Displaying items by tag: Commodities
Gold Bulls See Second Stimulus Package as Tipping Point for Another Run
(New York)
Gold had one of its biggest runs last August, but gold stocks and ETFs have been the real…see the full story on our partner Magnifi’s site
Wells Fargo Says Stage is Set for Gold
(New York)
Wells Fargo’s head of real asset strategy John LaForge says gold could hit…see the full story on our partner Magnifi’s site
Forget WFH, Here is the Next Asset Class to Jump
(Houston)
The onset of the pandemic had weak demand for about every good in the U.S. except…See the full story on our partner Magnifi’s site.
This May Be a Tail Risk for Commodities
(New York)
Commodities have been doing great this year. The big rise in demand coupled with weak supplies because of COVID have led to a surge in prices. However, one bright spot—metals—might have some trouble looming on the horizon. There is increasing speculation that the US may scrap pennies. If that happens, it could put a dent in the copper and zinc markets. This dent would not only come from a lack of new demand, but the fact that pennies would be taken out of circulation and recycled. This would amplify the effect by boosting supply to the system and lowering demand for newly-mined metal.
FINSUM: This might have a strong psychological effect even though the total quantity of zinc from pennies accounts for less than 4% of total annual output.
The Winners in Losers in the New Commodities Boom
(Houston)
Commodities are doing very well this year. Every big bank, including Goldman Sachs, thinks we may be starting a new commodities super cycle. The big question is exactly which commodities and who will be the big winners. Everything from food, to metals, to oil has been rising and this creates some clear winners, particularly producers of those commodities. That means a big windfall for countries like Saudi Arabia, Australia, and Chile, who are big net exporters of various raw materials. It is net importers that get hurt the worst, with an absolute behemoth—China—likely to suffer the most, as it is one of the largest buyers of commodities in the world. In fact, it almost single-handed drove the big commodities boom in the 2000s.
FINSUM: So the key here is picking the right emerging markets. Additionally, investors may want to double-think investing in oil, as production hikes could undermine prices quickly.