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Commodities Briefing - Archive | October, 2012

Euro crisis sparks a gold rush as investors flock to buy bullion

Posted on 29 October 2012 by VRS  |  Email |Print

Britain’s biggest over-the-counter bullion dealer saw turnover triple in 2011as the euro panic pushed investors towards gold. East London-based Baird & Co recorded turnover of £1.35 billion in 2011, up from £417 million the previous year.
Profits were £5.9 million, up from £4.3 million in 2010. Shareholders enjoyed a dividend of £1.2 million, up on last year’s £1 million payout………………………………………..Full Article: Source

Analysts state that $100 silver is virtually guaranteed!

Posted on 29 October 2012 by VRS  |  Email |Print

There’s not only a similarity in how gold and silver trade simultaneously period, but additionally how they trade at comparable milestones, in spite of the reality that these milestones are occasionally reached at various occasions. This could trigger silver or gold to become the top indicator, based on the specific milestone.
The 1980 peak for each gold and silver is certainly an essential milestone. For this 1980 milestone, gold is undoubtedly the top indicator (since gold has currently passed its 1980 high), so it could help us to project what silver may do about this milestone………………………………………..Full Article: Source

Silver may trend higher in Q4; gain in 2013: BNP Paribas

Posted on 29 October 2012 by VRS  |  Email |Print

Investment demand should support silver, as the metal benefits from higher gold prices, and may benefit the most from loose monetary policy and a rebound in risk appetite, according to BNP Paribas.
However, silver could be vulnerable to a sharp correction once the gold rally ends. The poor consumer demand is hurting the industrial use of silver, while high prices and poor demand have dented jewelry demand, said Anne-Laure Tremblay, precious-metals strategist with BNP Paribas………………………………………..Full Article: Source

TD Securities sees platinum shortfall in 2012

Posted on 29 October 2012 by VRS  |  Email |Print

Strikes at mines in South Africa may push global platinum production below demand this year, erasing expectations of a surplus, according to TD Securities Inc.
The shortfall in 2012 may be about 200,000 ounces, Bart Melek, the Toronto-based head of commodity strategy at TD Securities, said today in a telephone interview. Earlier, he predicted a surplus of 216,000 ounces. Last year, output exceeded demand by 430,000 ounces, he said………………………………………..Full Article: Source

Non-mining sectors set to take up slack: HSBC

Posted on 29 October 2012 by VRS  |  Email |Print

The mining boom may be coming off its heady heights but other parts of the economy might start to pick up steam, according to an economist. As commodity prices have fallen from their 140-year highs, mining company’s have started shelving projects that have become unprofitable.
The Reserve Bank of Australia, meanwhile, has cut its interest rate by 150 basis points in the past 12 months. And, HSBC Australia chief economist Paul Bloxham says, that will start to provide support for the industries that have been weakest in the past couple of years, such as manufacturing, domestic tourism and retail………………………………………..Full Article: Source

Commodity trade: Quick guide to the rare earth metal ETF

Posted on 29 October 2012 by VRS  |  Email |Print

While key commodities such as corn, gold, and copper often dominate the spotlight, a group of metals known as ‘rare earths’ have a reputation of truly shining through with amazing returns.
In fact, some of the top metals in the group, such as Neodymium, Dysprosium, Yttrium, and Erbium, put up gains in the past that would make metals such as silver or gold’s historic performances in 2011 look down-right bearish………………………………………..Full Article: Source

How much money do your favorite commodity ETFs make?

