The “Old Economy” strikes back


Oil prices are currently subject to spike risk. As geopolitical risk continues to build in theMiddle East and supply-side dynamics remain relatively constrained, we believe the oil pricecould rise significantly in the coming weeks as the “Old Economy” strikes back. When Brent oil went below USD 30 per barrel in… Read More »

Commodities, reflation drives performance


Commodities have outperformed, supported by the geopolitical situation in many oil-producing countries. Brent crude has risen to $75 per barrel, its highest level since 2014. We have overweight positions on the metals and mining sector, reflecting our positive view of commodities and the economic cycle. Energy and commodity prices are… Read More »

Enhancing the performance of alternatives with gold

World Gold Council -

In recent years, buy-and-hold investors such as pension funds, endowments, insurance companies, and sovereign wealth funds (SWFs) have gradually increased their investments in alternative assets to diversify their portfolios and boost returns. ‘Alternatives’ make up 23% of SWF portfolios and 24% of global pension funds, up from single digits in… Read More »

UBP Market Comment: Gold

Névine Pollini -

Gold started the new year with a bang, rallying to its highest level since mid-September 2017. It was boosted by a variety of factors: continued geopolitical tension between the US and North Korea, President Trump’s decision to recognise Jerusalem as Israel’s capital and the tensions this created across the Muslim… Read More »

What is better than gold? – Silver!


At least if we look at some fundamental data such as the ratio of gold production to silver production together with the ratio of the gold price to silver price or the grade of industrial use of both metals. Then, one quickly finds out that compared to gold, silver has… Read More »

Fed normalisation to cap any potential upside


Over the past month, the market has endured a plethora of potential risk events, such as the French and UK elections, the ongoing political gyrations in the US and the Greek debt decision. As we expected, most outcomes have been followed by a strong reaction from the markets. Adding to… Read More »

Is OPEC Irrelevant?

Ryan McGrail -

In late May, OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC oil producers agreed to extend production cuts through April 2018 in the face of oil inventories that remain well above average. While one would have expected a positive market reaction, many investors believed deeper cuts were necessary and… Read More »

Commodities hitch a ride on global growth


The US dollar weakened materially in 2017, increasing the appetite for commodities outside the US as prices measured in other currencies fell. In 2018, we expect the dollar to be steady. Highly favourable tailwinds give us confidence that commodity prices will push significantly higher in 2018. Stronger economic growth in… Read More »