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Commodities Briefing - Archive | December, 2013

Commodity prices to remain soft in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

A year of multiple uncertainties that continually buffeted the global commodity markets is coming to an end. The last twelve months were dominated by concerns over world economic growth, geopolitical instabilities, divergent monetary policies by the developed and the developing nations as also currency fluctuations all of which combined to take a heavy toll in terms of demand slowdown, price volatility, subdued investor interest and project delays in some cases.
The effect of all these is seen in rice movement in the last 12 months. It has generally been not a good year for commodities, and metals prices in particular – precious, base and industrial. Punters’ eternal favourite gold ended the year at just about $1,200 an ounce, a 30 per cent fall from the levels ($1,667) seen this time last year………………………………………..Full Article: Source

Commodities: A better looking 2014?

Posted on 30 December 2013 by VRS  |  Email |Print

ANZ expect most commodity markets to improve in 2014 after an average 8% decline in 2013. The performances will be skewed with improving global growth over the next 12 months offset by rising supply and high stockpile positions.
The important Chinese market will stabilise according to ANZ, which should reset an overly-cautious view on the key commodity consuming economy. Investment funds positions are also likely to be rebuilt, but rising US interest rates will prove to be a headwind and create volatile trading conditions in the first half of the year………………………………………..Full Article: Source

Demand for commodities expected to receive a boost in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

A resource analyst says he expects to see modest rises to commodity prices in 2014. David Lennox from the wealth management firm Fat Prophets says China’s economic growth should remain stable next year, providing a demand for Australian mining exports, and pushing up commodity prices.
He believes growth in the US economy will also create a positive trend in the market, but warns that could also push up the US dollar. “We do see perhaps some headwinds in terms of the US currency as the US economy does start to improve,” he said………………………………………..Full Article: Source

‘Rude awakening’ for commodities in 2014: Pro

Posted on 30 December 2013 by VRS  |  Email |Print

Most commodities are headed for sluggish price action in 2014 due to weak global demand, Citigroup’s Ed Morse said Monday. “The period of high prices led to an incredible—in fact, a record—amount of investment on the supply side,” he said. “So, we’re having significantly more supply across most commodities, and demand is not rising at the rate it was.”
On CNBC’s “Halftime Report,” Citi’s global head of commodities research said that a slowdown in Asia would push prices lower. “China’s not falling apart,” he said. “But the fact is that China growing at 7 to 7½ percent is not like China growing at 10 to 12 percent………………………………………..Full Article: Source

Should you invest in stocks or commodities in 2014?

Posted on 30 December 2013 by VRS  |  Email |Print

It’s the dawn of a new year and investors are facing an array of fresh challenges. One of the intriguing investment parlor games is to contemplate whether stocks or commodities loom as the vehicles offering the best returns.
Stocks enjoyed a spectacular showing in 2013. But investors may fret that it is unrealistic to expect continued glowing returns from the Standard & Poor’s 500 in 2014 and thus turn to commodities………………………………………..Full Article: Source

Commodity winners for 2014

Posted on 30 December 2013 by VRS  |  Email |Print

We have been preparing our 2014 picks in recent weeks, which includes individual securities we like as well as general market trends. Sometimes the two are correlated, and sometimes they are not. We are entering 2014 overweight energy, with a significant portion of our portfolio invested in the small to medium sized companies developing vast shale acreage.
Although we will cover that much more in depth in the coming days, we think that for our more conservative readers that there is ample opportunity to gain exposure to energy and commodities via the large cap names over the next 12 months………………………………………..Full Article: Source

Commodities rush loses lustre for Wall Street

Posted on 30 December 2013 by VRS  |  Email |Print

The veteran banking analyst Brad Hintz published a set of research reports in 2005 about commodities trading at Goldman Sachs and Morgan Stanley.
“With every near-term event that caused volatility in the late 1990s and so far in the 2000s, the environment has been tailor-made for these two firms to coin money in their commodities books,” wrote Mr Hintz, of Bernstein Research………………………………………..Full Article: Source

J.P. Morgan sees golden opportunities for huge gains in 2014 with gold and silver

