This past week was hectic to say the least, as major equities and commodities alike were battered and also boosted by news from the Euro zone. While it is nearly impossible to predict what the near term future holds for the euro zone, investors can be certain that more volatility is on the way, making commodity trading a lucrative, but risky opportunity. This week saw gold feature heavy movements as the precious metal has been semi-correlated to major equities, frustrating those who have long sought the metal as a safe haven asset. Oil, however, was the biggest story on the week; despite equities taking heavy hits through the middle of the week, oil charged upward as the price per barrel has its sights set on a firm $100/barrel [see also Beyond UNG: Three Intruiging ETFs To Play Natural Gas].
Below, we outline three of the best commodity stories from around the web:
Due to a number of different factors, including labor issues and unpredictable weather, analysts are predicting global copper production to drop in 2011. Barclay’s capital has gone as far to quantify the drop with a forecast of 300,000 metric tons less than 2010, representing a 1.9% dip. Digging deeper into these steep losses, analysts have cited that low ore grades have been one of the biggest culprits of the production snag. Though many blame strikes, a number of major minors have shown through out the years that worker strikes don’t have a major effect on overall output. This article, from Kitco News, explains in detail why copper is set to slowdown, giving investors a head start on this commodity trend.
Gold Traders Most Bullish Since ’04 on Debt Crisis at Bloomberg:
With the European debt crisis looming, investors have been furiously trading gold to try and protect their portfolio from the potential losses that surround today’s markets. According to Bloomberg, 21 of 22 traders surveyed expect gold bullion to rise in the next week, giving hope to a number of those who have had trouble finding steady returns in a volatile market. This article, by Nicholas Larkin, gives a behind-the-scenes look at where gold is sitting today, as well as the trading trends that go along with the precious metal.
25 Ways To Invest In Alternative Energy at CommodityHQ:
As crude oil prices have surged in recent years and stockpiles have been put under pressure, the use of alternative energy has become much more prevalent. This young industry is growing quickly and is predicted to become a much bigger part of our economy as the years go on. But when it comes to investing in the various sides of renewable energy, finding the right options can be difficult. This article breaks down each individual sector of alternative energy and offers securities to make a play on your favorite green power source.
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Disclosure: No positions at time of writing.