Posted on 29 October 2012 by VRS  |  Email |Print

ETF investing turned the commodity world from a difficult-to-reach asset class to exposure that any retail investor could quickly add to their portfolio. The years have seen a number of innovative products come and go, but through thick and thin, a select group of funds have broken away from the rest, as they have maintained their popularity.
And just like any other business, these funds need to make money to stay open (and to hopefully make you money), as they have plenty of operating costs to take care of………………………………………..Full Article: Source

The power of the ETF (Video)

Posted on 29 October 2012 by VRS  |  Email |Print

A simple way to create a diversified portfolio is to trade in ETFs, or Exchange Traded Funds. Such funds are based on a basket of investment products and can remove the uncertainty of picking individual stocks.……………………………………….Full Article: Source

Iran planning new currency

Posted on 29 October 2012 by VRS  |  Email |Print

The Central Bank of Iran is planning to introduce a second official currency exchange rate for imports, Mehr news agency has recently reported. The new measure, which should be implemented within the next few weeks, has been approved by the government.
But why is this change necessary? Well, the new currency will aim to bring back stability to the volatile Iranian market. Earlier this month, the Iran rial plunged significantly against the US dollar in open market trade on Monday………………………………………..Full Article: Source

Yuan currency hits record high

Posted on 29 October 2012 by VRS  |  Email |Print

China’s currency hit a record high against the US dollar for the second straight day on Friday, amid US political pressure and growing confidence in the domestic economy, analysts said.
The currency touched an intra-day high of 6.2380 to the dollar at the open, marking the highest level since 1994 when the country launched its modern foreign exchange market………………………………………..Full Article: Source

Ben Bernanke: Currency manipulator

Posted on 29 October 2012 by VRS  |  Email |Print

In the final televised presidential debate, Mitt Romney promised that if he is elected on Nov. 6 he will “label China a currency manipulator” on “day one” of his presidency. He also pledged to pay more attention to trade with Latin America, noting that the region’s “economy is almost as big as the economy of China.”
To be consistent, Mr. Romney should call out the Federal Reserve on day two for engaging in its own currency manipulation by way of “quantitative easing,” which undermines the value of the dollar relative to Latin American currencies………………………………………..Full Article: Source

Global carbon trading ‘near’

Posted on 29 October 2012 by VRS  |  Email |Print

China’s efforts to combat climate change win praise from leading expert. A global platform for carbon trading may be in place this decade, an official at one of the world’s major environmental think tanks said.
China’s emissions trading system, which is likely to be the world’s second-largest carbon market by 2015, may be a major player if it is connected to the proposed world system, said Andrew Steer, president of the World Resources Institute………………………………………..Full Article: Source

NYSE Euronext to shut carbon-trading exchange in Europe

Posted on 29 October 2012 by VRS  |  Email |Print

NYSE Euronext will close a European carbon-trading exchange following a decline in trading and a series of scandals that rocked the region’s emissions market in recent years. Paris-based BlueNext SA, majority-owned by the Big Board parent, will cease operations on Dec. 5, according to a spokesman for the market.
The closure comes as NYSE Euronext has sought to trim underperforming or less-critical ventures to help deal with a lingering slowdown in trading activity. Earlier this year, the exchange group ended a joint venture geared toward developing carbon markets in the U.S. and Asia………………………………………..Full Article: Source

BHP: China will continue to support demand for commodities

Posted on 26 October 2012 by VRS  |  Email |Print

Miner BHP Billiton PLC Thursday said it remains confident about the group’s long-term outlook and added that it expects urbanization and industrialization in China to continue to support growth in demand for commodities. Expects to play an important role in helping farmers increase food production.
Market volatility experienced during the last financial year will continue in the short term, as concerns surrounding the stability of the Eurozone and the concerns on China’s growth continue to weigh on market sentiment………………………………………..Full Article: Source

EU may toughen commodity swaps curbs in financial rules

Posted on 26 October 2012 by VRS  |  Email |Print

Commodity derivative speculators may face tougher curbs under compromise plans to overhaul the European Union’s financial market rules.
Governments may seek to restrict the number of commodity- derivative contracts that traders can enter into, according to a draft version of the rules prepared by Cyprus, which holds the rotating presidency of the EU. Such a requirement would go beyond a draft law published last year by Michel Barnier, the EU’s financial services chief………………………………………..Full Article: Source

OPEC to increase shipments on heating demand, Oil Movements says

Posted on 26 October 2012 by VRS  |  Email |Print

OPEC will boost crude shipments next month as winter demand for heating oil and diesel climbs in the Northern Hemisphere, according to Oil Movements.
The Organization of Petroleum Exporting Countries will export 23.84 million barrels a day in the four weeks to Nov. 10, up 0.8 percent from 23.64 million a month earlier, the tanker- tracker said today in its weekly report. The data exclude Angola and Ecuador………………………………………..Full Article: Source

