Precious Metals Ease While Base Metals Climb

metals gold and silver bnsnlaGold eased by $2.00 to trade at 1301.50 after last evenings comments from Federal Reserve Director Janet Yellen. Gold futures settled with a gain today as traders assessed a speech from Federal Reserve Chairwoman Janet Yellen. Gold ticked up 0.3 percent to finish at 1,303.50 after touching a low of $1,293.50. In a speech to the Economic Club of New York on Wednesday, Yellen said that central bankers and many economists see a return to full employment and stable prices by the end of 2016. That baseline is “quite plausible,” she said, but still two years away. While gold ended a 12-year bull run in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers, prices have rebounded 8.5 percent this year as unrest in Ukraine spurred haven demand. Gold held steady just above $1,300 an ounce on Thursday supported by tensions in Ukraine, but the metal was at the risk of adding to recent losses as the world’s biggest gold-backed fund saw its sharpest outflow in nearly four months.

Holdings in SPDR Gold Trust fell 8.39 tons to 798.43 ton- the biggest outflow since Dec. 23, indicating waning investor interest. China’s annual demand for gold could jump around 20 per cent by 2017 as more of its increasingly wealthy population seeks new ways to make money, the World Gold Council predicts. The forecast by the World Gold Council (WGC) comes after China became the world’s largest gold-consuming nation in 2013, overtaking India.

Annual demand for gold in the form of jewelry, coins and bars is set to hit “at least 1,350 tonnes by 2017″, the WGC said in a report on China. That would represent a rise of nearly a fifth from the country’s record consumption of 1,132 tonnes last year.

In other metals yesterday, silver increased 0.7 percent to $19.63 an ounce. Copper prices climbed following data showing China’s economy slowed somewhat less than feared. High-grade copper increased 1.3 percent to settle at nearly $3.03 a pound. Palladium added 0.8 percent to 802.30 an ounce, while platinum declined 0.5 percent to 1,437.80 an ounce.

Thursday morning saw silver tumble to 19.553 giving up 81 points while copper reversed losses to climb by 9 points to trade at 3.038 as the metal markets remain mixed and confused in the Asian session. Gold prices drifted quietly lower in Far East trading on their Tuesday until around 2 p.m. Hong Kong time. Gold trading was halted, as gold gapped down $12 in an instant, as 4,000 contracts were dumped in seconds.  In less than three minutes it was all over.

China, the market for nearly 40% of the world’s copper, said its economy grew by 7.4% in the first quarter, slower than the last three months of 2013 but above analysts’ forecasts. The number boosted investors’ confidence that China will maintain growth rates around 7.5% for the year.

Wednesday’s bounce comes on the heels of a 2% drop in copper futures the day before, as traders bet against the industrial metal ahead of the Chinese data.

Copper has been one of the worst-performing commodities in 2014, with futures down 11% in the first quarter. The losses came as many investors bet that an economic slowdown in China and sluggish growth in the U.S. would dent global demand for copper and sold, or shorted, copper futures. Prices for the industrial metal have crept higher in recent weeks after China announced some stimulus measures to boost economic growth. Meanwhile, production shortages in key mines have taken the edge off worries regarding an anticipated supply glut later this year.

 

Article source: http://www.fxempire.com/news/commodities-news/precious-metals-ease-while-base-metals-climb/

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Top Ranked Precious Metals Funds – Best of Funds

Investors often seek solace in precious metals instruments
during a downturn. These investments are considered to be a
natural hedge against a rapidly declining currency. Even a small
portion of precious metals in a portfolio can provide significant
protection against inflation. In addition, when markets are
slowing down, securities related to these industries acquire
greater significance. At such times they provide better returns
than equity securities, even outperforming them. Precious metals
funds are the best option for investing in this sector since they
possess the advantages of professional insight and
well-diversified portfolios.

Below we will share with you 5 top rated precious metals
mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we
expect the fund to outperform its peers in the future. To view
the Zacks Rank and past performance of all precious metals funds,
investors can
click here to see the complete list of funds.

Vanguard Precious Metals and Mining Investor

(VGPMX) invests a major portion of its assets in domestic and
foreign companies that are mainly involved in mining, processing
and distribution of precious and rare metals. A maximum of 20%
may be directly invested in gold and silver among other precious
metal bullions. The precious metals fund has a five year
annualized return of 0.92%.

This non-diversified fund has an expense ratio of 0.25% as
compared to category average of 1.41%.

OCM Gold Investor

(OCMGX) seeks capital appreciation over long run. It invests a
lion’s share of its assets in domestic and foreign companies
related to gold mining and precious metals sector. Generally it
invests in gold producers or gold mining exploration firms. This
non-diversified precious metals fund has a five year annualized
return of -0.21%.

Greg M. Orrell is the fund manager and has managed this fund
since 1988.

Rydex Precious Metals Investor

(RYPMX) invests majority of its assets in precious metals
companies that are traded in the US. Investments can also be made
in derivatives and small-cap and mid-cap companies. It may also
invest in ADRs and government derivatives. This non-diversified
precious metals fund has a five year annualized return of
-2.38%.

As of March 2014, this fund held 43 issues with 9.10% of its
assets invested in Freeport-McMoRan Copper Gold.

Fidelity Select Gold Portfolio

(FSAGX) seeks capital growth. It invests in companies whose
primary operations are related to gold and few precious metals
like silver, diamonds, platinum are considered for investments.
The precious metals fund has a five year annualized return of
-4.48%.

This non-diversified fund has an expense ratio of 0.92% as
compared to category average of 1.41%.

American Century Global Gold

(BGEIX) invests in securities of those global companies whose
operations are related to gold or other precious metals.
Investments are made with the purpose of attaining growth in
capital and dividends by investing mostly in companies which are
involved in processing, mining, fabricating and distributing
gold. The precious metals fund has a five year annualized return
of -2.79%.

Lynette Pang is the fund manager and has managed this fund
since 2010.

To view the Zacks Rank and past performance of all precious
metals mutual funds, investors can
click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward.
Learn more about the Zacks Mutual Fund Rank.

View All Zacks #1 Ranked Mutual Funds

Get Your Free (BGEIX): Fund Analysis Report

Get Your Free (FSAGX): Fund Analysis Report

Get Your Free (OCMGX): Fund Analysis Report

Get Your Free (RYPMX): Fund Analysis Report

Get Your Free (VGPMX): Fund Analysis Report

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Zacks Investment
Research

Article source: http://www.nasdaq.com/article/top-ranked-precious-metals-funds-best-of-funds-cm345047

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