Why No Investor Should Own GLD

Those looking for a reason to add commodity exposure to their portfolio will find gold’s massive historical return to be heavily persuasive. This precious metal has quickly become one of the few safe haven investments left on the market as investors will typically flock to gold when equities falter. Some swear by futures contracts, while others are more partial to obtaining their gold positions by investing in the mining sector, which can offer offer lucrative opportunities as these securities often have high betas. Still, others have embraced exchange traded products as their primary means of establishing a position in this commodity [for more gold news and analysis subscribe to our free newsletter].

Posted in Commodity ETFs, Exclusive, Gold, Precious Metals | Tagged , , | 43 Comments

This Week In Commodities: February 17th Edition

This past week, though a bit rocky for equities, was strong for a number of major commodities. Cocoa futures continued about their winning ways with a healthy jump of over 10% in the trailing five day period while natural gas and crude oil also welcomed strong gains. Despite NG futures rising this week, the battered commodity is still down more than 12% for the year, leaving many investors with differing opinions as to where the fossil fuel is headed. On the other end of things, coffee and lumber futures headed south this week, as they were among the biggest losers. In an effort to keep our readers up to date with today’s commodity environment, we outline three of the best stories from around the web below [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].

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Why Warren Buffett Hates Gold

When the Oracle Of Omaha speaks, investors tend to listen. In his latest prophecy, Warren Buffett makes the case for why stocks deserve a place in your portfolio over gold any day. His criticism of the precious metal stems from his definition of investing; which is foregoing consumption now in order to have the ability to consume more in the future. Buffet offers an insightful overview of the investment landscape, splitting up the financial universe in three categories: currency-based investments, nonproductive assets, and productive assets [see also Doomsday Special: 7 Hard Asset Investments You Can Hold In Your Hand].

Posted in Academic Research, Asset Allocation, Commodity Producers, Exclusive, Gold, Precious Metals | Tagged | 32 Comments

This Week In Commodities: February 10th Edition

The back and forth markets that ensued over the past week made it difficult for commodities to find their footing, as a number of big name assets lost ground over the trailing five days. Among the biggest losers were cotton and cocoa, as the soft commodities are known for their inability to handle volatile markets. Gold was also a loser, though not as severe, which may create an interesting buying opportunity for traders and investors who have a soft spot for this hard asset. As for the week’s winners, lumber and brent crude oil were able to post meager gains, but it was a slow week for the overall commodity space. In an effort to keep investors up to date in today’s fast-paced commodity world, we outline three of the best stories from around the web this past week [see also The Ten Commandments of Commodity Investing]:

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Commodity Trading Trends: Precious Metals Futures Get Hot

2012 may have started off like a bull, but it appears that the bears are lurking in the shadows, waiting to make their move. This week has already seen a disappointing halt to the surge that general markets had enjoyed to start the new year, as drama from overseas as well as lackluster earnings have put a damper on investor confidence. But commodity investors can take advantage of this lull with a number of different products that have been profiting from these turbulent markets; namely precious metals. These elusive investments have been outperforming most assets in the trailing week, leaving many investors chomping at the bit for juicy returns [see also Three Reasons Why Gold Is Overvalued].

Posted in Commodity Trading Trends, Exclusive, Gold, Platinum, Precious Metals, Silver | Tagged , , | 1 Comment

This Week In Commodities: January 27th Edition

This week saw a stellar performance by the majority of the commodity sector, as positive earnings combined with a robust GDP report to give some much needed tailwinds to this asset class. Among the weeks top gainers was natural gas, which shot up over 10% on the week after stumbling out of the gates for 2012. Wheat, silver, cocoa, and platinum futures all gained more than 5% in the trailing five days, giving traders some new opportunities for the coming week. With new data hitting the markets on a daily basis, and international affairs still managing to shake things up, it can be hard to stay ahead of the curve as far as today’s investing is concerned. In an effort to better educate our readers on current commodity markets, we outline three of the best commodity stories from around the web this past week [see also 50 Ways To Invest … See the full story here

Posted in Energy, Exclusive, Gold, Natural Gas, Precious Metals, This Week In Commodities | Tagged , | Leave a comment

Lessons Learned From Gold in 2011

Commodities made headlines throughout most of last year, but for all of the wrong reasons. 2011 saw a number of commodity investments turn sour with just six of the 22 major commodities posting annual gains. No commodity was more talked about than gold, however, as the precious metal took investors on a wild ride. After finishing 2010 with gains of approximately 29.5%, investors had caught gold fever and piled into the safe haven commodity. But the following year would be filled with both joy and frustration as gold was all over the board in 2011 [see also Three Reasons Why Gold Is Overvalued].

Posted in Exclusive, Gold, Precious Metals | Tagged , | 4 Comments

Commodity Trading Trends: Gold Is Cheap, Is It A Buy?

Everyone’s favorite precious metal, gold, had a strong year in 2011, with the commodity gaining roughly 15% in just 12 months. But the final month of the year took its toll on the yellow metal, as its price dropped from roughly $1,700/oz. to as low as $1,545/oz. marking a decrease of 9.1% in just 31 days. Though the metal still had a solid 2011, December put a major dent in the commodity’s gains, but it also created a strong opportunity for investors and traders alike. Gold broke through the $1,900/oz. mark for a brief moment last year, making its current prices look incredibly cheap. With stocks poised for an uncertain future and turmoil still swirling around the world, now may be the perfect time to buy into gold [see also Gold And Silver In A Correlation Bubble?].

Posted in Commodity Trading Trends, Exclusive, Gold, Precious Metals | Tagged , | 1 Comment

The Five Most Active Commodities of 2011

This past year has been plagued with volatility, as global instability has put a major damper on commodity markets. Thought the first few months looked promising, the latter 30 day periods were plagued by euro-zone woes and choppy markets. As if commodities weren’t volatile enough to begin with, throwing in shaky markets only exacerbates things. It was a tough year for a number of commodity investors, but that doesn’t mean that it was without its gains. Gold, for example, has had a stellar year compared to most investments, bringing solid gains in portfolios that have been hard pressed to find any breathing room. One of the most interesting statistics to look at on the year is where the money was flowing and which assets saw the most investing activity. Below, we outline the most popular commodities of 2011 to help investors find the most liquid options for the coming year … See the full story here

Posted in Agriculture, Commodity Futures, Corn, Energy, Exclusive, Gold, Precious Metals, Soybeans, WTI | Tagged , , , , , | 3 Comments

12 High-Yielding Commodities For 2012

Commodity investing has been extremely popular in recent years as investors have discovered the benefits that these investments can offer for an individual portfolio. Exposure to commodities offers benefits like low correlation, inflation hedges, and also heavy exposure to some of the world’s fastest growing markets. But there is still something of a disconnect between income investors and commodities, as these investments are typically seen as growth plays or simply left for active traders. But those who overlook commodity stocks with even mediocre yields could be missing out [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Academic Research, Agriculture, Aluminum, Commodity ETFs, Commodity Producers, Copper, Energy, Exclusive, Gold, Industrial Metals, Natural Gas, Precious Metals, Silver, WTI | Tagged , , , , , , , , , , , , , , , , , , , | 131 Comments
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