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Nickel ETF Surges

Michael Johnston — Wed, 30 Dec 2009 16:07:40 +0000

December has been a quiet month for most equity benchmarks, with the week following Christmas living up to its reputation as one of the slowest of the year. But not all asset classes have gone into early hibernation. One of the most active assets in the final month of the year may also be one of the most obscure: nickel prices have surged in December as hopes for an uptick in manufacturing activity in the new year continue to build. Nickel is best known as a primary ingredient in U.S. currency, but the metal has uses far beyond five cent coins. In addition to magnets and batteries, nickel is a critical component of stainless steel, tying demand for this metal to the broader health of the manufacturing sector. About 30% of global nickel supply comes from the Sudbury region of Canada, while Russia holds about 40% of the world’s known [...]

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The Definitive Guide To Copper ETFs: Copper ETF Investing 101

Michael Johnston — Fri, 04 Dec 2009 06:05:14 +0000

The rise of the ETF industry has helped to establish commodities as the “fourth asset class,” making investments in natural resources available to more investors than ever before. Commodity exchange-traded products have attracted almost $29 billion in cash through the first 11 months of 2009, making this space one of the main drivers of growth in the ETF industry. While the most popular commodity ETFs have traditionally focused on safe havens (such as gold) and inflation hedges (such as oil), copper has become a popular investment as well. Copper 101 Copper is one of the most abundant metals in the world, with millions of years worth of supplies trapped in the earth’s crust. The vast majority of these reserves, however, is unattainable with current technologies, and most estimates of current usable reserves fall between 25 and 50 years. Copper is perhaps best known for its use in U.S. currency, but [...]

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Aluminum ETF: Due For A Crash?

Michael Johnston — Tue, 24 Nov 2009 06:45:09 +0000

U.S. stocks and aluminum represent very different asset classes, but some investors have begun to notice troublesome similarities between the two. Following a furious bull market rally on Wall Street over the last several months, it is beginning to appear that U.S. stocks have run too far too fast. By many measures, domestic equity markets are now overvalued, perhaps by as much as 25%. A similar situation is unfolding in aluminum markets. Hopes for an uptick in global manufacturing activity have sent prices for the metal higher, but supplies continue to increase as well, leading many investors to believe that we will see a sharp downward correction in coming months. “I don’t see why the aluminum price has gotten so high,” said Peter Sorrentino, a fund manager at Huntington Asset Advisors in Cincinnati. “There’s plenty of supply around and demand is still quiet. There’s a disconnect between the price and [...]

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Copper ETFs: Due For A Correction?

Michael Johnston — Tue, 20 Oct 2009 15:08:08 +0000

Investors have rejoiced in the rebound of the U.S. equity markets this year, but the real winners have been those who were bullish on commodities as the markets bottomed. Hopes of a steady recovery, consistent downward pressure on the dollar, and even strikes at major South American mines have sent prices for metals used in industrial and manufacturing operations skyrocketing in recent months. Copper has been one of the bast performers: the iPath Dow Jones-UBS Copper Total Return ETN (JJC) has gained more than 100% for the year. But the significant rise in copper prices has been based largely on expectations for increases in demand that are yet to materialize. Global demand has remained weak, and warehouse inventories have been steadily rising as a result. Moreover, demand for new houses, a critical driver of copper demand due to the need for extensive wiring, is showing signs of sustained weakness. Opinions [...]

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Copper ETFs Are Soaring: Can It Last?

Eric Dutram — Fri, 14 Aug 2009 14:06:05 +0000

Copper, one of the world’s most versatile metals, saw prices crash in late 2008 and early 2009 amidst the prolonged housing slump and decreased demand from China and other emerging markets. However, prices have come roaring back and are now up over 100% from its lows and within striking distance of the $3 per pound mark. After such an incredible run-up, the million dollar question on every prudent investor’s mind is: can it last? While no one knows for sure (and speculators can certainly muddy the waters in the short term), there is a strong case to be made for copper prices continuing to surge, given the metal’s role in everything from wiring to cookware to ammunition. Weak Dollar & Peak Copper A large portion of the strength of copper prices can be attributed to the weak U.S. dollar. Like most commodities, copper is traded around the world in dollars, [...]

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ETF Database » JJM

Nickel ETF Surges

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