Supply boom upends the oil market

Posted on 26 October 2012 by VRS  |  Email |Print

Suddenly, the world is awash in oil. Only a few months ago, traders and investors were fretting about whether tensions in the Middle East and production problems elsewhere would lead to a shortage of crude oil. Now, many are worried there may be too much.
Forecasters say that in the fourth quarter, global oil output will top demand by more than 630,000 barrels a day, the biggest surplus in four years. The jump is due to a confluence of events: Turmoil in the Middle East has subsided along with the production and transportation problems that had been stifling oil flows from the U.S., North Sea and Africa. Meanwhile, Saudi Arabia is pumping more oil to replace falling Iranian exports, keeping output from the Organization of the Petroleum Exporting Countries steady………………………………………..Full Article: Source

World oil production grows as OPEC, U.S. pump more-U.S. EIA

Posted on 26 October 2012 by VRS  |  Email |Print

The world produced more oil in October as Libya, Iraq and Saudi Arabia pumped more crude and the United States continued to draw more oil from its vast shale reserves, the U.S. Energy Information Administration said in a bimonthly report.
The report is required by the Iran sanctions law President Barack Obama signed last year. Reuters obtained a copy ahead of publication………………………………………..Full Article: Source

Will oil price fall below $80?

Posted on 26 October 2012 by VRS  |  Email |Print

During the month, the price of oil has declined by 7.5%. United States Oil (USO) also decreased by 7.3%. The decline in the price of oil in recent days may have had an adverse impact on energy companies’ stock such as Chevron Corporation (CVX).
What could have caused such a sharp drop in the price of oil? Moreover, will oil prices continue to fall in the weeks to follow? Let’s examine the recent developments in the oil market and try to figure what’s up ahead for oil………………………………………..Full Article: Source

Gold seen outperforming as commodity bull run stalls near-term

Posted on 26 October 2012 by VRS  |  Email |Print

Gold may outperform other commodities as the bull run in raw materials pauses amid slowing economies, while grains and oilseeds may jump on weather disruptions, according to participants at the World Commodities Week conference.
Commodities will likely lack direction for the next 12 months, meaning investors will focus more on relative-value trades, according to Tiberius Asset Management AG. Deutsche Bank AG favors precious metals and is neutral on oil and industrial metals, Michael Lewis, head of commodities research at the bank, said today at the conference in London. Bullion isn’t in a “bubble” at current prices, he said………………………………………..Full Article: Source

Gold rebounds above $1,700/oz on economic optimism

Posted on 26 October 2012 by VRS  |  Email |Print

Gold rose above $1,700 an ounce on Thursday, a day after it fell under that, in reaction to encouraging United Kingdom GDP growth data and expectations the Bank of Japan will further loosen its monetary policy.
Bullion, a traditional inflation hedge, rose after data showed Britain posted its strongest quarterly economic growth in five years, although temporary effects may have masked a weaker underlying picture………………………………………..Full Article: Source

Think gold’s pricey now? Wait until it hits $5000: Schiff

Posted on 26 October 2012 by VRS  |  Email |Print

Runaway public spending combined with excessively loose monetary policy by the Federal Reserve and other global central banks will push gold to $5,000 per ounce within the next two years, noted investor Peter Schiff said Thursday.
A longtime bullion bull, the head of Euro Pacific Capital told Futures Now in an interview that despite a recent retracement, “gold’s got only one direction to go, and that’s higher.”……………………………………….Full Article: Source

If China willing, gold to break all time high: Saxo Bank

Posted on 26 October 2012 by VRS  |  Email |Print

Gold prices may reach all time high of $2,075 an ounce in December this year as mainland China’s gold buying from Australia rose sharply, said Saxo bank in a commodity snippet. Our recommendation is to buy gold now before the gold price escalates further higher, the bank added.
According to the Danish investment bank, yellow metal has jumped past coal as Australia’s second most beneficial physical export to China, with revenue up a whopping 900% for your first eight months of this year, bringing in $4.1 billion………………………………………..Full Article: Source

