Commodities

Natural Gas the Next Big Commodity Trade?

Natural Gas the Next Big Commodity Trade?

2 mins. to read

By Investment Contrarians To put it mildly, natural gas simply doesn’t get as much attention as crude oil, or even gold. Mr. Speculator, my good old friend, once said, “Why would you want to even bother looking at it? The prices have collapsed and have been ranging for years.” It’s certainly true that natural gas…

Commodities are out of the starting gate…

Commodities are out of the starting gate…

3 mins. to read

Throughout the summer we’ve been banging the commodity drum as loudly as we can as regular readers will be aware. Quite simply, we believed commodities had plunged too far into oversold territory, as QE-fuelled investors had driven up bond and stock prices, while trashing the non-interest bearing raw materials, precious metals especially. At the very…

A Market Sniper Long/Short Commodity Trade Idea

A Market Sniper Long/Short Commodity Trade Idea

3 mins. to read

  The Short end of the stick – Copper Trade idea hypothesis – Copper is a sell through to below $260. Copper, in unison with the Precious Metals mining universe has had an exponential run since 2001 from its lows of $50.23 In 2011, unlike most of the other precious metals universe, it exceeded its…

Commodity prices remain robust yet share prices languish

Commodity prices remain robust yet share prices languish

1 mins. to read

The Goldman Sachs Commodity Index shown above is comprised of the principal physical commodities that are the subject of active, liquid futures markets including metals, energy and food. The GSCI is an excellent proxy for global demand and sentiment on the commodity front and looking at the last 4 months, the index has been remarkably…

Iron ore & copper on divergent price paths

Iron ore & copper on divergent price paths

2 mins. to read

As global growth retreats, in particular in Asia, demand for commodities is also dropping creating a surplus that is pressuring down prices. Iron ore, a commodity highly correlated with China’s growth, has seen its price in particular slashed by 45% since February last year as China’s growth has come off the boil. Copper in contrast…

China & commodities – brothers in arms?

China & commodities – brothers in arms?

3 mins. to read

The continued rising tension between China & Japan is weighing further on Chinese equities in particular with the index hovering at a new 4 year low just over the key psychological level of 2000 (see below).  As we covered in our latest edition of our magazine in setting out the Buy case for the Chinese…