It seemed like nothing could stanch the flow assets pouring out of gold this past year. As equities rallied and saw new high after new high, gold took a beating as investors flocked to a more lucrative corner of the market. Slowly but surely, however, gold has pulled itself from the depths and was able to break through a key resistance at $1,336/oz. last week. Now, the precious metal sits at a key turning point, as it tries to establish a definitive upward trajectory for the remainder of 2014 [for more gold news and analysis subscribe to our free newsletter].
Contango is the process by which near month futures are cheaper than those expiring further into the future, creating an upward sloping curve for future prices over time. It usually stems from the cost of storing commodities prior to their sale, though a futures curve can also reflect market expectations of where a commodity is heading. Though contango often comes handcuffed to negative connotations, it typically is not a problem for traders and investors who are aware of it [for more commodity news and analysis subscribe to our free newsletter].
Earnings season is just about over, and the Street will soon have to turn its eyes to macro data to decide where markets go from here. Thus far, this batch of earnings has been a mixed bag; though a number of key companies beat estimates, lowered guidance took precedent. It seems that this time around, investors are very focused on how companies are guiding, especially given the Fed’s current taper process [for more commodity news and analysis subscribe to our free newsletter].
Last year, investors witnessed several corners of the commodity market falter. One of the hardest hit sectors, however, was metals and mining; both the commodity and its producers suffered tremendous losses in 2013. The popular SPDR Gold Trust (GLD) saw outflows of more than $23 billion last year, causing its assets under management to sink by more than 40%. Other metal funds, as well as individual mining companies, had similarly dismal performances [for more gold and silver news and analysis subscribe to our free newsletter].
As earnings season kicks into full gear, all eyes turn to the reports of some of the world’s most powerful commodity firms to comment on the asset class as a whole. This week sees the heat turned up on the energy space, as some of the biggest players in the world of oil are on deck, as well as a few other companies sprinkled in throughout the week [for more commodity news and analysis subscribe to our free newsletter]:
After enjoying a relentless bull run that lasted 12 consecutive years, gold finally broke in 2013. Having become a darling of the investing world for most of the prior decade, gold’s almost 30% losses hit especially hard, as the precious metal finally saw a correction. The downward spiral was brought on largely by a massive year for equities, as the S&P 500 saw its best annual return since 1997, prompting many to flee metals markets to try their luck with white-hot equities [for more gold news and analysis subscribe to our free newsletter].
As we kick off the New Year, commodity investors are hoping that 2014 brings more favorable returns than its predecessor. Last year was largely marked by dwindling commodity returns with a number of hard assets wreaking havoc on investors and traders across the board. Gearing up for 2014, we take a look at some of the biggest commodities currently contangoed to help you get prepared for the new year [for more commodity news and analysis subscribe to our free newsletter].
After a 12-year unstoppable bull run, gold finally met its match in 2013. Investors had been hopping on the bandwagon with great success for a number of years, as it seemed that gold would never stop climbing. With the Fed committed to printing money as a part of its various quantitative easing programs and a general sense of uneasiness about the economy, gold was able to make historical highs in 2011. Though it fell off from its peak that year, it still had a positive run in 2012. 2013, however, was a completely different story [for more gold news and analysis subscribe to our free newsletter].
Last week, we outlined the five hard assets that performed the best in 2013 and noted that the pickings were slim. Overall, it was a rough year for commodities, as a number of hard assets slumped while equities roared forward. Below, we outline the five worst performing commodities of 2013 [for more commodity news and analysis subscribe to our free newsletter]:
As 2013 comes to a close, several analysts have already published their predictions for the coming year with most remaining cautiously optimistic about the global economy in 2014. So far this year, however, commodity markets have struggled to stay out of the red, with many analysts speculating that the epic commodity boom seen in recent years is finally over. Though on the equity side, commodity producers have benefited from this year’s bull run, with oil and gas companies in particular logging in double digit gains [for more commodity news and analysis subscribe to our free newsletter].