Uranium could be the best investment

Posted on 26 October 2012 by VRS  |  Email |Print

Under the terms of the 1993 government-to-government nuclear non-proliferation agreement (Megatons to Megawatts program), the United States and Russia agreed to commercially implement a 20-year program to convert 500 metric tons of HEU (uranium 235 enriched to 90%) taken from Soviet era warheads, into LEU, low enriched uranium (less than 5% uranium 235).
To date 463.5 metric tons of bomb-grade HEU have been recycled into 13,345 metric tons of LEU – enough material to produce fuel to power the entire United States for about two years………………………………………..Full Article: Source

Gold traders more bullish as ETP hoard sets record

Posted on 26 October 2012 by VRS  |  Email |Print

Gold traders are the most bullish in three weeks as investors’ bullion holdings rose to a record on mounting speculation that central banks will add more stimulus to bolster economic growth. Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral.
Investors boosted holdings in exchange-traded products to an all-time high of 2,584.5 metric tons on Oct. 24, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds’ bets on a rally are near the biggest in more than a year, according to U.S. Commodity Futures Trading Commission data………………………………………..Full Article: Source

The 5 minute guide to the commodity total return ETN

Posted on 26 October 2012 by VRS  |  Email |Print

There is no argument that the evolution of the ETF industry has democratized an asset class that was once hard-to-reach by the average investor. With roughly 150 options, investors can now gain cheap and easy access to nearly every corner of the commodity universe.
And while there are a number of ETFs that offer access to a single commodity, some investors prefer to have broad-based exposure to the entire space. Enter the Dow Jones-UBS Commodity Index Total Return ETN (DJCI), a product from UBS that offers diversified exposure to a basket of 19 different futures contracts. It’s unique weighting methodology combined with its attractively low price tag certainly warrants investors to take a closer look………………………………………..Full Article: Source

Agriculture ETFs: What would Jim Rogers do?

Posted on 26 October 2012 by VRS  |  Email |Print

As Bernanke and the Fed continue to print more money and debase the dollar, investors are becoming increasingly concerned with the potential impact this will have on inflation. This has led to many turning to commodity investments to help protect their portfolios.
Among the most popular inflation hedge investments are agricultural commodities, as food prices are among the first to feel the effects of inflation. As such, a number of big name investors have been recommending ag as the place to be for the coming years……………………………………….Full Article: Source

Diamond ETFs in the works — Will investors bite?

Posted on 26 October 2012 by VRS  |  Email |Print

As exchange traded fund providers ramp up efforts to market the first physically backed diamond fund, some advisors believe the commodity’s unique characteristics will create pricing inefficiencies.
Portfolio managers contend that diamonds will be more difficult to package and price into the ETF structure, compared to other types of successful products based on precious metals………………………………………..Full Article: Source

Commodity markets and funds enjoy the third quarter

Posted on 26 October 2012 by VRS  |  Email |Print

Swiss commodity fund manager Tiberius Asset Management, said in its latest monthly commentary that the commodity market ended the third quarter mostly on positive territory with all major commodity indices posting gains during the period.
It said that the broadly diversified Dow Jones UBS Commodity Index gained +2.40%, outpacing the Rogers International Commodity Index (+1.35%) and the S & P Goldman Sachs Commodity Index (-0.23%). The slightly weaker performance of the latter two indices was mainly due to their higher weighting of crude oil, which proved to be one of September’s underperformers with -2.9% (WTI) and -0.4% (Brent), Tiberius reported………………………………………..Full Article: Source

Why the currency wars are likely to end in a draw

Posted on 26 October 2012 by VRS  |  Email |Print

The most recent round of currency battles is likely to end in a whimper rather than a bang, with major liquidity injections from central banks in the countries where the globe’s most important currencies originate the main reason they have stalled rather than sparked off, according to HSBC.
“With almost all countries seemingly having a preference for a weaker currency, the result has been a stalemate where no country gets what it wants. If the ‘currency wars’ were a sporting fixture, they would be described as a no score draw,” HSBC’s currency strategists wrote in a research note………………………………………..Full Article: Source

