Quantcast
Other Stories

Silver has witnessed the biggest ETP inflows as investors believe the commodity would benefit from improved industrial demand, Nick Brooks said.

09 Apr 2014

LONDON (Commodity Online): After three underperforming years, investors are now looking closely at commodities which is also evident from the inflows into commodity exchange traded products (ETP) inflows in January and February 2014, according to Nick Brooks, Head of Investment Strategy at ETF Securities Ltd.

In an interview to Sreekumar Raghavan, Managing Editor of Commodity Online, he said that sentiments have turned positive on precious metals and after holding extremely negative sentiments last year, investors now have taken a balanced outlook. Gold ETPs have also witnessed positive inflows this quarter except in January when it had fallen by a negative $946 mn in Assets Under Management (AUM). In January and February $322 mn and $536 mn inflows were reported. Even though gold prices have rebounded very few people think a repeat of 2009-10 would occur.

Silver has witnessed the biggest ETP inflows as investors believe the commodity would benefit from improved industrial demand, Nick Brooks said.

Sentiments about industrial metals remain clouded but Copper ETP's have been viewed positively by investors.

In agriculture ETP space, it was interesting to see strong inflows, Brooks said. In the past couple of years, large number of investors are moving into grains and softs ETPs. But it is attracting medium to long term value investors rather than momentum investing pattern seen in futures markets, he added.

Wheat and Corn has gained from tensions in Russia and Ukraine aided by the export ban from the region.

In natural gas which was largely weather driven, the number of short positions in natural gas ETPs have only risen after the rally while the trend is quite neutral in crude oil.

Investors are likely to reach out to commodities and emerging market equities once the dark clouds over China weakens.


YOUR RESPONSE
Click on the image to reload it
Click to reload image
COMMENTS (0)

@2013 COMMODITYONLINE ALL RIGHTS RESERVED