Most of us know that silver has one of the best if not the best fundamental profile. Nobody would know this better than large banks, especially Rothschild's Barclays Capital. Therefore, for them to come out at this time and unrealistically state that they are "negative on silver", it only means their backs are against the wall and their silver ETF is on the edge of a cliff. Notice too that "Mr. Expert" below did not provide an argument to support his negative silver call. How could he without making himself look totally absurd? After issuing such a desperate and ridiculous statement, a silver default is most likely occurring or will be in the near future.
Hang em high - VHF
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Barclays bullish on commodities
Outlookmoney
Mumbai, Sep 26 (PTI) Barclays Capital is bullish about the gold, cotton, carbon and power prices in the long-term, a top company official said today.
"We are bullish on gold, cotton, metal and power sector in the long-term as these commodities have some strong fundamentals," Barclays Capital Managing Director, Head of Commodities Research, Paul Horsnell, told reporters here.
Gold is finding some support from investors while "we are negative on silver," he said.
"We have seen a volatile price range in crude oil. It is too early to speak of the end of the multi-year boom in oil prices, but crude price is expected to be averaging USD 115 per barrel next year. At the start of this year, USD 100 a barrel for crude oil was seen as impossibly high," he said.
Asked whether crude price had reached its peak, Horsnell said, "the answer is no. It's a very volatile market and going forward there are some concerns of potential upside." "We are bullish and long-term positive on power prices. The prevailing power prices are bullish and specific in individual areas. Looking at the demand, power prices are expected to remain strong," he said.
The recent correction in commodity prices after a period of high prices was very much related to the economic cycle, Horsnell said. Commenting on the expected USD 700-billion bail-out package by the US Government in view of the credit crisis, Horsnell said the package would play a role in stabilising the broad market sentiment.
Barclays Capital has a team of commodity analysts based in London, New York, San Francisco and Singapore.
Barclays Wealth serves high net worth, affluent and intermediary clients worldwide, providing private banking, asset management, off-shore banking, stock-broking, wealth structuring and financial planning services.
As on December 31, 2007, total client assets were 132.5 billion pounds. In Asia Pacific, clients are able to access more than 200 wealth bankers located in Hong Kong, Singapore and Mumbai.
