Currie believes returns from commodities for the period will be more than 18%, and he expects almost half of the gain to be realized by the end of this year.
London Commodity Market Industry News
Goldman Sachs, with its strong position and considerable expertise in the highly competitive commodities trading market -- which includes global investment banking giants like UBS (UBS 0.00%), Deutsche Bank (DB 0.00%), Morgan Stanley (MS 0.00%) and Barclays (BCS 0.00%) -- is positioned well to derive maximum value from such an uptick.
We have a $122 price estimate for Goldman Sachs, which is at a premium of less than 10% to the current market price.
Great commodities track record
In its annual report last year, Goldman reported commodities trading income of $1.5 billion in 2011 and 2010. That figure is notably lower than almost $4.6 billion that the bank earned from commodities trading in 2009 because of the marked recovery in commodity prices that year after the slump in 2008. The figure for 2011 is particularly important, as it represents about a sixth of Goldman's trading revenues.
Not only is commodities trading an essential part of Goldman's trading portfolio, but it also provides a hedge for the bank's extensive trading operations -- as commodity prices to a large extent tend to move in the opposite direction to debt and equity market prices.
Source: money.msn.com
At London Commodity Markets we have access to one of the world's largest oil trading markets, as well as a proven track record in rare earth metals, the agricultural commodities market and precious metals trading. http://londoncommoditymarkets.com
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