Saturday, April 28, 2007

Marc Faber Videos

Marc Faber interview on Bloomberg News. Dr. Faber talk about commodities and global markets. (a bit old but still relevant)

Dr. Marc Faber discusses the current world fiscal situation.

Monday, April 23, 2007

LSE Precious Metals ETFs

In addition to the new SWISS Precious Metals ETF's, Five new physical precious metals ETF's are issued on the London Stock Exchange:

Physical Platinum, LSE code: PHPT
Physical Palladium, LSE code: PHPD
Physical Silver, LSE code: PHAG
Physical Gold, LSE code: PHAU
Physical PM Basket, LSE code: PHPM


Wednesday, April 18, 2007

Producers oppose platinum ETF

Normally one would think that a producer would always be happy to see the product price climbing. According to AngloPlat and Impala Platinum this is not the case…

"Trevor Raymond, head of investor relations at AngloPlat, said the world’s largest platinum producer was opposed to against the launch of a platinum as the fund would put upward pressure on prices and would have a negative impact on jewellery demand."

"Bob Gilmour, investor relations manager at Impala Platinum, the world’s second-largest producer, said it was important to retain a sense of perspective about ZKB’s plans as they did not involve a large amount of platinum but cautioned that the timing of the fund’s launch was poor."


"Given the current market conditions, it's probably not the opportune time to launch a product like this because it's just going to put further upward pressure on the price," said Bob Gilmour, manager of investor relations.

"In the longer term, this is not what you want for demand because it causes attempts at substitution."


Producers have been worried about spikes in platinum prices since that increases the threat of possible substitutions being developed for the metal.


Related :

SWISS Platinum, Palladium & Silver ETFs

Platinum ETF ?

Monday, April 16, 2007

Platinum, Palladium & Silver ETFs

Last November it was a bad idea now it’s a good one?

Zuercher Kantonalbank, the biggest of Switzerland's 24 government-controlled cantonal lenders, will launch exchange-traded funds (ETFs) for three precious metals, including platinum, after it launched a gold ETF early last year.

The bank plans to list the new ETFs, based on silver, platinum and palladium, on the SWX Swiss Exchange and trading is scheduled to start on May 10, the bank said in a press release on April 13. The new investment products are designed for wealthy private clients and institutional investors, it said. -source

Price wise it seems like none event for now...

Platinum Spot

Palladium Spot

Sunday, April 15, 2007

WTI Crude Oil Charts

An Uptrend is an uptrend until proven otherwise – when it breaks.

Log vs. Linear charts comparison:

The three years accelerated uptrend was broken on both linear and log charts.

Log Chart: WTI Crude oil broke down from its five years uptrend but currently trades back above the uptrend.

WTI Log Chart

Linear Chart: WTI Crude oil - the five years uptrend stayed intact.

WTI Linear Char

On the weekly CL chart a noticeable uptrend is in progress.

CL weekly chart

To recap: The price of crude oil recently pulled back significantly. The five years uptrend was damaged. Technical damage requires technical repair, I opine that it will not be easy for crude oil to climb higher. In case of a break below the 2007 low, 40$ remains the long term bearish target.

Related: Crude Oil Gold Ratio

Thursday, April 12, 2007

Commodity ETF , Now In Italy

ETF Securities to launch 31 Exchange Traded Commodities products in Milan

ETF Securities Ltd, which offers investors access to a range of commodities on multiple exchanges, said it is launching 31 exchange traded commodities (ETC) on the Milan stock exchange, following similar launches in Paris, Frankfurt, Amsterdam and London.

On the new listings, head of listings at ETF Securities Nik Bienkowski said: 'We are enabling investors to tap into the ever-increasing appetite for commodities and to trade easily and cheaply on a single platform.'

The launch of the ETCs on Borsa Italiana, where investor demand has prompted the bourse to create a new specific segment on the ETFplus market, will take place next week and comprise 21 individual securities and 10 index securities.

Among the 21 separate classes of commodity securities are aluminium, brent oil, coffee, crude oil, gold and sugar. The baskets of commodities indices include the ETFS Agriculture DJ-AIGCISM, ETFS Energy DJ-AIGCISM as well as ETFS Industrial Metals DJ-AIGCISM.

ETCs, like exchange traded fund (ETFs), enable investors to trade commodities through ordinary brokerage accounts and can be bought and sold the same day by investors on a regulated exchange in the same way as any equity.

Since Sept 2006, ETF Securities said that assets under management on these 31 ETCs have increased by about 200 pct to over 500 mln usd. The rapid growth in assets highlights the investor demand for easy access to new asset classes, it added.


Monday, April 09, 2007

The CCI Index

For all practical purposes the Continuous Commodity Index (CCI) is the preferred index for tracking the condition of the general commodities market. The reason for that is the way in which this index is calculated – The CCI Methodology.

5.88% for each of the 17 individual commodities included(Energy 17.64% : WTI Crude Oil, Heating Oil, Natural Gas, Grains 17.64% : Corn, Wheat, Soybeans, Livestock 11.76% :
Live Cattle, Lean Hogs, Softs 29.40% : Sugar, Cotton, Coffee, Cocoa, Orange Juice, Metals 23.52% : Gold, Silver, Platinum, Copper)

Here is the explanation of the CCI Methodology from the NYBOT:

The Continuous Commodity Index (CI)is weighted evenly among 17 component commodities. Each weighting is used for both arithmetic averaging of individual commodity months and for geometric averaging of the 17 commodity averages. With equal weighting, no single contract month or commodity has undue impact on the Index. The CCI uses a system of averaging all futures prices six months forward, up to a maximum of five delivery months per commodity. A minimum of two delivery months, however, must be used to calculate the current price if the second contract is outside the six-month window. Contracts in the delivery period are excluded from the calculation. Although each of the 17commodities is equally weighted, the CCI uses an average of the prices of the 17 commodities and an average of those commodities across time within each commodity. Each commodity is arithmetically averaged across time (the six-month window) and then these 17 component figures are geometrically averaged together. The continuous rebalancing provided by this methodology means the Index constantly decreases exposure to commodity markets gaining in value and increases exposure to those markets declining in value.