Hong Kong gets involved in currency wars

Posted on 26 October 2012 by VRS  |  Email |Print

Special Administrative Region of China, Hong Kong, is now involved in the currency wars that take place around the world. Last week, the Hong Kong Monetary Authority (HKMA) conducted currency interventions, having sold its own currency in the amount of 603 million U.S. dollars in just one hour to stabilize the exchange rate of the Hong Kong currency against the U.S. dollar.
The measure was taken after the exchange rate of the Hong Kong dollar against the U.S. dollar fell below $7.75 per U.S. dollar, dropping to the level of 7.7367 during the trading session………………………………………..Full Article: Source

Is the carbon market just hot air for the environment?

Posted on 26 October 2012 by VRS  |  Email |Print

As California, environment stewards and the sixth largest economy in the world, prepares to launch the most extensive carbon market in North America Nov. 14, stakeholders can look to Europe to learn the dangers from selling too many unverifiable emission credits and permits.
The state plans to auction off 10 percent hand of the credits and hand out the others free of charge. California anticipates that businesses will pay some $1 billion over the next five years for the credits. The model is similar to Europe’s………………………………………..Full Article: Source

Commodity supercycle seen continuing on emerging markets demand

Posted on 25 October 2012 by VRS  |  Email |Print

The commodity supercycle has further to go on increasing demand from China and emerging markets, according to Longview Economics Ltd. and economist Dambisa Moyo. Raw materials have been in a supercycle since 2001 and the average length of each phase since the late 1700s has been almost 21 years, Chris Watling, chief executive officer of London-based Longview Economics, said today at a World Commodities Week conference in the U.K. capital.
The Standard & Poor’s GSCI spot gauge of 24 commodities erased this year’s gain after entering a bull market in the third quarter………………………………………..Full Article: Source

Banks cut commodity VAR as regulatory reform bites

Posted on 25 October 2012 by VRS  |  Email |Print

Basel capital rules and regulatory reform stymie risk appetite of major banks in commodities. Higher capital requirements and regulatory reform are causing banks to dramatically curb their risk-taking in commodity and energy markets, according to market participants.
The value-at-risk figures reported by banks between the first quarter of 2011 and the second quarter of 2012 underline a trend of lower risk-taking in commodity and energy derivatives. Eight out of 11 major dealers surveyed by Energy Risk saw a drop in value-at-risk for their commodities businesses during this period………………………………………..Full Article: Source

Oil price rises on Chinese manufacturing survey

Posted on 25 October 2012 by VRS  |  Email |Print

The price of oil rose on Wednesday after a survey of Chinese manufacturing suggested that a slowdown in the world’s second-largest economy might be stabilizing. Benchmark oil for December delivery was up 79 cents to $87.46 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract dropped $1.98 to finish at a three-month low of $86.67 on Tuesday.
The fall on Tuesday was sparked by a slew of disappointing earnings and forecasts released Tuesday by US corporate giants. Revenue fell compared with a year ago at chemical maker DuPont, UPS and Xerox and others………………………………………..Full Article: Source

How can OPEC agree output policy if it has trouble choosing a secretary general?

Posted on 25 October 2012 by VRS  |  Email |Print

Appointing a secretary general to run OPEC’s Vienna headquarters should be easy. It never is. The job is technically an administrative one, but political rivalries between key producers have overshadowed the appointment process for years.
We’re talking primarily about OPEC kingpin Saudi Arabia and Iran, but with Iraq now having overtaken Iran to become the oil cartel’s second biggest producer, Baghdad may well turn more assertive about its right to the post in the future………………………………………..Full Article: Source

Who needs an Iraqi oil law?