Posted on 30 December 2013 by VRS  |  Email |Print

With serious inflation still only a gleam in the eyes of the ardent gold bugs, 2014 looks like a tough year for gold miners. The metals analysts at J.P. Morgan think it is easy to look at the cost of new mines and conclude that current prices are unsustainable. But new mine projects may not be needed for several years if more of investors’ above-ground gold horde is unwound. Here is where the story gets more interesting.
For many on Wall Street the question of future inflation is a when, and not if, proposition. Central backs around the world are printing money at a furious pace, debasing the value of their local currency………………………………………..Full Article: Source

Why economic growth alone won’t fire up oil in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

Like any other asset, crude oil trades on supply as well as demand. And while an improving U.S. economy can be expected to boost the demand for oil, a stronger supply picture should take any wind out of oil’s sales in 2014.
“Although the U.S. economic growth story might make it seem as though rising petroleum demand should lift prices, the uptrend in U.S. crude oil production is likely to be the dominant fundamental factor for the oil market in 2014,” Tim Evans, energy futures specialist at Citi Futures, wrote to CNBC.com………………………………………..Full Article: Source

Oil markets can expect more of the same in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

As 2013 draws to a close, players in the global oil markets must be reflecting on their fortunes in a year that has been much better than expected. With oil demand rising modestly and supplies plentiful, producers must be fortunate to get the oil prices they have.
Although oil prices were often volatile and seasonal swings most pronounced, the year ended with the price of the Opec basket of crude oil at almost $109 a barrel and the average for the year close to $106. But the price of the basket, which was almost $115 a barrel in the first quarter of the year, declined to $96 in the second quarter before it started its recovery in the second-half………………………………………..Full Article: Source

OPEC ministers see no 2014 glut amid signs of demand

Posted on 30 December 2013 by VRS  |  Email |Print

Oil ministers from Organisation of Petroleum Exporting Countries’ (OPEC) three biggest members rejected the possibility of a glut in global crude supply next year amid an increase in US output and efforts by Iran and Libya to add barrels to the market.
The OPEC, which provides about 40 percent of the world’s oil, won’t need to cut production in 2014 because growth in demand can absorb the additional crude, the ministers from Saudi Arabia, Iraq and Kuwait said Monday after a meeting of Arab oil exporters in Doha, Qatar………………………………………..Full Article: Source

Why oil is mightier than the sword for U.S. foreign policy

Posted on 30 December 2013 by VRS  |  Email |Print

The American Petroleum Institute said the United States is emerging as a superpower in terms of energy and should use that leverage by exporting crude oil overseas. Some U.S. lawmakers pressing for tighter sanctions on Iran, meanwhile, oppose the export drive, suggesting potential superpower influence may run up against protectionist policies.
U.S. crude oil exports are restricted under legislation enacted in response to the 1970s Arab oil embargo. Now, with the U.S. Energy Information Administration predicting crude oil production will reach 9.5 million barrels per day by 2016, the industry and its supporters said it’s time to reverse that policy………………………………………..Full Article: Source

FG benchmarks oil price at $77.5 for 2014

Posted on 30 December 2013 by VRS  |  Email |Print

The Federal Government has benchmarked crude oil price for 2014 budget at $77.5 barrels per day (bpd), a departure from the $75bpd of crude projected for 2013. Economy analysts do not expect much controversy from this level given the projected oil production of 2.3883mbpd for 2014.
The issue of oil benchmark generated a lot of furore between the executive and the legislature last year. The lawmakers wanted it pegged at $79pbd whereas the executive pegged it at $75bpd………………………………………..Full Article: Source

Predictions for 2014: Energy is anything but conventional

Posted on 30 December 2013 by VRS  |  Email |Print

With dramatic new sources of both supply and demand emerging across the globe, energy is poised to get even more unconventional in 2014. What’s next for oil, gas, and renewables? In energy, next year promises to be just as unconventional as the last.
North America’s boom in unconventional oil and gas will continue to expand and the shale success could spread elsewhere. Easy-to-reach conventional oil is dwindling, but 2014 could see a reprieve as production from Iraq, Libya, and other war-torn oil nations seems to be stabilizing. And easing relations with Iran has the potential to bring major amounts of oil back onto global markets………………………………………..Full Article: Source

