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  • Copper ETF Most Potential Among The Precious Metal ETFs

    Copper has the ability to forecast the fluctuations in the growth and decline of an economy simply by the way the supply and demand of this golden bronze metal fluctuates. Every industry is indispensable by this metal. Whether we talk of the construction industry, automobiles industry or even the consumer industry this metal is simply vital.

    The housing sector requires it for building the basic framework of the buildings especially the pipelines, wiring and plumbing. The Automobile Industry's requirement for it is to be able to build the vital elements of the automobiles, such as the basic structure and the auto parts. This essential industrial metal is also a major ingredient in the IT Industry.

    All the circuit boards, integrated circuits and chips require this resource. The importance of this metal is such that it acts as a Barometer against the economic activities. Thus many industrialists refer this metal as Dr. Copper because of its ability to analyze the growth of each economy and each prevalent industry. This gives the investors a direct exposure of all the economies.

    The price of copper had fallen in late 2008, but has seen an increase in its rating off lately. This was due to the slowing down of the economy of China as it is important to know that china is the leading consumer of this Dr. Copper. New Mines have been set up resulting in the increase in supplies of this metal. This could result in further downward impact of the price of this element.

    But this is not a matter of concern as the urbanization of the major developing economies of the world such as India and China furnish to the increase in the demand of this shiny metal. The increase in China's disposable Income has lead to a surge in the Automobile, Health and Consumer Products Industry. These Industries are hungry for this metal and require a constant feeding stock of it.

    The Copper ETF is thus a very potential form of investment as it is engaged in the major aspects of extraction, production, mining, and exploration of this true base metal. Some of the major producers of copper metal are Chile, China, Peru and United States. Chile majorly feeds the economies by catering to major needs of the world. Investing in Copper ETF's is the latest potential option, though there are other precious metal ETF's available in the market. This versatile metal is anticipated to score very high in terms of demand and high yields. Other precious metals ETF's do not gratify to the needs of the demand for their uses in technology or households objects. Moreover its value is on constant rise due to its potential as currency. Focusing on the increase in the demand of this resourceful metal there could be a future snag in its supply. This could further increase in the flow of investments in the Copper Mining Industries.

    China is a potential market for the copper bullion. So it is recommended to consider Copper Funds as a new investment route. The risks and factors involved with most of the Commodity Investment Funds is the factor of demand for that particular commodity in the economy.

    If the value of demand ceases due to various factors linked with the economic trends then there could be a decrease in the value of commodity investments. But a stated argument against this risk is that the demand for the metal is extremely high as compared to its supply and in addition to this it is the most recycled metal in demand. The only factor left for being responsible for its depleting value of its investment is the discovery of a new and cheaper alternative.

    China and other developing nations are extremely good markets for Housing sector due to the urbanization. If there is a downward trend in this development there could be a decline in its value. But of now, the upward movement in urbanization does not seem to have any hindrance, making Copper ETF a desired Financial Vehicle. So the investors require monitoring the Chinese economy very closely.

    The growth and urbanization of this economy has a direct beneficial influence on the value of the funds. With an observation of the economic influences that stimulate the effects on the infrastructure of this country.

    Global X Copper miners ETF shows a positive approach toward commodity investments, and direct exposure to business in the Copper mining companies, which are based heavily in Canada, United Kingdom and Australia which serve 66.45% of the top holdings. Further the COPX fund issuers charge an annual fee of 0.65%, the lowest in the asset class.

    Jul 18 2:58 AM | Link | Comment!
  • Gold ETF's An Apple In The Eyes Of The Investors

    Let us reason the contradiction to what Warren Buffett once said: Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

    Why would anyone as a matter of fact want to invest in Gold? But according to the reality and objectives of today's typical investors there are two answers to this question: Firstly adding this precious metallic element to ones portfolio serves as a financial gain (profit) from the rapidly increasing prices of it. Secondly this yellow dense metal, hard to corrupt, serves as a hedge (safety) against the social, political and economic crises or currency based crises. Venture Capital Gold has always been an apple of the investor's eye, as it is the safest form of investment due to its market stability. This mineral provides a wide range of feasible opportunities if invested into. You require a cautious and good study of the behavior of its market. A good command of the Venture Capitalist Gold Market can help you gain more on your investment, keeping in mind that the prices depend on the balance of the demand and supply of this "Nobel Metal".

    The trend shows that when the value of currency goes down especially of the Dollar, Gold sees an upswing and vise verse an. This is because of the fact that this Nobel metal has never enjoyed good relations with the Dollar, even though it has always been priced in terms of Dollar. Hence keeping a track of such indicators could prove beneficial while investing. A gold assemblage has always coincided with massive investment inflows. Interestingly a high demand in Gold leaves little or no choice for the producers to fund the explorers, who in turn expedite the process of exploring new deposits for extracting it to be able to meet the surge in demand. This makes it a perfect hedging weapon against the Dollar and the investors term this relation as the Venture Capital Gold. So whenever there is an anticipation of a good Gold rally, market professionals tend to exploit the market situation by investing aggressively with the exploration companies through the Gold Explorers Fund.

