Gold is once again hogging the metals commodities spotlight in 2014, but some money managers are bullish on more cyclical fare and industrial metals.
A survey of 450 investment professionals conducted by ETF Securities indicates “attendees remarked that commodities remained a favoured asset class in 2014 with nearly 20% of those polled ranking commodities as one of their top three picks,” according to a statement.
“Cyclical commodities, especially industrial metals were favoured by investors. Platinum, copper and silver were the top three individual picks with platinum coming out well on top with 31% choosing it as their favourite, followed by copper at 26%. Silver followed suit with an average of 15% choosing it as a top performer in 2014. Gold also saw strong interest (with 13%) concluding the metal is still seen as a hedge against potential growth and financial risks in 2014,” according to the survey.
ETF Securities is the issuer behind the ETFS Physical Palladium Shares (NYSEArca: PALL) and the ETFS Physical Platinum Shares (NYSEArca: PPLT). Despite a plethora of bullish calls on palladium heading into this year, PALL has traded slightly lower. PPLT has traded modestly higher due to labor strife in South Africa, the world’s largest platinum producer. [Breakout Looms for Palladium]
Earlier Wednesday, China, the world’s largest copper consumer, said exports surged 10.6% last month while imports jumped 10.3%. Those data points would appear to be a positive catalyst for copper, but market observers are skeptical, saying the extend Lunar New Year should have been a drag on activity in the world’s second-largest economy.
The iPath Dow Jones-UBS Copper Total Return Sub-Index ETN (NSYEArca: JJC) is up almost 1% Wednesday, but entered the day with a 5% year-to-date loss.
“Most investors we surveyed indicated they are positive on the outlook for global growth in 2014, with the US leading the way. This likely explains their general bullishness towards broad commodities after three years of underperformance, with platinum and copper top picks. Gold also scored well, reflecting investors’ recognition that if the consensus growth story proves wrong, gold will likely perform,” said Nicholas Brooks, head of research and investment strategy at ETF Securities, said in the statement.
iPath Dow Jones-UBS Copper Total Return Sub-Index ETN
