I am a big fan of Jim Rogers and Marc Faber the two masters of commodities market that I know, unfortunately haven’t grabbed any book written by them but have read a lot about them in Online media and their online articles.
The reason I tried to write on this topic as yesterday Barclay’s capital confirmed that they hit by a large loss trading copper and aluminium in the last financial year. For precarious reason Investments banks don’t disclose their earnings from the commodities division, may be trading raw materials such as oil, corn and gold makes up a relatively small portion of the revenues of most investment banks’ fixed-income divisions, the battle for market share in the sector has become intense as the financial crisis has hit other income streams such as credit derivatives.
But I believe commodity investments are set to increase in 2012 due to strong investor interest and the potential for good returns in many sectors.
Uncertain times require certain diversification and commodities will be the way ahead as we are living in volatile financial markets and investors will face a lot of challenges in the years to come.
looking at the past the crisis in the debt market have led to currency devaluation and it’s always GOLD that glittered protected people’s wealth from declining values in stock, bond and property markets and from currency devaluations.
Just got few amazing information for gold While gold has risen six times in 11 years, it is worth remembering that in the 1970s gold rose 24 times in nine years.
I did a writeup on agri commodities few days a back Cotton & India confirming that India is the second biggest exporter of cotton after US. Many of the Hedge fund taking their position and busy in pricing the cotton as India shipped about 9.5 million 170-kilogram bales this season, more than the 8.4 million-bale surplus forecast by the government. (confirmed by Bloomberg).
2012 looks like to be the market for commodities as the European & subprime crisis were led by credit derivatives has given the space that trading something physical is more viable than trading unknown contracts.