Remarkable Hot Commodities: What's next for Gold/Silver/Copper/Oil. Written by
Administrator. Friday, 11 November 2011 05:52. Calendar yearend is ...
Remarkable Hot Commodities: What's next for Gold/Silver/Copper/Oil Written by Administrator Friday, 11 November 2011 06:52
Calendar yearend is approaching, and the next six weeks have always been a prudent time to review one’s portfolio, fine tune a yearend tax plan, and make adjustments in ownership positions based on one’s best guess of what’s hot and what’s not for the ensuing twelve months and beyond. Emerging economies of the world and Gold have been the big performers over the past decade. A broad basket of commodities were the “rage” in the latter part of 2010, but their rush to record highs has lately been tempered to a degree. Have commodities lost their “glamour” status for global investors?
As can be expected, the answer to this question varies by commodity sector, but as most industry experts agree, there are not enough commodities to go around if you accept the growth data published by the International Monetary Fund. If supply cannot keep up with demand, prices will surely go up based on fundamentals alone, and if central banks keep printing money to resolve their debt issues, then additional pressures in the positive direction will only materialize. The diagram below tells the story over the past two years:
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Remarkable Hot Commodities: What's next for Gold/Silver/Copper/Oil Written by Administrator Friday, 11 November 2011 06:52
Commodities category ofanticipated the languished sector rocketed intwo the shadows to prominence until September inthe thetightly investment of lastthe community. when nearly every suggested that a global recovery was taking form. Economic data Copper, record afew the significant perennial move, “bellwether” months of ahead of economic “pack”. activity, was the first commodity to bull The market metal quickly for the doubled entire sector. in value over the subsequent six months, signaling an aggressive When pullback months the that in commodities followed. recovery occurred, began most to correlating show signs of stalling with inyear May S&P ofin 500 this index year, for the the inevitable maintaining material returns Gold and for the Silver fullincreasing were two-year exceptions, period. displaying modest corrections, but future What will the are abring? comments: Her ·e Gold: that years, the reflecting The shiny past metal strong decade has underlying remained for Gold has support. perched been above remarkable, itsclimb 200-day but analysts moving are average even for more the impressed past three condition continues; Appreciation is still the cards as long as ·this Silver: to be taken Silver and is an presently opportunity in a for “consolidation” new investors phase, to which onboard. is actually healthy, allowing profits understand, Silver is more than a store of value. As experts Industrial demand is another force behind its appreciation potential. When inflation picks up, as it surely will, demand will remain strong. “owned” the past decade, but many experts profess that Silver will own the next one; ·Gold Copper: once again Copper when strong and related economic commodities activity returns. like coal (“KOL”) and iron ore (“MXI”) will flourish energy and natural resources, as are most of the emerging economies China and of India the world. are short on The ascendance the supply of side their of respective the equation; middle classes will create long-term demand that will ·outstrip Oil: indications Oil prices are that have this a long retracement way to go will to occur recover sooner, to the rather pre-recession than later. levels in 2008, but all issue. Timing is the global growth will fuel the recovery. Stable These comments pertain to only four members ofinmanagement, this sector. year is that commodity are super-sensitive to any signs The ofInternational ademographics lesson global economic over recovery. the past From precious portrait metals for future toprices rare price earths, appreciation. cornfor to cotton, demand a 1980 positive Tomhas Cleveland is ain writer and market analyst http://www.forextraders.com/ resource for the foreign exchange market and currency news. , frame an online He business until his over retirement development, 30 years 1999. of having experience served infrom as executive CFO for various Visa corporate governance entities from and Tom’s among writing others. on business issues has appeared the NY Daily News andlearned BusinessInsider
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