s Guangdong Province, the second-largest by population, will begin a carbon-emissions-trading scheme next month as the world’s largest emitter of greenhouse gases attempts to combat air pollution, Reuters reports.
Once the carbon market is up and running, it will stand as the second largest of its kind, trailing o nly the European Union. The program is one of seven pilot programs currently in the works in China and will come on the heels of the launch of similar markets in the cities of Shanghai and Beijing……………………………………….Full Article: Source

Carbon trading history in China

Posted on 28 November 2013 by VRS  |  Email |Print

Countries committed to the Kyoto Protocol mainly operate under three market-based mechanisms. Emission Trading or ET allows countries to sell their emission quota to other countries. The Clean Development Mechanism or CDM allows a country to implement an emission-reduction project in developing countries.
Such projects can earn saleable certified emission reduction credits, which can also be counted toward meeting its Kyoto targets. Joint Implementation or JI is similar to CDM, with one difference - JI projects can only be hosted by developed countries with binding emission targets………………………………………..Full Article: Source

Mexico launches carbon trading platform

Posted on 28 November 2013 by VRS  |  Email |Print

Mexico City bourse BMV has launched a carbon credit market, the first of its kind in Latin America. MexiCO2, which was launched in collaboration with environment ministry Semarnat, the British Embassy and the UN Environment Program, will function like a standard carbon trading program.
Firms receiving carbon credits through international programs, like the UN’s Clean Development Mechanism (CDM), will be able to sell credits on the market. Firms owing carbon taxes, to be implemented under Mexico’s recently approved tax reform, can reduce what they owe by purchasing credits on the market………………………………………..Full Article: Source

One possible bright spot in commodities

Posted on 27 November 2013 by VRS  |  Email |Print

While gold is the more high-profile commodity that has disappointed investors with its recent slump in price, others are also worrying. But there may be some bright spots. Like gold, many commodities have slumped in the past couple of years and there are mixed feelings about whether prices for oil and precious metals will manage to perform before mid-2014.
But global demand for raw materials from China is expected to increase and that, coupled with a recovering European economy, could be good news for commodities such as base metals, according to analysts………………………………………..Full Article: Source

Commodities may fall further

Posted on 27 November 2013 by VRS  |  Email |Print

As the inflation from QE never arrives it actually looks like deflation might be creeping up on some of the world’s economies. And SocGen analysts think that means there could be more downside in commodities which tend to trend with inflation:
“Commodities can be seen as a leading indicator of the threat of deflation. As Fed policy is likely to change, with tapering now expected in 2014, commodity prices may correct further with the rise of US rates. And, this decline in commodity prices also reflects fears of a strong deceleration in emerging markets. Overall, “most of the emerging economies have underlying fragilities” according to the OECD………………………………………..Full Article: Source

Oil price trend sways currencies, commodities after Iran deal: Credit Agricole

Posted on 27 November 2013 by VRS  |  Email |Print

The U.S.-Iran pact curbing Iran’s nuclear capabilities has had an interesting impact on currencies, allowing them to diverge from their traditional correlation to monetary policy by first influencing oil prices, according to a note on Tuesday from French bank Crédit Agricole.
The U.S. dollar rallied against almost all of the G-10 currencies but declined against emerging market currencies. “The price action displayed an interesting shift away from the monetary policy outlook toward broader macro trends related to the sensitivity to oil prices,” wrote foreign exchange strategist Mark McCormick. “The outlook for oil importers and exporters terms of trade is likely the driver behind the knee-jerk market reaction to the nuclear deal.”……………………………………….Full Article: Source

Oil prices dip on Iran deal, but exports may not rise

Posted on 27 November 2013 by VRS  |  Email |Print

Oil prices dipped and stocks around the world rose on Monday after the news of an agreement to temporarily freeze Iran’s nuclear program, but few specialists expected any significant change to consumer energy prices, at least in the short term.
Under the interim deal brokered between the United States and other world powers with Tehran, little has changed in market fundamentals………………………………………..Full Article: Source

Iran opens contacts with oil groups

Posted on 27 November 2013 by VRS  |  Email |Print

Iran’s oil ministry has opened contacts with western majors as the government of Hassan Rouhani tries to capitalise on progress in nuclear talks and encourage companies to prepare for an eventual lifting of sanctions.
Bijan Namdar Zanganeh, the veteran oil minister who has returned to government after an eight-year absence, told the Financial Times he had held meetings with European companies and “indirectly” with US firms with a view to inviting them back to Iran………………………………………..Full Article: Source