Early 2014 the best time to buy gold

Posted on 30 December 2013 by VRS  |  Email |Print

Doubts grow over the precious metal’s allure as a medium-term investment as prices head for their biggest decline since 1981. Investors and consumers looking to take advantage of lower gold prices are advised to buy next quarter, with some analysts tipping prices to recover later, although they are set to post this year the biggest loss since 1981.
But some doubt the attractiveness of gold as a medium-term investment, saying its function as a hedge against inflation is likely to wane as interest rates increase after the US Federal Reserve starts its gradual withdrawal of ultra-stimulative monetary policies that resulted in near-zero interest rates………………………………………..Full Article: Source

Gold price forecast for 2014

Posted on 30 December 2013 by VRS  |  Email |Print

According to a recent Gold Survey published by Thomson Reuters GFMS the price for gold is expected to fall, due to rising interest rates and the expected withdrawal of monetary stimulus programs. But what happens if the stimulus isn’t withdrawn?
The average price predicted by market participants surveyed by Reuters is $1,350 per ounce which is 7% less then the average price of 2013 but $150 more than the current spot price.”Although the Fed tapering has been priced in already by the gold market, that is not to say that you won’t be getting a bit of a wobble as of when it is announced,” Rhona O’Connell, head of metals research and forecasting said………………………………………..Full Article: Source

Gold price collapse is the worst for 30 years

Posted on 30 December 2013 by VRS  |  Email |Print

The precious metal has been one of the worst-performing assets in 2013, bringing an end to a decade-long rally. Gold will finish the year as one of the worst-performing asset classes, bringing to an end a decade-long rally in the precious metal.
Gold has suffered its sharpest fall in 30 years, down almost 28pc over the past 12 months to close 2013 at about $1,200 (£725) an ounce………………………………………..Full Article: Source

Price of gold in 2014: More declines to come?

Posted on 30 December 2013 by VRS  |  Email |Print

This has been a terrible year for gold, with the SPDR Gold Trust and spot gold prices falling by more than 25%. Many gold-mining stocks have suffered even larger declines, as the Market Vectors Gold Miners ETF lost more than half its value this year.
But with gold just barely hanging above the $1,200-per-ounce level, do investors have any reason to hope that the price of gold in 2014 will bounce back after the first losing year for the yellow metal since the turn of the millennium? Let’s take a look at some of the factors that caused 2013’s declines and see if they’re likely to persist into 2014 and beyond………………………………………..Full Article: Source

Little glitter for gold in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

At the end of each year since 2001 anyone with gold in their investment portfolio would have had reason to smile. The price of the metal rose every 12 months, from $271 a troy ounce to $1,670 an ounce by the end of 2012, a spectacular bull run.
But 2013 was the year the bull retreated. Faced with macroeconomic conditions seen as increasingly unfavourable to gold – persistently low inflation, an improving global economy, surging stock prices and, finally, an announcement of the phase-out of the US monetary stimulus programme – investors rushed to offload bullion………………………………………..Full Article: Source

Gold will continue to underperform equities over the next 2 years

Posted on 30 December 2013 by VRS  |  Email |Print

Gold is the investment asset class which provides a hedge against inflation and better returns during recession when currencies lose their value drastically. The world is now coming out of tough times and major economies like the US have started showing good economic numbers which are fundamentally bearish for gold.
Against this backdrop gold may not give better return than equities in coming 1-2 years. Nevertheless, from a long-term perspective bet 5-10 years investors will definitely get positive returns not less than inflation rate………………………………………..Full Article: Source

