2012 has kicked off much like the previous year ended, full of uncertainty. Though investors are hoping to wipe the slate clean and begin a fresh new year, not all are convinced that markets will break their rut anytime soon. Commodity investors are especially eager to forget what was a dismal 2011 for most assets. While it is true that as many as 90% of commodity investors lose money, it seems like that was especially true last year, where a number of commodities racked up significant losses. As investors sort their way through new picks for 2012, we outline three of the best commodity stories from around the web this week, helping to educate readers on commodity markets in today’s environment [see also 12 High-Yielding Commodities For 2012].
2011 Report Card: Brent, Gold Outperform In Dismal Year For Commodities at Hard Assets Investor:
It’s no secret that commodities just got off of a rough year. In fact, just six of the major 22 commodity investments posted gains in 2011, while the rest brought in losses as high as 36%. This quick article has a comprehensive chart that tracks where a commodity finished in both 2010 and 2011, as well as the percent change displayed on the year. With so many commodities performing poorly, author Sumit Roy speculates that 2011 can be seen as a correction in a larger uptrend rather than a trend itself.
Gold Stocks Complete First Major Bottom Since 2008 at The Daily Gold:
The first half of 2011 was the gold show; the metal smashed through historic records to top out about $1,900/oz. for the first time in history. But the latter months of the year were surrounded with turmoil overseas and a failing euro, putting downward pressure on this precious metal. As a result, gold prices took a major hit, and so did the equities that depend on the commodity for their profits. But 2011′s dismal year for gold stocks might not be viewed as a deterrent, but rather an opportunity. This article, by Jordan Roy-Byrne, explains why gold stocks are at a bottom and may be poised for a significant pop.
Why It’s Time To Buy Natural Gas at CommodityHQ:
Natural gas has long been a hard-to-read investment as the commodity is known for its volatile daily swings as well as unpredictable behavior. Last year alone, this commodity dropped about 32%, not to mention its losses of more than 70% since its highs in 2008. But with gas sitting at its lowest prices in years, there are several factors that make it an interesting short-term play. This article outlines why active traders may want to give gas a closer look for the first few weeks of the year, and what factors will play into its potential gains.
Disclosure: No positions at time of writing.