Tags: Commodities | gold | dollar | economy

WSJ: Commodities Bounce Back: Is Now the Time to Pounce?

By    |   Wednesday, 22 April 2015 07:40 AM

The Bloomberg Commodity Index has jumped 5 percent from the more-than-10-year low it hit March 17, helped by rallies in oil, copper and sugar among other items.

Some experts say now is a good time to jump into the commodity space.

The dollar's correction this month from the multi-year highs it reached against a range of currencies in previous months has helped commodities. And so have tenuous signs of an economic recovery in Europe and the continued U.S. economic rebound, as tepid as it may be.

"People are finding comfort that Europe is stimulating, that U.S. growth is being maintained," George Zivic, manager of the Oppenheimer Commodity Strategy Total Return fund, told The Wall Street Journal. "If you are a value commodity investor, I do believe there are opportunities here."

As for Europe, he was referring to the European Central Bank's 60 billion-euro monthly bond purchases. When it comes to the U.S. economy, it grew 2.2 percent in the fourth quarter, though the Atlanta Federal Reserve forecasting model puts growth at only 0.1 percent for the first quarter.

On the gold front, star investor Jim Rogers has been bullish for years, but that doesn't mean he sees the precious metal's strength lasing forever.

"Gold is going to turn into a bubble eventually, and when it turns into a bubble, I hope I'm smart enough to sell it," he told Sprott Money News when asked what would push him to dump his gold holdings.

"On the other hand, on the down side, I'm not quite sure that I can think of anything that would cause me to sell my gold. If nothing else, it'll be for my children someday."

Gold has risen 1.2 percent so far this year.

Rogers sees major financial trouble ahead in our country. "The United States is the largest debtor nation in the history of the world," he said. "No debtor nation has ever gotten like this, and the debts are going higher and higher. That is a reason to own gold and silver."

The federal government's debt totals $18 trillion, compared to GDP of $17.4 trillion.

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The Bloomberg Commodity Index has jumped 5 percent from the more-than-10-year low it hit March 17, helped by rallies in oil, copper and sugar among other items.
Commodities, gold, dollar, economy
351
2015-40-22
Wednesday, 22 April 2015 07:40 AM
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