Britain’s ‘Mr Copper’ bucks commodities gloom

Posted on 30 December 2013 by VRS  |  Email |Print

Michael Farmer, the London-based hedge fund manager and Conservative Party co-treasurer, has generated a third year of double-digit returns, bucking a losing trend that has dogged global commodity funds in 2013. His Red Kite physical metals fund is thought to be up more than 40 per cent this year. Two more Red Kite funds have generated around 15 per cent returns each.
Dubbed “Mr Copper”, Mr Farmer is often responsible for shipping around 15 per cent to 20 per cent of China’s copper supplies. His hedge fund group, RK Capital Management, is one of the biggest metals investment firms in the world, managing $US2.4 billion in assets. The group aims to generate profits from both physical trading and commodity hedge funds………………………………………..Full Article: Source

In 2014 silver forecasts, analysts don’t offer much hope

Posted on 30 December 2013 by VRS  |  Email |Print

Silver’s 2013 numbers tell a sad story. The precious metal’s spot price has dropped more than 30% since the beginning of the year, falling from over $30 per ounce in January to about $20 at the end of December.
Meanwhile, shares of iShares Silver, the largest silver ETF, have lost 35%. According to Kitco, silver has the worst-performing commodity futures market for 2014………………………………………..Full Article: Source

How precious metal prices are manipulated

Posted on 30 December 2013 by VRS  |  Email |Print

Much confusion persists regarding the method, or mechanics, of how the big banks are able to push the price of precious metals around at will for so long. GATA and Ted Butler have long established and outlined the reasons why this occurs (legally). They have also established the foundation that forms the basis of how the manipulation unfolds.
Despite very clear and concise commentary, the message sometimes becomes diluted in its distribution. This situation makes for easy picking from the hard-core opposition who mainly reside, ironically, as part of the professional mining and trading community………………………………………..Full Article: Source

Copper traders bullish as hedge funds bet on gains: Commodities

Posted on 30 December 2013 by VRS  |  Email |Print

Copper analysts are the most bullish in three weeks after manufacturing expanded from the U.S. to Europe and hedge funds bet on higher prices for the first time since November.
Fourteen analysts surveyed by Bloomberg News expect prices to gain this week, four are bearish and six neutral. The metal reached a four-month high of $7,415.50 a metric ton on Dec. 27. Hedge funds and other large speculators are holding their biggest bullish bet since February, U.S. Commodity Futures Trading Commission data show………………………………………..Full Article: Source

3 Commodity ETFs to watch in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

2013 wasn’t particularly good for commodity investing as the dollar gained more strength compared to several currencies, and stock markets kept hitting new highs day in, day out. Despite this, some agricultural-based products turned around as the year progressed, probably on supply crunch for some soft commodities and global recovery which led to enhanced consumption.
The performance of the broad agricultural commodity fund PowerShares DB Agriculture Fund displays this gradual improvement. The product lost 14% so far this year while it shed just 3.5% in last three months………………………………………..Full Article: Source

Four wishes for ETFs in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

This has been another stellar year for ETF adoption, with over $175 billion in new money flowing into exchange-traded products. That brings the total US-listed ETF market to over $1.65 trillion. If it weren’t for the billions of outflows in commodity-related ETFs, we would surely surpass $200 billion this year and set a new all-time record for annual inflows.
Investors are thirsty for the flexibility, liquidity, and innovative strategies that ETFs have to offer, which is why I’ve created my ETF wish list for 2014. The following ideas represent my thoughts on the best way forward for the industry and individual investors in the new year………………………………………..Full Article: Source

Commodities search for strong end to bad year

Posted on 30 December 2013 by VRS  |  Email |Print

It is perhaps of little compensation to investors that have been on the wrong side of the trade this year, but select commodities exchange traded funds are trying to end the year on a positive note.
The SPDR Gold Shares, the world’s largest gold ETF, is up 1.6% in the past five trading sessions while the iShares Silver Trust has jumped 4%. The gains are not limited to precious metals, either. Positive economic data has helped lift the U.S. Oil Fund by almost 2% over the past week………………………………………..Full Article: Source

Russian, Chinese and Gulf state firms enter commodity trading to control pricing

Posted on 30 December 2013 by VRS  |  Email |Print

As US and European banks dropout of commodity trading, Russian, Chinese and Gulf state firms are filling the gap in an attempt to exert greater control over the pricing of the raw materials on which their economies so heavily depend.
Last week, the Kremlin oil champion Rosneft bought the oil trading unit of Morgan Stanley, one of the largest and oldest trading desks on Wall Street, as banks reduce exposure to trading………………………………………..Full Article: Source

What will 2014 and the next years hold for agriculture?