Posted on 25 October 2012 by VRS  |  Email |Print

Although Iraq is expanding its energy sector and has become OPEC’s number-two oil exporter, it still does not have a national hydrocarbons law. To many, that law is essential to help unify northern and southern markets, reduce investor risks and attract the foreign capital and expertise needed for future energy development.
Still, Baghdad and Erbil have much to gain without a law, at least in the medium term. Legal and political ambiguity has allowed both sides to postpone decisions on key issues, consolidate power and leverage and profit financially from undisclosed revenues and ongoing investment………………………………………..Full Article: Source

Global Hunter Securities looks for gold to surpass $2,000/Oz in 2013

Posted on 25 October 2012 by VRS  |  Email |Print

Gold is likely to surpass $2,000 an ounce in early 2013 and average $1,850 for the year, although with periods of volatility, said Global Hunters Securities in an outlook released Wednesday.
The firm looks for the metal to peak at close to $2,300 in 2014, although it also anticipates that the average for that year will fall back to $1,750. GHS lists several factors supportive for gold………………………………………..Full Article: Source

Dow:Gold makes $12,400/oz gold a realistic target

Posted on 25 October 2012 by VRS  |  Email |Print

It was fascinating to read the comments of “Mr. Gold” Jim Sinclair this week about gold heading for $3,500 to $12,400-an-ounce as a result of a shift in spread management by the bullion banks. He used to run one so knows exactly when and why these banks are likely to slash their short positions and go fully long in the precious metal.
However, a consideration of the famous Dow:Gold ratio is also relevant here as a confirmation of where this price swing will go. Historically the ratio of the Dow Jones Index to the price of gold has in extremis swung to parity with one ounce of gold equal in value to the dollar-value of this index……………………………………….Full Article: Source

Modest pressure on gold prices likely to remain near term: HSBC

Posted on 25 October 2012 by VRS  |  Email |Print

Gold prices could remain under pressure in the near term as the yellow metal fell under technical-chart support at $1,720 an ounce and was dragged down Tuesday by the weakness in risk assets, said (HSBC) in a commodity snippet.
Weakness in the euro, price declines in the industrial commodities and the platinum group metals because of lower-than-expected corporate earnings were all weighing on gold. If gold breaks $1,700, the next support level is $1,660, which is where gold held prior to Federal Reserve Chairman Ben Bernanke’s speech at the Fed symposium in Jackson Hole, said James Steel, analyst with HSBC………………………………………..Full Article: Source

Deutsche Bank still bullish on Gold; raises 2013 Gold, Silver forecasts

Posted on 25 October 2012 by VRS  |  Email |Print

Germany’s biggest bank Deutsche Bank raised its 2013 and 2014 forecasts for gold and silver, citing support from stimulus measures by central banks such as the United States Federal Reserve.
According to Deutsche Bank, the gold price could exceed to $2,200 a ounce in 2013. the bank lifted its 2013 gold price outlook by 3% to $2,113 per ounce and its 2014 forecast by y 11.1% to $2,000/oz. The German bank similarly advanced its 2013 price forecast on silver by 3% to $44/oz and its 2014 outlook by 11.1% to $40/oz………………………………………..Full Article: Source

China silver demand to advance to record on wealth protection

Posted on 25 October 2012 by VRS  |  Email |Print

Silver demand in China, the world’s second-largest user, may jump as much as 10 percent next year to a record as investors look to preserve wealth, according to Beijing Antaike Information Development Co.
Consumption may climb to as much as 7,700 metric tons, after gaining 6 percent to 8 percent in 2012, Shi Heqing, an analyst at Beijing Antaike, said in an interview on Oct. 22. About 33 percent of the country’s demand comes from jewelry and coins, with the rest from industrial use in photography, solar and electrical appliances, according to Antaike, which has researched metals for two decades………………………………………..Full Article: Source

Are rare earth metal prices about to rise?

Posted on 25 October 2012 by VRS  |  Email |Print

Rare earth metal prices have fallen sharply since mid-2011, some declining by as much as 80% as expectations of rising supplies coincided with declining demand. More recently, prices have shown signs of stabilising.
Chinese restrictions on mine output and plans to stockpile materials, coupled with the increased likelihood of problems at mines outside China may mean rare earth metal prices are about to rise………………………………………..Full Article: Source

Copper price forecast: Where is this supply deficit?

