Tag Archives: silver

Palladium, More Precious Than Silver, Platinum, and Gold

On March 5, 2018, S&P Dow Jones Indices launched the S&P GSCI Precious Metals, Platinum & Palladium Equal Weight to provide market participants with a reliable and publicly available benchmark for investment performance in the gold, palladium, platinum, and silver commodity markets. The index is equally weighted on a quarterly basis. What is the added Read more […]

Commodity Trends Boost Leveraged and Inverse Indices

In the context of declining commodity prices following the global financial crisis, inverse indices became popular for market participants looking to profit from negative returns. As the oil war unfolded and drove commodity prices further down, market participants took a renewed interest in using inverse indices to bet against the market. When commodities rebounded last Read more […]

How Commodities Might Do Under Clinton, Trump

In October, the S&P GSCI Total Return (TR) lost 1.5% but the Dow Jones Commodity Index (DJCI) TR gained 0.1%.  The performance disparity was mainly due to the weighting difference in energy since crude oil in the indices slid near 10% from its mid-month high, on doubts over OPEC’s ability to agree on production cuts and the Read more […]

Gold & Silver: Fed Rate Hike Vs Mine Supply

Two factors tend to consistently influence gold and silver — interest rate expectations and mining supply.  Changes in interest rate expectations typically exert a short-term, day-to-day influence that is exogenous to the metals market while mining supply has a long-term, year-to-year influence that is endogenous. Precious metals prices seem to exert little to no influence Read more […]

Silver Anchors and Pains

Psychologists have studied feelings of Olympic medalists  for decades to find: “If you set aside the happy people who win gold and look only at the people who come in second and third, it’s the men and women with bronze medals who invariably look happier than the athletes who won silver.” To investors who have Read more […]

Olympic Metals: Going For The GOLD?!

In honor of the upcoming 2014 Winter Olympics in Sochi, I thought it would be a good time to discuss gold, silver and bronze that are the metals in the Olympic medals. Since copper is the main metal in the bronze alloy, we’ll use copper as the index metal. Let’s start with gold.  Recently, I Read more […]

What Is The Golden Link Between $275,000, 750 Million AND -32.8%?

The hint in the title is GOLD and the answer is the year 1981.  In 1981, a Superbowl ad was $275,000, 750 MILLION people watched Prince Charles and Lady Di get married and GOLD lost 32.8%.  In 2013, the cost of a Superbowl ad was $4 million, Prince William and Kate Middleton welcomed Prince George, Read more […]

Commodities Crystal Ball: What do the FUTURES hold?

What strategies will be the most profitable over the next 12 months?  Which spread will have the greatest opportunity? These are just a few questions we asked the audience at our S&P Dow Jones Indices 7th Annual Commodities Seminar, and we thought you may be interested in their answers. As I mentioned in a recent CNBC interview, Read more […]

Commodity Beta: Hogs-Wild? Hardly. Energy Fills the Thrill!

If you believe the S&P 500, which is market cap weighted, is considered the U.S. stock market beta, then the S&P GSCI, which is world-production weighted (analogous to market cap weighted), is the logical choice for commodity beta.  Typically, using an index, namely the S&P 500, as the benchmark for beta is standard practice in Read more […]

RECORD BREAKING MONTH: Commodities Love War and Heat

August was a hot month for commodities from the Syrian unrest and the heat.  In the risk on – risk off environment created by the quantitative easing, the sentiment has shifted to risk off. While that is not good news for some economically sensitive commodities like copper, it is great news for others like precious Read more […]