Posted on 30 December 2013 by VRS  |  Email |Print

The Midwest Rural Agricultural Safety and Health Conference in Ames in mid-November featured reviews of changes in agriculture during the past 40 years, along with predictions about what the next 40 years will offer. Some of the people whom I most respect for their understanding of agriculture and rural life tendered their assessments.
This is the first of two columns about the nearby future of agriculture. Nobody can predict more than a few years anymore………………………………………..Full Article: Source

Pound will be ’safe haven’ currency of 2014, says Citigroup

Posted on 30 December 2013 by VRS  |  Email |Print

Citigroup head of macro research says pound could even climb to $1.80 against the dollar by the end of 2014 if strong run of UK economic data continues. Sterling will be the global “safe haven” currency of 2014 as Britain’s strengthening economy makes it a magnet for inward investment, according to Citgroup.
The pound, supported by a run of positive economic data, climbed to a two-year high against the dollar on Friday, rising to $1.6578………………………………………..Full Article: Source

Stronger US dollar will impact global currencies in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

The prospect of a US Federal Reserve stimulus taper this year sent many currencies on a rollercoaster ride, and the volatility could extend into 2014, according to analysts.
Mitul Kotecha, head of global markets research Asia at Credit Agricole, said higher US yields, strong economic growth and higher capital flows back into the world’s leading economy would together boost the US dollar in 2014………………………………………..Full Article: Source

What is in store for world currencies in 2014

Posted on 30 December 2013 by VRS  |  Email |Print

The world currency market has lived through the outgoing year quite calmly. The new year promises moderate strengthening of commodity currencies, including the ruble. But experts have different opinions about the behavior of the main units of payment - the dollar and the euro.
As for the new-fangled virtual currencies, which are rapidly gaining popularity, analysts predict that many of the so called cryptocurrencies may disappear………………………………………..Full Article: Source

The 2013 currency of the year

Posted on 30 December 2013 by VRS  |  Email |Print

And the GlobalPost 2013 End of the Year Award for Best Currency goes to: Bitcoin. 2013 was the year that Bitcoin, a virtual currency traded anonymously via peer-to-peer exchanges, emerged from the shadows of crypto-e-commerce into the global spotlight.
This time last year, you’d probably never heard of Bitcoin. It was created in 2009, worth exactly nothing, and then traded at just a few cents on the dollar………………………………………..Full Article: Source

China’s Tianjin starts carbon trading at half Guangdong’s price

Posted on 30 December 2013 by VRS  |  Email |Print

China’s northern municipality of Tianjin started carbon trading at prices less than half of what companies in the southern province of Guangdong are paying.
Five trades for 45,000 metric tons of carbon were done for as much as 28 yuan ($4.61) a ton on the Tianjin Climate Exchange, according to a statement on its website today. Permits on the China Emissions Exchange in Guangdong, the world’s largest after the European Union, sold last week for as much as 61 yuan, the highest in the nation………………………………………..Full Article: Source

Investors should abandon long-term commodity bets

Posted on 20 December 2013 by VRS  |  Email |Print

A key rule in financial markets is that rational investors should not take unnecessary risks. It is strange, then, that some savvy investors still allocate to commodities over a long-term, five-year-plus horizon. The assumption is that commodities diversify portfolios, hedge against inflation, and, in the case of gold, offer a safe store of value. But our research suggests these justifications for long-term bets on commodities are illusory.
First, the correlation between commodity and other asset price changes was near 20 per cent in the 1980s and 1990s. Commodities were better placed to diversify investment portfolios and hedge against risk………………………………………..Full Article: Source

