Daily Investment Tips

To invest in oil, you don’t need to buy barrels of the stuff, though in the last bull market there was talk of hedge funds being forced to take delivery of tankers.

Here are four ways to invest in oil without dirtying your hands.

Oil ETF

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. You can talk to a broker about oil etfs.

Crude Oil Futures

Crude oil futures are among the most popular and widely watched futures markets. There isn’t a day without the mention of crude oil prices on the television, in newspapers or magazines. Futures for crude oil trade on more than one exchange and are available nearly twenty-four hours a day. Crude oil prices are watched widely by speculators, hedgers, and the general public since petroleum products can affect nearly every facet of our lives. However, crude oil trading involves a substantial risk of loss and is not suitable for everyone.

Stocks Of Oil Companies

If you feel buying oil futures and oil etf is too complicated for your liking you can invest in oil the easy way: Buying stock of big oil companies such as Exxonmobil, Chevron, & BP. You can buy these stock long or short, it depends on how you forecast the oil trends.

Oil exploration ventures

Oil exploration ventures buys rights to look for oil in particular areas e.g. Africa, Australia etc. Some of this oil ventures have issued shares on stock exchange and any one interested can buy the stock. Oil exploration is risky business with more bad news than good news but if a ventures strikes oil, the investors are set for a rich pay day.

Oil contractors

The oil industry relies on service contractors. The oil contractors are involved in drilling, One famous oil contractor is Halliburton. You can look up for oil contractors on stock exchange.

written by Constantine Njeru \\ tags: Africa Australia, Crude Oil Futures, Crude Oil Prices, Crude Oil Trading, Exchange Traded Fund, Futures Markets, Hedgers, Investing In Oil, Oil Etf, Oil Exploration, Oil Trade, Oil Ventures, Petroleum Products, Risky Business, Service Contractors, Stock Exchanges, Stock Oil, Substantial Risk

There is a strong case for a higher corn prices in 2011. Heavy rain and flooding across the US will affect this years crop. Cargill, the world’s largest agricultural commodities trader, estimates that about 2.5m acres of corn have been lost. A decline in production can only mean more upward pressure on corn prices. Source FT Commodities News.

Even before the US flood corn prices were under upward pressure from the following factors.

1. Surging demand from emerging markets,
2. Rising consumption of the grain by the ethanol industry.
3. Rising global population in key consuming nations in Africa and Asia
4. droughts in other key producing regions.

written by Constantine Njeru \\ tags: 5m, Acres Of Corn, Africa, Agricultural Commodities, Asia, Cargill, Commodities News, Commodities Trader, Consumption, Corn Price, Corn Prices, Decline, Droughts, Emerging Markets, Estimates, Ethanol Industry, Flood, Global Population, Heavy Rain, Upward Pressure

Last week price drop in oil seemed to have hit, large hedge funds, hard. Clive capital a London based commodity hedge funds has come out and confessed they incurred losses of $4oom.

According to a report seen by Ft of UK, the management said it was at loss to explain what had caused oil prices to tumble so fast.

The scale of this loss demonstrates that even the savviest investors are not immune loss. Investors should take note of that footnote at the end and bottom of investment promotion brochures, Past Performance is not an indicator of future performance!

written by Constantine Njeru \\ tags: Brochures, Capital Hedge, Commodity, Footnote, Hedge Fund, Hedge Funds, Investment Promotion, London, Losses, Oil Loss, Oil Price, Oil Prices, Savviest Investors

The highlight this week was Goldman Sach’s commodities recommendations report that advised clients it was time to close commodities trades it had previously recommended (a weighted basket of oil, copper, cotton, soybeans, and platinum, and individual bets on copper and platinum). Notably, the investment bank warned that, “at prices above $125 per barrel, owning oil now looks increasingly risky.

Goldman Sach’s Copper Forecast : Goldman Sach’s Platinum Forecast

The bank first recommended clients go long copper in October, with the trade returning 23 percent since then. In July 2009 the bank recommended the platinum trade, which has returned 36 percent in 21 months. Now the banks thinks this is the time to cash in.

In a more confusing analysis, Goldman said it still sees copper and platinum prices rising in the long-term, and said corrections could be used to establish new long positions.

Goldman Sach’s Gold Recommendation

Goldman Sach’s is recommending that clients remain long gold.

Data Source: CNBC Commodities news.

written by Constantine Njeru \\ tags: 21 Months, Banks, Bets, Cnbc, Cnbc News, Commodities News, Copper, Data Source, Gold Data, Goldman Sach, Goldman Sachs, Highlight, Investment Bank, Platinum Prices, Recommended Clients, Soybeans, Trades

Richard Russell says gold is on its way to $6,000:

This time, gold has, so far, only multiplied five times — from 255 to 1430. If gold was to repeat its 1970 performance and multiply 24 times, it would rise to over 6,000. But there’s a difference between the two gold bull markets: This time the other half of the world’s population (China, India, Asia) has been added to the mix. And this time, the very viability of fiat currencies is a part of the picture.