    It is so simple that we can analyze this situation with this example: If there is an increase in the current spot values of this mineral by 25% it would result in a strategic exposure of the Gold Exploring companies. This effect would deliver a 50% or more increase in the same market. Today this form of investment is easily viable through the Gold Explorers ETF. This favored commodity of 2013 has an expectation of an increase in its rise by more than 80% of the gold executives. This figure is a result of an analysis of the one of the largest TSX-listed gold mining companies. It shows that more than 20 of these companies have cash reserves greater than $500 million. Now according to this figure this ETF is proving itself as a good investment. Off lately the Gold prices have stabilized in the recent weeks from a low range in May to a High price in June.

    Venture Capital Gold presents a way for investors to involve themselves in the movement of gold prices, both directly and indirectly.

    Global X Gold Explorers ETF[GLDX] is accustomed to the yield of the Solactive Global Gold Explorers Index that tracks a list of top holdings like the RAINY RIVER RESOURCES LTD(8.23%), TOREX GOLD RESOURCES INC(7.42&), SEABRIDGE GOLD INC(6.3%) and PRETIUM RESOURCES INC(6.18%) etc. GLDX provides a facility for all those seeking to invest through gold explorers fund at an expense of 0.65% on annual transactions which is an all time low. The fund issuers refer this period as the perfect time for an investment in the Gold Venture Capitalist for a buffer gain.

    Jul 08 2:08 AM | Link | Comment!
  • Simplifying Exposure To The China Consumer ETF

    China clearly suffices for her status as the Eastern Superpower and the economic growth has many facets in this nation which is home to above 135 billion natives. Although, still calling it an emerging economy is an understatement of sorts but is mandatory, owing to the millions of first time consumers that are emerging from the middle classes of China. Investments in the China consumer sector, currently entice for exposure through broader market products in form of China Consumer ETF. The likes of CHIQ ETF are in easy access of foreign investors, who in turn get a basket of most liquid and large cap Chinese Consumer equity and such funds often follow an underlying bench mark, Solactive or otherwise but listed on Dow and NASDAQ.

    The investors who want to play long term on the Asia consumer story and in particular on that of China will be relieved to know that by 2020, when additional 200 million citizens will be residing in the urban areas, the Sino consumer sector may havegrown manifold, supplying endless products to the first time users of commodities like houses, cars and smart phones etc. The growth will simultaneously create expansive markets where goods are available readily and at cheap prices and will always have a ready buyer.

    The rural rush to the urban centres from the villages has contributed to an increase in the consumer demand and up gradation of lifestyles. This will thus increase the number of people entering the middle class segment. The economy is supported less by exports and more by domestic spending in times of today. China has outstripped other emerging nations on the per capita consumption chart.

    The heightened living standard of Chinese people can be measured with the imports of luxury cars and other goods from across the globe. Greater than a million cars were imported (most of them were top end motoring makes) in the preceding year.

    The country is hugely inclined to buying gold and has had a record total demand (including jewellery) of more than 255 tons in the year 2012.

    The GDP growth picture for China seems increasingly optimistic as the annual mark is said to middle between over 8 % to an achievable 10 % or so. The stock market has shown signs of improvement though it is still at a reasonable valuation compared to its historical record; therefore it presents a good buying opportunity. The election of a new government leadership has furthered the confidence in the indigenous population and to some extent international investors.

    Foreign investors seeking to gain wide spread and sector specific exposure across borders can look at ETFs and in particular China Consumer ETF.

    In fact the country's industrial and manufacturing division is impressively developed and promises to surpass United States in this segment by the year 2015. (Coming back to) Invest china consumer sector has a great potential lined up for further advancement owing to more than one reason.

    The increased consumerism and associated spending has accounted more than 35 % of this nation's GDP.

    Even the state polity wants to focus on heightening the consumer demand and domestic spending in itseconomy.In fact consumer directed firms are considered to withstand any negative phase of the economic cycle and give out high returns throughout. These companies (consumer staples and discretionary) that cater to the upsurge in house hold income look to be well placed even in future time. Consumer staples' stocks are aptly deemed to be non-cyclical as people cannot cut out indispensable household items such as food and beverages etc. from their budget even in times of crunch.

    Global X China Consumer ETF delivers as per the performance of the Solactive China Consumer Index post an operational fee of 0.65% on the annual transactions. The CHIQ ETF and its underlying benchmark provide exposure to firms (forty one) involved in automobile manufacturing, producing apparels and sport goods, food & beverages and departmental stores. Chiq global x china consumer gives an almost equal weight age to all its assets that among others include stocks of Great Wall Motor Co. [5.82%], Want-Want Holdings Ltd [5.32%] and the popular Dongfeng Motor Group Co. Ltd.

    Jun 05 8:23 AM | Link | 1 Comment
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