Scotiabank’s top commodity picks for 2014

Posted on 20 December 2013 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index declined by a sharp -5.8 per cent month-over-month in November and is currently -10.4 per cent below a year earlier. While commodity prices lost ground in 2013 — partly due to disappointingly slow global growth (2.9 per cent in 2013, down from 3.2 per cent in 2012) — signs point to a bottoming in 2014 and a return of the ‘Bull-Run’ in the second half of the decade.
Zinc is a Top ‘Pick’ for early investors. Lumber should post another solid advance in 2014, with a 19 per cent year-over-year gain expected in Western Spruce-Pine-Fir 2×4 prices………………………………………..Full Article: Source

Morgan Stanley scales down commodities

Posted on 20 December 2013 by VRS  |  Email |Print

At a staff meeting in Budapest this fall, Morgan Stanley Chief Executive James Gorman told employees that a hypothetical oil spill by a tanker under the company’s control is “a risk we just can’t take,” according to people familiar with the remark.
The comment underscored the degree to which a once-lucrative business has fallen out of favor within the bank. Morgan Stanley helped pioneer trading of raw materials on Wall Street, buying and selling physical supplies of everything from copper to crude oil and taking stakes in companies that move commodities around the world………………………………………..Full Article: Source

OPEC shipments seen stable as demand fades, Oil Movements says

Posted on 20 December 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will keep crude shipments stable through to early January as the first of two surges in winter fuel demand passes, according to tanker tracker Oil Movements.
OPEC, supplier of about 40 percent of the world’s oil, will boost sailings by 50,000 barrels a day, or 0.2 percent, to 23.98 million barrels in the four weeks to Jan. 4, the researcher said today in a report. That compares with 23.93 million in the period to Dec. 7. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

EIA: OPEC December oil output up 100,000 barrels a day Vs. November

Posted on 20 December 2013 by VRS  |  Email |Print

OPEC’s crude-oil output is up by 100,000 barrels a day in December from November, despite a 200,000 barrel-a-day drop in flow from Saudi Arabia, U.S. government estimates published Thursday show.
Crude output from the Organization of the Petroleum Exporting Countries is averaging 29.4 million barrels a day, slightly more than the month-earlier level that was the lowest since May 2011, the Energy Information Administration said………………………………………..Full Article: Source

How low oil prices could cause the death of oil

Posted on 20 December 2013 by VRS  |  Email |Print

There is a lot of confusion about which limit we are reaching with respect to oil supply. There seems to be a huge amount of “reserves,” and oil production seems to be increasing right now, so people can’t imagine that there might be a near term problem. There are at least three different views regarding the nature of the limit:
Climate Change. There is no limit on oil production within the foreseeable future. Oil prices can be expected to keep rising. With higher prices, alternative fuels and higher cost extraction techniques will become available………………………………………..Full Article: Source

Africa in 2014: The beginning of the end for the OPEC bloc

Posted on 20 December 2013 by VRS  |  Email |Print

October 2013 marked the 40th anniversary of the oil embargo launched by the Organisation of the Petroleum Exporting Countries (OPEC) after the Yom kippur War.
Just as the event sent shockwaves through the world economy in 1973, the rise of shale gas and tight oil in the US and elsewhere is now creating an impact of similar magnitude in the oil world. ……………………………………….Full Article: Source

Global coal demand growth slows

Posted on 20 December 2013 by VRS  |  Email |Print

Growth in global coal demand will slow over the next five years as consumption in China, the US and Europe are expected to ease, according to the International Energy Agency (IEA). In its Medium-Term Coal Market Report, the IEA said that in the period to 2018, global coal demand will grow by 2.3% per year, reaching almost 9 billion tonnes. This is down from its previous forecast annual growth rate of 2.6% over the same period.
Between 2007 and 2012, global coal demand grew by an average of 3.4% per year, the IEA said. However in 2012 the growth in global coal consumption dropped to 2.3% year-on-year, reaching 7.7 billion tonnes………………………………………..Full Article: Source

How to keep banks from rigging gold prices

Posted on 20 December 2013 by VRS  |  Email |Print

Authorities around the world are gradually piecing together a shocking picture of how banks have manipulated benchmarks that influence the price of everything from mortgage loans to foreign currencies.
Another area deserves their scrutiny: gold and silver. In recent weeks, Bloomberg News and others have reported on concerns, among market participants and regulators, that the process for establishing the price of gold may lend itself to insider trading and other forms of unfair dealing………………………………………..Full Article: Source