How China took control of an OPEC country’s oil

Posted on 27 November 2013 by VRS  |  Email |Print

China’s aggressive quest for foreign oil has reached a new milestone, according to records reviewed by Reuters: near monopoly control of crude exports from an OPEC nation, Ecuador.
Last November, Marco Calvopiña, the general manager of Ecuador’s state oil company PetroEcuador, was dispatched to China to help secure $2 billion in financing for his government. Negotiations, which included committing to sell millions of barrels of Ecuador’s oil to Chinese state-run firms through 2020, dragged on for days. Calvopiña grew anxious and threatened to leave………………………………………..Full Article: Source

U.K., German regulators scrutinize gold silver pricing

Posted on 27 November 2013 by VRS  |  Email |Print

The price-setting processes for gold and silver in the spot market are the latest to come under review from global regulators, with authorities in Europe investigating the mechanisms for both precious metals.
In the U.K., the Financial Conduct Authority is reviewing how the gold price is set, said a person familiar with the investigation, who added that it is at an early stage. In Germany, the Federal Financial Supervisory Authority, or BaFin, is looking into the rate-setting processes for gold and silver, according to a representative at the regulator………………………………………..Full Article: Source

Analysts question relevance of London gold price fix

Posted on 27 November 2013 by VRS  |  Email |Print

With regulators around the globe investigating the transparency of financial markets, some analysts and traders are wondering if it is time to transition away from the London gold price fixing.
According to a Bloomberg article on Tuesday, the UK Financial Conduct Authority is analyzing the London gold price fix to see how gold prices are set. The article went on to describe how price fixing works as five bullion banks Barclays Plc , Deutsche Bank AG , Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA. meet twice a day to determine the price of gold……………………………………….Full Article: Source

Is this digital “gold bullion” investment worth the risk?

Posted on 27 November 2013 by VRS  |  Email |Print

There has been a lot of coverage over the phenomenon that is Bitcoin. I’m sure many of you are asking yourselves, is this online currency for real? What does it really say about our financial system?
But for those who are unaware, Bitcoin is essentially an online currency that is completely decentralized. Simply put, it is the exact opposite of the U.S. dollar, which is managed by the Federal Reserve………………………………………..Full Article: Source

Bear trend to continue for gold

Posted on 27 November 2013 by VRS  |  Email |Print

Gold bulls got another shock last week (assuming they’re still watching the ‘golden anchor’). Gold has breached the neckline of a head-and-shoulders pattern which has been five months in the making. On the chart below, readers can see the left shoulder in July, the head in August, and the right shoulder in October.
Head-and-shoulders patterns are traditionally considered reversal patterns. To be considered bearish the pattern would be expected to appear at the end of a bull trend. That is not what happened here………………………………………..Full Article: Source

UBS downgrades short-term gold target to $1,180/oz

Posted on 27 November 2013 by VRS  |  Email |Print

UBS on Tuesday downgraded their short-term gold price targets to $1,180 an ounce for one month and $1,100 for three months. Joni Teves, UBS analyst, said their revision focuses on three points. First, gold sentiment is much weaker than initially thought as evidenced by gold’s inability to rise even in the face of U.S. dollar weakness.
Second, market participants are focusing on the expected tapering of the Federal Reserve’s quantitative easing program, and third, physical buying is subdued, with buying less seasonal this year and Indian buying curbed by the restrictions placed on the market by the country’s government and central banks………………………………………..Full Article: Source

India’s gold bar imports plunged 42pct year-on-year in October

Posted on 27 November 2013 by VRS  |  Email |Print

The Gems and Jewellery Export Promotion Council (GJEPC) has released the details of imports of raw materials for gems and jewellery for the month of October. According to the data, the gold bar imports by the country in October this year witnessed a huge fall of 42.07% over the previous year.
The provisional figures released by GJEPC suggests that the total gold bar imports by the country in October amounted to INR 2,940.93 crores (USD 477.27 million).In rupee terms, the gold bar imports have declined sharply by 42.07%. The decline in dollar terms stood at 50.15%. It must be noted that the country’s gold bar imports during October last year were INR 5,076.56 crores (USD 957.48 million)………………………………………..Full Article: Source

A comprehensive guide to gold mining ETFs

Posted on 27 November 2013 by VRS  |  Email |Print

Gold ETFs have become very popular as an investment option. However, the recent slump in prices has affected the demand for gold ETFs and also somewhat tarnished its image as a gold haven. To date, gold has dipped almost 35% from its all-time high in Sep 2011 when it touched $1,921 per ounce. This drop has technically put the yellow metal into the quagmire of a bear market.
In 2013, it was not one event that affected the gold market. A combination of factors - the Federal Reserve’s taper or no taper confusion, conflict in Syria and slowdown in Indian and Chinese demand - affected gold prices………………………………………..Full Article: Source

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