PIMCO Recommends Hard Commodities to Weather Inflation

Joining the likes of Jim Rogers and George Soros, PIMCO has now thrown its hat into the hard asset ring. As the economic outlook for the U.S. has continually grown more and more bleak, we have seen a number of investors and experts hop on the commodities train as the best way to protect yourself from coming inflation. In PIMCO’s most recent economic outlook, the firm commented on the current state of the markets, the impact of QE3, and trends they see developing in the coming years, one of which was inflation [for more economic news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, Gold, Inflation, Palladium, Platinum, Precious Metals, Silver | Tagged , , , , , , | 15 Comments

Platinum/Gold Ratio Suggests Economic Slowdown

Investors and analysts have a wide variety of different ratios that they focus on to get a better read on the market. Some like to look toward the S&P 500/gold ratio while others find solace in P/E figures. However, there is one lesser-known metric that has its roots firmly planted in the commodity world. The platinum/gold ratio is a precious metals combination that many use to gauge how markets are performing. While it may sound a bit unorthodox at first, there is sound reasoning behind watching this comparative metric [for more precious metals news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Commodity ETFs, Commodity Futures, Gold, Platinum, Precious Metals | Tagged , , , | 4 Comments

Commodities to Profit From Schiff’s Currency Crisis

QE3 was announced on Thursday and it is by far the most aggressive action that the Fed has taken in years. Rather than set a specified amount of money to print, Bernanke and company have pledged to invest $40 billion per month in MBS until they see material growth in the economy. That means that this QE is open-ended and could potentially drag out for a while. If the program were to be in place for just one year, we would print $480 billion. For two and three years, we would add another $960 billion and $1.4 trillion respectively [for more economic news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Energy, Industrial Metals, Precious Metals | Tagged , , | 9 Comments

How to Build a Futures Free Commodity Portfolio

For commodity traders, futures contracts and futures-based products are usually the go-to financial instruments for gaining exposure to your favorite hard assets. While futures investing may be appealing, there are many serious drawbacks and costly nuances to this strategy that can impact bottom-line returns. And without fully understanding how futures work and without being able to frequently monitor a trade, futures positions can quickly turn sour. For those who wish to avoid futures, we outline an all ETF portfolio that is designed to provide well-rounded exposure across all of the major commodities completely devoid of these contracts [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Gold, Hard Assets, Palladium, Platinum, Precious Metals, Rare Earth/Strategic Metals, Silver | Tagged , , , , , | Leave a comment

How To Play Peter Schiff’s “Bullion Collapse” Theory

To investors’ relief, the Fed sent yet another strong signal that it is preparing to take action to boost the nation’s lackluster recovery. According to the minutes released on Wednesday, the central bank has “judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” Although no one is exactly sure what the Fed has in mind, many believe that another major bond-buying program may be right around the corner. And with the elusive QE3 slowly becoming more of a reality than a sheer wish, commodity investors are already debating how exactly the Fed’s actions will affect them [see also Why U.S. Unemployment Figures Are a Complete Lie].

Posted in Academic Research, Gold, Palladium, Platinum, Precious Metals, Silver | Tagged , , | 5 Comments

Precious Metals ETFs: Finding The Best Fit

This story originally appeared on ETFdb.com. ETFs have emerged as popular tools for establishing exposure to a wide variety of asset classes, ranging from U.S. Treasuries to Vietnamese equities. But few corners of the exchange-traded product world have seen more explosive growth in recent years than precious metals, as investors have embraced these vehicles as the most efficient way to access assets that have turned in some monster performance numbers in recent years. The 21 ETFs in the Precious Metals ETFdb Category have more than $83 billion in aggregate assets, representing about 8% of the total ETP industry. That’s a massive total for an asset class that generally accounts for a relatively minor portion of long-term portfolios, reflecting the appeal of the low maintenance and low fees offered by the exchange-traded structure.

Posted in Asset Allocation, Commodity ETFs, Gold, Palladium, Platinum, Precious Metals, Silver | Tagged , , , , , , , | 3 Comments