Gold: 2014 may not be nice to its price

Posted on 20 December 2013 by VRS  |  Email |Print

As 2013 looks set to close on a sour note for gold, analysts are forecasting another lackluster year of performance for the yellow metal in 2014, with Federal Reserve tapering action looming early in the New Year.
With its safe-haven appeal weakening, the gold price is on track to record its first annual decline in 13 years. Gold is down more than 25% so far this year, while the SPDR Gold Trust ETF has tumbled more than 27% year-to-date. Gold stocks have fared worse, with the Market Vectors Gold Miners ETF falling more than 55% in the last year………………………………………..Full Article: Source

Gold sinks to three-year low

Posted on 20 December 2013 by VRS  |  Email |Print

Gold slid to the lowest price in three years after the Federal Reserve said it would cut back on the easy-money policies deployed to steady the U.S. economy. Gold for February delivery, the most actively traded contract, fell $41.40, or 3.4%, to settle at $1,193.60 a troy ounce, the lowest price since August 2010, on the Comex division of the New York Mercantile Exchange.
Front-month gold for December delivery fell $41.10 to $1,195.00, also a three-year low. Gold’s declines—prices are down nearly 29% in 2013—erased much of the gains made in the wake of the financial crisis and have gold on track to end a 12-year bull run. On an annual basis, gold hasn’t lost ground since 2000………………………………………..Full Article: Source

Go short gold, long nickel - Barclays

Posted on 20 December 2013 by VRS  |  Email |Print

2014 is likely to be another difficult year for Commodities, writes Barclays, in a note out earlier this week. But, it expects base metals to out perform both oil and precious metals in the early parts of the year.
The main reasons for this are twofold. Firstly, on the base metals side, Barclays expects 2014 to mark the end of a period of structural surplus that has afflicted base metal markets to a greater or lesser degree since 2007/2008………………………………………..Full Article: Source

U.S. gold exports in 2013 through September exceeded all of 2012

Posted on 20 December 2013 by VRS  |  Email |Print

U.S. gold bullion exports hit a new record during the first nine months of the year. Not only have exports recorded significant growth year-on-year, but also surpassed the total exports for the entire year 2012.
According to data provided by the U.S. Geological Survey (USGS), U.S. gold bullion exports during 2013 through September totaled 416 mt. This is 47% higher when compared with the exports during the corresponding nine-month period in 2012. In the first nine months of 2012, the United States had exported only 283 mt of gold bullions……………………………………….Full Article: Source

Deutsche Bank talks with buyers for its uranium business

Posted on 20 December 2013 by VRS  |  Email |Print

Deutsche Bank AG is holding preliminary talks with potential buyers of its uranium trading business - the first sign since announcing it was largely exiting commodities trading that parts of the operation are now on the block.
The bank’s uranium desk is one of the biggest third-party traders in the market, and holds substantial stockpiles of low-grade uranium, known as yellowcake, and numerous long-term deals with nuclear power plants………………………………………..Full Article: Source

A look at 2013’s top staples ETF

Posted on 20 December 2013 by VRS  |  Email |Print

Consumer staples stocks are notoriously slow-moving, but the sector’s reputation for dependable dividend growth and decent yields has made it a favored destination for scores of income investors.
Those attributes have also compelled investors to pour billions of dollars into exchange traded funds tracking the consumer staples sector. But in a strong bull market, such as the one investors have been treated to in 2013, lower beta sectors, including staples, have a propensity to lag the broader market………………………………………..Full Article: Source

Bundle up for 2014 – 5 best ETFs to buy

Posted on 20 December 2013 by VRS  |  Email |Print

What are the best exchange-traded funds to buy in 2014? Most Wall Street strategists expect moderate returns for the S&P 500 in 2014, especially compared to what we’ve seen in 2013.
It’s unlikely investors will see a second consecutive year of 20% returns, although double-digit returns are entirely plausible. ETF selection in the coming year is even more important as performance becomes harder to obtain………………………………………..Full Article:

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