The phrase “hindsight is always 20/20″ is most applicable to investors. There are numerous occasions when traders wish they would have followed their gut or executed a specific position, especially looking back on the gains that certain assets have made. It is relatively easy to make a bold call on a specific asset, but it is much more difficult to follow through with the trade and exit the position at the proper moment. With 2013 already being a wild year in the commodity world, we take a look back at some of the most fruitful trades throughout the industry thus far [for more commodity news and analysis subscribe to our free newsletter].
The demise of gold in the last few months has been well documented as investors watched the metal tumble from $1,900/oz to below $1,400/oz in less than two years, a drop of 25%. But it was not that long ago that analysts and investors were not only touting gold as a good investment, but gold miners were seen as a great opportunity for those looking for an equity spin on the metal. Unfortunately, that idea has not panned out, as the past few years have hit the gold mining sector especially hard [for more gold news and analysis subscribe to our free newsletter].
Major U.S. equity indexes have managed to hold on to gains thus far in the new year, surprising countless traders who were convinced that the “fiscal cliff” resolution rally would be short-lived. The picture isn’t entirely rosy, however, given the growing probability of a pullback on Wall Street. With no major economic data releases taking place on the homefront this week, investors will turn their focus to corporate earnings, which could serve as a harsh reminder of the sluggish economic recovery at hand [for more market news and analysis subscribe to our free newsletter].
Gold investors were in for a wild ride this year, as several major economic events thrust the precious metal into some rather volatile swings. Between the announcement of QE3, the President’s reelection, and the fiscal cliff talks, gold’s performance was all over the board, though the metal managed to post solid but relatively lower gains on the year. As a result, two popular exchange-traded funds saw a lot of activity in 2012: State Street’s SPDR Gold Trust (GLD) and Van Eck’s Market Vectors TR Gold Miners ETF (GDX). A close look at the performances on a year-to-date basis shows just how vastly different these two approaches to the gold market can be [for more gold ETF news and analysis subscribe to our free newsletter]:
Gold mining equities have become increasingly popular in the past few years as the precious metal has watched its price soar. Some even prefer their gold exposure through a firm with earnings, dividends, and more as opposed to owning a commodity and hoping for its price to increase. Two of the most popular options out there are the Market Vectors TR Gold Miners Fund (GDX) and the Market Vectors Junior Gold Miners ETF (GDXJ) [for more gold mining news and analysis subscribe to our free newsletter].
The fiscal cliff has been the chief worry of the U.S. economy as of late, as the uncertainty looming has created a volatile marketplace. Each political party has their own ideas on how to move forward, and the same can be said of individual analysts and experts. Famed gold bug Peter Schiff is no stranger to speaking his mind on the economy and what he thinks is the best course of action for the United States. And his most recent comments fall in line with his knack for bold and brash statements [for more economic news and analysis subscribe to our free newsletter].
Commodity traders think about the United States for natural gas, Saudi Arabia and other Middle Eastern nations for oil, Africa for gold, and Asia for foods such as rice. In doing so, they sometimes ignore commodity-rich Canada [for more commodity news and analysis subscribe to our free newsletter].
The well-known gold bug, Peter Schiff, is not one to shy away from his opinions. He has been very vocal about his feelings on the government, markets, and of course, gold. Schiff has been boasting this precious metal for quite some time, as he has listed off a number of factors weighing into a potential bull run. Among those factors are dollar debasement, a struggling economy, and an approaching fiscal cliff that all make the safe haven commodity even more appealing [for more gold news and analysis subscribe to our free newsletter].
Investing for income has become a popular strategy in recent years, as low rate environments and paltry yields have made a steady stream of income a coveted luxury. Similarly, investing in gold and silver has been surging in popularity as the years have gone on. Investors worried about inflation and a weakening economy have flocked to these precious metals in order to protect their portfolios. But what many investors do not know, is that they can combine these two worlds [for more gold news and analysis subscribe to our free newsletter].
Jim Rogers has long been a commodities bull who is not afraid to share his opinions with the rest of the world. While he admits that he is not one to endorse “top picks”, he does have specific asset classes and commodities that he likes to keep an eye on, one of which is the precious metals sector. Earlier this year, Rogers stated that he thinks gold will suffer a correction before heading back up, which prompted his statement that he owns gold, but is not currently buying or selling. But recently, Rogers pointed out a dangerous sign he sees developing for the precious metal [for more gold news and analysis subscribe to our free newsletter].