Yet another up and down week for commodities as equity markets pushed and pulled at prices for investors’ favorite assets. Though there were a number of big movers, few endured weeks like both gold and oil. As of open on Monday, Gold was sitting near $1,700/oz, but after a tough week, the precious metal is now flirting with the $1,600/oz. level. Investors have grown worrisome over euro woes and feel that a stronger dollar as well as the lack of momentum overseas has left virtually no safe havens besides cash. Oil had a similarly bad week, as its price dipped all the way below $93/barrel after weeks of a strong rally. In an effort to help better educate commodity investors on today’s environment, we outline three of the best commodity stories from around the web this week [see also 25 Ways To Invest In Natural Gas].
Black Swan Events In 2012 Could Push Oil To $200 at Hard Assets Investor:
Oil prices have long been the focus of many commodity investors, as there are a wealth of predictions for what a barrel of crude will be worth in the future. There are currently a number of factors combining that could push crude to historic highs in the coming year, creating a strong opportunity for commodity investors. Tight Supplies, increasing demand, and global instability could push crude all the way to $200 in one analyst’s opinion. This article, by Amine Bouchentouf, describes what will be the major crude price drivers for 2012, and why its price is set to soar.
Gold Experiences an Identity Crisis at The Wall Street Journal:
Gold has long been considered a safe haven asset and after the Swiss Franc was pegged to the euro, many felt that this precious metal was the only sure bet left on the market. But recent days have erased that notion for many investors, as gold has shown its mortality with its prices taking heavy hits this week. Through yesterday, gold was down about 9% in December including a 5% dip on Wednesday of this week. This article, by Liam Pleven, outlines alternative safe haven investments now that gold’s future isn’t shining quite so bright.
12 High-Yielding Commodities For 2012 at CommodityHQ:
Income investing and commodities have often experienced something of a disconnect. When most investors think of commodity investing, complex futures trading is one of the only things that comes to mind. But there are a wealth of options on the market that pay healthy dividend yields while still offering the vital commodity exposure that every portfolio needs. This article walks through 12 different high-yielding commodity plays to prepare portfolios for the coming year.
Disclosure: No positions at time of writing.