Sat, Aug 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 13.Nov 2012

Posted on 13 November 2012 by VRS |  Email |Print

Commodities will become less profitable for banks because of tightening global regulation of capital markets, according to McKinsey & Co. Return on equity in commodities is projected to drop to 8 percent from 20 percent, McKinsey said in its annual review of the banking industry last month.
“More complex and burdensome” rules will have a “significant” impact on banks, making it harder to raise capital and to support growth in lending, according to the e- mailed report. “Regulation will fundamentally deteriorate economics of capital markets products.”……………………………………….Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

China is the largest consumer of commodities in the world – so this week’s changes at its top table matter to miners, metal traders and investors. At the 18th Chinese Communist Party Congress a once-a-decade leadership change is about to take place. Later this week, the 25-member Politburo will be selected, with the all-powerful Politburo Standing Committee chosen from its ranks.
Xi Jinping, the current vice-president, is expected to become China’s next president and Communist Party chief, as current leader Hu Jintao steps down. The changes could be good for commodity demand – with its new leaders keen to issue impressive economic numbers to get their 10-year reign off to a flying start. Indeed, the positive numbers have already started………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Investment in gold is attributed to investors seeking protection of wealth in case the economy is not looking up, if not faltering. Given the ‘fiscal cliff’ in the United States and poor industrial production data back home, gold is is expected to rally, at least in the near term. Also tending to bear a good price per gram in futures trade, gold is about to become an excellent choice for investing.
On Monday, the rupee fell to a two-month low. More than often it is seen that commodities and the currency follow an inverse relationship. If the currency rises, commodities fall. Given the recent falling trend in the value of rupee against the US dollar, it is likely that gold will see buying………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Gold prices are poised to gain while base metals may decline in the short-term because of concerns about the so-called fiscal cliff in the U.S.
U.S. stocks saw the biggest weekly decline since June last week amid investor concern that the U.S. economy may slow if President Barack Obama and Congress fail to avert $607 billion in tax increases and spending cuts next year. Gold futures on Comex had their best week since January, gaining 3.3 percent, as the London Metal Exchange Index of six main industrial metals declined to the lowest since August………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

If China’s love affair with gold was set to music, it might well be to 70s duo The Carpenters. The message from day one of this year’s London Bullion Market Association conference – being held this week for the first time in Hong Kong – was clear: when it comes to China and gold, we’ve only just begun.
Although China’s economic slowdown has sapped demand for some commodities, such those related to construction, appetite for the yellow metal is an altogether different story………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Surely the biggest non-news gold story of the day was the statement by David Gornall of Natixis, the London Bullion Market Association’s Chjairman, that gold is somewhat underrepresented in terms of the percentage of it held in China’s foreign reserves.
“When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction,” Gornall told the Association’s annual conference being held this year in Hong Kong. “The country has only 2 percent of its reserves in the form of gold compared with the U.S. at 75 percent.”……………………………………….Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Imagine the US troops being sent to a remote gold mine in Africa to guard the assets there. Or a gold war breaking out in Africa wherein two or more groups can only talk to each other using bullets just because they cannot see each other when it comes to possessing gold properties.
Replace the words ‘gold’ and ‘Africa’ with ‘crude oil’ and ‘Middle East’ and the picture becomes clear. Fast forward in time and you will not have to do this word substitution! Gold could well become a strategic asset in the coming years; not according some nondescript analyst but as Sun Zhaoxue wants it, the head of China National Gold Corporation………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Gold prices may hit $2,000 an ounce in 2013 as rising costs and production constraints hold supply in check, while demand from central banks and Chinese consumers keeps climbing, Barrick Gold Corp, the world’s biggest gold producer, said on Monday.
Barrick Chief Executive Jamie Sokalsky said supply would struggle to keep pace with rising demand as economic uncertainties and new investment tools in Asia drive more investors to the precious metal, boding well for prices………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Barclays Research which had admitted last week that it had gone wrong in its estimation of gold prices in 2012, in its latest update has pointed out that the yellow metal is now medium term bullish supported by Obama Victory and uncertainty surrounding the fiscal cliff.
On the other hand, major gold purchasing just before Diwali is not indicated on softer Indian Rupee andi importers have refrained from purchases occassionaly buying on dips, Barclays report pointed out. Price forecast: Q4 2012: $1810/oz, 2012 annual average: $1691/oz……………………………………….Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

A leading global financial services firm Morgan Stanley looks for silver to fare better than gold whenever risk sentiment improves on a sustained basis.
According to Morgan Stanley, the precious metals outperformed most other assets classes last week, especially after United States elections as the so-called fiscal cliff became the top concern of financial markets………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

The US could become self-sufficient, while 90% of Middle Eastern oil could go to China, according to new estimates. The US can shed its longstanding dependence on Saudi Arabian oil within the next decade, redrawing the world’s political systems and potentially leading to runaway global warming.
In a report released on Monday, the world’s foremost energy watchdog, the International Energy Agency (IEA), said the US would benefit from so-called unconventional sources of oil and gas, including shale gas and shale oil, derived from fracking – blasting dense rocks apart to release the fossil fuels trapped within………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

The global thirst for oil will grow in the next two decades driven by demand from emerging nations and the rise of the US as the top producer, the International Energy Agency said.
Oil demand will increase by 14 percent between now and 2035 to reach 99.7 million barrels a day, the OECD-linked energy watchdog said in its annual assessment of the energy markets of tomorrow………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

It used to be that commodity investing was left for active traders who were savvy enough to navigate the complex futures world. But the introduction of commodity ETFs changed all that, as it was suddenly possible for retail investors to gain exposure to hard assets of all kinds with a single ticker.
As the industry began to grow, investors quickly flocked to their favorites and left other funds out in the dust. In the spirit of “bigger is not always better,” we outlined three solid commodity ETFs whose size may have caused them to go unnoticed by many investors………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

While you may be getting low-to-decent returns in the equity market, using a currency strategy as part of your portfolio may help generate more cash to your bottom line. You can add a little alpha without adding a lot of risk.
One of the primary reasons to consider using currencies in a portfolio is because the capital markets are moving in lock step. Equity markets are so highly correlated — better than 80 percent in fact — it’s almost impossible to achieve diversification. That’s where adding some exposure to the currency market can help………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

The unexpected climbdown was prompted by a decision to look into ways of encouraging airlines to cut their emissions. The European commission has made an unexpected climbdown over greenhouse gas emissions from aeroplanes, by suspending the carbon penalties it levies on flights taking off or landing from EU member states.
The extraordinary step was prompted by a decision by the International Civil Aviation Organisation (ICAO) on Friday to look into ways of encouraging airlines to cut their emissions, preferably through a “market-based mechanism” such as carbon trading. However, ICAO has only decided to start looking into the issue, and has not yet made a decision on whether to implement such a system………………………………………..Full Article: Source

Posted on 13 November 2012 by VRS |  Email |Print

Political unrest and general disagreement between climate experts and business leaders is threatening to take the California emissions program under before it’s really begun, according to Consumer Energy Report.
A combination of legal threats, growing political opposition and changes to the rules that govern it is seeing California carbon trading at records lows, bringing the very concept of the market into question………………………………………..Full Article: Source

See more articles in the archive

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31