Richard Russell has since 1958 been editor-publisher of the Dow Theory Letters, which “cover the U.S. stock market, foreign markets, bonds, precious metals, commodities, economics — plus Russell’s widely-followed comments and observations and stock market philosophy.

Source: Kingworldnews.

written by Constantine Njeru \\ tags: Bonds, Bull Markets, China, Commodities, Dow Theory Letters, Economics, Editor Publisher, Fiat, Fiat Currencies, Foreign Markets, Half Of The World, India Asia, Market Philosophy, Population, Precious Metals, Richard Russell, Russell Gold, Time Gold, U S Stock Market, Viability

Farmland investment funds are funds that directly invest in farmland. Farmland investment funds are rare but there are two such funds in Canada and Brazil.

Agrifirma, based in Brazil, and Agcapita Farmland Investment Partnership, based in Canada.

Jim Rogers, a high profile investor is an investor in these two farmland investment funds.

written by Constantine Njeru \\ tags: Brazil, Canada, Farmland, High Profile, Invest, Investment Funds, Investment Partnership, Investor, Jim Rogers

The largest oil exchange traded fund (Oil ETF) is the U.S. Oil Fund ETF. The U.S oil fund tracks oil futures.

U.S oil fund etf has $1.89 Billlion in Assets. The $1.89 billion U.S. Oil Fund trades with the symbols (NYSEArca: USO).

The U.S oil fund etf invests in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges.

The United States Oil Fund was founded in April 2006 by the Victoria Bay Asset Management along with the American Stock Exchange.

written by Constantine Njeru \\ tags: American Stock Exchange, Asset Management, Assets, Exchange Traded Fund, Futures Contracts, Gasoline, Heating Oil, Light Sweet Crude Oil, Natural Gas, Oil Etf, Oil Exchange Traded Fund, Oil Futures, Oil Heating, Sweet Crude Oil, Trades, Types Of Crude Oil, United States, Uso, Victoria Bay, Wti

The following commodities price chart is courtesy of Investor John Hussman. The chart shows historical trend of Commodities prices. Beginning in 1802 to 2011.

Commodities boom years

• 1812 – 1814
• 1824 – 1840
• 1854 – 1864
• 1880  – 1924
• 1933 – 1952
• 1962 – 1984
• 2004 – 2014

As you can see, the trend during the boom years is not linear. Prices move up then reverse a little then move up and up.  The general conclusion is nothing lasts forever don’t get sucked up in a bull market have an exit strategy.

written by Constantine Njeru \\ tags: 1864, Boom, Commodities Price, Commodities Prices, Conclusion, Exit Strategy, Investor, John Hussman, Trend

Soros Fund Management’s 13F filing reveals that the money management firm continues to bet on gold, even while calling the metal “the ultimate bubble” for the past year.

At the end of 2010, the fund held $774 million worth of ETFs that owned gold, about the same as the previous quarter’s gold holdings.

In Q3, the fund reduced its position on some gold mining stocks, but Soros held onto its 12.9 million shares of NovaGold Resources in Q4, the same amount owned at the end of the previous quarter.

written by Constantine Njeru \\ tags: 13f, Bet, Etfs, George Soros, Gold Fund, Gold Holdings, Gold Investment, Gold Investments, Gold Mining Stocks, Gold Stocks, Investment Holdings, Investment Management, Money Management Firm, Novagold Resources, Q3, Soros Fund Management

All indications are we will continue to see higher food commodities prices in 2011.

The consensus from Global Commodities Forum 2011 in Geneva (a meeting of commodity traders and senior officials) is prices point north.

Five factors driving food commodities prices in 2011

Poor weather - Poor weather in form of la nina and el nino continue to affect parts of Latin America, Africa and Australia. This is constraining supply.

Speculation - This time it is not just traders who are speculating, countries and buying and hoarding.

Geopolitical risks - Political crisis in places such as Ivory Coast will continue to impact on supply.

Rise of China & Other emerging Markets – As this countries economies expand, they have become major buyers pushing demand high.

2011 Global Economic Growth -  Growth is good but it is a double edged sword. As global economic growth accelerates in 2011, demand for commodities will push prices higher still.

All indications are we will see new highs in Cocoa, Coffee, tea, wheat, soyabeans, rice & corn

written by Constantine Njeru \\ tags: Cocoa Coffee, Coffee Tea, Commodities Prices, Commodity Traders, Consensus, Double Edged Sword, Emerging Markets, Food Commodities, Geneva, Global Commodities, Global Economic Growth, Ivory Coast, La Nina, Latin America, New Highs, Political Crisis, Rise Of China, Senior Officials, Speculation, Wheat