There’s little question that commodities trading is a risky endeavor. From margin calls to extreme volatility, there are countless ways that traders can quickly lose money trading a variety of different instruments. In this article, we’ll take a look at five commodities trading mistakes that traders commonly make and explore the best ways to avoid them [for more commodity news and analysis subscribe to our free newsletter].
JP Morgan (JPM) can breathe easier today having avoided charges of a silver manipulation scheme; just one in the line of many claims of less-than-ethical practices from one of the “Big Four”. A judge found that the case offered compelling evidence, but when all was said and done, failed to present any material evidence that JPM was specifically involved in the manipulation of the COMEX silver markets [for more silver news and analysis subscribe to our free newsletter].
Contango for commodity traders is as inevitable a phenomenon as taxes; eventually you will come face-to-face with an upward sloping futures curve. In many cases, this simply presents an opportunity to make a play on the respective asset or possibly to re-position current holdings. Contango is most often caused by the storage costs associated with keeping large quantities of commodities in a designated area for a period of time, but it can also reflect market expectations of how a commodity’s price will move. Below, we outline several commodities currently exhibiting contango [for more commodity news and analysis subscribe to our free newsletter].
Silver has always been the redheaded stepchild of gold throughout human history. While its beauty, scarcity and utility have certainly been appreciated since pre-history, silver just isn’t as rare as gold and has never been esteemed as highly. For much of history, though, silver has been money. While the average laborer (or peasant) probably never saw a single gold coin in their hands in their lifetime, silver money was a different story [for more silver ETF news and analysis subscribe to our free newsletter].
For the most part, silver has had a rather impressive yet volatile year. Often overshadowed by its golden competitor, this shiny metal has been able to gain some significant traction over the last four months to make up for its summer dip. And as such, two popular exchange-traded funds have rewarded those investors patient enough to ride out the swings: iShares’ Silver Trust (SLV) and Global X’s Silver Miner ETF (SIL). Though each fund takes a vastly different approach to the silver market, a close look at their performance on a year-to-date basis shows why these two picks are among investor’s top choices [for more silver ETF news and analysis subscribe to our free newsletter]:
Precious metals investors have been on a wild ride this year, as economies pulled back and forth and a number of major events had these metals all over the board. This year saw the announcement of QE3, QE4 and the re-election of president Barack Obama; all of which had big implications for precious metals. But what many investors are concerned about is not necessarily how these commodities performed as a whole, but who outshined the rest. Below, we put the two most popular PMs, gold and silver, head-to-head to see who took the crown in 2012 [for more precious metals news and analysis subscribe to our free newsletter].
As 2012 nears its close, investors are beginning to look toward a new year, one that will hopefully be less volatile for the commodity world. The precious metals world, in particular, saw a fair amount of volatility through out the past year as this elite group of four has rarely had a quiet period. With the approaching fiscal cliff and economic uncertainty fresh in the minds of many, predicting where these commodities will end up next year has become a hobby of analysts all across the market [for more precious metals news and analysis subscribe to our free newsletter].
As an asset class, natural resources often get lumped together, falling under a single weighting in one’s investment portfolio. After all, the most popular approach by many retail investors is through an ETF or futures fund that tracks a basket of commodities. The PowerShares DB Commodity Index Tracking (DBC) and iPath DJ-UBS Commodity Index ETN (DJP) are two of the most popular options for investors [for more commodity news and analysis subscribe to our free newsletter]. However, natural resources are completely distinct animals and behave differently due to various demand, supply, weather and other external factors. Believe it or not, one of those external factors can be who’s in the White House. Since President Obama took office four years ago, a certain set of commodities have thrived in both production and price increases. With Obama winning another term, it stands to reason that these commodities have a good chance of seeing gains … See the full story here →
As is typical for the commodity world, all eyes have been fixated on gold in recent months. The precious metal has been under a microscope since the announcement of QE3 and the impending fiscal cliff. Some have called for gold to surge to new historical highs, while others are not quite so sure. But one thing is certain, gold is getting handsomely outperformed by all three of its precious metal counterparts in recent weeks, as the safe haven metal has failed to keep pace as of late [for more precious metals news and analysis subscribe to our free newsletter].
For more than two years now, issuers like JP Morgan and iShares have been battling to bring physically-backed copper ETFs to the markets. At first glance, it seems like a solid idea; after all, GLD and SLV are two of the most popular ETFs in the world, and each of them offers physical exposure to their respective metals. Yet the proposed copper products remain in the doldrums, as the red tape and roadblocks seem to be endless for these proposed products [for more copper news and analysis subscribe to our free newsletter].