Tag Archives: gold

Money Grows on THESE Trees

My parents used to tell me that money doesn’t grow on trees, but they didn’t know about the Eucalyptus trees in Australia like the one shown below. The science journal, Nature Communications, reported Eucalyptus trees in western and southern Australia absorb gold through their roots and transport it up all the way through their leaves. 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 […]

How Badly is Gold Bleeding?

In light of much negative news about the bust in gold, I thought it might be interesting to share the impact the gold drop has had on dollar exposure in the two most widely used commodity indices, the S&P GSCI and DJ-UBS.  Below is a note we published today in a media bulletin: Good afternoon Read more […]

Good Calls and Bad Calls of Covered Calls

Generally investors use covered calls to earn extra income from investments they think might not have much upside potential.  For example, if a CEO has a very large stock holding in his or her company but doubts the stock price will increase (or decrease much), writing (selling) options on the stock to collect a premium Read more […]

THE Golden Question?

What is your long term outlook for gold and where do you see prices moving in the months ahead? This is one of the questions I was recently asked in a Reuters CCTV2 interview.  While we are not in the business of forecasting, we are in the indexing business where we measure markets – and Read more […]

June 2013: What’s Hot and What’s Not

Read about some commodity highlights in June from an interview with Courtney Nebons, our studio producer.  Click here to watch the video. Q1.  This month we heard a lot about the Fed easing its monetary policy, so how did that impact commodities? Commodities reacted negatively to the news that the Fed may ease its bond Read more […]

Risky Assets, Safe Havens, or Lost Identities?

All commodities in the S&P GSCI and the DJ-UBS CI crashed on June 20, 2013, losing 3.1% and 3.0%, respectively, after the Fed declared the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year.  This is generally bad news for commodities since historically Read more […]

S&P GSCI Precious Metals Hits Lowest Since October 2010

On April 15, 2013 the S&P GSCI Precious Metals dropped 9.6% in one day, entering a bear market from the 2013 high occurring on January 23. Since then, the index has fallen further to hit its lowest level of 1733.52 since October 1, 2010 when it was at 1717.53.  The precious metals index is down 20.1% YTD, and Read more […]