Posted on 25 October 2012 by VRS  |  Email |Print

Copper has been characterized for the last couple of years as, at best, a market in balance and about to tip into deficit.
Of all the base metals, copper’s supply market has appeared the most constrained and the case for price support has most consistently rested on demand growth hitting limited supply elasticity. But as this chart from a recent Quarterly Metals Review by HSBC illustrates, the global market has not, as oft predicted, fallen into deficit in recent years………………………………………..Full Article: Source

Cheaper commodities won’t kill off Australia’s mining boom

Posted on 25 October 2012 by VRS  |  Email |Print

Australian Resources Minister Martin Ferguson says the onset of an era of low commodities prices does not spell the end of the country’s China-backed mining boom. Ferguson said “Australia’s resources industry has many years of opportunities to come,” and that “there are few places better prepared for the Asian century than Australia.”
Ferguson said that declines in commodities prices which have severely hampered Australia’s leading mining concerns should be viewed in a positive light, and provide an opportunity for miners to enhance competitiveness and efficiency………………………………………..Full Article: Source

Ultimate guide to united states commodity index fund

Posted on 25 October 2012 by VRS  |  Email |Print

Interest in commodity investments has boomed in recent years, and billions of dollars have poured into the space, most noticeably in the form of exchange-traded products. With so many choices out there, it’s well worth taking the time to highlight special cases that may offer investors unique opportunities; the United States Commodity Index Fund (USCI) is one such fund.
Launched in August of 2010, USCI takes a more active rules-based approach to commodity investing. The fund is designed to track the SummerHaven Dynamic Commodity Index Total Return, an index that selects 14 of a possible 27 commodities each month………………………………………..Full Article: Source

FMC suggests review of easy credit for trading in commodities

Posted on 25 October 2012 by VRS  |  Email |Print

Commodities market regulator Forward Markets Commission (FMC) has suggested reviewing of easy credit by banks and other institutions for trading in commodities like guar, in a bid to curb speculation. In the final report on ‘Analysis of price movement and trading in guar complex” submitted to the Consumer Affairs Ministry, FMC has suggested various measures to check speculators participation in guar trading.
The regulator in May had come out with an intial report on guar futures trade during February-March 2012 and had highlighted irregularities in guar futures trade. It had also found involvement of some entities in the sharp rally during the period………………………………………..Full Article: Source

Hong Kong weakens local currency again

Posted on 25 October 2012 by VRS  |  Email |Print

Hong Kong’s central bank has intervened in financial markets again, weakening the value of its currency after it jumped in value.
This follows similar moves on Sunday and pushes the total cost of intervention in the past week to 14.3bn Hong Kong dollars ($1.85bn; £1.16bn). Hong Kong limits the amount its currency can gain or fall to help maintain market and export stability………………………………………..Full Article: Source

Raw materials post longest skid since June

Posted on 25 October 2012 by VRS  |  Email |Print

The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 0.4 percent to settle at 636.75 at 4 p.m. in New York. The measure dropped for the fourth straight session, the longest slump since mid-June.
The UBS Bloomberg CMCI gauge of 26 prices declined 0.2 percent to 1,566.89. Cotton fell, capping the biggest two-day slump since mid- August, on concern that supplies will remain ample as the slumping European economy crimps demand………………………………………..Full Article: Source

Doom and gloom for commodities

Posted on 25 October 2012 by VRS  |  Email |Print

Responding to the decided chilling of the global economic backdrop, commodity prices have beaten a hasty retreat in recent weeks. Brent crude has dipped below USD 110 a barrel for the third time since QE3 was announced and is likely to test critical support at the 100d moving average of USD 107.67 before too long.
The copper price has dropped 7% since the Fed resorted to unbounded asset purchases in the middle of last month, the gold price is down near USD 1,700 after testing USD 1,800 earlier in October and the price for US hot-rolled steel coil has fallen 13% since the end of August………………………………………..Full Article: Source

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